Ugi Corporation Intrinsic Stock Value – UGI CORPORATION Reports Third Quarter Earnings Results for FY2023
August 13, 2023
🌥️Earnings Overview
UGI ($NYSE:UGI) Corporation released their quarterly financial results for the period ending June 30 2023 on August 3, detailing total revenue of USD 1659.0 million, an 18.4% decrease from the prior year. Additionally, net income for the quarter was -789.0 million, a significant decrease from the -7.0 million reported in FY2022.
Stock Price
UGI Corporation, one of the largest energy distribution companies in the US, reported its third quarter earnings results for FY2023 on Thursday. The stock opened at $26.1 and closed at $25.3, a drop of 5.3% from its last closing price of $26.8. Despite the year-on-year decline in income, UGI’s core business operations remain strong. This was driven by increased demand for LNG due to the low price of natural gas and higher margins on LNG production.
Overall, UGI Corporation’s third quarter performance was mixed, with lower income and revenues but higher profits from core operations and LNG businesses. Going forward, the company plans to focus on improving its core business and expanding its presence in the global energy market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ugi Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 9.46k | -1.39k | -15.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ugi Corporation. More…
| Operations | Investing | Financing |
| 740 | -1.01k | -51 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ugi Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.43k | 11.21k | 24.87 |
Key Ratios Snapshot
Some of the financial key ratios for Ugi Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.8% | 39.6% | -14.4% |
| FCF Margin | ROE | ROA |
| -1.3% | -16.3% | -5.2% |
Analysis – Ugi Corporation Intrinsic Stock Value
At GoodWhale, we recently conducted a financial analysis of UGI Corporation. Our analysis concluded that the intrinsic value of UGI Corporation share is around $40.7, as calculated by our proprietary Valuation Line. Currently, UGI Corporation stock is trading at $25.3, representing a 37.8% discount to its intrinsic value. This indicates that the stock is presently undervalued and may be an attractive investment opportunity for investors. More…
Peers
UGI Corp competes with Chesapeake Utilities Corp, SSE PLC, and Spire Inc in the energy sector. All four companies are engaged in the business of providing energy services, including natural gas, electricity, and propane. All four companies have a presence in the United States, with UGI Corp and Chesapeake Utilities Corp having their headquarters in the US. SSE PLC is headquartered in the UK, while Spire Inc is headquartered in Missouri, US.
– Chesapeake Utilities Corp ($NYSE:CPK)
The company’s market cap is 2.17B as of 2022 and its ROE is 10.92%. The company is a diversified energy delivery company that provides natural gas and electricity to customers in Delaware, Maryland, and Virginia. The company also provides propane gas service in Maryland and Delaware.
– SSE PLC ($LSE:SSE)
SSE PLC is a Scottish electricity company that is headquartered in Perth. The company has a market cap of 16.48B as of 2022 and a Return on Equity of 29.62%. SSE PLC is involved in the generation, transmission, distribution and supply of electricity. The company also has a retail division which supplies gas and electricity to customers in the UK.
– Spire Inc ($NYSE:SR)
Spire Inc. is a publicly traded energy services holding company based in St. Louis, Missouri. The Company, through its subsidiaries, engages in the purchase, sale, and transportation of natural gas in the United States. It operates through two segments: Gas Utility and Gas Marketing. The Gas Utility segment provides retail natural gas service to approximately 547,200 residential, commercial, and industrial customers in Missouri, Alabama, and Mississippi. The Gas Marketing segment purchases, sells, and transports natural gas to electric utilities, local distribution companies, interstate pipelines, producers, and other market participants.
Summary
UGI Corporation reported its third quarter earnings for the period ending June 30, 2023, on August 3, 2023. Total revenue was USD 1659.0 million, representing a year-over-year decrease of 18.4%. Net income was -789.0 million, versus the prior year’s -7.0 million figure, leading to a stock price decrease on the same day. Investors may be cautious about UGI Corporation given these results, particularly with the large net loss compared to the prior year.
A potential upside may be the company’s ability to offset losses as it diversifies its portfolio and explores new business opportunities. It is also worth noting that UGI Corporation’s stock price had been on an upward trend prior to the release of its earnings report.
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