UGI (UGI) AI Stock Analysis

• Market Cap: $7.22B
• Dividend Yield: 4.41%
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.29
• Revenue Growth: -0.52%
• EPS Growth: -39.42%
• Country: US
• Employees: 9,750
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): -0.01
• Shares Outstanding: 214,924,210
• 10 Day Avg. Volume: 1,416,774
• 30 Day Avg. Volume: 2,118,324
• PEG Ratio: -0.17
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 13.70
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 3.99
• Enterprise Value/Ebitda: 11.52
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: $35.00 ▲(4.88% Upside)

UGI's overall stock score reflects a balance of strengths and challenges. The company's strong dividend yield and reasonable valuation are positive factors. However, financial performance is hindered by high leverage and declining cash flow, while technical indicators suggest cautious market sentiment. The earnings call provided optimistic guidance, but highlighted some operational challenges.

Positive Factors

Strategic Investments

UGI's focus on strategic investments in natural gas infrastructure and operational efficiencies positions the company for long-term growth and improved profitability.

Customer Growth

UGI's consistent customer growth in its utilities segment enhances its revenue base and supports stable cash flows, contributing to long-term business sustainability.

Financial Flexibility

UGI's strong financial flexibility and liquidity position enable the company to invest in growth opportunities and manage debt effectively, supporting long-term stability.

Negative Factors

High Leverage

UGI's high leverage could pose financial risks, limiting its ability to invest in growth and potentially impacting its long-term financial stability.

Declining Cash Flow

The decline in free cash flow growth indicates potential challenges in generating sufficient cash to support operations and investments, affecting long-term financial health.

Operational Challenges

The decline in EBIT for the Midstream & Marketing segment highlights operational challenges that could impact profitability and require strategic adjustments for improvement.

UGI Business Overview & Revenue Model

Company Description

UGI Corporation is a diversified energy and utility company based in the United States, primarily engaged in the distribution and marketing of energy products and services. The company operates through several segments including UGI Utilities, which provides natural gas and electric utility services in Pennsylvania; AmeriGas Partners, a leading propane distribution company; and UGI International, which markets propane and LPG in various international markets. UGI's core products include natural gas, propane, and other related services, catering to residential, commercial, and industrial customers.

How the Company Makes Money

UGI generates revenue primarily through the sale of natural gas and propane to residential, commercial, and industrial customers. The company operates on a regulated utility model for its UGI Utilities segment, where it earns revenue based on the volume of gas sold and the distribution services provided. In addition, AmeriGas Partners generates income through the distribution of propane, with revenues driven by retail sales and rental income from propane tanks and cylinders. The company also benefits from long-term contracts and partnerships with suppliers and customers, enabling stable cash flows. Seasonal demand variations, especially in winter months, significantly influence revenue, along with regulatory frameworks that impact pricing structures.

UGI Financial Statement Overview

Summary

UGI demonstrates strong profitability improvements with growing margins and efficient cash flow management. Despite challenges in revenue growth, the company maintains solid returns on equity and improving cash flows, suggesting a resilient financial position in the regulated gas industry. However, high debt levels pose a notable risk.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.33B	7.21B	8.93B	10.11B	7.45B	6.56B
Gross Profit	3.61B	3.68B	1.99B	4.13B	4.83B	3.41B
EBITDA	1.25B	1.33B	-886.00M	2.19B	2.94B	1.58B
Net Income	418.00M	269.00M	-1.50B	1.07B	1.47B	532.00M
Balance Sheet
Total Assets	15.36B	15.10B	15.40B	17.57B	16.72B	13.98B
Cash, Cash Equivalents and Short-Term Investments	350.00M	213.00M	241.00M	405.00M	855.00M	336.00M
Total Debt	6.95B	7.14B	7.25B	7.00B	6.82B	6.38B
Total Liabilities	10.48B	10.74B	11.01B	11.50B	11.19B	9.85B
Stockholders Equity	4.87B	4.34B	4.39B	6.07B	5.52B	4.13B
Cash Flow
Free Cash Flow	443.00M	386.00M	133.00M	-88.00M	791.00M	447.00M
Operating Cash Flow	1.29B	1.18B	1.11B	716.00M	1.48B	1.10B
Investing Cash Flow	-740.00M	-792.00M	-1.08B	-1.01B	-1.11B	-649.00M
Financing Cash Flow	-403.00M	-506.00M	-168.00M	-51.00M	166.00M	-635.00M

UGI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.37
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 33.37 is above the 20-day moving average (MA) of 32.71, above the 50-day MA of 33.35, and above the 200-day MA of 33.21, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 56.44 is Neutral, neither overbought nor oversold. The STOCH value of 85.54 is Negative, 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	―	$4.56B	11.10	18.03%	4.02%	21.88%	71.35%
OGS	―	$4.96B	19.73	8.24%	3.23%	13.43%	6.49%
SR	―	$5.20B	19.05	8.37%	3.56%	-6.65%	11.47%
CPK	―	$3.10B	23.51	9.25%	2.02%	19.02%	20.13%
SWX	―	$5.80B	30.00	5.41%	3.08%	-10.07%	5.98%
Sector *	―	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
UGI	―	$7.22B	17.71	8.75%	4.41%	-0.52%	-39.42%

UGI Corporate Events

UGI Amends Receivables Agreement with PNC Bank

On October 17, 2025, UGIES and its subsidiary ESFC amended their Receivables Purchase Agreement with PNC Bank, extending the termination date to October 16, 2026, and adjusting the settlement date to the 21st of each month. This amendment impacts UGIES’s financial operations by securing trade receivables and maintaining financial flexibility, which is crucial for its market positioning and stakeholder interests.

The most recent analyst rating on (UGI) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on UGI stock, see the UGI Stock Forecast page.

UGI Corporation Amends Credit Agreement for New Loan

On August 6, 2025, UGI Corporation amended its Credit Agreement to establish a new $300 million senior secured revolving loan facility. This facility, which matures on August 5, 2026, is intended to finance cash considerations related to the conversion of the 2028 Notes and offers flexible borrowing options with interest rates tied to the company’s net leverage ratio. The loans are secured by the company’s equity in its Material Subsidiaries, with certain exceptions.

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 Corporation Reports Mixed Q3 Financial Results

UGI Corporation is a distributor and marketer of energy products and services in the US and Europe, providing natural gas, electric generation, propane distribution, and renewable energy solutions. In its latest earnings report, UGI Corporation announced a GAAP diluted EPS of $(0.76) and an adjusted diluted EPS of $(0.01) for the third quarter, reflecting a decline from the previous year. However, year-to-date results showed improvement with a GAAP diluted EPS of $3.16 and adjusted EPS of $3.55. The company executed strategic asset sales in its Global LPG businesses, generating approximately $150 million, and expects to reach the top end of its fiscal 2025 adjusted EPS guidance range. Key financial metrics revealed mixed performance across segments. Utilities saw a 12% revenue increase, but operating income decreased by 22% due to higher expenses. Midstream & Marketing revenues rose by 10%, though operating income fell by 34% due to lower margins and increased expenses. UGI International experienced a 4% revenue decline, with operating income dropping by 25% due to lower retail volumes and margins. AmeriGas Propane’s revenues decreased by 2%, maintaining a consistent operating loss compared to the prior year. Looking ahead, UGI Corporation remains focused on enhancing operational excellence and financial flexibility, with management optimistic about achieving sustainable growth and value creation for shareholders.

UGI Corp’s Earnings Call: Record EPS Amid Challenges

UGI Corporation’s recent earnings call revealed a mixed sentiment, highlighting both achievements and challenges. The company reported a strong year-to-date financial performance with record adjusted diluted earnings per share and notable customer growth in the Utilities segment. However, the third quarter presented some difficulties, including a decline in quarterly EPS, reduced volumes in the UGI International segment, and increased operating expenses in the Utilities segment. Despite these hurdles, strategic initiatives such as asset sales and improvements in AmeriGas are expected to positively impact the company’s future outlook.

UGI Reports Q3 2025 Earnings and Asset Sales

UGI Corporation reported its financial results for the fiscal quarter ended June 30, 2025, showing a decrease in both GAAP and adjusted diluted earnings per share compared to the previous year. The company executed a strategic portfolio optimization initiative, generating $150 million from asset sales in its Global LPG businesses. Despite the quarterly earnings dip, UGI expects to meet the top end of its fiscal 2025 adjusted EPS guidance, highlighting the strength of its asset portfolio and operational improvements at AmeriGas.

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 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.