UGI CORP (UGI) Stock Fundamental Analysis
NYSE:UGI - New York Stock Exchange, Inc. - US9026811052 - Common Stock - Currency: USD
UGI gets a fundamental rating of 4 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 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.
In the past year UGI had a positive cash flow from operations.
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 comparable to the rest of the industry.
UGI has a better Return On Equity (10.63%) than 71.43% of its industry peers.
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 (7.28%) which is in line with its industry peers.
In the last couple of years the Profit Margin of UGI has remained more or less at the same level.
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.
In the last couple of years the Operating Margin of UGI has grown nicely.
Looking at the Gross Margin, with a value of 49.92%, UGI is doing worse than 78.57% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UGI is destroying value.
The number of shares outstanding for UGI has been increased compared to 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
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's Altman-Z score of 1.50 is amongst the best of 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 better Debt to FCF ratio (12.53) than 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'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/WACC0.94
WACC6.82%
2.3 Liquidity
A Current Ratio of 1.23 indicates that UGI should not have too much problems paying its short term obligations.
The Current ratio of UGI (1.23) is better 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.
The Earnings Per Share has been growing slightly by 5.76% on average over the past years.
UGI shows a decrease in Revenue. In the last year, the revenue decreased by -4.35%.
The Revenue has been decreasing by -0.30% on average over the past years.
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 2.62% on average per year.
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 Y2.32%
EPS Next 2Y1.88%
EPS Next 3Y0.59%
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.
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
With a Price/Earnings ratio of 10.36, the valuation of UGI can be described as very reasonable.
Based on the Price/Earnings ratio, UGI is valued cheaper than 92.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. UGI is valued rather cheaply when compared to this.
UGI is valuated reasonably with a Price/Forward Earnings ratio of 11.32.
85.71% of the companies in the same industry are more expensive than UGI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, UGI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UGI is valued a bit cheaper than 78.57% of the companies in the same industry.
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 | 13.78 | ||
| EV/EBITDA | 8.17 |
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)4.47
PEG (5Y)1.8
EPS Next 2Y1.88%
EPS Next 3Y0.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.18%, UGI is a good candidate for dividend investing.
UGI's Dividend Yield is a higher than the industry average which is at 3.98.
UGI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
5.2 History
The dividend of UGI is nicely growing with an annual growth rate of 7.58%!
UGI has paid a dividend for at least 10 years, which is 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.
UGI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.41%
EPS Next 2Y1.88%
EPS Next 3Y0.59%
36.06
+0.16 (+0.45%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners93.66%
Inst Owner Change0.75%
Ins Owners0.08%
Ins Owner Change3.57%
Market Cap7.73B
Analysts82.5
Price Target37.74 (4.66%)
Short Float %5.35%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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)3.5%
PT rev (3m)5.71%
EPS NQ rev (1m)-218.43%
EPS NQ rev (3m)-218.43%
EPS NY rev (1m)4.36%
EPS NY rev (3m)6.39%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 11.32 | ||
| P/S | 1.06 | ||
| P/FCF | 13.78 | ||
| P/OCF | 5.57 | ||
| P/B | 1.54 | ||
| P/tB | 4.28 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)3.48
EY9.65%
EPS(NY)3.19
Fwd EY8.84%
FCF(TTM)2.62
FCFY7.25%
OCF(TTM)6.48
OCFY17.96%
SpS34.13
BVpS23.37
TBVpS8.42
PEG (NY)4.47
PEG (5Y)1.8
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
WACC6.82%
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 Y2.32%
EPS Next 2Y1.88%
EPS Next 3Y0.59%
EPS Next 5Y2.62%
Revenue 1Y (TTM)-4.35%
Revenue growth 3Y-1.07%
Revenue growth 5Y-0.3%
Sales Q2Q%8.07%
Revenue Next Year-8.33%
Revenue Next 2Y-0.49%
Revenue Next 3Y-0.62%
Revenue Next 5Y-0.22%
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%