NYSE:UGI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer and good 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: UGI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.8%

UGI

-6.0%

US Gas Utilities

-5.3%

US Market


1 Year Return

-32.3%

UGI

-25.4%

US Gas Utilities

10.4%

US Market

Return vs Industry: UGI underperformed the US Gas Utilities industry which returned -25.3% over the past year.

Return vs Market: UGI underperformed the US Market which returned 12% over the past year.


Shareholder returns

UGIIndustryMarket
7 Day-9.8%-6.0%-5.3%
30 Day-0.9%0.6%-2.1%
90 Day-3.0%-7.5%1.7%
1 Year-29.6%-32.3%-22.8%-25.4%12.9%10.4%
3 Year-26.3%-32.0%-12.7%-20.4%34.3%25.4%
5 Year5.1%-7.3%27.5%9.0%73.7%54.3%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UGI ($32.34) is trading below our estimate of fair value ($70.51)

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


Price To Earnings Ratio

PE vs Industry: UGI is good value based on its PE Ratio (14x) compared to the US Gas Utilities industry average (18.1x).

PE vs Market: UGI is good value based on its PE Ratio (14x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: UGI is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: UGI's PB Ratio (1.6x) is in line with the US Gas Utilities industry average.


Next Steps

Future Growth

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

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UGI's forecast earnings growth (14% per year) is above the savings rate (2.2%).

Earnings vs Market: UGI's earnings (14% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: UGI's revenue (4.9% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: UGI'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: UGI's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has UGI performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UGI has a large one-off loss of $188.2M impacting its June 30 2020 financial results.

Growing Profit Margin: UGI's current net profit margins (7.2%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: UGI's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: UGI's earnings growth over the past year (42.3%) exceeds its 5-year average (4.4% per year).

Earnings vs Industry: UGI earnings growth over the past year (42.3%) exceeded the Gas Utilities industry 11.6%.


Return on Equity

High ROE: UGI's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is UGI's financial position?


Financial Position Analysis

Short Term Liabilities: UGI's short term assets ($1.6B) do not cover its short term liabilities ($1.7B).

Long Term Liabilities: UGI's short term assets ($1.6B) do not cover its long term liabilities ($8.0B).


Debt to Equity History and Analysis

Debt Level: UGI's debt to equity ratio (153.9%) is considered high.

Reducing Debt: UGI's debt to equity ratio has increased from 101.4% to 153.9% over the past 5 years.

Debt Coverage: UGI's debt is not well covered by operating cash flow (17.5%).

Interest Coverage: UGI's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

Dividend

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

4.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UGI's dividend (4.08%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: UGI's dividend (4.08%) is low compared to the top 25% of dividend payers in the US market (4.78%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.6%), UGI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UGI's dividends in 3 years are forecast to be well covered by earnings (42.2% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

John Walsh (65 yo)

7.42yrs

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 ($USD8.59M) is about average for companies of similar size in the US market ($USD7.41M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Walsh
President7.42yrsUS$8.59m0.22%
$ 14.9m
Thaddeus Jastrzebski
Chief Financial Officer2.42yrsUS$2.40m0.011%
$ 709.4k
Monica Gaudiosi
VP, General Counsel & Corporate Secretary8.42yrsUS$1.63m0.029%
$ 2.0m
Roger Perreault
Executive VP of Global LPG & President of UGI International2yrsUS$2.30m0.016%
$ 1.0m
Hugh Gallagher
President & CEO of AmeriGas Propane2yrsUS$1.59m0.0086%
$ 578.6k
Laurie Bergman
VP, Chief Accounting Officer & Corporate Controller1.58yrsno data0.0016%
$ 109.9k
Brendan Heck
Director of Investor Relationsno datano datano data
Erika Spott
Vice President of Human Resources & Global Leadership Developmentno datano datano data
Judy Zagorski
Chief Human Resources Officerno datano data0.0014%
$ 97.1k
Robert Beard
Executive Vice President of Natural Gas2yrsUS$1.12m0.074%
$ 5.0m
Sunil Tandon
Vice President Head of Global Procurementno datano datano data
Joseph Hartz
President of UGI Energy Services3.58yrsno data0.081%
$ 5.5m

2.2yrs

Average Tenure

57yo

Average Age

Experienced Management: UGI's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Walsh
President7.42yrsUS$8.59m0.22%
$ 14.9m
Frank Hermance
Independent Non-Executive Chairman0.75yrUS$258.83k0.19%
$ 12.9m
James Stallings
Independent Director5yrsUS$256.33k0.0021%
$ 142.3k
Marvin Schlanger
Independent Vice Chairman0.75yrUS$557.17k0.050%
$ 3.4m
K Turner
Independent Director1yrUS$6.30k0.0020%
$ 134.2k
William Marrazzo
Independent Director1yrUS$6.30k0.00045%
$ 30.3k
Alan Harris
Independent Director2.58yrsUS$243.83kno data
Theodore Dosch
Independent Director3.25yrsUS$267.58k0.0058%
$ 388.4k
Shawn Bort
Independent Director11.75yrsUS$268.83k0.0069%
$ 464.6k
Kelly Romano
Independent Director1.75yrsUS$230.70kno data
Filho Longhi
Director0.42yrno data0.00079%
$ 53.3k
Cindy Miller
Directorno datano datano data

1.8yrs

Average Tenure

65yo

Average Age

Experienced Board: UGI's board of directors are not considered experienced ( 1.8 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: UGI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: UGI Corporation
  • Ticker: UGI
  • Exchange: NYSE
  • Founded: 1882
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$6.743b
  • Shares outstanding: 208.32m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:55
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
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.