UGI (US:UGI) ZACKSยท2025-06-13 13:26Core Viewpoint - UGI Corporation's planned investments are expected to enhance its aging infrastructure and improve overall performance, making it a strong investment option in the utility sector due to growth opportunities and a solid return on equity (ROE) [1] Group 1: Growth Projections - The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has increased by 3.3% to $3.13 [2] - The Zacks Consensus Estimate for fiscal 2025 sales is projected at $7.81 billion, reflecting a year-over-year increase of 8.4% [2] - UGI's long-term earnings growth rate is estimated at 5.2%, with a trailing four-quarter average earnings surprise of 75.7% [2] Group 2: Financial Health - UGI's current ratio stands at 1.23, surpassing the industry average of 0.63, indicating sufficient short-term assets to cover liabilities [3] - The company's ROE is 16.21%, significantly higher than the industry average of 9.24%, demonstrating effective utilization of funds [4] - UGI's total debt to capital ratio is 58.34%, better than the sector's average of 59.23%, and the time-to-interest earned ratio is 2.5, indicating strong ability to meet interest obligations [5] Group 3: Dividend Performance - UGI has a long history of paying dividends for 141 years, with a current quarterly dividend of 37.5 cents per share, leading to an annualized dividend of $1.50 [6] - The compound annual growth rate (CAGR) for UGI's 10-year dividend is 6% for fiscal 2014-2024, and the current dividend yield is 4.1%, above the industry's average of 3.28% [6] Group 4: Strategic Investments - UGI plans to invest $800-$900 million in fiscal 2025 and up to $4.1 billion by 2027 to modernize its infrastructure [8][10] - These investments aim to enhance safety and reliability in natural gas production and storage, as well as replace aging infrastructure to efficiently serve an expanding customer base [9] - UGI has added over 6,600 residential heating and commercial customers year to date [9]