UGI Story

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UGI -- USA Stock  

USD 37.64  0.42  1.10%

UGI Earnings Before Interest Taxes and Depreciation Amortization EBITDA are most likely to increase significantly in the upcoming years. The last year's value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA was reported at 982.53 Million. The current Average Equity is estimated to increase to about 2.8 B, while Average Assets are projected to decrease to roughly 7.9 B. Today's article will concentrate on UGI. We will evaluate if UGI shares are reasonably priced going into December. In this post, I will also go over a few different drivers affecting UGI's products and services, and explain how it may impact UGI stockholders.
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Reasons UGI (NYSE:UGI) can excite stockholders
UGI Corporation recommendation module can be used to check and cross-verify current trade recommendation provided by analysts examining the firm's potential to grow using all of fundamental, technical, data market data available now.

And What about dividends?

A dividend is the distribution of a portion of UGI earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. UGI dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. UGI one year expected dividend income is about $0.71 per share.
The current Dividend Yield is estimated to increase to 0.0314, while Payment of Dividends and Other Cash Distributions is projected to decrease to (199.4 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-184.8 M-199.4 M
Dividend Yield 0.0242  0.0314 
Dividends per Basic Common Share 0.84  0.68 
Investing in dividend-paying stocks, such as UGI Corporation is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in UGI must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for UGI. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is UGI's Liquidity

UGI financial leverage refers to using borrowed capital as a funding source to finance UGI Corporation ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. UGI financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between UGI's total debt and its cash.

How UGI utilizes its cash?

To perform a cash flow analysis of UGI, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash UGI is receiving and how much cash it distributes out in a given period. The UGI cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. UGI Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 970.29 Million

Exercise or conversion by Joseph Hartz of 18000 shares of UGI subject to Rule 16b-3

Legal trades by UGI insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
UGI insider trading alert for exercise of option (right to buy) by Joseph Hartz, President of Subsidiary, on 25th of November 2020. This event was filed by Ugi Corp with SEC on 2020-11-25. Statement of changes in beneficial ownership - SEC Form 4. Joseph Hartz currently serves as president - ugi energy services, llc of UGI Corporation [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is UGI valued objectively by the market?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. UGI has an asset utilization ratio of 60.75 percent. This implies that the company is making $0.61 for each dollar of assets. An increasing asset utilization means that UGI Corporation is more efficient with each dollar of assets it utilizes for everyday operations.
 2017 2018 2019 2020 (projected)
Receivables765.9 M655.3 M589.77 M580.46 M
Inventories318.2 M229.9 M264.38 M318.58 M

How will UGI stockholders react to the next drop?

UGI current semi deviation boosts over 1.68. UGI Corporation has relatively low volatility with skewness of 1.05 and kurtosis of 2.88. However, we advise all investors to independently investigate UGI Corporation to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on UGI

While some other firms in the utilities?regulated gas industry are either recovering or due for a correction, UGI may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the current economy, it is better to hold off any trading of UGI as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to UGI.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of UGI Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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