Core Viewpoint - UGI Corporation is highlighted as an attractive investment for income investors due to its high dividend yield, low valuation, and potential for share price growth [2][11]. Company Overview - UGI Corporation is a utility company involved in natural gas transmission and distribution, electricity generation and distribution, and propane distribution, with a history dating back to 1882 [3]. Dividend and Valuation - UGI offers a forward dividend yield of 6.42% and has a long history of paying dividends for 139 consecutive years, increasing them for 36 consecutive years [4]. - The stock is valued at 7.4 times forward earnings, with a price-to-sales ratio of 0.68 and a price-to-book ratio of 1.07, indicating it is attractively priced compared to peers [4][5]. Market Performance - UGI's share price has decreased by approximately 5% year-to-date, while the Utilities Select SPDR ETF has increased by nearly 22% in 2024 [6]. - Despite this underperformance, analysts project a 12-month price target reflecting a 32% upside potential for UGI [6][8]. Analyst Sentiment - Among five analysts surveyed, only one rated UGI as a strong buy, while three recommended holding and one suggested it as an underperformer [7]. - The lowest 12-month price target among analysts is still 16% higher than the current share price, indicating a general expectation of price appreciation [8]. Investment Suitability - UGI may not appeal to growth investors due to its business model, but it is considered attractive for value investors due to its low valuation [9][10]. - Income investors are likely to find UGI appealing due to its secure ultra-high dividend yield and strong track record of dividend payments [11].

Core Viewpoint - UGI Corporation is viewed as a resilient investment opportunity due to its stable business model, impressive dividend yield, and attractive valuation, despite recent challenges faced by its AmeriGas segment [1]. Group 1: Resilient Business - UGI operates a diversified utility business, including AmeriGas, the largest retail propane distributor in the U.S., and natural gas utilities in Pennsylvania, Maryland, and West Virginia [2]. - The company has a long history of 142 years and anticipates long-term earnings-per-share growth of 4% to 6% [2]. - UGI is actively working to stabilize AmeriGas by controlling costs and improving its balance sheet, which is reflected in its solid fiscal 2024 third-quarter results [3]. Group 2: Impressive Dividend - UGI offers a forward dividend yield of 5.95% with a payout ratio of 47.8%, showcasing its commitment to returning value to shareholders [4]. - The company has maintained a consistent dividend payment for 140 consecutive years, with a compound annual growth rate of 6% over the last decade [4]. - Although UGI does not plan to increase its dividend in fiscal 2025 or 2026, it aims to resume a 4% annual increase starting in fiscal 2027 [4]. Group 3: Attractive Valuation - UGI's share price has declined over the past three years, primarily due to challenges with AmeriGas, leading to an attractive valuation [5]. - The stock is currently trading at 8 times forward earnings, significantly lower than the S&P 500 utilities sector average of 18.8 [5]. - Zacks Equity Research rates UGI with an "A" for valuation, indicating strong potential for future earnings growth [5]. Group 4: Management Leadership - UGI appointed Bob Flexon as its new CEO, effective November 1, 2024, bringing valuable experience from previous leadership roles [6]. - Flexon's background includes serving as CEO of Dynegy and CFO of UGI, which is expected to enhance the company's stability and performance [6].

UGI Corporation's (UGI) strategic investment plans will help upgrade and replace its aging infrastructure, thereby boosting customer reliability and performance. Given its growth opportunities and strong return on equity (ROE), UGI makes for a solid investment option in the Zacks Utility sector. Let's focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment. UGI's Growth Projections & Surprise History The Zacks Consensus Estimate for UGI's fiscal 2024 earnings p ...

A month has gone by since the last earnings report for UGI (UGI) . Shares have added about 4.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is UGI due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. UGI Q3 Earnings Surpass Estimates, Revenues Decline Y/Y UGI Corpora ...

Shares of UGI (UGI) have gained 4.7% over the past four weeks to close the last trading session at $24.52, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $30.67 indicates a potential upside of 25.1%. The average comprises three short-term price targets ranging from a low of $27 to a high of $38, with a standard deviation of $6.35. While the lowest estimate indicates an increase ...

Shares of UGI (UGI) have gained 0.1% over the past four weeks to close the last trading session at $23.45, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $30.67 indicates a potential upside of 30.8%. The average comprises three short-term price targets ranging from a low of $27 to a high of $38, with a standard deviation of $6.35. While the lowest estimate indicates an increase ...

Core Insights - UGI Corporation reported fiscal third-quarter 2024 operating earnings of 6 cents per share, exceeding the Zacks Consensus Estimate of a loss of 5 cents per share by 220% and improving from break-even earnings in the same quarter last year [1] Total Revenues - Total revenues for the quarter were $1.38 billion, missing the consensus estimate of $1.67 billion by 17.3% and declining 16.9% from $1.66 billion in the year-ago quarter [2] Segmental Results - **AmeriGas Propane**: Revenues of $445 million, down 13.4% year over year, with retail gallons sold decreasing 12.9% due to warmer weather and customer attrition [3] - **UGI International**: Revenues of approximately $455 million, down 25.5% from the previous year, with retail volume decreasing 3.8% [3] - **Midstream & Marketing**: Revenues of $253 million, down 9.3% year over year [3] - **UGI Utilities**: Sales of $257 million, down 7.6% from the year-ago period [4] - **Corporate & Other**: This segment incurred a loss of $30 million, wider than the prior-year loss of $23 million [4] Highlights of the Release - The company reported strong third-quarter results driven by record earnings from natural gas businesses and improved results from UGI International [5] - Operating and administrative expenses decreased by $38 million year-over-year [5] - Total interest expenses remained flat at $96 million compared to the previous year [5] Debt Management - The company has refinanced over $1 billion of debt this year and reduced approximately $460 million of debt at AmeriGas Propane [6] Guidance - UGI anticipates fiscal 2024 adjusted earnings to be in the range of $2.70-$3.00 per share, with the Zacks Consensus Estimate at $2.92 per share, higher than the midpoint of the company's guidance [7]

Based in King Of Prussia, UGI (UGI) is in the Utilities sector, and so far this year, shares have seen a price change of -0.08%. The natural gas and electric utilities operator. Is currently shelling out a dividend of $0.38 per share, with a dividend yield of 6.1%. This compares to the Utility - Gas Distribution industry's yield of 3.69% and the S&P 500's yield of 1.56%. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution ...

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Let's focus on the factors that make this Zacks Rank #2 (Buy) company a robust investment pick at the moment. The Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) has moved up 0.7% in the past 90 days to $2.92. The company delivered an average earnings surprise of 19.1% in the last four quarters. ROE indicates how efficiently a company has been utilizing the funds to generate higher returns. Currently, UGI's ROE is 15.78%, higher than the industry's average of 9.7%. This indicates that the ...