UGI (UGI) AI Stock Analysis

• Market Cap: $7.82B
• Dividend Yield: 4.14%
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.47
• Revenue Growth: -4.30%
• EPS Growth: N/A
• Country: US
• Employees: 9,750
• Sector: Utilities
• Sector Strength: 82
• Industry: Regulated Gas
• EPS (TTM): 2.21
• Shares Outstanding: 214,441,330
• 10 Day Avg. Volume: 1,628,622
• 30 Day Avg. Volume: 1,979,990
• PEG Ratio: 0.27
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.00
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 4.17
• Enterprise Value/Ebitda: 2.37
• 1Y Price Target: $38.00
• Price Target Upside: 4.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $40.00 ▲(10.31%Upside)

UGI's strong financial performance, particularly in profitability and cash flow, coupled with bullish technical indicators, are key drivers of its stock score. Moderate valuation metrics and positive earnings call sentiment further contribute, while high debt levels and challenges in certain segments present caution.

Positive Factors

Demand and Market Position

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

Earnings

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

Growth Potential

Management is focused on new projects and acquisitions, indicating confidence in the company's future growth.

Negative Factors

Financial Strategy

Incoming CEO Bob Flexon emphasized that AmeriGas is now tasked with managing its own balance sheets, as the parent company will not send additional capital toward the LPG subsidiaries.

Operational Challenges

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

Regulatory and Market Risks

Challenges include operational fixes at AmeriGas still being a work-in-progress, a difficult comp year for Midstream & Marketing, potential regulatory lag at UGI Utilities, and impacts at UGI International related to damages at its LPG supply terminal in France.

UGI Business Overview & Revenue Model

Company Description

UGI Corporation is a diversified energy services holding company engaged primarily in the transportation, distribution, storage, and marketing of energy products and related services. Operating through various subsidiaries, UGI provides natural gas, propane, butane, and electricity to customers in the United States and internationally. The company has a significant presence in both the regulated and unregulated energy markets, offering services that cater to residential, commercial, industrial, and wholesale customers.

How the Company Makes Money

UGI Corporation makes money through several key revenue streams. In the regulated energy segment, UGI generates income by distributing and transporting natural gas and electricity to residential, commercial, and industrial customers. This segment typically ensures stable and predictable revenue due to regulated pricing structures. In the unregulated segment, UGI earns revenue by selling propane and butane through its subsidiaries like AmeriGas and UGI International, which operate in the U.S. and various European countries. The company benefits from its extensive supply chain network, allowing it to efficiently market and deliver energy products. Additionally, UGI engages in energy marketing and trading activities, which contribute to its earnings by capitalizing on market opportunities and price fluctuations. Strategic partnerships and acquisitions also play a vital role, enabling UGI to expand its market reach and enhance its service offerings.

UGI Financial Statement Overview

Summary

UGI's financial performance reflects a well-managed utility company with strengths in cash flow generation and profitability despite revenue fluctuations. The balance sheet is solid but carries a moderate level of debt, which requires careful monitoring. Overall, UGI is in a stable financial position, but attention is needed on revenue growth and managing leverage.

Income Statement

UGI's income statement shows a volatile revenue trajectory. Recent TTM data indicates a decline in revenue compared to the previous year, with a Gross Profit Margin of 61.99% and Net Profit Margin of 7.72%. While EBIT and EBITDA margins are solid at 13.31% and 21.11%, respectively, the company has faced challenges in maintaining consistent profitability due to fluctuations in revenue and expenses.

Balance Sheet

UGI maintains a stable financial structure with a Debt-to-Equity Ratio of 1.49, indicating moderate leverage. The Return on Equity stands at a healthy 12.01%, reflecting good profitability on shareholders' investment. The Equity Ratio is 29.71%, suggesting a balanced approach towards equity financing. However, the high total debt relative to equity may pose future risks if not managed effectively.

Cash Flow

UGI demonstrates strong cash flow management with a significant Operating Cash Flow to Net Income Ratio of 2.23, indicating robust cash conversion. The Free Cash Flow to Net Income Ratio is 1.07, showing effective capital expenditure management. The Free Cash Flow Growth Rate shows a substantial increase, highlighting improved cash generation capabilities.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
7.12B	7.21B	8.93B	10.11B	7.45B	6.56B
	Gross Profit
3.49B	3.68B	1.99B	4.13B	4.83B	3.41B
	EBIT
948.00M	770.00M	-1.44B	1.67B	2.35B	982.00M
	EBITDA
1.79B	1.33B	-886.00M	2.19B	2.94B	1.58B
	Net Income Common Stockholders
550.00M	269.00M	-1.50B	1.07B	1.47B	532.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
240.00M	213.00M	241.00M	405.00M	855.00M	336.00M
	Total Assets
15.41B	15.10B	15.40B	17.57B	16.72B	13.98B
	Total Debt
7.26B	7.14B	7.25B	7.00B	6.82B	6.38B
	Net Debt
7.02B	6.93B	7.01B	6.59B	5.96B	6.04B
	Total Liabilities
10.82B	10.74B	11.01B	11.50B	11.19B	9.85B
	Stockholders Equity
4.58B	4.34B	4.39B	6.07B	5.52B	4.13B
Cash Flow		Free Cash Flow
376.00M	386.00M	133.00M	-88.00M	791.00M	447.00M
	Operating Cash Flow
1.23B	1.18B	1.11B	716.00M	1.48B	1.10B
	Investing Cash Flow
-859.00M	-792.00M	-1.08B	-1.01B	-1.11B	-649.00M
	Financing Cash Flow
-414.00M	-506.00M	-168.00M	-51.00M	166.00M	-635.00M

UGI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 36.26 is above the 20-day moving average (MA) of 35.45, above the 50-day MA of 33.68, and above the 200-day MA of 28.79, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 55.27 is Neutral, neither overbought nor oversold. The STOCH value of 66.89 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
UGI	76 Outperform	$7.82B	15.03	10.84%	4.14%	-4.30%	―
SR	73 Outperform	$4.41B	18.42	7.30%	4.13%	-7.10%	2.54%
NJR	71 Outperform	$4.60B	11.10	17.83%	3.86%	20.30%	63.69%
CPK	67 Neutral	$2.84B	22.56	9.04%	2.10%	20.41%	13.64%
OGS	66 Neutral	$4.51B	18.19	8.08%	3.53%	7.73%	2.36%
SWX	66 Neutral	$5.15B	22.97	6.49%	3.46%	-10.78%	16.27%
Sector *	64 Neutral	$8.59B	10.29	4.70%	4.38%	4.14%	-13.05%

UGI Corporate Events

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.