UGI CORP (UGI) Stock Fundamental Analysis
USA - NYSE:UGI - US9026811052 - Common Stock
33 USD
+0.14 (+0.43%)
33 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to UGI. UGI was compared to 14 industry peers in the Gas Utilities industry. There are concerns on the financial health of UGI while its profitability can be described as average. UGI is valued correctly, but it does not seem to be growing. UGI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
UGI had positive earnings in the past year.
UGI had a positive operating cash flow in the past year.
UGI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years UGI had a positive operating cash flow.
1.2 Ratios
UGI's Return On Assets of 2.72% is on the low side compared to the rest of the industry. UGI is outperformed by 64.29% of its industry peers.
Looking at the Return On Equity, with a value of 8.58%, UGI is in line with its industry, outperforming 57.14% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.74%, UGI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 8.58% | ||
| ROIC | 6.74% |
ROA(3y)-0.62%
ROA(5y)2.14%
ROE(3y)-3.46%
ROE(5y)5.82%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
UGI has a Profit Margin of 5.70%. This is in the lower half of the industry: UGI underperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of UGI has remained more or less at the same level.
UGI has a worse Operating Margin (15.32%) than 64.29% of its industry peers.
UGI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 49.51%, UGI is doing worse than 78.57% of the companies in the same industry.
In the last couple of years the Gross Margin of UGI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.32% | ||
| PM (TTM) | 5.7% | ||
| GM | 49.51% |
OM growth 3Y-23.23%
OM growth 5Y32.8%
PM growth 3Y-42.57%
PM growth 5Y1.3%
GM growth 3Y-8.35%
GM growth 5Y6.63%
2. Health
2.1 Basic Checks
UGI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for UGI has been increased compared to 1 year ago.
Compared to 5 years ago, UGI has more shares outstanding
Compared to 1 year ago, UGI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that UGI is in the distress zone and has some risk of bankruptcy.
UGI has a better Altman-Z score (1.38) than 71.43% of its industry peers.
UGI has a debt to FCF ratio of 15.70. This is a negative value and a sign of low solvency as UGI would need 15.70 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 15.70, UGI is doing good in the industry, outperforming 78.57% of the companies in the same industry.
UGI has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
UGI's Debt to Equity ratio of 1.24 is in line compared to the rest of the industry. UGI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 15.7 | ||
| Altman-Z | 1.38 |
ROIC/WACC1.03
WACC6.55%
2.3 Liquidity
A Current Ratio of 0.70 indicates that UGI may have some problems paying its short term obligations.
UGI has a better Current ratio (0.70) than 64.29% of its industry peers.
A Quick Ratio of 0.56 indicates that UGI may have some problems paying its short term obligations.
UGI has a Quick ratio of 0.56. This is in the better half of the industry: UGI outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
UGI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.60%.
UGI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.76% yearly.
UGI shows a decrease in Revenue. In the last year, the revenue decreased by -0.54%.
Measured over the past years, UGI shows a decrease in Revenue. The Revenue has been decreasing by -0.30% on average per year.
EPS 1Y (TTM)4.6%
EPS 3Y1.11%
EPS 5Y5.76%
EPS Q2Q%-116.67%
Revenue 1Y (TTM)-0.54%
Revenue growth 3Y-1.07%
Revenue growth 5Y-0.3%
Sales Q2Q%1.01%
3.2 Future
The Earnings Per Share is expected to grow by 3.09% on average over the next years.
Based on estimates for the next years, UGI will show a small growth in Revenue. The Revenue will grow by 1.58% on average per year.
EPS Next Y4.95%
EPS Next 2Y2.24%
EPS Next 3Y2.7%
EPS Next 5Y3.09%
Revenue Next Year-4.76%
Revenue Next 2Y5.37%
Revenue Next 3Y4.52%
Revenue Next 5Y1.58%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.68, the valuation of UGI can be described as reasonable.
Based on the Price/Earnings ratio, UGI is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.41. UGI is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.28, which indicates a very decent valuation of UGI.
85.71% of the companies in the same industry are more expensive than UGI, based on the Price/Forward Earnings ratio.
UGI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 10.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UGI is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
78.57% of the companies in the same industry are more expensive than UGI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.01 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UGI does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.96
PEG (5Y)1.68
EPS Next 2Y2.24%
EPS Next 3Y2.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.31%, UGI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.95, UGI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, UGI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
5.2 History
On average, the dividend of UGI grows each year by 7.58%, which is quite nice.
UGI has paid a dividend for at least 10 years, which is a reliable track record.
UGI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.58%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
76.79% of the earnings are spent on dividend by UGI. This is not a sustainable payout ratio.
UGI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP76.79%
EPS Next 2Y2.24%
EPS Next 3Y2.7%
33
+0.14 (+0.43%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners93.33%
Inst Owner Change0.75%
Ins Owners0.08%
Ins Owner Change0%
Market Cap7.09B
Analysts85.71
Price Target41.82 (26.73%)
Short Float %4.85%
Short Ratio6.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
Yearly Dividend1.5
Dividend Growth(5Y)7.58%
DP76.79%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)55.47%
Min EPS beat(2)21.11%
Max EPS beat(2)89.82%
EPS beat(4)4
Avg EPS beat(4)44.75%
Min EPS beat(4)21.11%
Max EPS beat(4)89.82%
EPS beat(8)8
Avg EPS beat(8)70.16%
EPS beat(12)10
Avg EPS beat(12)47.83%
EPS beat(16)11
Avg EPS beat(16)29.54%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.5%
PT rev (3m)7.89%
EPS NQ rev (1m)-23.08%
EPS NQ rev (3m)-21.18%
EPS NY rev (1m)0.95%
EPS NY rev (3m)2.57%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.54%
Revenue NY rev (3m)6.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 10.28 | ||
| P/S | 0.97 | ||
| P/FCF | 16.01 | ||
| P/OCF | 5.51 | ||
| P/B | 1.46 | ||
| P/tB | 4.32 | ||
| EV/EBITDA | 7.95 |
EPS(TTM)3.41
EY10.33%
EPS(NY)3.21
Fwd EY9.72%
FCF(TTM)2.06
FCFY6.25%
OCF(TTM)5.99
OCFY18.16%
SpS34.12
BVpS22.68
TBVpS7.64
PEG (NY)1.96
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 8.58% | ||
| ROCE | 8.77% | ||
| ROIC | 6.74% | ||
| ROICexc | 6.93% | ||
| ROICexgc | 9.26% | ||
| OM | 15.32% | ||
| PM (TTM) | 5.7% | ||
| GM | 49.51% | ||
| FCFM | 6.04% |
ROA(3y)-0.62%
ROA(5y)2.14%
ROE(3y)-3.46%
ROE(5y)5.82%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-25.19%
ROICexcg growth 5Y24.94%
ROICexc growth 3Y-22.84%
ROICexc growth 5Y29%
OM growth 3Y-23.23%
OM growth 5Y32.8%
PM growth 3Y-42.57%
PM growth 5Y1.3%
GM growth 3Y-8.35%
GM growth 5Y6.63%
F-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 15.7 | ||
| Debt/EBITDA | 3.61 | ||
| Cap/Depr | 152.8% | ||
| Cap/Sales | 11.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.85% | ||
| Profit Quality | 105.98% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.38 |
F-Score5
WACC6.55%
ROIC/WACC1.03
Cap/Depr(3y)160.92%
Cap/Depr(5y)151.11%
Cap/Sales(3y)9.97%
Cap/Sales(5y)9.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.6%
EPS 3Y1.11%
EPS 5Y5.76%
EPS Q2Q%-116.67%
EPS Next Y4.95%
EPS Next 2Y2.24%
EPS Next 3Y2.7%
EPS Next 5Y3.09%
Revenue 1Y (TTM)-0.54%
Revenue growth 3Y-1.07%
Revenue growth 5Y-0.3%
Sales Q2Q%1.01%
Revenue Next Year-4.76%
Revenue Next 2Y5.37%
Revenue Next 3Y4.52%
Revenue Next 5Y1.58%
EBIT growth 1Y-16.26%
EBIT growth 3Y-24.06%
EBIT growth 5Y32.4%
EBIT Next Year60.34%
EBIT Next 3Y22.32%
EBIT Next 5Y24.91%
FCF growth 1Y323.74%
FCF growth 3Y-21.27%
FCF growth 5Y0.66%
OCF growth 1Y77.66%
OCF growth 3Y-7.24%
OCF growth 5Y1.86%