UGI (US:UGI) ZACKSยท2024-07-12 17:01Core 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].