UGI Corporation

Valuation Analysis

About the Company

UGI Corporation, together with its subsidiaries, engages in the distribution, storage, transportation, and marketing of energy products and related services in the United States and internationally. The company operates through four segments: Utilities, Midstream & Marketing, UGI International, and AmeriGas Propane. It distributes propane to approximately 801 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers. The company 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 1

UGI Corporation Stock at a Glance

UGI Corporation (UGI) is currently trading at $35.03 with a market capitalization of $7.5B. The trailing P/E ratio stands at 12.33x, with a forward P/E of 10.49x. The 52-week range spans from $31.62 to $41.34; the current price is 15.3% below the yearly high. Year-over-year revenue growth stands at +0.7%. The net profit margin stands at 8.71%.

💰 Dividend

UGI Corporation pays an annual dividend of $1.50 per share, representing a yield of 4.28%. The payout ratio stands at 52.82%.

📊 Analyst Rating

3 analysts rate UGI Corporation (UGI) on consensus: None. The average price target is $43.33, implying +23.7% from the current price. Analyst price targets range from $40.00 to $46.00.

UGI Corporation: The Investment Case in Detail

UGI Corporation (UGI) operates in the Utilities — specifically Utilities - Regulated Gas — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

The combination of a 50.69% gross margin and 30.39% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue growth has slowed to just 0.7%, which is below nominal GDP — the business is no longer outgrowing the broader economy.

Valuation in Context

At a PEG of 48.82, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here. The EV/EBITDA multiple of 8.13x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 10.49x is meaningfully below the trailing 12.33x — analysts expect earnings to step up; the next earnings release is the test.
• The dividend yield near 4.28% combined with a payout ratio of 52.82% leaves room for further hikes — a track record of consecutive raises is a strong income signal.
• The analyst consensus price target implies 23.7% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (8.51%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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