UGI (US:UGI) ZACKSยท2024-06-13 17:21Core Viewpoint - UGI Corporation is positioned as a strong investment option in the utility sector due to its expanding customer base, positive earnings outlook, and robust financial metrics [3][8]. Financial Performance - The Zacks Consensus Estimate for UGI's earnings per share (EPS) for fiscal 2024 and 2025 has increased by 2.1% and 4.1% respectively over the past 90 days [4]. - UGI has delivered an average earnings surprise of 19.1% in the last four quarters, indicating strong performance [9]. Growth and Investments - UGI's long-term earnings growth rate is projected at 7%, supported by systematic capital investments aimed at modernizing infrastructure and enhancing safety and reliability in natural gas production and storage [7][10]. - The company plans to invest between $3.7 billion and $4.1 billion in capital expenditures from fiscal 2024 to 2027, with approximately 85% allocated to natural gas businesses [10]. Customer Base Expansion - UGI has added over 3,000 new residential and commercial customers in the second quarter of fiscal 2024, reflecting robust demand for its services [11]. Liquidity and Financial Health - UGI's current ratio at the end of the fiscal second quarter of 2024 was 1.2, which is above the industry average of 0.76, indicating a strong ability to meet near-term debt obligations [12]. 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, resulting in an annualized dividend of $1.50 and a dividend yield of 6.56%, surpassing the industry average of 3.53% [13]. Return on Equity - UGI's return on equity (ROE) stands at 15.78%, significantly higher than the industry average of 9.01%, demonstrating effective utilization of funds to generate returns [14].