UGI (UGI) AI Stock Analysis

• Market Cap: $7.66B
• Dividend Yield: 4.2%
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.49
• Revenue Growth: -4.30%
• EPS Growth: N/A
• Country: US
• Employees: 9,750
• Sector: Utilities
• Sector Strength: 75
• Industry: Regulated Gas
• EPS (TTM): 2.21
• Shares Outstanding: 214,441,330
• 10 Day Avg. Volume: 1,731,905
• 30 Day Avg. Volume: 1,688,520
• PEG Ratio: -0.23
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -77.13
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 3.74
• Enterprise Value/Ebitda: 1.95
• 1Y Price Target: $39.67
• Price Target Upside: 10.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $40.00 ▲(10.96%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

Earnings

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

Market Expansion

The price target for UGI Corp has been raised to $43 due to updated estimates and multiple expansion of the Global LPG sector, indicating a positive equity value.

Negative Factors

Operational Challenges

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 is a global energy services holding company that operates across various sectors, including natural gas distribution, propane distribution, and energy marketing. The company serves millions of customers through its subsidiaries, offering a range of energy solutions, including natural gas, electricity, and renewable energy services. UGI's core products and services span from residential heating solutions to large-scale commercial energy supply, making it a significant player in the energy sector.

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	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	7.32B	7.21B	8.93B	10.11B	7.45B	6.56B
Gross Profit	3.58B	3.68B	1.99B	4.13B	4.83B	3.41B
EBITDA	1.73B	1.33B	-886.00M	2.19B	2.94B	1.58B
Net Income	533.00M	269.00M	-1.50B	1.07B	1.47B	532.00M
Balance Sheet
Total Assets	15.75B	15.10B	15.40B	17.57B	16.72B	13.98B
Cash, Cash Equivalents and Short-Term Investments	426.00M	213.00M	241.00M	405.00M	855.00M	336.00M
Total Debt	7.03B	7.14B	7.25B	7.00B	6.82B	6.38B
Total Liabilities	10.72B	10.74B	11.01B	11.50B	11.19B	9.85B
Stockholders Equity	5.01B	4.34B	4.39B	6.07B	5.52B	4.13B
Cash Flow
Free Cash Flow	561.00M	386.00M	133.00M	-88.00M	791.00M	447.00M
Operating Cash Flow	1.39B	1.18B	1.11B	716.00M	1.48B	1.10B
Investing Cash Flow	-806.00M	-792.00M	-1.08B	-1.01B	-1.11B	-649.00M
Financing Cash Flow	-453.00M	-506.00M	-168.00M	-51.00M	166.00M	-635.00M

UGI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.05
• 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 36.05 is above the 20-day moving average (MA) of 35.82, above the 50-day MA of 34.56, and above the 200-day MA of 29.43, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 56.92 is Neutral, neither overbought nor oversold. The STOCH value of 48.29 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	$7.66B	14.71	10.84%	4.20%	-4.30%	―
CPK	74 Outperform	$2.81B	22.26	9.04%	2.28%	20.41%	13.64%
SR	74 Outperform	$4.30B	18.38	7.30%	4.30%	-7.10%	2.54%
NJR	71 Outperform	$4.46B	10.76	17.83%	4.05%	20.30%	63.69%
OGS	69 Neutral	$4.31B	17.37	8.08%	3.73%	7.73%	2.36%
SWX	68 Neutral	$5.31B	24.08	6.49%	3.36%	-10.78%	16.27%
Sector *	67 Neutral	$16.29B	16.86	4.63%	3.62%	4.77%	6.10%

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.