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UGI: Ongoing Share Repurchases Will Support Future Cash Flow Stability

Update shared on 10 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
33.8%
7D
1.9%

Analysts have nudged their price target for UGI slightly higher to approximately $43.00 per share, reflecting modestly lower discount rate assumptions and stable long term forecasts for revenue growth, profit margins, and future valuation multiples.

What's in the News

  • Completed a multi year share repurchase program originally announced on May 8, 2018, totaling 4,650,000 shares, or 2.33% of outstanding shares, for $194.64 million (company filing)
  • In the most recent tranche from July 1, 2025 to September 30, 2025, repurchased 500,000 shares, representing 0.23% of shares outstanding, for $16.53 million (company filing)
  • Ongoing capital returns via buybacks signal management confidence in long term cash flow stability and balance sheet capacity (company commentary/market interpretation)

Valuation Changes

  • Fair Value Estimate maintained at approximately $43.00 per share, indicating no material change to the central valuation outcome.
  • Discount Rate edged down slightly from about 7.34 percent to roughly 7.33 percent, modestly increasing the present value of future cash flows.
  • Revenue Growth effectively unchanged at around 3.42 percent annually, signaling stable long term top line expectations.
  • Net Profit Margin essentially flat at about 9.75 percent, reflecting steady assumptions for long term profitability.
  • Future P/E decreased marginally from roughly 14.41 times to 14.41 times, a negligible shift in the assumed exit multiple.

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Disclaimer

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