UGI UGI
United StatesUtilities · Utilities - Regulated GasUSD
43.25 USD (+18.0%)
4 analysts
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UGI Corporation is a diversified utility company that distributes natural gas to residential, commercial, and industrial customers in the United States and Europe, and operates LPG and energy businesses.
Key points
from its scores- ✓Attractive dividend8.2
- ✓Good share-price trend7.2
- ✕Weak growth2.6
- ✕Little competitive advantage3.1
- !Balance sheet could be stronger5.9
AI analysis
bottom line, main risk, context and newsThe dividend is solid, but operational weakness and leverage warrant caution until an improvement in margins and growth is confirmed.
UGI presents a regulated utility profile with an attractive dividend (net yield 4.09%) and a moderate payout (49.83%), but its financial health is pressured by a net debt/EBITDA of 3.78x and a negative operating margin (-2.48%), reflecting a business with low profitability and negative growth (-4.50% in revenue).
The main risk is the combination of a negative operating margin (-2.48%) and a net debt/EBITDA of 3.78x, leaving the company vulnerable to a rising rate environment and regulatory pressures in its regulated gas markets.
Context and risks
UGI operates in the regulated gas utility sector in the US, a business with established tariff frameworks. The main risk is regulatory: adverse tariff reviews or delays in cost recovery could compress margins, already weak. Net debt/EBITDA of 3.78x is high for the sector, amplifying sensitivity to a rising rate environment, although regulated cash generation partially mitigates this risk.
Is UGI stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 34% below the Utilities median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 12.2 | 19.1 | −36% |
| EV / EBITDA | 8.3 | 12.2 | −32% |
| Price / book | 1.5 | 1.9 | −22% |
| Price / sales | 1.1 | 2.6 | −58% |
Sector: median of the 92 Utilities companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.2 out of 10 (median for Utilities: 4.8).
Average analyst target: 43.25 USD, +18.0% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 5.9 (sector 5.8), Growth 2.6 (sector 5.8).
Classic formulas with standard assumptions (7.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Utilities medianValuation
- P/E
- 12.2
- Forward P/E
- 11.4
- EV / EBITDA
- 8.3
- Price / book
- 1.5
- Price / sales
- 1.1
- Market cap
- 7.9B USD
- Enterprise value
- 14.4B USD
Profitability
- ROE
- 13.3%
- ROA
- 4.8%
- ROIC (approx.)
- −1.5%
- Gross margin
- 51.3%
- Operating margin
- −2.5%
- Net margin
- 9.2%
- Free cash flow
- −236.2M USD
- FCF yield
- −3.0%
- Cash conversion
- −14%
Solvency
- Total debt
- 7.0B USD
- Net debt
- 6.6B USD
- Cash
- 476.0M USD
- EBITDA
- 1.7B USD
- Net debt / EBITDA
- 3.78
- Debt / equity
- 134.99
- Current ratio
- 1.44
- Quick ratio
- 0.83
Growth
- Revenue growth
- −4.5%
- EPS (TTM)
- 3.01 USD
- EPS (forward)
- 3.22 USD
Dividend
- Dividend yield
- 4.1%
- Payout
- 49.8%
Risk and market
- Beta
- 0.95
- Analyst consensus
- Strong buy (4)
- Target price
- 43.25 USD
- 52-week range
- 31.62 – 41.34
Recent news
All UGI news →Compare it with its sector
All 92 in Utilities →Frequently asked questions about UGI
Is UGI stock cheap or expensive?
On P/E and EV / EBITDA, it trades 34% below the Utilities median on average. Valuation score: 6.2 out of 10 (median for Utilities: 4.8). Average analyst target: 43.25 USD, +18.0% versus the price. This is not investment advice.
What score does UGI get on MeridIAn Screener?
It scores 5.9 out of 10, rank 1,116 of 2,130 (better than 47% of the companies analysed). Its strongest category is Dividend (8.2) and its weakest, Growth (2.6). Analysis of 08/10/2026.
What is UGI's P/E ratio?
Its P/E is 12.2: the share price equals 12.2 times earnings per share over the last 12 months. The Utilities median is 19.1. Based on the earnings analysts expect, the forward P/E is 11.4.
How much is UGI worth on the stock market?
Its market capitalisation is 7.9B USD and its enterprise value, debt included, is 14.4B USD.
How much debt does UGI have?
Its net debt (debt minus cash) is 6.6B USD. That is 3.78 times its EBITDA; the Utilities median is 5.33.
Does UGI pay a dividend?
Yes: its dividend yield is 4.09% and it pays out 50% of its earnings.
How has UGI stock performed over the last year?
It has risen 20.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 31.62 and 41.34 USD. Past performance does not guarantee future results.
What do analysts think of UGI?
4 analysts cover it; their average recommendation is “Strong buy” and their average target is 43.25 USD (+18.0% versus the price). It is an estimate, not market data.