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. Both the profitability and the financial health of UGI get a neutral evaluation. Nothing too spectacular is happening here. UGI is not valued too expensively and it also shows a decent growth rate. Finally 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 better Return On Assets (4.38%) than 64.29% of its industry peers.
- Looking at the Return On Equity, with a value of 14.19%, UGI is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
- The Return On Invested Capital of UGI (7.20%) is better than 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
- Looking at the Profit Margin, with a value of 9.30%, UGI is in line with its industry, outperforming 42.86% of the companies in the same industry.
- UGI's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 15.64%, UGI is doing worse than 64.29% of the companies in the same industry.
- 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.
- UGI's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UGI is creating some value.
- The number of shares outstanding for UGI remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, UGI has more shares outstanding
- The debt/assets ratio for UGI has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.46, we must say that UGI is in the distress zone and 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 has a better Debt to FCF ratio (18.29) than 71.43% of its industry peers.
- A Debt/Equity ratio of 1.47 is on the high side and indicates that UGI has dependencies on debt 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
WACC6.93%
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.
- Looking at the Current ratio, with a value of 0.89, UGI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- UGI has a Quick 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 has a better Quick ratio (0.70) than 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.
- Looking at the last year, UGI shows a small growth in Revenue. The Revenue has grown by 1.07% in the last year.
- 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
- The Earnings Per Share is expected to grow by 4.03% 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 1.54% 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.63, which indicates a very decent valuation of UGI.
- 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.
- The Price/Forward Earnings ratio is 12.27, which indicates a correct valuation of UGI.
- UGI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UGI is cheaper than 78.57% of the companies in the same industry.
- UGI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UGI indicates a somewhat cheap valuation: UGI is cheaper than 78.57% of the companies listed in the same industry.
- UGI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UGI is cheaper than 85.71% of the companies in the same industry.
| 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 4.00%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.79, UGI pays a bit more dividend than its industry peers.
- UGI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%.