UGI Corp (UGI)
NYSE:UGI
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UGI
(NYSE:UGI)
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Rating:62Neutral
Price Target:
$36.00
▼(-3.04% Downside)
Action:Reiterated
Date:05/19/26
UGI’s score is driven primarily by mid-range financial quality (earnings rebound but volatile history and inconsistent free cash flow) and weak technical momentum (below major moving averages). Valuation is a clear positive (very low P/E and solid dividend yield), while the earnings call and recent refinancing actions are modest positives tempered by the downward FY26 guidance revision.
Positive Factors
Improving leverage & liquidity
Lower consolidated net leverage and roughly $2.1B of available liquidity materially reduce refinancing risk and increase financial flexibility. This durable strength supports capital spending, rate-base investments, and dividend capacity across utility and commodity cycles over the next several years.
Negative Factors
Earnings and cash-flow volatility
Historic swings in profitability (notably 2023’s loss) and inconsistent free cash flow indicate earnings are cyclical and sensitive to commodity and weather swings. This volatility makes long-term payout and reinvestment plans less predictable and raises the risk of earnings shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage & liquidity
Lower consolidated net leverage and roughly $2.1B of available liquidity materially reduce refinancing risk and increase financial flexibility. This durable strength supports capital spending, rate-base investments, and dividend capacity across utility and commodity cycles over the next several years.
Read all positive factors
UGI (UGI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.41B
Dividend Yield3.92%
Average Volume (3M)1.84M
Price to Earnings (P/E)3.8
Beta (1Y)0.19
Revenue Growth0.52%
EPS Growth20.56%
CountryUS
Employees9,750
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)2.98
Shares Outstanding214,393,700
10 Day Avg. Volume2,794,200
30 Day Avg. Volume1,838,075
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 Cap1.87
Enterprise Value/Revenue1.88
Enterprise Value/Gross Profit4.07
Enterprise Value/Ebitda9.10
Forecast
1Y Price Target
$43.00Price Target Upside15.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.95
Revenue Forecast (FY)$7.52B
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 makes money primarily through a mix of regulated utility revenues and non-regulated energy distribution and marketing margins. (1) Propane distribution: UGI generates revenue by selling propane to residential, commercial, industrial, and agric...
UGI Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call communicated meaningful progress on strategic priorities, with notable balance-sheet strengthening (net leverage 3.7x), strong liquidity (~$2.1B), robust free cash flow generation at UGI International (> $800M over 3 years), operational improvements at AmeriGas (safety, customer metrics, reshored call center) and promising growth initiatives (Prime Data Centers partnership, Auburn expansion). Offsetting these positives were short-term earnings headwinds: adjusted EPS declines (Q2 and YTD), a downward guidance revision driven mainly by midstream timing issues and higher interest expense, and volume pressure from warmer weather and some divestitures. On balance the company appears to be in a stronger financial and operational position with manageable near-term challenges.Positive Updates
Balance Sheet Strength and Liquidity
Net leverage at UGI Corporation was 3.7x at quarter end, below the targeted <=3.75x level and the lowest in 5 years; available liquidity was approximately $2.1 billion, an increase of about $200 million year-over-year.
Negative Updates
Quarterly and Year-to-Date EPS Declines
Adjusted diluted EPS for Q2 was $2.09 versus $2.21 a year ago (down ~5.4%), and adjusted diluted EPS for the first half was $3.35 versus $3.58 a year ago (down ~6.4%). Management attributed the decline primarily to the absence of prior-year investment tax credits and higher interest expense.
Read all updates
Q2-2026 Updates
Positive
Negative
Balance Sheet Strength and Liquidity
Net leverage at UGI Corporation was 3.7x at quarter end, below the targeted <=3.75x level and the lowest in 5 years; available liquidity was approximately $2.1 billion, an increase of about $200 million year-over-year.
Read all positive updates
Company Guidance
UGI revised fiscal 2026 adjusted diluted EPS guidance to $2.75–$2.90 (down from prior expectations), driven primarily by lower Midstream & Marketing contributions (delays in growth investments and lower Appalachian production) and slower-than-expected earnings flow from AmeriGas’ turnaround; Q2 adjusted EPS was $2.09 (vs. $2.21 LY) and H1 adjusted EPS was $3.35 (vs. $3.58 LY). Management closed the quarter with consolidated net leverage of 3.7x (below its ≤3.75x target) and available liquidity of ≈$2.1B, expects AmeriGas leverage to fall below 4.0x by fiscal year‑end, and is executing a capital rebalancing in which UGI International (≈1.2x leverage, ≈$900M liquidity) will pay a $300M special dividend to the parent—with ≈$150M used to retire intercompany debt—to lower consolidated borrowing costs; longer‑term targets include a 5–7% EPS CAGR from FY24–FY29.UGI Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
60
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.36B | 7.29B | 7.21B | 8.93B | 10.11B | 7.45B |
| Gross Profit | 3.39B | 3.63B | 3.68B | 1.99B | 4.13B | 4.83B |
| EBITDA | 1.52B | 1.67B | 1.28B | -926.00M | 2.23B | 2.80B |
| Net Income | 641.00M | 678.00M | 269.00M | -1.50B | 1.07B | 1.47B |
Balance Sheet | ||||||
| Total Assets | 16.12B | 15.46B | 15.10B | 15.40B | 17.57B | 16.72B |
| Cash, Cash Equivalents and Short-Term Investments | 494.00M | 355.00M | 213.00M | 241.00M | 405.00M | 855.00M |
| Total Debt | 6.79B | 7.56B | 7.14B | 7.25B | 7.00B | 6.82B |
| Total Liabilities | 10.69B | 10.68B | 10.74B | 11.01B | 11.50B | 11.19B |
| Stockholders Equity | 5.42B | 4.78B | 4.34B | 4.39B | 6.07B | 5.52B |
Cash Flow | ||||||
| Free Cash Flow | 238.00M | 390.00M | 386.00M | 133.00M | -88.00M | 791.00M |
| Operating Cash Flow | 1.11B | 1.23B | 1.18B | 1.11B | 716.00M | 1.48B |
| Investing Cash Flow | -629.00M | -699.00M | -792.00M | -1.08B | -1.01B | -1.11B |
| Financing Cash Flow | -391.00M | -406.00M | -506.00M | -168.00M | -51.00M | 166.00M |
UGI Technical Analysis
Neutral
37.13
Price Trends
36.04
Negative
36.84
Negative
35.48
Negative
Market Momentum
-0.74
Negative
48.17
Neutral
73.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UGI, the sentiment is Neutral. The current price of 37.13 is above the 20-day moving average (MA) of 35.01, above the 50-day MA of 36.04, and above the 200-day MA of 35.48, indicating a bearish trend. The MACD of -0.74 indicates Negative momentum. The RSI at 48.17 is Neutral, neither overbought nor oversold. The STOCH value of 73.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $5.82B | 6.33 | 13.74% | 4.01% | 8.52% | -18.44% | |
67 Neutral | $3.04B | 12.75 | 9.49% | 2.15% | 17.14% | 15.65% | |
66 Neutral | $6.44B | 11.37 | 11.86% | 3.07% | -48.15% | 105.44% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $5.22B | 10.53 | 8.20% | 3.45% | 2.81% | 7.01% | |
62 Neutral | $7.41B | 3.76 | 12.77% | 3.92% | 0.52% | 20.56% | |
62 Neutral | $5.10B | 4.73 | 10.45% | 3.82% | 4.53% | 40.51% |
* Utilities Sector Average
UGI
UGI
34.85
0.69
2.02%
CPK
Chesapeake Utilities
127.72
8.06
6.73%
SR
Spire
86.98
15.66
21.96%
NJR
New Jersey Resources
58.19
13.92
31.45%
SWX
Southwest Gas
89.04
22.01
32.83%
OGS
ONE Gas
83.10
10.77
14.88%
UGI Corporate Events
Business Operations and StrategyPrivate Placements and Financing
UGI Reshapes AmeriGas Debt with Major Tender Offer
Positive
May 18, 2026
On May 18, 2026, UGI said AmeriGas Partners and AmeriGas Finance had received tenders for about $468.5 million of their 5.750% senior notes due 2027, representing roughly 91.51% of the outstanding issue, by the May 15 expiration of a cash tender o...
Business Operations and StrategyPrivate Placements and Financing
UGI International Prices €300 Million Senior Notes Offering
Positive
May 13, 2026
On May 13, 2026, UGI Corporation announced that its indirect, wholly owned subsidiary UGI International, LLC priced a €300 million offering of 5.000% senior notes due 2031 in a private placement to institutional and non-U.S. investors. The n...
Business Operations and StrategyPrivate Placements and Financing
UGI International Launches €300 Million Senior Notes Offering
Neutral
May 12, 2026
On May 12, 2026, UGI International launched a €300 million private offering of senior notes, marketing the deal to prospective investors via a new presentation that updates prior corporate disclosures. The company emphasized the information ...
Business Operations and StrategyPrivate Placements and Financing
UGI’s AmeriGas Prices $500 Million Senior Notes Offering
Positive
May 11, 2026
On May 11, 2026, UGI Corporation announced that its subsidiaries AmeriGas Partners and AmeriGas Finance Corp. priced a private offering of $500 million of 6.875% senior unsecured notes due 2031, sold to qualified institutional buyers under Rule 14...
Business Operations and StrategyPrivate Placements and Financing
UGI’s AmeriGas Launches Notes Offering, Debt Refinancing Plan
Positive
May 11, 2026
On May 11, 2026, AmeriGas Partners, L.P. and AmeriGas Finance Corp., indirect wholly owned subsidiaries of UGI Corporation, launched a private offering of $500 million in senior notes due 2031, relying on exemptions from U.S. securities registrati...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
UGI Reports Q2 2026 Results, Updates Earnings Guidance
Positive
May 7, 2026
UGI Corporation reported second-quarter fiscal 2026 results on May 6, 2026, posting GAAP diluted EPS of $2.33 and adjusted diluted EPS of $2.09, with year-to-date adjusted EPS of $3.35, slightly below the prior year, while segment EBIT edged up to...
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.