UGI Corporation Common Stock (UGI)

FairStock Score: 55/100 — STEADY

Key Financials

Strengths

• Generates $146 million in annual free cash flow (1.9% yield on market cap)
• Solid return on equity of 12.5% above cost of capital
• Attractive 4.0% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 0.9 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

UGI Corporation Common Stock is a small-cap utilities company valued at $7.9 billion. The business generates $7.3 billion in annual revenue with a 4.0% net margin and $146 million in free cash flow. From a quality standpoint, UGI shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.9 warrants caution. On valuation, the stock is attractively valued at 13.8x earnings, with a modest 2% margin of safety vs Graham Number. Growth dynamics show revenue growing at 2.6% and profit growth of -20.8%. The 4.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates UGI's consistent 13% ROE at just 14x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $146 million in annual free cash flow (1.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the utilities space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer