UGI

UGI Corporation

Fundamental data last updated:September 8, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Utilities

industry

Regulated Gas

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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 UGI Utilities. It distributes propane to approximately 1.4 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers through 1,600 propane distribution location. The company also distributes liquefied petroleum gases (LPG) to residential, commercial, industrial, agricultural, wholesale and automobile fuel customers; and provides logistics, storage, and other services to third-party LPG distributors. In addition, it engages in the retail sale of natural gas, liquid fuels, and electricity to approximately 12,600 residential, commercial, and industrial customers at 42,400 locations. Further, the company distributes natural gas to approximately 672,000 customers in eastern and central Pennsylvania counties through its distribution system of approximately 12,400 miles of gas mains; and supplies electricity to approximately 62,500 customers in northeastern Pennsylvania through 2,600 miles of lines and 14 substations. Additionally, it operates electric generation facilities, which include coal-fired, landfill gas-fueled, solar-powered, and natural gas-fueled facilities; a natural gas liquefaction, storage, and vaporization facility; propane storage and propane-air mixing stations; and rail transshipment terminals. It also manages natural gas pipeline and storage contracts; develops, owns, and operates pipelines, gathering infrastructure, and gas storage facilities. UGI Corporation was incorporated in 1991 and is based in King of Prussia, Pennsylvania.

 


VALUATION

P/E

11.70

Market Cap ($M USD)

$7.49B

Forward P/E

8.09

PEG

0.18

PRICE TO SALES

1.02

PRICE TO BOOK

1.38

EV / EBITDA

9.07

5-Year Average P/E

Free Cash Flow Yield

3.18%

DCF Value

$7.99

Graham Number

$41.15

Price to FCF

31.46

EV to FCF

57.92

Earnings Yield

8.54%

FCF Yield

3.18%

DIVIDEND

Yield

4.30%

Annual Payout

$1.50

Payout Ratio

50.23%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.98

Next Year EPS Growth Estimate

$4.32

Next Year Revenue Growth Estimate

$7.83B

Return on Equity (ROE)

12.77%

FREE CASH FLOW

Operating Margin

13.26%

Debt-to-Equity

1.58

Piotroski F-Score

6

Altman Z-Score

1.42

Return on Invested Capital (ROIC)

7.17%

Current Ratio

1.00

Quick Ratio

0.87

Net Debt to EBITDA

4.15

Interest Coverage

4.71

Gross Profit margin

46.11%

FCF PER SHARE

$1.11

REVENUE PER SHARE

$34.25

Gainseekers Quantitative Analysis

Summary

UGI Corporation’s valuation presents a compelling narrative for deep value investors. Recent pricing indicated the stock traded significantly below its DCF Value and Graham Number, suggesting potential undervaluation. The Forward P/E of 7.75 and an Earnings Yield of 9.23% highlight a market expectation of robust future earnings, yet the Altman Z-score of 1.39 raises red flags about financial distress. This juxtaposition of value and risk creates a complex investment thesis, where the market may be underestimating the company’s future growth potential.

AI Exposure / Tech Reliance

As a regulated gas utility, UGI Corporation operates in an industry less susceptible to rapid technological shifts like AI. However, its ability to integrate smart grid technologies and improve operational efficiencies could enhance its resilience. The company's focus on infrastructure and energy distribution positions it to adapt gradually to tech advancements without immediate disruption.

The Bull Case

For value and GARP investors, UGI offers a tantalizing opportunity. With a ROIC of 7.17% and a Piotroski F-Score of 6, the company demonstrates solid capital efficiency and financial health. The operating margin of 13.26% and a reasonable FCF Yield suggest effective cost management and potential for cash flow growth. These metrics underscore UGI's ability to maintain pricing power and generate consistent returns, making it an attractive buy for those seeking undervalued assets with growth potential.

The Bear Case

Despite its strengths, UGI faces significant structural risks. The Altman Z-score signals potential financial distress, and a Net Debt to EBITDA ratio of 4.15 indicates a heavy debt burden. The Price to FCF ratio of 29.11 suggests the stock is expensive relative to its cash flow generation. Additionally, trading near its 52-week low, the stock's technical position could reflect broader market skepticism about its growth prospects.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$43.33

Institutional Ownership %

1-Year Beta

0.97

Insider Buying % (6 Mo)

Distance to 52-Week High

18.38%

Distance to 52-Week Low

9.45%

EARNINGS SURPRISE %

-0.95%

50-DAY SMA

$35.89

200-DAY SMA

$35.95

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.