# Ugi (UGI.US)

Canonical: https://gigainvestors.com/s/UGI

Analysis as of: 2026-10-16T07:32:40.553Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $37.52 per share; close as of 2026-10-15.

Estimated value: low $26.24 per share, central $29.65 per share, high $34.18 per share. Buy at or below the central value $29.65 per share. Valuation as of 2026-10-16T07:32:40.553Z; scenarios are not confidence intervals.

Expected annual return: 8.4% at the stated quote. About 8.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.89×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.17×

- FY2018: 0.14×

- FY2019: 0.08×

- FY2020: 0.15×

- FY2021: 0.32×

- FY2022: 0.16×

- FY2023: -0.16×

- FY2024: 0.11×

- FY2025: 0.15×

- LTM to Jun 2026: 0.14×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.0%

- ROIC, second-lowest year: 7.2%

- Typical minus recent gross margin: 0.6 pp

- Typical gross margin (annual median): 50.5%

- Recent gross margin (lower of latest and 3-year median): 49.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 10.0%

- ROIC including acquisitions, ten-year median: 3.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 18.7%

- FY2018: 22.0%

- FY2019: 7.3%

- FY2020: 11.8%

- FY2021: 22.5%

- FY2022: 14.3%

- FY2023: -13.6%

- FY2024: 7.2%

- FY2025: 11.8%

- LTM to Jun 2026: 10.4%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.56×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.1B

- Net income, five-year total: $2.0B

- Return on incremental invested capital: 19.3%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 1.9 pp

- Working capital / revenue, final three-year average: 9.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.29×

- FY2024: 0.09×

- FY2025: 0.71×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 19.8% vs 7.2%

- Per-share earnings: 2.08 to 1.25 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquisition spending exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.2%

- Ordinary dilution, 5-year annual growth: 0.9%

- Market cap gain: -$1.0B

- Cumulative retained earnings: $1.2B

- Diluted shares, 10-year annual growth: 2.2%

- Diluted shares, 5-year annual growth: 0.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -6.2%

- Per-share value change: -$0.83

- Per-share value, starting three-year median: $2.08

- Per-share value, ending three-year median: $1.25

- Buybacks concentrated in cheaper years (correlation): 0.36

- Average buyback yield: 0.5%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: $2.4B

- Cumulative net income, 10 years: $4.3B

- ROIC, first three-year median: 19.8%

- ROIC, last three-year median: 7.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.08

- FY2017: $2.46

- FY2018: $4.06

- FY2019: $1.41

- FY2020: $2.53

- FY2021: $6.92

- FY2022: $4.97

- FY2023: -$7.16

- FY2024: $1.25

- FY2025: $3.09

### accounting: pass

- Sloan accruals: -3.6%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 1.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.81×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.67×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.6%

- FY2017: -4.6%

- FY2018: -3.1%

- FY2019: -6.2%

- FY2020: -4.1%

- FY2021: -0.1%

- FY2022: 2.0%

- FY2023: -16.9%

- FY2024: -6.0%

- FY2025: -3.6%

## Holders

- [Bill Miller](https://gigainvestors.com/LMM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 4% a year for ten years · "UGI Q3 Earnings Beat Estimates, Revenues Miss on LPG Weakness" (finance.yahoo.com, Aug 2026) · sales +0.1%

Story as of 2026-10-16T09:59:45.318Z; price observation 2026-10-15.

Price needs cash profits to grow 4% a year for ten years

- 2025-05-07: UGI Reports Second Quarter Results and Increases Fiscal 2025 Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/ugi-reports-second-quarter-results-203000654.html))

- 2025-11-21: UGI outlines 5% to 7% EPS CAGR target through 2029 while strengthening AmeriGas operations ([seekingalpha.com](https://seekingalpha.com/news/4525017-ugi-outlines-5-percent-to-7-percent-eps-cagr-target-through-2029-while-strengthening-amerigas?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-05: UGI's Q1 Earnings and Sales Lower Than Estimates, New Storage Online ([finance.yahoo.com](https://finance.yahoo.com/news/ugis-q1-earnings-sales-lower-161700401.html))

- 2026-08-06: UGI outlines $65M Pennsylvania rate settlement while reaffirming $2.75-$2.90 FY2026 EPS guidance ([seekingalpha.com](https://seekingalpha.com/news/4628007-ugi-outlines-65m-pennsylvania-rate-settlement-while-reaffirming-2_75-2_90-fy2026-eps-guidance?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales +0.1%; source https://www.sec.gov/Archives/edgar/data/884614/000088461425000053/ugi-20250930.htm; observed 2025-11-21.

- FY2017: $6.1B 

- FY2018: $7.7B 

- FY2019: $7.3B 

- FY2020: $6.6B 

- FY2021: $7.4B 

- FY2022: $10B 

- FY2023: $8.9B 

- FY2024: $7.2B 

- FY2025: $7.3B 

- FY2026: $7.3B 

### Gross margin · FY2025

gross margin 49.9%; source https://www.sec.gov/Archives/edgar/data/884614/000088461425000053/ugi-20250930.htm; observed 2025-11-21.

- FY2016: 57.1% 

- FY2017: 53.6% 

- FY2018: 46.7% 

- FY2019: 40.9% 

- FY2020: 52.0% 

- FY2021: 64.9% 

- FY2022: 40.9% 

- FY2023: 22.3% 

- FY2024: 51.1% 

- FY2025: 49.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities regulated gas; annual sales are USD 7.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/884614/000088461425000053/ugi-20250930.htm (filed 2025-11-21); FY2025: revenue 7287000000; grossProfit 3633000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); UGI.US: UGI Corporation, together with its subsidiaries, engages in the distribution, storage, transportation, and marketing of energy products and related services in the United States and internationally. The company operates through four segments: Utilities, Midstream & Marketing, UGI International, and AmeriGas Propane. It distributes approximately 801 million gallons of propane to residential, commercial/industrial, motor fuel, agricultural, and wholesale customers. The company distributes liquefied petroleum gases (LPG) to residential, commercial, industrial, agricultural, wholesale and automobile fuel customers; and provides logistics, storage, and other services to third-party LPG distributors. In addition, it engages in the retail sale of natural gas, liquid fuels, and electricity to approximately 10,800 residential, commercial, and industrial customers. Further, the company distributes natural gas to approximately 694,000 customers in eastern and central Pennsylvania counties through its distribution system of approximately 12,700 miles of gas mains; and supplies electricity to approximately 62,900 customers in northeastern Pennsylvania through 2,700 miles of lines and 14 substations. Additionally, it operates electric generation facilities; natural gas liquefaction, storage, and vaporization facility; propane storage and propane-air mixing stations; and rail transshipment terminals. It manages natural gas pipeline and storage contracts; develops, owns, and operates pipelines, gathering infrastructure, and gas storage facilities. UGI Corporation was incorporated in 1882 and is headquartered in King of Prussia, Pennsylvania.

### Why customers stay

Margins ranged from 22.3% to 51.1% during 2023–25; it earns 13% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2023: grossProfit / revenue = 22.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2024: grossProfit / revenue = 51.1%.

- Source: https://www.sec.gov/Archives/edgar/data/884614/000088461425000053/ugi-20250930.htm (filed 2025-11-21); FY2025: grossProfit / revenue = 49.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); 10-year return on capital observations [[2016,0.19775819036913733],[2017,0.18685065804392686],[2018,0.2197670609233967],[2019,0.07275180179731819],[2020,0.1176926187544845],[2021,0.22471903520705774],[2022,0.14256149109833247],[2023,-0.1363403848452253],[2024,0.07248999076070219],[2025,0.11809995506025324]]; median 0.13033072307929286. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 17% of cash earnings; earns 19.3% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2016: growth capex 0; upkeep 563800000; cash acquisitions 61200000; owner earnings 243158203.7643208. Growth capex plus acquisitions / owner earnings = 0.2516879918199989.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2017: growth capex 222600000; upkeep 416300000; cash acquisitions 100800000; owner earnings 436600000. Growth capex plus acquisitions / owner earnings = 0.7407237746220797.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2018: growth capex 119000000; upkeep 455000000; cash acquisitions 187000000; owner earnings 719000000. Growth capex plus acquisitions / owner earnings = 0.42559109874826145.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2020: growth capex 0; upkeep 655000000; cash acquisitions 16000000; owner earnings 361000000. Growth capex plus acquisitions / owner earnings = 0.0443213296398892.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2021: growth capex 188000000; upkeep 502000000; cash acquisitions 397000000; owner earnings 1467000000. Growth capex plus acquisitions / owner earnings = 0.3987730061349693.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2022: growth capex 286000000; upkeep 518000000; cash acquisitions 242000000; owner earnings 1073000000. Growth capex plus acquisitions / owner earnings = 0.49207828518173347.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2024: growth capex 0; upkeep 796000000; cash acquisitions 0; owner earnings 24000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/884614/000088461425000053/ugi-20250930.htm (filed 2025-11-21); FY2025: growth capex 82134028.39936852; upkeep 754865971.6006315; cash acquisitions 0; owner earnings 484134028.3993685. Growth capex plus acquisitions / owner earnings = 0.16965142621954904.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); Incremental return on capital 0.19348944793093123, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); Dividend observations: [[2016,418000000],[2017,430500000],[2018,440000000],[2019,463000000],[2020,273000000],[2021,282000000],[2022,296000000],[2023,308000000],[2024,318000000],[2025,322000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/884614/000088461425000053/ugi-20250930.htm (filed 2025-11-21); FY2025: cash repurchases 33000000 USD.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); UGI.US SharesStats.PercentInsiders = 0.10200000000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4% yearly over ten years; actual growth was 6.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); Ten-year compound average after fade. Initial solved rate 0.04414179508620475. Price 37.52; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.1494835598172422 → FY2025 2.20904375068155. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $46.29 per share

- 2016-11: $44.80 per share

- 2016-12: $46.08 per share

- 2017-01: $46.37 per share

- 2017-02: $48.23 per share

- 2017-03: $49.40 per share

- 2017-04: $50.16 per share

- 2017-05: $51.18 per share

- 2017-06: $48.41 per share

- 2017-07: $50.47 per share

- 2017-08: $49.41 per share

- 2017-09: $46.86 per share

- 2017-10: $47.86 per share

- 2017-11: $49.01 per share

- 2017-12: $46.95 per share

- 2018-01: $45.77 per share

- 2018-02: $43.09 per share

- 2018-03: $44.42 per share

- 2018-04: $48.39 per share

- 2018-05: $50.47 per share

- 2018-06: $52.07 per share

- 2018-07: $53.14 per share

- 2018-08: $54.05 per share

- 2018-09: $55.48 per share

- 2018-10: $53.06 per share

- 2018-11: $57.45 per share

- 2018-12: $53.35 per share

- 2019-01: $57.03 per share

- 2019-02: $54.90 per share

- 2019-03: $55.42 per share

- 2019-04: $54.51 per share

- 2019-05: $51.61 per share

- 2019-06: $53.41 per share

- 2019-07: $51.09 per share

- 2019-08: $48.67 per share

- 2019-09: $50.27 per share

- 2019-10: $47.67 per share

- 2019-11: $43.55 per share

- 2019-12: $45.16 per share

- 2020-01: $41.59 per share

- 2020-02: $36.04 per share

- 2020-03: $26.67 per share

- 2020-04: $30.18 per share

- 2020-05: $31.84 per share

- 2020-06: $31.80 per share

- 2020-07: $33.34 per share

- 2020-08: $34.53 per share

- 2020-09: $32.98 per share

- 2020-10: $32.34 per share

- 2020-11: $35.48 per share

- 2020-12: $34.96 per share

- 2021-01: $35.99 per share

- 2021-02: $38.31 per share

- 2021-03: $41.01 per share

- 2021-04: $43.71 per share

- 2021-05: $46.05 per share

- 2021-06: $46.31 per share

- 2021-07: $45.99 per share

- 2021-08: $46.31 per share

- 2021-09: $42.62 per share

- 2021-10: $43.41 per share

- 2021-11: $41.25 per share

- 2021-12: $45.91 per share

- 2022-01: $45.35 per share

- 2022-02: $38.44 per share

- 2022-03: $36.22 per share

- 2022-04: $34.30 per share

- 2022-05: $42.74 per share

- 2022-06: $38.61 per share

- 2022-07: $43.16 per share

- 2022-08: $39.50 per share

- 2022-09: $32.33 per share

- 2022-10: $35.33 per share

- 2022-11: $38.65 per share

- 2022-12: $37.07 per share

- 2023-01: $39.83 per share

- 2023-02: $37.23 per share

- 2023-03: $34.76 per share

- 2023-04: $33.88 per share

- 2023-05: $27.97 per share

- 2023-06: $26.97 per share

- 2023-07: $26.99 per share

- 2023-08: $25.18 per share

- 2023-09: $23.00 per share

- 2023-10: $20.80 per share

- 2023-11: $21.99 per share

- 2023-12: $24.60 per share

- 2024-01: $22.14 per share

- 2024-02: $24.48 per share

- 2024-03: $24.54 per share

- 2024-04: $25.56 per share

- 2024-05: $25.46 per share

- 2024-06: $22.90 per share

- 2024-07: $24.78 per share

- 2024-08: $24.91 per share

- 2024-09: $25.02 per share

- 2024-10: $23.91 per share

- 2024-11: $30.37 per share

- 2024-12: $28.23 per share

- 2025-01: $30.73 per share

- 2025-02: $34.16 per share

- 2025-03: $33.07 per share

- 2025-04: $32.79 per share

- 2025-05: $36.06 per share

- 2025-06: $36.42 per share

- 2025-07: $36.18 per share

- 2025-08: $34.64 per share

- 2025-09: $33.26 per share

- 2025-10: $33.43 per share

- 2025-11: $39.55 per share

- 2025-12: $37.43 per share

- 2026-01: $40.11 per share

- 2026-02: $37.41 per share

- 2026-03: $36.42 per share

- 2026-04: $36.09 per share

- 2026-05: $34.92 per share

- 2026-06: $34.54 per share

- 2026-07: $36.12 per share

- 2026-08: $38.45 per share

- 2026-09: $35.67 per share

- 2026-10: $37.52 per share

## Annual estimated value (USD per share)

- FY2016: low $15.34 per share, central $17.22 per share, high $19.73 per share

- FY2017: low $17.44 per share, central $19.56 per share, high $22.38 per share

- FY2018: low $21.87 per share, central $24.88 per share, high $28.67 per share

- FY2019: low $20.55 per share, central $23.16 per share, high $26.63 per share

- FY2020: low $19.78 per share, central $22.37 per share, high $25.82 per share

- FY2021: low $30.70 per share, central $34.47 per share, high $39.50 per share

- FY2022: low $50.74 per share, central $59.72 per share, high $69.34 per share

- FY2023: low $25.90 per share, central $29.43 per share, high $34.13 per share

- FY2024: low $20.47 per share, central $23.25 per share, high $26.94 per share

- FY2025: low $25.10 per share, central $28.43 per share, high $32.86 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:38:25.945Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/884614/000088461425000053/ugi-20250930.htm); period 2025-09-30, filed 2025-11-21.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.