UGI (UGI) AI Stock Analysis

• Market Cap: $7.79B
• Dividend Yield: 4.16%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.44
• Revenue Growth: -4.30%
• EPS Growth: N/A
• Country: US
• Employees: 9,750
• Sector: Utilities
• Sector Strength: 88
• Industry: Regulated Gas
• EPS (TTM): -0.01
• Shares Outstanding: 214,441,330
• 10 Day Avg. Volume: 1,464,394
• 30 Day Avg. Volume: 1,552,277
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $40.67
• Price Target Upside: 11.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $41.00 ▲(12.79% Upside)

UGI's overall stock score reflects strong financial performance with improving profitability and cash flow management, solid technical momentum, and strategic corporate events enhancing financial flexibility. However, high debt levels and challenges in specific segments like AmeriGas are risks to watch.

Positive Factors

Earnings Improvement

UGI announced F1Q25 adjusted EPS that beat Street and MSUSA estimates.

Increased Demand

Cold weather has significantly increased propane demand, which is beneficial for UGI Corp, particularly for its AmeriGas operations.

Operational Performance

AmeriGas operations have shown solid performance during a period of high propane demand, which could enhance customer relations and reduce attrition.

Negative Factors

Operational Constraints

Operational constraints at AmeriGas and Midstream have somewhat limited the ability to fully capitalize on the increased demand from colder weather.

Turnaround Skepticism

There is skepticism regarding AmeriGas' turnaround after years of decline, although management remains optimistic.

UGI Business Overview & Revenue Model

Company Description

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 1.4 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers through 1,600 propane distribution location. 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 12,600 residential, commercial, and industrial customers at 42,400 locations. Further, the company distributes natural gas to approximately 672,000 customers in eastern and central Pennsylvania counties through its distribution system of approximately 12,400 miles of gas mains; and supplies electricity to approximately 62,500 customers in northeastern Pennsylvania through 2,600 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. UGI Corporation was incorporated in 1991 and is based in King of Prussia, Pennsylvania.

How the Company Makes Money

UGI Corporation generates revenue primarily through the distribution and sale of natural gas and propane. The company's key revenue streams include its natural gas utility operations, which involve the regulated distribution of gas to residential, commercial, and industrial customers. Another major revenue stream is its propane distribution business, which operates under various brand names and serves customers in the United States and internationally. UGI also engages in energy marketing, offering gas and electricity procurement services. Strategic partnerships and acquisitions further bolster its earnings by expanding its customer base and enhancing service capabilities. Additionally, UGI invests in renewable energy projects and infrastructure, contributing to its diversified revenue model.

UGI Financial Statement Overview

Summary

UGI exhibits strong profitability with improved margins and efficient cash flow management, despite revenue challenges. High debt levels present a risk, but strong returns on equity and cash flows suggest resilience.

Income Statement

UGI's TTM revenue of $7.32 billion shows a modest growth of 1.5% from the previous annual revenue of $7.21 billion. The gross profit margin is strong at 48.9%, while the net profit margin improved significantly to 7.28% from 3.73%, indicating better cost management. EBIT and EBITDA margins are healthy at 13.2% and 23.6% respectively, reflecting solid operational performance. However, revenue has declined from $10.11 billion in 2022, indicating potential market challenges.

Balance Sheet

UGI maintains a high debt-to-equity ratio of 1.40, which is typical for the industry but poses a risk if earnings falter. The return on equity is a robust 10.6%, up from 6.19%, showing efficient use of equity capital. The equity ratio stands at 31.8%, indicating a balanced capital structure but slightly lower than the previous year, which might affect long-term stability.

Cash Flow

Free cash flow increased by 45.3% to $561 million, demonstrating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 2.61, suggesting solid earnings quality. The free cash flow to net income ratio of 1.05 indicates that the company is generating sufficient cash to cover its earnings. These metrics reflect a positive cash flow trend that supports future investments or debt reduction.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	7.21B	8.93B	10.11B	7.45B	6.56B
Gross Profit	3.68B	1.99B	4.13B	4.83B	3.41B
EBITDA	1.33B	-886.00M	2.19B	2.94B	1.58B
Net Income	269.00M	-1.50B	1.07B	1.47B	532.00M
Balance Sheet
Total Assets	15.10B	15.40B	17.57B	16.72B	13.98B
Cash, Cash Equivalents and Short-Term Investments	213.00M	241.00M	405.00M	855.00M	336.00M
Total Debt	7.14B	7.25B	7.00B	6.82B	6.38B
Total Liabilities	10.74B	11.01B	11.50B	11.19B	9.85B
Stockholders Equity	4.34B	4.39B	6.07B	5.52B	4.13B
Cash Flow
Free Cash Flow	386.00M	133.00M	-88.00M	791.00M	447.00M
Operating Cash Flow	1.18B	1.11B	716.00M	1.48B	1.10B
Investing Cash Flow	-792.00M	-1.08B	-1.01B	-1.11B	-649.00M
Financing Cash Flow	-506.00M	-168.00M	-51.00M	166.00M	-635.00M

UGI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UGI, the sentiment is Positive. The current price of 36.35 is above the 20-day moving average (MA) of 36.11, above the 50-day MA of 35.88, and above the 200-day MA of 31.13, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 53.70 is Neutral, neither overbought nor oversold. The STOCH value of 56.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UGI.

UGI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NJR	77 Outperform	$4.68B	11.40	18.03%	3.93%	20.30%	63.69%
CPK	76 Outperform	$2.80B	22.18	9.04%	2.17%	20.41%	13.64%
UGI	75 Outperform	$7.79B	14.97	10.84%	4.16%	-4.30%	―
SR	75 Outperform	$4.44B	16.25	8.37%	4.19%	-7.10%	2.54%
OGS	68 Neutral	$4.35B	17.33	8.24%	3.66%	13.43%	6.49%
SWX	65 Neutral	$5.72B	25.51	5.41%	3.19%	-10.07%	5.98%
Sector *	62 Neutral	£7.47B	0.97	12.81%	5.37%	7.83%	-87.16%

UGI Corporate Events

UGI Secures $275 Million in Senior Notes Agreement

On July 18, 2025, UGI Utilities, Inc. entered into a Note Purchase Agreement for the private placement of $275 million in Senior Notes, with Series A and Series B maturing in 2030 and 2035, respectively. The proceeds from these notes will be used to refinance existing debt and for general corporate purposes. The agreement includes customary covenants and events of default, ensuring the company’s financial stability and operational compliance. This strategic financial move is expected to enhance UGI Utilities’ market position by securing long-term funding and maintaining its competitive edge in the utilities sector.

The most recent analyst rating on (UGI) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on UGI stock, see the UGI Stock Forecast page.

UGI Subsidiaries Issue $550M in Senior Notes

On May 30, 2025, AmeriGas Partners and AmeriGas Finance Corp., subsidiaries of UGI Corporation, issued $550 million in senior unsecured notes due 2030, with an interest rate of 9.500%. The proceeds from this issuance were used to repurchase and redeem all outstanding 5.875% Senior Notes due 2026, effectively releasing the issuers from their obligations under the previous indenture.

The most recent analyst rating on (UGI) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on UGI stock, see the UGI Stock Forecast page.

UGI Subsidiaries Announce Tender Offer Results

On May 28, 2025, UGI Corporation’s subsidiaries, AmeriGas Partners, L.P. and AmeriGas Finance Corp., announced the expiration and results of their tender offer for the 5.875% Senior Notes due 2026. The tender offer, which expired on May 27, 2025, saw approximately 83.3% of the notes tendered, amounting to $553,275,000. The settlement for the tendered notes is expected on May 30, 2025, with a total consideration of $1,010 for each $1,000 principal amount of notes tendered. This move reflects UGI’s strategic financial management, potentially impacting its liquidity and debt profile.

The most recent analyst rating on (UGI) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on UGI stock, see the UGI Stock Forecast page.

UGI’s Subsidiary Enters New Credit Agreement

On May 16, 2025, Mountaineer Gas Company, a subsidiary of UGI Corporation, entered into a new Credit Agreement with The Huntington National Bank and other lenders, refinancing its 2019 Credit Agreement. The new agreement provides a revolving credit facility of $150 million, with the option to increase it to $250 million, and includes various financial covenants and conditions. This strategic financial move is aimed at refinancing existing debt, supporting working capital, and facilitating general corporate purposes, potentially strengthening Mountaineer’s financial position and operational flexibility.

The most recent analyst rating on (UGI) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on UGI stock, see the UGI Stock Forecast page.

UGI Announces $550M Senior Unsecured Notes Offering

On May 21, 2025, UGI Corporation announced that its subsidiaries, AmeriGas Partners and AmeriGas Finance Corp., priced a $550 million offering of 9.500% senior unsecured notes due in 2030. The proceeds from this offering will be used to redeem or repurchase the Issuers’ 5.875% Senior Notes due 2026. This strategic financial move is expected to impact the company’s debt structure and potentially improve its financial flexibility.

The most recent analyst rating on (UGI) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on UGI stock, see the UGI Stock Forecast page.

UGI Subsidiaries Launch $550M Senior Notes Offering

On May 20, 2025, AmeriGas Partners, L.P. and AmeriGas Finance Corp., subsidiaries of UGI Corporation, initiated a private offering of $550 million in senior notes due 2030. Concurrently, they announced a cash tender offer to purchase their outstanding 5.875% Senior Notes due 2026. The transactions aim to refinance existing debt, with the tender offer and redemption conditioned on successful debt financing. The proceeds from the new notes, along with other liquidity sources, will be used to redeem or repurchase the 2026 notes and cover related expenses.

The most recent analyst rating on (UGI) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on UGI stock, see the UGI Stock Forecast page.

UGI Reports 12% Increase in Quarterly EPS

On May 7, 2025, UGI Corporation announced its financial results for the fiscal quarter ended March 31, 2025, reporting a 12% increase in adjusted diluted EPS year-over-year. The company highlighted strong operational execution and increased fiscal 2025 adjusted EPS guidance to a range of $3.00 – $3.15 per share. UGI’s strategic focus on natural gas businesses and infrastructure investments in regulated utilities is driving growth, while efforts at AmeriGas aim to enhance service quality and customer retention. Internationally, disciplined cash flow management supports corporate priorities, positioning UGI to create incremental value for stakeholders.