UGI (UGI) AI Stock Analysis

• Market Cap: $7.01B
• Dividend Yield: 4.6%
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.28
• 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: 2,496,875
• 30 Day Avg. Volume: 2,003,936
• 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: 2.06
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 3.99
• Enterprise Value/Ebitda: 11.52
• 1Y Price Target: $42.50
• Price Target Upside: 30.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: $35.00 ▲(7.30% Upside)

UGI's overall stock score is driven by a balanced view of its financial performance and strategic initiatives. While the company shows strong valuation and strategic progress, technical indicators point to bearish momentum, and financial challenges such as high leverage and declining cash flow growth present risks. The earnings call provided positive guidance, but operational challenges remain.

Positive Factors

Strategic Investments

UGI's focus on strategic investments in natural gas infrastructure enhances its long-term growth prospects and operational efficiencies, strengthening its competitive position in the energy sector.

Customer Growth

The addition of new customers in the utilities segment indicates robust demand and supports stable revenue streams, enhancing UGI's market position and long-term business sustainability.

Financial Flexibility

UGI's strong financial flexibility, demonstrated by its leverage ratio and liquidity, provides a solid foundation for future investments and resilience against market fluctuations.

Negative Factors

High Leverage

UGI's high leverage could pose financial risks, limiting its ability to invest in growth opportunities and increasing vulnerability to interest rate hikes, impacting long-term financial stability.

Declining Cash Flow

The decline in free cash flow growth suggests challenges in cash generation, potentially affecting UGI's ability to fund operations, repay debt, and invest in future growth initiatives.

Profitability Challenges

UGI's low net profit margin and declining EBIT and EBITDA margins indicate operational challenges, which could hinder profitability and long-term financial performance if not addressed.

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 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.

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: Negative
• Last Price: 32.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UGI, the sentiment is Negative. The current price of 32.62 is below the 20-day moving average (MA) of 33.30, below the 50-day MA of 34.25, and below the 200-day MA of 32.73, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 38.86 is Neutral, neither overbought nor oversold. The STOCH value of 34.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UGI.

UGI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NJR	76 Outperform	$4.72B	11.48	18.03%	3.88%	21.88%	71.35%
SR	71 Outperform	$4.86B	17.79	8.37%	3.82%	-6.65%	11.47%
CPK	70 Outperform	$3.21B	24.34	9.25%	1.94%	19.02%	20.13%
OGS	68 Neutral	$4.78B	19.03	8.24%	3.35%	13.43%	6.49%
SWX	67 Neutral	$5.64B	29.19	5.41%	3.16%	-10.07%	5.98%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
UGI	62 Neutral	$7.01B	17.19	8.75%	4.60%	-0.52%	-39.42%

UGI Corporate Events

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 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.