Is It Time To Consider Buying UGI Corporation (NYSE:UGI)?

UGI Corporation (NYSE:UGI), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at UGI’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for UGI

What Is UGI Worth?

Good news, investors! UGI is still a bargain right now. According to our valuation, the intrinsic value for the stock is $38.57, but it is currently trading at US$23.17 on the share market, meaning that there is still an opportunity to buy now. However, given that UGI’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from UGI?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted revenue growth of 4.7% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for UGI, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since UGI is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on UGI for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy UGI. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

If you want to dive deeper into UGI, you'd also look into what risks it is currently facing. Case in point: We've spotted 2 warning signs for UGI you should be aware of.

If you are no longer interested in UGI, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.