UGI CORP (UGI) Stock Fundamental Analysis
NYSE:UGI - New York Stock Exchange, Inc. - US9026811052 - Common Stock - Currency: USD
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. Finally UGI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
UGI had positive earnings in the past year.
In the past year UGI had a positive cash flow from operations.
Of the past 5 years UGI 4 years were profitable.
UGI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.57%, UGI is doing good in the industry, outperforming 64.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.01%, UGI is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.38%, UGI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.01% | ||
| 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
The Profit Margin of UGI (7.73%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of UGI has remained more or less at the same level.
Looking at the Operating Margin, with a value of 15.62%, UGI is doing worse than 64.29% of the companies in the same industry.
In the last couple of years the Operating Margin of UGI has grown nicely.
With a Gross Margin value of 50.82%, 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 grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.62% | ||
| PM (TTM) | 7.73% | ||
| GM | 50.82% |
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.
UGI has more shares outstanding than it did 1 year ago.
UGI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UGI is higher compared to a year ago.
2.2 Solvency
UGI has an Altman-Z score of 1.40. This is a bad value and indicates that UGI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.40, UGI is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
The Debt to FCF ratio of UGI is 19.32, which is on the high side as it means it would take UGI, 19.32 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 19.32, UGI is doing good in the industry, outperforming 78.57% of the companies in the same industry.
UGI has a Debt/Equity ratio of 1.53. This is a high value indicating a heavy dependency on external financing.
UGI has a worse Debt to Equity ratio (1.53) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 19.32 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.95
WACC6.71%
2.3 Liquidity
A Current Ratio of 1.00 indicates that UGI should not have too much problems paying its short term obligations.
UGI has a better Current ratio (1.00) than 92.86% of its industry peers.
UGI has a Quick Ratio of 1.00. This is a bad value and indicates that UGI is not financially healthy enough and could expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 0.82, UGI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.34% over the past year.
UGI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.76% yearly.
The Revenue for UGI has decreased by -14.13% in the past year. This is quite bad
UGI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.30% yearly.
EPS 1Y (TTM)11.34%
EPS 3Y1.11%
EPS 5Y5.76%
EPS Q2Q%14.17%
Revenue 1Y (TTM)-14.13%
Revenue growth 3Y-1.07%
Revenue growth 5Y-0.3%
Sales Q2Q%-4.29%
3.2 Future
UGI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.62% yearly.
Based on estimates for the next years, UGI will show a decrease in Revenue. The Revenue will decrease by -0.22% on average per year.
EPS Next Y-1.96%
EPS Next 2Y0.78%
EPS Next 3Y2.36%
EPS Next 5Y2.62%
Revenue Next Year-8.33%
Revenue Next 2Y-0.49%
Revenue Next 3Y-0.62%
Revenue Next 5Y-0.22%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.78, the valuation of UGI can be described as very 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.
The average S&P500 Price/Earnings ratio is at 24.12. UGI is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.20 indicates a reasonable valuation of UGI.
Based on the Price/Forward Earnings ratio, UGI is valued cheaper than 92.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UGI to the average of the S&P500 Index (20.42), we can say UGI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 11.2 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than UGI, based on the Enterprise Value to EBITDA ratio.
UGI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. UGI is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.96 | ||
| EV/EBITDA | 8.31 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.87
EPS Next 2Y0.78%
EPS Next 3Y2.36%
5. Dividend
5.1 Amount
UGI has a Yearly Dividend Yield of 4.47%, which is a nice return.
UGI's Dividend Yield is a higher than the industry average which is at 3.86.
UGI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
5.2 History
The dividend of UGI is nicely growing with an annual growth rate of 7.58%!
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)7.58%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
UGI pays out 58.18% of its income as dividend. This is a bit on the high side, but may be sustainable.
UGI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.18%
EPS Next 2Y0.78%
EPS Next 3Y2.36%
34.93
+1.36 (+4.05%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners93.66%
Inst Owner Change1.3%
Ins Owners0.08%
Ins Owner Change3.62%
Market Cap7.50B
Analysts82.5
Price Target37.74 (8.04%)
Short Float %5.64%
Short Ratio5.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend1.5
Dividend Growth(5Y)7.58%
DP58.18%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.04%
Min EPS beat(2)22.7%
Max EPS beat(2)45.37%
EPS beat(4)4
Avg EPS beat(4)72.96%
Min EPS beat(4)18.93%
Max EPS beat(4)204.83%
EPS beat(8)6
Avg EPS beat(8)42.99%
EPS beat(12)9
Avg EPS beat(12)34.43%
EPS beat(16)11
Avg EPS beat(16)28.33%
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)2.14%
PT rev (3m)6.72%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)-8.82%
EPS NY rev (1m)0.76%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-17.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 11.2 | ||
| P/S | 1.05 | ||
| P/FCF | 19.96 | ||
| P/OCF | 6.12 | ||
| P/B | 1.64 | ||
| P/tB | 5.34 | ||
| EV/EBITDA | 8.31 |
EPS(TTM)3.24
EY9.28%
EPS(NY)3.12
Fwd EY8.93%
FCF(TTM)1.75
FCFY5.01%
OCF(TTM)5.71
OCFY16.35%
SpS33.14
BVpS21.32
TBVpS6.54
PEG (NY)N/A
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 12.01% | ||
| ROCE | 8.32% | ||
| ROIC | 6.38% | ||
| ROICexc | 6.49% | ||
| ROICexgc | 8.48% | ||
| OM | 15.62% | ||
| PM (TTM) | 7.73% | ||
| GM | 50.82% | ||
| FCFM | 5.28% |
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-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 19.32 | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 154.17% | ||
| Cap/Sales | 11.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.74% | ||
| Profit Quality | 68.36% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.4 |
F-Score7
WACC6.71%
ROIC/WACC0.95
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)11.34%
EPS 3Y1.11%
EPS 5Y5.76%
EPS Q2Q%14.17%
EPS Next Y-1.96%
EPS Next 2Y0.78%
EPS Next 3Y2.36%
EPS Next 5Y2.62%
Revenue 1Y (TTM)-14.13%
Revenue growth 3Y-1.07%
Revenue growth 5Y-0.3%
Sales Q2Q%-4.29%
Revenue Next Year-8.33%
Revenue Next 2Y-0.49%
Revenue Next 3Y-0.62%
Revenue Next 5Y-0.22%
EBIT growth 1Y40.76%
EBIT growth 3Y-24.06%
EBIT growth 5Y32.4%
EBIT Next Year81.74%
EBIT Next 3Y32.67%
EBIT Next 5Y24.91%
FCF growth 1Y55.37%
FCF growth 3Y-21.27%
FCF growth 5Y0.66%
OCF growth 1Y14.67%
OCF growth 3Y-7.24%
OCF growth 5Y1.86%