DB:3U6

Stock Analysis Report

Executive Summary

UGI Corporation distributes, stores, transports, and markets energy products and related services in the United States and internationally.


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has UGI's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3U6 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

3U6

1.8%

DE Gas Utilities

-0.2%

DE Market


1 Year Return

-19.2%

3U6

8.5%

DE Gas Utilities

13.7%

DE Market

Return vs Industry: 3U6 underperformed the German Gas Utilities industry which returned 8.5% over the past year.

Return vs Market: 3U6 underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

3U6IndustryMarket
7 Day-0.5%1.8%-0.2%
30 Day-4.5%5.5%0.3%
90 Day-3.6%7.2%3.7%
1 Year-17.1%-19.2%13.6%8.5%17.2%13.7%
3 Year-10.0%-15.7%52.0%31.5%15.4%5.3%
5 Year42.4%27.0%56.0%16.5%21.3%4.7%

Price Volatility Vs. Market

How volatile is UGI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is UGI undervalued compared to its fair value and its price relative to the market?

21.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3U6 (€38) is trading below our estimate of fair value (€48.17)

Significantly Below Fair Value: 3U6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3U6 is poor value based on its PE Ratio (19.1x) compared to the Gas Utilities industry average (16.9x).

PE vs Market: 3U6 is good value based on its PE Ratio (19.1x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: 3U6 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 3U6 is overvalued based on its PB Ratio (2.1x) compared to the XE Gas Utilities industry average (1.3x).


Next Steps

Future Growth

How is UGI forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3U6's forecast earnings growth (16.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: 3U6's earnings (16.2% per year) are forecast to grow faster than the German market (13.1% per year).

High Growth Earnings: 3U6's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3U6's revenue (4.9% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 3U6's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3U6's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has UGI performed over the past 5 years?

8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3U6 has high quality earnings.

Growing Profit Margin: 3U6's current net profit margins (5.7%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: 3U6's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: 3U6's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3U6 had negative earnings growth (-3.1%) over the past year, making it difficult to compare to the Gas Utilities industry average (10.6%).


Return on Equity

High ROE: 3U6's Return on Equity (10.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is UGI's financial position?


Financial Position Analysis

Short Term Liabilities: 3U6's short term assets ($1.9B) do not cover its short term liabilities ($2.4B).

Long Term Liabilities: 3U6's short term assets ($1.9B) do not cover its long term liabilities ($7.9B).


Debt to Equity History and Analysis

Debt Level: 3U6's debt to equity ratio (166.7%) is considered high.

Reducing Debt: 3U6's debt to equity ratio has increased from 110.8% to 166.7% over the past 5 years.

Debt Coverage: 3U6's debt is not well covered by operating cash flow (16.5%).

Interest Coverage: 3U6's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: 3U6 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3U6's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is UGI's current dividend yield, its reliability and sustainability?

3.16%

Current Dividend Yield


Upcoming Dividend Payment

Purchase UGI before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.2%marketbottom25%1.3%markettop25%3.7%industryaverage4.9%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: 3U6's dividend (3.16%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 3U6's dividend (3.16%) is low compared to the top 25% of dividend payers in the German market (3.65%).


Stability and Growth of Payments

Stable Dividend: 3U6's dividends per share have been stable in the past 10 years.

Growing Dividend: 3U6's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.1%), 3U6's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3U6's dividends in 3 years are forecast to be well covered by earnings (44.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

John Walsh (64yo)

6.8yrs

Tenure

US$8,592,760

Compensation

Mr. John Lawrence Walsh Jr. is a Director and President of UGI Corporation since 2005 and has been its and Chief Executive Officer since 2013. Mr. Walsh serves as Executive Chairman at AmeriGas Propane, L. ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD8.59M) is above average for companies of similar size in the German market ($USD3.16M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Walsh
President6.8yrsUS$8.59m0.22% $17.2m
Thaddeus Jastrzebski
Chief Financial Officer1.8yrsUS$2.40m0.0077% $609.7k
Monica Gaudiosi
VP, General Counsel & Corporate Secretary7.8yrsUS$1.63m0.029% $2.3m
Roger Perreault
Executive VP of Global LPG & President of UGI International1.3yrsUS$2.30m0.013% $1.0m
Hugh Gallagher
President & CEO of AmeriGas Propane1.4yrsUS$1.59m0.0052% $414.7k
Laurie Bergman
VP, Chief Accounting Officer & Corporate Controller1yrsno data0.0013% $106.7k
Brendan Heck
Director of Investor Relations0yrsno datano data
Erika Spott
Vice President of Human Resources & Global Leadership Development0yrsno datano data
Robert Beard
Executive Vice President of Natural Gas1.3yrsUS$1.12m0.074% $5.9m
Sunil Tandon
Vice President Head of Global Procurement0yrsno datano data

1.4yrs

Average Tenure

56yo

Average Age

Experienced Management: 3U6's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Walsh
President6.8yrsUS$8.59m0.22% $17.2m
Frank Hermance
Independent Non-Executive Chairman0.08yrsUS$258.83k0.19% $15.3m
James Stallings
Independent Director4.4yrsUS$256.33kno data
Marvin Schlanger
Independent Vice Chairman0.08yrsUS$557.17k0.050% $4.0m
K Turner
Independent Director0.4yrsUS$6.30k0.0020% $158.4k
William Marrazzo
Independent Director0.4yrsUS$6.30k0.00031% $24.7k
Alan Harris
Independent Director1.9yrsUS$243.83kno data
Theodore Dosch
Independent Director2.6yrsUS$267.58kno data
M. Bort
Independent Director11.1yrsUS$268.83k0.0069% $547.6k
Kelly Romano
Independent Director1.1yrsUS$230.70kno data

1.5yrs

Average Tenure

64yo

Average Age

Experienced Board: 3U6's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.5%.


Top Shareholders

Company Information

UGI Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: UGI Corporation
  • Ticker: 3U6
  • Exchange: DB
  • Founded: 1882
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$8.590b
  • Listing Market Cap: US$7.960b
  • Shares outstanding: 208.55m
  • Website: https://www.ugicorp.com

Number of Employees


Location

  • UGI Corporation
  • 460 North Gulph Road
  • King of Prussia
  • Pennsylvania
  • 19406
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UGINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
3U6DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

UGI Corporation distributes, stores, transports, and markets energy products and related services in the United States and internationally. The company operates through four segments: AmeriGas Propane, UGI International, Midstream & Marketing, and UGI Utilities. It distributes propane to approximately 1.6 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers through 1,800 propane distribution locations; and sells, installs, and services propane appliances, including heating systems and propane-powered generators. The company also distributes liquefied petroleum gases (LPG) to residential, commercial, industrial, agricultural, wholesale and automobile fuel customers; and provides logistics, storage, and other services to third-party LPG distributors. In addition, it engages in the retail sale of natural gas, liquid fuels, and electricity to approximately 13,000 residential, commercial, and industrial customers at 41,000 locations. Further, the company distributes natural gas to approximately 655,000 customers in the portions of 44 eastern and central Pennsylvania counties through its distribution system of 12,300 miles of gas mains; and supplies electricity to approximately 62,000 customers in northeastern Pennsylvania through 2,500 miles of lines and 14 substations. Additionally, it operates electric generation facilities, which include coal-fired, landfill gas-fueled, solar-powered, and natural gas-fueled facilities; a natural gas liquefaction, storage, and vaporization facility; propane storage and propane-air mixing stations; and rail transshipment terminals. It also manages natural gas pipeline and storage contracts; develops, owns, and operates pipelines, gathering infrastructure, and gas storage facilities; and offers heating, ventilation, air conditioning, refrigeration, mechanical, and electrical contracting services. UGI Corporation was founded in 1882 and is headquartered in King of Prussia, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:43
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.