UGI Corp (UGI) stock analysis

P/E above its 5-year median

UGI's P/E of 12.5 is above its own 5-year median of 12.3.

P/E below the industry

UGI's P/E of 12.5 is below the Combination Electric and Gas, and Other Utility median of 19.2.

EV/EBITDA below its 5-year median

UGI's EV/EBITDA of 8.2 is below its 5-year median of 8.6.

P/B below the industry

UGI's price-to-book of 1.54 is below the Combination Electric and Gas, and Other Utility median of 1.74.

Trading below fair value

The share price of $37.52 is below our fair value estimate of $50.19.

Margin of safety over 20%

The price is 25.2% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -10.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -14.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 60.5% over the last twelve months, against a 5-year average of 5.0% a year.

Growing slower than the industry

Revenue grew -0.5% over the last twelve months; the Combination Electric and Gas, and Other Utility median is 5.2%.

Guidance lowered

UGI lowered its Fiscal 2026 adjusted diluted EPS outlook on May 7, 2026.

Gross margin improving

Gross margin was 51.3% over the last twelve months, against 49.3% a year earlier.

Return on equity under 15%

Return on equity was 13.3% over the last twelve months and averaged 8.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.2%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

UGI's return on equity of 13.3% is above the Combination Electric and Gas, and Other Utility median of 9.2%.

Earnings grew over 5 years

Net income grew 5.0% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 9.2% over the last twelve months, against a 5-year average of 5.3%.

Net margin below the industry

UGI's net margin of 9.2% is below the Combination Electric and Gas, and Other Utility median of 12.7%.

High debt

Debt is 129% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 146% five years ago to 129%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 15.8% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.7 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.44 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.57; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

UGI paid dividends worth 4.0% of the share price over the last twelve months.

Yield below Treasuries

The 4.0% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; UGI yields 4.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 48.0% of net income.

Not covered by free cash flow

Dividends take 172% of free cash flow.