UGI CORP (UGI) Stock Fundamental Analysis
NYSE:UGI - New York Stock Exchange, Inc. - US9026811052 - Common Stock - Currency: USD
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 valued correctly, but it does not seem to be growing. 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.
UGI had positive earnings in 4 of the past 5 years.
In the past 5 years UGI always reported a positive cash flow from operatings.
1.2 Ratios
UGI has a Return On Assets (3.38%) which is in line with its industry peers.
With a decent Return On Equity value of 10.63%, UGI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
UGI has a better Return On Invested Capital (6.38%) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 10.63% | ||
| ROIC | 6.38% |
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 7.28%. This is comparable to the rest of the industry: UGI outperforms 42.86% of its industry peers.
UGI's Profit Margin has been stable in the last couple of years.
UGI's Operating Margin of 15.76% 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 improved in the last couple of years.
UGI's Gross Margin of 49.92% is on the low side compared to the rest of the industry. UGI is outperformed by 78.57% of its industry peers.
In the last couple of years the Gross Margin of UGI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.76% | ||
| PM (TTM) | 7.28% | ||
| GM | 49.92% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UGI is destroying value.
Compared to 1 year ago, UGI has more shares outstanding
The number of shares outstanding for UGI has been increased compared to 5 years ago.
UGI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.50, we must say that UGI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of UGI (1.50) is better than 85.71% of its industry peers.
The Debt to FCF ratio of UGI is 12.53, which is on the high side as it means it would take UGI, 12.53 years of fcf income to pay off all of its debts.
UGI's Debt to FCF ratio of 12.53 is amongst the best of the industry. UGI outperforms 92.86% of its industry peers.
A Debt/Equity ratio of 1.40 is on the high side and indicates that UGI has dependencies on debt financing.
UGI has a Debt to Equity ratio of 1.40. This is in the lower half of the industry: UGI underperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 12.53 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.94
WACC6.78%
2.3 Liquidity
A Current Ratio of 1.23 indicates that UGI should not have too much problems paying its short term obligations.
UGI has a better Current ratio (1.23) than 92.86% of its industry peers.
A Quick Ratio of 1.05 indicates that UGI should not have too much problems paying its short term obligations.
UGI has a better Quick ratio (1.05) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
UGI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.75%, which is quite good.
Measured over the past 5 years, UGI shows a small growth in Earnings Per Share. The EPS has been growing by 5.76% on average per year.
Looking at the last year, UGI shows a decrease in Revenue. The Revenue has decreased by -4.35% in the last year.
UGI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.30% yearly.
EPS 1Y (TTM)8.75%
EPS 3Y1.11%
EPS 5Y5.76%
EPS Q2Q%12.18%
Revenue 1Y (TTM)-4.35%
Revenue growth 3Y-1.07%
Revenue growth 5Y-0.3%
Sales Q2Q%8.07%
3.2 Future
Based on estimates for the next years, UGI will show a small growth in Earnings Per Share. The EPS will grow by 3.61% on average per year.
The Revenue is expected to grow by 0.09% on average over the next years.
EPS Next Y3.96%
EPS Next 2Y2.68%
EPS Next 3Y4.16%
EPS Next 5Y3.61%
Revenue Next Year-8.02%
Revenue Next 2Y0.11%
Revenue Next 3Y-0.17%
Revenue Next 5Y0.09%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.22, the valuation of UGI can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of UGI indicates a rather cheap valuation: UGI is cheaper than 92.86% of the companies listed in the same industry.
UGI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 10.99 indicates a reasonable valuation of UGI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UGI indicates a somewhat cheap valuation: UGI is cheaper than 78.57% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, UGI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.22 | ||
| Fwd PE | 10.99 |
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.
Based on the Price/Free Cash Flow ratio, UGI is valued cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.6 | ||
| EV/EBITDA | 8.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.58
PEG (5Y)1.77
EPS Next 2Y2.68%
EPS Next 3Y4.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.24%, UGI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.98, 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
5.2 History
On average, the dividend of UGI grows each year by 7.58%, which is quite nice.
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)7.58%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
UGI pays out 60.41% of its income as dividend. This is not a sustainable payout ratio.
The dividend of UGI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.41%
EPS Next 2Y2.68%
EPS Next 3Y4.16%
35.58
-0.22 (-0.61%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners93.21%
Inst Owner Change0%
Ins Owners0.08%
Ins Owner Change0.24%
Market Cap7.63B
Analysts82.5
Price Target40.03 (12.51%)
Short Float %5.03%
Short Ratio5.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
Yearly Dividend1.5
Dividend Growth(5Y)7.58%
DP60.41%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.91%
Min EPS beat(2)21.11%
Max EPS beat(2)22.7%
EPS beat(4)4
Avg EPS beat(4)73.5%
Min EPS beat(4)21.11%
Max EPS beat(4)204.83%
EPS beat(8)7
Avg EPS beat(8)46.43%
EPS beat(12)9
Avg EPS beat(12)36.01%
EPS beat(16)11
Avg EPS beat(16)28.77%
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)6.08%
PT rev (3m)9.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-247.37%
EPS NY rev (1m)1.61%
EPS NY rev (3m)6.85%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.18%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.22 | ||
| Fwd PE | 10.99 | ||
| P/S | 1.04 | ||
| P/FCF | 13.6 | ||
| P/OCF | 5.49 | ||
| P/B | 1.52 | ||
| P/tB | 4.23 | ||
| EV/EBITDA | 8.13 |
EPS(TTM)3.48
EY9.78%
EPS(NY)3.24
Fwd EY9.1%
FCF(TTM)2.62
FCFY7.35%
OCF(TTM)6.48
OCFY18.21%
SpS34.13
BVpS23.37
TBVpS8.42
PEG (NY)2.58
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.38% | ||
| ROE | 10.63% | ||
| ROCE | 8.31% | ||
| ROIC | 6.38% | ||
| ROICexc | 6.58% | ||
| ROICexgc | 8.56% | ||
| OM | 15.76% | ||
| PM (TTM) | 7.28% | ||
| GM | 49.92% | ||
| FCFM | 7.67% |
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-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 12.53 | ||
| Debt/EBITDA | 4.11 | ||
| Cap/Depr | 150% | ||
| Cap/Sales | 11.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.47% | ||
| Profit Quality | 105.25% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 1.5 |
F-Score8
WACC6.78%
ROIC/WACC0.94
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)8.75%
EPS 3Y1.11%
EPS 5Y5.76%
EPS Q2Q%12.18%
EPS Next Y3.96%
EPS Next 2Y2.68%
EPS Next 3Y4.16%
EPS Next 5Y3.61%
Revenue 1Y (TTM)-4.35%
Revenue growth 3Y-1.07%
Revenue growth 5Y-0.3%
Sales Q2Q%8.07%
Revenue Next Year-8.02%
Revenue Next 2Y0.11%
Revenue Next 3Y-0.17%
Revenue Next 5Y0.09%
EBIT growth 1Y-1.11%
EBIT growth 3Y-24.06%
EBIT growth 5Y32.4%
EBIT Next Year57.1%
EBIT Next 3Y29.95%
EBIT Next 5Y24.91%
FCF growth 1Y556.1%
FCF growth 3Y-21.27%
FCF growth 5Y0.66%
OCF growth 1Y87.7%
OCF growth 3Y-7.24%
OCF growth 5Y1.86%