UGI CORP (UGI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:UGI - US9026811052 - Common Stock
40.34 USD
+0.37 (+0.93%)
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 correct valuation and a medium growth rate. 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.
- UGI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- UGI has a Return On Assets of 4.38%. This is in the better half of the industry: UGI outperforms 64.29% of its industry peers.
- With a decent Return On Equity value of 14.19%, UGI is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- UGI has a Return On Invested Capital of 7.20%. This is in the better half of the industry: UGI outperforms 71.43% of its industry peers.
| 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 (9.30%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of UGI has grown nicely.
- UGI has a worse Operating Margin (15.64%) than 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.
- UGI's Gross Margin has been stable in the last couple of years.
| 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.
- Compared to 1 year ago, UGI has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.48, we must say that UGI is in the distress zone and has some risk of bankruptcy.
- UGI has a Altman-Z score of 1.48. This is amongst the best in the industry. UGI outperforms 85.71% of its industry peers.
- 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.
- UGI has a better Debt to FCF ratio (18.29) than 71.43% of its industry peers.
- A Debt/Equity ratio of 1.47 is on the high side and indicates that UGI has dependencies on debt financing.
- UGI's Debt to Equity ratio of 1.47 is on the low side compared to the rest of the industry. UGI is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 18.29 | ||
| Altman-Z | 1.48 |
ROIC/WACC1.04
WACC6.94%
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.
- A Quick Ratio of 0.70 indicates that UGI may have some problems paying its short term obligations.
- UGI's Quick ratio of 0.70 is amongst the best of the industry. UGI outperforms 92.86% of its industry peers.
| 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.
- Measured over the past 5 years, UGI shows a small growth in Earnings Per Share. The EPS has been growing by 4.58% on average per year.
- Looking at the last year, UGI shows a small growth in Revenue. The Revenue has grown by 1.07% in the last year.
- Measured over the past years, UGI shows a small growth in Revenue. The Revenue has been growing by 2.13% on average per year.
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
- UGI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.03% yearly.
- UGI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.54% yearly.
EPS Next Y-5.91%
EPS Next 2Y0.04%
EPS Next 3Y2.58%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- UGI is valuated correctly with a Price/Earnings ratio of 12.08.
- Based on the Price/Earnings ratio, UGI is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.82. UGI is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 12.84, UGI is valued correctly.
- 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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 12.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, UGI is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
- UGI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UGI is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.19 | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.64
EPS Next 2Y0.04%
EPS Next 3Y2.58%
5. Dividend
5.1 Amount
- UGI has a Yearly Dividend Yield of 3.90%.
- Compared to an average industry Dividend Yield of 3.96, UGI has a dividend in line with its industry peers.
- UGI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
5.2 History
- The dividend of UGI has a limited annual growth rate of 2.76%.
- 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)2.76%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 47.49% of the earnings are spent on dividend by UGI. 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 2Y0.04%
EPS Next 3Y2.58%
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 -5.91% in the next year.
Is the dividend of UGI CORP sustainable?
The dividend rating of UGI CORP (UGI) is 7 / 10 and the dividend payout ratio is 47.49%.