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 an average financial health and profitability rating. UGI has a decent growth rate and is not valued too expensively. Finally UGI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year UGI was profitable.
- UGI had a positive operating cash flow in the past year.
- Of the past 5 years UGI 4 years were profitable.
- Each year in the past 5 years UGI had a positive operating cash flow.
1.2 Ratios
- UGI's Return On Assets of 4.38% is fine compared to the rest of the industry. UGI outperforms 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.
- Looking at the Return On Invested Capital, with a value of 7.20%, UGI is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| 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
- UGI has a Profit Margin of 9.30%. This is comparable to the rest of the industry: UGI outperforms 42.86% of its industry peers.
- In the last couple of years the Profit Margin of UGI has grown nicely.
- UGI's Operating Margin of 15.64% is on the low side compared to the rest of the industry. UGI is outperformed by 64.29% of its industry peers.
- UGI's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 49.98%, UGI is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
- 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
- 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 remains at a similar level compared to 1 year ago.
- The number of shares outstanding for UGI has been increased compared to 5 years ago.
- UGI has a better debt/assets ratio than last year.
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.
- The Debt to FCF ratio of UGI is 18.29, which is on the high side as it means it would take UGI, 18.29 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 18.29, UGI is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- UGI has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
- UGI has a worse Debt to Equity ratio (1.47) than 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
- A Current Ratio of 0.89 indicates that UGI may have some problems paying 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.
- 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.
- Looking at the Quick ratio, with a value of 0.70, UGI belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- UGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.79%, which is quite good.
- UGI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.58% yearly.
- The Revenue has been growing slightly by 1.07% in the past 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
- A Price/Earnings ratio of 11.63 indicates a reasonable valuation of UGI.
- Based on the Price/Earnings ratio, UGI is valued cheaper than 92.86% of the companies in the same industry.
- UGI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 12.27, the valuation of UGI can be described as correct.
- 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 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| 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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of UGI indicates a rather cheap valuation: UGI is cheaper than 85.71% of the companies listed 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
- With a Yearly Dividend Yield of 4.00%, UGI is a good candidate for dividend investing.
- 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 | 4% |
5.2 History
- The dividend of UGI has a limited annual growth rate of 2.76%.
- 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)2.76%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- UGI pays out 47.49% of its income as dividend. This is a bit on the high side, but may be sustainable.
- UGI's earnings are growing more than its dividend. This makes the dividend growth 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%.