UGI CORP (UGI) Stock Fundamental Analysis
NYSE:UGI - New York Stock Exchange, Inc. - US9026811052 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to UGI. UGI was compared to 14 industry peers in the Gas Utilities industry. UGI has an average financial health and profitability rating. UGI has a valuation in line with the averages, 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.
UGI had a positive operating cash flow in the past year.
UGI had positive earnings in 4 of the past 5 years.
UGI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UGI's Return On Assets of 3.38% is in line compared to the rest of the industry. UGI outperforms 57.14% of its industry peers.
The Return On Equity of UGI (10.63%) is better than 71.43% of its industry peers.
UGI has a Return On Invested Capital of 6.38%. This is in the better half of the industry: UGI outperforms 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.
In the last couple of years the Profit Margin of UGI has remained more or less at the same level.
The Operating Margin of UGI (15.76%) is worse than 64.29% of its industry peers.
UGI's Operating Margin has improved in the last couple of years.
The Gross Margin of UGI (49.92%) is worse than 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
UGI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for UGI has been increased compared to 1 year ago.
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.
UGI has a Altman-Z score of 1.50. This is amongst the best in the industry. UGI outperforms 85.71% of its industry peers.
UGI has a debt to FCF ratio of 12.53. This is a negative value and a sign of low solvency as UGI would need 12.53 years to pay back of all of its debts.
UGI has a Debt to FCF ratio of 12.53. This is amongst the best in the industry. UGI outperforms 92.86% of its industry peers.
UGI has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
UGI's Debt to Equity ratio of 1.40 is on the low side compared to the rest of the industry. UGI is outperformed by 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 12.53 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.78
WACC8.13%
2.3 Liquidity
UGI has a Current Ratio of 1.23. This is a normal value and indicates that UGI is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.23, UGI belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
UGI has a Quick Ratio of 1.05. This is a normal value and indicates that UGI is financially healthy and should not expect problems in meeting 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.
The Earnings Per Share has been growing slightly by 5.76% on average over the past years.
Looking at the last year, UGI shows a decrease in Revenue. The Revenue has decreased by -4.35% in the last year.
Measured over the past years, UGI shows a decrease in Revenue. The Revenue has been decreasing by -0.30% on average per year.
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 10.08, 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 is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.84, which indicates a very decent 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.
When comparing the Price/Forward Earnings ratio of UGI to the average of the S&P500 Index (21.70), we can say UGI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 10.84 |
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 rather cheap when compared to the industry. UGI is cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.41 | ||
| EV/EBITDA | 8.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UGI does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.54
PEG (5Y)1.75
EPS Next 2Y2.68%
EPS Next 3Y4.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.16%, UGI is a good candidate for dividend investing.
UGI's Dividend Yield is a higher than the industry average which is at 4.00.
UGI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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 Years34
Div Non Decr Years34
5.3 Sustainability
60.41% of the earnings are spent on dividend by UGI. 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%
35.08
-1.34 (-3.68%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners93.21%
Inst Owner Change0.73%
Ins Owners0.08%
Ins Owner Change0.35%
Market Cap7.52B
Analysts82.5
Price Target40.03 (14.11%)
Short Float %5.03%
Short Ratio5.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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)12.14%
EPS NQ rev (1m)-24.44%
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)0.34%
Revenue NY rev (3m)3.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.08 | ||
| Fwd PE | 10.84 | ||
| P/S | 1.03 | ||
| P/FCF | 13.41 | ||
| P/OCF | 5.42 | ||
| P/B | 1.5 | ||
| P/tB | 4.17 | ||
| EV/EBITDA | 8.21 |
EPS(TTM)3.48
EY9.92%
EPS(NY)3.24
Fwd EY9.23%
FCF(TTM)2.62
FCFY7.46%
OCF(TTM)6.48
OCFY18.46%
SpS34.13
BVpS23.37
TBVpS8.42
PEG (NY)2.54
PEG (5Y)1.75
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
WACC8.13%
ROIC/WACC0.78
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%