UGI CORP (UGI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UGI - US9026811052 - Common Stock
38.85 USD
+0.34 (+0.88%)
38.85 USD
0 (0%)
UGI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. UGI has only an average score on both its financial health and profitability. UGI is not valued too expensively and it also shows a decent growth rate. UGI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year UGI was profitable.
- In the past year UGI had a positive cash flow from operations.
- Of the past 5 years UGI 4 years were profitable.
- In the past 5 years UGI always reported a positive cash flow from operatings.
1.2 Ratios
- UGI has a Return On Assets of 4.38%. This is in the better half of the industry: UGI outperforms 64.29% of its industry peers.
- UGI has a better Return On Equity (14.19%) than 78.57% of its industry peers.
- UGI's Return On Invested Capital of 7.20% is fine compared to the rest of the industry. UGI outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 14.19% | ||
| ROIC | 7.2% |
ROA(3y)-1.2%
ROA(5y)2.26%
ROE(3y)-4.62%
ROE(5y)6.08%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With a Profit Margin value of 9.30%, UGI perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
- In the last couple of years the Profit Margin of UGI has grown nicely.
- UGI has a Operating Margin of 15.64%. This is in the lower half of the industry: UGI underperforms 64.29% of its industry peers.
- UGI's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 49.98%, 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 remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.64% | ||
| PM (TTM) | 9.3% | ||
| GM | 49.98% |
OM growth 3Y-1.89%
OM growth 5Y0.02%
PM growth 3Y-4.31%
PM growth 5Y2.78%
GM growth 3Y6.91%
GM growth 5Y-0.6%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so UGI is still creating some value.
- UGI has about the same amout of shares outstanding than it did 1 year ago.
- UGI has more shares outstanding than it did 5 years ago.
- UGI has a better debt/assets ratio than last year.
2.2 Solvency
- UGI has an Altman-Z score of 1.46. This is a bad value and indicates that UGI is not financially healthy and even has some risk of bankruptcy.
- With an excellent Altman-Z score value of 1.46, UGI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- UGI has a debt to FCF ratio of 18.29. This is a negative value and a sign of low solvency as UGI would need 18.29 years to pay back of all of its debts.
- UGI's Debt to FCF ratio of 18.29 is fine compared to the rest of the industry. UGI outperforms 71.43% of its industry peers.
- UGI has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
- UGI has a Debt to Equity ratio of 1.47. This is in the lower half of the industry: UGI underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 18.29 | ||
| Altman-Z | 1.46 |
ROIC/WACC1.04
WACC6.92%
2.3 Liquidity
- UGI has a Current Ratio of 0.89. This is a bad value and indicates that UGI is not financially healthy enough and could expect problems in meeting its short term obligations.
- UGI's Current ratio of 0.89 is amongst the best of the industry. UGI outperforms 85.71% of its industry peers.
- A Quick Ratio of 0.70 indicates that UGI may have some problems paying its short term obligations.
- UGI's Quick ratio of 0.70 is amongst the best of the industry. UGI outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.79% over the past year.
- UGI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.58% yearly.
- UGI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.07%.
- UGI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.13% yearly.
EPS 1Y (TTM)8.79%
EPS 3Y4.82%
EPS 5Y4.58%
EPS Q2Q%-43.75%
Revenue 1Y (TTM)1.07%
Revenue growth 3Y-10.33%
Revenue growth 5Y2.13%
Sales Q2Q%-3.62%
3.2 Future
- UGI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.03% yearly.
- Based on estimates for the next years, UGI will show a small growth in Revenue. The Revenue will grow by 1.54% on average per year.
EPS Next Y-5.2%
EPS Next 2Y-0.33%
EPS Next 3Y2.39%
EPS Next 5Y4.03%
Revenue Next Year16.15%
Revenue Next 2Y9.4%
Revenue Next 3Y7.25%
Revenue Next 5Y1.54%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 11.63, the valuation of UGI can be described as reasonable.
- 92.86% of the companies in the same industry are more expensive than UGI, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of UGI to the average of the S&P500 Index (27.21), we can say UGI is valued rather cheaply.
- A Price/Forward Earnings ratio of 12.27 indicates a correct valuation of UGI.
- 78.57% of the companies in the same industry are more expensive than UGI, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. UGI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
- 78.57% of the companies in the same industry are more expensive than UGI, based on the Enterprise Value to EBITDA ratio.
- 85.71% 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 | 21.37 | ||
| EV/EBITDA | 8.57 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.54
EPS Next 2Y-0.33%
EPS Next 3Y2.39%
5. Dividend
5.1 Amount
- UGI has a Yearly Dividend Yield of 3.90%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.79, UGI pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, UGI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
5.2 History
- The dividend of UGI has a limited annual growth rate of 2.76%.
- UGI has been paying a dividend for at least 10 years, so it has a reliable track record.
- UGI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.76%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 47.49% of the earnings are spent on dividend by UGI. This is a bit on the high side, but may be sustainable.
- The dividend of UGI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.49%
EPS Next 2Y-0.33%
EPS Next 3Y2.39%
UGI CORP / UGI FAQ
What is the fundamental rating for UGI stock?
ChartMill assigns a fundamental rating of 5 / 10 to UGI.
What is the valuation status for UGI stock?
ChartMill assigns a valuation rating of 6 / 10 to UGI CORP (UGI). This can be considered as Fairly Valued.
How profitable is UGI CORP (UGI) stock?
UGI CORP (UGI) has a profitability rating of 5 / 10.
What is the expected EPS growth for UGI CORP (UGI) stock?
The Earnings per Share (EPS) of UGI CORP (UGI) is expected to decline by -5.2% in the next year.
Is the dividend of UGI CORP sustainable?
The dividend rating of UGI CORP (UGI) is 8 / 10 and the dividend payout ratio is 47.49%.