UGI Corp (UGI)
NYSE:UGI
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UGI
(NYSE:UGI)
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Rating:65Neutral
Price Target:
$41.00
â–²(10.42% Upside)
Action:ReiteratedDate:02/06/26
UGI scores in the mid-60s primarily due to improving profitability and operations but with leverage and only moderate cash-to-debt coverage still constraining financial strength. Valuation is supportive (mid-teens P/E and ~4% yield), while technicals are mixed with weaker near-term price trend but longer-term support and only modest momentum.
Positive Factors
Improved Profitability & Margins
UGI’s margins have meaningfully recovered to mid-teens at the EBIT level and positive net margins, reflecting durable operational improvement across segments. Higher margin durability supports sustained cash generation and provides buffer against cyclical commodity swings over months.
Negative Factors
Elevated Leverage
Balance-sheet leverage is elevated for a regulated-energy profile, limiting financial flexibility if rates or funding costs rise. Sustained leverage near current levels constrains investment optionality and increases sensitivity to interest-rate or cash-flow shocks over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability & Margins
UGI’s margins have meaningfully recovered to mid-teens at the EBIT level and positive net margins, reflecting durable operational improvement across segments. Higher margin durability supports sustained cash generation and provides buffer against cyclical commodity swings over months.
Read all positive factors
UGI (UGI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.11B
Dividend Yield3.92%
Average Volume (3M)1.60M
Price to Earnings (P/E)6.8
Beta (1Y)0.21
Revenue Growth1.10%
EPS Growth140.04%
CountryUS
Employees9,750
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)1.26
Shares Outstanding214,636,340
10 Day Avg. Volume1,339,290
30 Day Avg. Volume1,602,292
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.50
Price to Sales (P/S)0.98
P/FCF Ratio18.33
Enterprise Value/Market Cap1.80
Enterprise Value/Revenue1.99
Enterprise Value/Gross Profit4.07
Enterprise Value/Ebitda9.08
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.1
Revenue Forecast (FY)$7.86B
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...
How the Company Makes Money
UGI generates revenue primarily through the sale of natural gas and propane to its customers. The company's key revenue streams include residential, commercial, and industrial gas distribution services, which are billed based on consumption. Addit...
UGI Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
Overall, the call conveyed a constructive operational and strategic progress story: consolidated EBIT grew 5%, utilities and UGI International delivered meaningful gains, safety and operational metrics at AmeriGas improved substantially, liquidity and balance-sheet actions (including ~$215M divestiture proceeds) strengthened the financial position, and new infrastructure (Carlisle LNG) came online. Offsetting this were an ~8% decline in adjusted EPS driven by lost tax credits, higher interest expense and divestiture earnings loss, rising operating expenses across segments, a modest midstream earnings drag (~$5M) from pipeline rate timing, and localized delivery challenges during extreme weather. On balance, the positives—underpinned by operational improvement, margin management and balance-sheet progress—outweigh the headwinds, though several near-term impacts on EPS and costs remain.Positive Updates
Total Reportable Segment EBIT Growth
UGI reported total reportable segments EBIT of $441 million, up $21 million or 5% year-over-year, driven by higher gas base rates in Pennsylvania, colder weather and increased unit margins at UGI International.
Negative Updates
Adjusted EPS Decline
Adjusted diluted EPS was $1.26 for the quarter versus $1.37 prior year, a decline of approximately 8.0%. Management attributed the decline to the absence of prior-year investment tax credits, higher interest expense, and lost earnings from divestitures (Hawaii, Italy, Austria).
Read all updates
Q1-2026 Updates
Positive
Negative
Total Reportable Segment EBIT Growth
UGI reported total reportable segments EBIT of $441 million, up $21 million or 5% year-over-year, driven by higher gas base rates in Pennsylvania, colder weather and increased unit margins at UGI International.
Read all positive updates
Company Guidance
Management's guidance stressed continued execution and measurable improvement: Q1 total reportable segment EBIT was $441 million (up 5% / +$21M, in line with expectations) with adjusted diluted EPS of $1.26 (vs. $1.37 prior year); segment detail included Utilities EBIT $157M (up $16M) with core market volumes +16% on ~21% colder temperatures and total margin +$28M, Midstream & Marketing EBIT $88M (vs. $95M) with ~18% colder temps and a ~$5M pipeline rate timing headwind expected to be recovered starting this fiscal year, UGI International EBIT $124M (up $14M; total margin +$20M) and AmeriGas EBIT $72M (down $2M) with retail LPG volumes +1 million gallons and total margin +$2M; company deployed $225M of capital (73% to regulated utilities), ended the quarter with $1.6B available liquidity (up $100M YoY), substantially completed LPG portfolio rationalization (divestitures in seven countries representing ~5% of prior-year UGI Intl EBIT) for ~ $215M cash proceeds, filed rate cases requesting ~$99M (UGI Utilities) and ~$27M (Mountaineer) to support >$500M of system and technology upgrades, targets sub‑4.5x leverage, expects to contribute $3M to customer assistance over three years, and set AmeriGas performance goals of ~60% improvement this winter and 100% by next—management said results are broadly in line with expectations and anticipates further recovery and growth (including potential PA demand wins) this fiscal year.UGI Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.34B | 7.29B | 7.21B | 8.93B | 10.11B | 7.45B |
| Gross Profit | 3.60B | 3.63B | 3.68B | 1.99B | 4.13B | 4.83B |
| EBITDA | 1.61B | 1.67B | 1.28B | -926.00M | 2.23B | 2.80B |
| Net Income | 600.00M | 678.00M | 269.00M | -1.50B | 1.07B | 1.47B |
Balance Sheet | ||||||
| Total Assets | 15.81B | 15.46B | 15.10B | 15.40B | 17.57B | 16.72B |
| Cash, Cash Equivalents and Short-Term Investments | 251.00M | 355.00M | 213.00M | 241.00M | 405.00M | 855.00M |
| Total Debt | 6.77B | 7.56B | 7.14B | 7.25B | 7.00B | 6.82B |
| Total Liabilities | 10.80B | 10.68B | 10.74B | 11.01B | 11.50B | 11.19B |
| Stockholders Equity | 5.00B | 4.78B | 4.34B | 4.39B | 6.07B | 5.52B |
Cash Flow | ||||||
| Free Cash Flow | 282.00M | 390.00M | 386.00M | 133.00M | -88.00M | 791.00M |
| Operating Cash Flow | 1.13B | 1.23B | 1.18B | 1.11B | 716.00M | 1.48B |
| Investing Cash Flow | -612.00M | -699.00M | -792.00M | -1.08B | -1.01B | -1.11B |
| Financing Cash Flow | -507.00M | -406.00M | -506.00M | -168.00M | -51.00M | 166.00M |
UGI Technical Analysis
Positive
37.13
Price Trends
37.28
Positive
37.14
Positive
35.35
Positive
Market Momentum
<0.01
Negative
59.58
Neutral
69.14
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 37.13 is above the 20-day moving average (MA) of 36.52, below the 50-day MA of 37.28, and above the 200-day MA of 35.35, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.58 is Neutral, neither overbought nor oversold. The STOCH value of 69.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UGI.
UGI Risk Analysis
UGI disclosed 35 risk factors in its most recent earnings report. UGI reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
UGI Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.63B | 17.59 | 8.13% | 3.45% | 15.06% | 12.27% | |
70 Outperform | $6.57B | 21.17 | 11.62% | 3.07% | -23.15% | 157.45% | |
66 Neutral | $5.76B | 9.48 | 13.39% | 4.01% | 13.94% | 13.93% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $8.11B | 6.77 | 12.21% | 3.92% | 1.10% | 140.04% | |
65 Neutral | $5.55B | 12.84 | 8.27% | 3.82% | -4.50% | 2.49% | |
64 Neutral | $3.14B | 20.80 | 9.13% | 2.15% | 17.15% | 15.00% |
* Utilities Sector Average
UGI
UGI
37.79
7.79
25.95%
CPK
Chesapeake Utilities
131.20
7.18
5.79%
SR
Spire
93.90
22.27
31.10%
NJR
New Jersey Resources
57.08
11.44
25.05%
SWX
Southwest Gas
90.92
22.93
33.73%
OGS
ONE Gas
89.83
18.91
26.65%
UGI Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
UGI Posts Lower Q1 EPS but Strong Segment EBIT
Positive
Feb 5, 2026
UGI Corporation reported first-quarter fiscal 2026 results on February 4, 2026, posting GAAP diluted EPS of $1.34 and adjusted diluted EPS of $1.26, both down from the prior year, while reportable segments EBIT rose 5% to $441 million. The quarter...
Executive/Board ChangesShareholder Meetings
UGI Shareholders Reaffirm Board And Governance Stability
Positive
Feb 4, 2026
At its January 30, 2026 Annual Meeting of Shareholders, UGI Corporation’s investors re-elected all ten director nominees to the Board, signaling continued support for the company’s existing leadership and strategic direction. Sharehold...
Business Operations and StrategyDividendsFinancial Disclosures
UGI Reports Strong Fiscal Year 2025 Results
Positive
Nov 21, 2025
On November 20, 2025, UGI Corporation reported strong financial results for the fiscal year ending September 30, 2025, with a GAAP net income of $678 million and adjusted net income of $728 million, significantly higher than the previous year. The...
Business Operations and StrategyPrivate Placements and Financing
UGI Subsidiary Amends Credit Agreement with PNC Bank
Neutral
Nov 14, 2025
On November 10, 2025, AmeriGas Propane, L.P., a subsidiary of UGI Corporation, amended its Revolving Credit and Security Agreement with PNC Bank and other lenders. The amendment revises the Fixed Charge Coverage Ratio to exclude certain dividends ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.