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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Core Viewpoint - UGI Corporation is positioned as a strong investment option in the utility sector due to its strategic investments, solid return on equity, and consistent performance in dividend payments [12]. Financial Performance - The Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) has increased by 0.7% over the past 90 days to $2.92 [2]. - UGI has delivered an average earnings surprise of 19.1% over the last four quarters [3]. - The Zacks Consensus Estimate for fiscal 2025 EPS has also risen by 0.3% in the past 60 days to $3.11 [13]. Return on Equity - UGI's return on equity (ROE) stands at 15.78%, significantly higher than the industry average of 9.7%, indicating effective utilization of funds to generate returns [4]. Solvency and Liquidity - The time-to-interest earned ratio at the end of fiscal Q2 2024 was 1.2, demonstrating the company's ability to meet future interest obligations [5]. - UGI's current ratio is 1.21, surpassing the industry average of 0.69, indicating sufficient short-term assets to cover liabilities [6]. Dividend History - UGI has a long-standing history of paying dividends for 140 years, with a current quarterly dividend of 37.5 cents per share, leading to an annualized dividend of $1.50 [7]. - The company's current dividend yield is 6.51%, which is better than the industry average of 3.47% [7]. Strategic Investments - UGI is making systematic capital investments to upgrade and replace aging infrastructure, with expected capital expenditures ranging from $3.7 billion to $4.1 billion for fiscal years 2024-2027 [8]. - The company recovers nearly 90% of its capital investments within 12 months due to timely rate revisions and approvals [8]. Price Performance - Over the past month, UGI's shares have increased by 1.5%, outperforming the industry's growth of 0.2% [9].

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks. On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality val ...