Updated April 2025
UGI Corporation isn’t the type of stock that grabs headlines or gets meme-stock treatment. But if you’re someone who appreciates stable dividends and a long track record of shareholder returns, it’s worth paying attention. This is a company rooted in the essentials—energy delivery, propane distribution, and utility services. It’s been around for well over a century, and that kind of staying power says something.
From residential heating to infrastructure that keeps the lights on, UGI’s business isn’t flashy, but it’s steady. The company owns AmeriGas, the largest propane marketer in the U.S., and also runs electric and gas utility operations in Pennsylvania. There’s a European presence too, through its LPG operations. So while it may look like a typical utility at first glance, there’s a bit more going on under the hood.
Recent Events
In the last year, UGI’s stock has quietly worked its way back into a more favorable light. After dipping to the low $20s, shares have rallied by more than 35%, now sitting near the $34 mark. That bounce didn’t come out of nowhere—it was fueled by a strong earnings turnaround and a sharper focus on financial discipline.
Last quarter, earnings growth clocked in at nearly 299% year over year. Sure, part of that is coming off a low base, but it still reflects a notable shift in momentum. Revenue did slip a bit—down 4.3%—but the company held its ground well, especially in terms of margins and cost control.
Another bright spot has been the resurgence in cash flow. UGI generated $1.23 billion in operating cash flow over the past year, with over $190 million in levered free cash flow. That’s a key number for dividend investors—it shows the company has the resources to support its payout, even while carrying a heavy debt load.
Yes, debt is high. Total borrowings stand at $7.26 billion, and the debt-to-equity ratio sits at 158%. But utilities and infrastructure businesses often run with higher leverage, and UGI has a consistent track record of servicing its obligations. The cash flow profile helps keep things in check.
Key Dividend Metrics
📈 Forward Yield: 4.48%
💵 Forward Annual Dividend: $1.50
🧮 Payout Ratio: 58.82%
📊 5-Year Average Yield: 4.43%
📆 Most Recent Dividend Date: April 1, 2025
🔁 Dividend Growth Streak: 36 consecutive years
⚖️ Dividend Covered by EPS: Yes, with TTM EPS at $2.55
💰 Cash Flow Coverage: Supported by $1.23B in operating cash flow
Dividend Overview
Let’s be honest—this is what long-term income investors really care about. UGI delivers a dividend yield of 4.48%, which is solidly above average, especially for a stock that doesn’t bounce around with the market too much. It’s backed by an annual payout of $1.50, and that number has been creeping upward for decades.
What stands out about UGI is how it stayed committed to its dividend through thick and thin. Even when operational headwinds hit in recent years, the dividend kept coming. That kind of consistency earns trust. And at a payout ratio just under 59%, it’s not overly stretched. There’s still cushion built in.
With interest rates elevated, a well-covered dividend above 4% becomes that much more valuable. UGI offers that while providing exposure to a sector that’s generally stable. There’s nothing exotic here—just a company doing what it’s always done, and doing it well enough to keep income investors happy.
Dividend Growth and Safety
UGI’s dividend isn’t just solid—it’s durable. The company has increased its dividend every year for 36 straight years. That doesn’t happen by accident. It reflects a deliberate commitment to rewarding shareholders, even during downturns or tight quarters.
Now, the growth rate hasn’t been explosive. You’re looking at annual increases in the 2% to 4% range in most recent years. But that’s enough to stay ahead of inflation and offer some compounding over time. When paired with the yield, it’s a combo that works nicely in a long-term income portfolio.
Safety-wise, the dividend is in good shape. Earnings of $2.55 per share easily cover the $1.50 payout, and the cash flow picture adds another layer of confidence. With operating cash over a billion dollars and free cash flowing again, UGI has what it needs to keep the dividend steady—and likely raise it again when the time comes.
Debt is the one area to keep an eye on, but the company seems to be managing it. Capital spending is under control, and there’s no immediate sign of liquidity strain. The current ratio sits right at 1.0, suggesting near-term obligations are covered. And as rate pressures ease, UGI might even get a little help from the macro environment.
This isn’t a showstopper stock. It’s a paycheck stock. And for a lot of investors, especially those focused on income, that’s exactly what they’re looking for.
Cash Flow Statement
UGI’s cash flow profile over the trailing twelve months reflects a company that’s found its footing operationally. Operating cash flow came in at $1.23 billion, a steady improvement over the past few years and a clear sign of underlying business strength. Free cash flow also turned notably positive at $376 million, a significant jump from the modest $133 million in the prior year and well above the negative figure from 2021. This shows UGI has been more disciplined with capital, particularly in managing investments and aligning spending with its cash-generating capabilities.
Capital expenditures remain elevated at $851 million, which is expected for a utility and energy infrastructure player, but the fact that free cash flow remains solid even after that spend is encouraging. Financing activities drew down $414 million, with debt repayments of $1.74 billion outweighing new debt issuances. The end cash position increased to $256 million, modestly higher than last year. Overall, UGI is showing healthier cash dynamics, with its core operations producing enough to cover investment needs and still leave a meaningful buffer for dividends and debt management.
Analyst Ratings
📉 On March 14, 2024, Wells Fargo shifted its stance on UGI, downgrading the stock from “Overweight” to “Equalweight” while slightly raising the price target from $27 to $28. The reasoning behind the move centered on margin pressures and the company’s exposure to volatility in energy pricing. Although UGI has shown consistent earnings, concerns lingered over how those earnings would hold up if energy input costs remained unstable.
📊 On April 17, 2024, Mizuho maintained its “Neutral” rating but nudged the price target upward from $26 to $27. Analysts noted stable operations in the company’s regulated utility business, which they saw as providing a reliable earnings base. The small target increase suggested cautious optimism about UGI’s ability to maintain performance without significant catalysts.
📈 Then, in a more notable shift, Mizuho upgraded UGI to “Outperform” on November 15, 2024, with the price target moving from $27 to $30. This upgrade was tied to UGI’s expanding renewable energy efforts and restructuring aimed at enhancing long-term profitability. The upgrade reflected growing confidence in the company’s strategic direction as it navigates a more sustainability-focused future.
🎯 Currently, the consensus price target among analysts sits at approximately $35.75, with sentiment spread between “Hold” and “Buy” recommendations. This reflects a generally positive outlook, supported by UGI’s steady cash flow and long-standing presence in both the utility and propane markets.
Earning Report Summary
Solid Start to the Year
UGI kicked off its fiscal 2025 with a stronger-than-expected quarter. Adjusted earnings per share came in at $1.37, which was a decent step up from the same time last year. A big part of that lift came from its natural gas business and international propane operations, both of which pulled their weight nicely this quarter.
Natural gas saw good demand, and regulatory rate changes in places like West Virginia helped give revenue a bit of a tailwind. Over on the international side, propane volumes stayed steady, and they did a solid job trimming operating costs. That combination pushed margins higher, which is always good to see.
Financial Flexibility and Infrastructure Moves
UGI also showed it’s keeping things pretty healthy on the balance sheet. As of the end of December, they had about $1.5 billion in liquidity. That’s enough room to maneuver and continue funding projects without getting stretched too thin. They also filed a $110 million rate increase request in Pennsylvania—money that would go straight toward upgrading the system and keeping things modernized.
Strategic Investments and Renewables
One of the more interesting moves this quarter was their acquisition of Superior Appalachian. UGI spent $120 million on the deal, which is expected to start adding to earnings pretty quickly. The acquisition fits in with their broader plan to grow their renewable natural gas operations and stay ahead of the curve as the energy sector shifts.
They also wrapped up construction on a few renewable gas sites, showing they’re not just talking about the energy transition—they’re actively putting capital to work in that direction.
Operational Improvements Underway
UGI’s propane business, AmeriGas, is still a work in progress. The company has been reorganizing parts of the operation to improve service levels and overall performance. It’s not flashy, but those kinds of internal tweaks often make a big difference down the line.
All in all, this quarter showed a company that’s staying focused on long-term growth while tightening up operations across the board. There’s a steady, methodical feel to how UGI is positioning itself for the next few years—and that tends to sit well with long-term investors.
Chart Analysis
Price Action and Trend
Looking at the past year, the price action has turned decisively bullish since November. After months of sideways movement and a bit of a dip in the summer, the stock broke out sharply around mid-November. That rally didn’t just look strong—it came with sustained momentum that carried through into the new year and well into March. The 50-day moving average (red line) has pulled well above the 200-day (blue line), forming a classic uptrend pattern. That crossover happened right around the time of the breakout, confirming strength in the move.
Since then, the price has respected the 50-day as a soft support line, climbing steadily and forming higher highs and higher lows. This kind of trend signals confidence building behind the stock. The 200-day moving average is also sloping upward, adding more weight to the current trend being more than just a short-term pop.
Volume and Momentum
Volume tells a subtle story here. There was a noticeable spike around the time of the breakout in November, suggesting strong buying interest. Since then, volume has stayed fairly consistent with occasional bursts, mostly on up days, which reinforces the buying strength behind the rally. There’s no sign of a blow-off top or panic-driven sell-off in the volume bars, which adds to the sense of stability.
RSI Behavior
The RSI (Relative Strength Index) at the bottom of the chart has been hovering in the upper half of the range for months. It’s spent a good amount of time in the 60–70 zone, occasionally touching overbought territory but never flashing extreme warning signs. This kind of RSI behavior is typical of strong trends where momentum is present but not overheated.
Most recently, RSI is ticking back toward 70 again, suggesting renewed buying interest. It’s not a red flag at this stage—it just tells us the stock is continuing to attract attention and may still have room to move higher, especially if volume confirms the push.
Overall Pattern
What stands out most in this chart is the strength and consistency of the uptrend since late last year. There’s no parabolic spike, no sharp reversals—just a steady climb. That steady rhythm, combined with rising moving averages and stable RSI, makes this an environment that favors staying the course as long as the trend holds. The stock has shifted out of its long consolidation and is now clearly in a markup phase.
Management Team
UGI Corporation has made some key leadership moves recently that could shape its path forward. In November 2024, Robert C. Flexon stepped in as President and Chief Executive Officer, taking over from interim CEO Mario Longhi, who returned to his role as non-executive chair of the board. Flexon brings a deep background in the energy sector, including past experience leading large energy firms through restructuring and efficiency-focused transitions.
Supporting him is Sean P. O’Brien, who continues in his role as Chief Financial Officer. O’Brien is known for a disciplined financial approach and has been instrumental in UGI’s capital management over the past few years. The team also includes Kathleen Shea Ballay as General Counsel and Chief Legal Officer, and John Koerwer serving as Chief Information Officer. Together, they bring experience across legal, compliance, financial oversight, and digital strategy—essential areas for navigating both growth and regulatory pressures.
This leadership group is expected to focus on performance execution, capital discipline, and guiding the company through an evolving energy market. Their combined experience suggests a steady hand at the wheel, even as UGI works to adapt to long-term shifts in energy production and distribution.
Valuation and Stock Performance
UGI’s stock has quietly outperformed many expectations over the past year. After spending time under pressure, the shares have rebounded sharply, now trading near $34, up more than 35% from their 52-week low. It’s a strong move, especially in a market that has been anything but predictable. Over that same period, UGI has outpaced broader indices, reflecting improved sentiment and a more stable operating environment.
The stock currently trades at a price-to-earnings ratio of around 13, which appears reasonable considering its consistent cash flow and dividend profile. For those focused on income, the 4.5% dividend yield adds an attractive layer of return, especially in a market where fixed income is still playing catch-up.
Analyst sentiment has turned a bit more positive lately, with most ratings falling between hold and buy. While the consensus price target is a bit lower than where the stock is currently trading, that seems more a reflection of analysts adjusting gradually to UGI’s recent run rather than a signal of overvaluation. There’s recognition that UGI is back on more solid ground, even if near-term upside may be somewhat muted after such a sharp climb.
Risks and Considerations
No investment comes without its share of risk, and UGI is no exception. One of the biggest factors to watch is the company’s exposure to energy prices, particularly in its propane and gas distribution segments. Volatility in input costs can squeeze margins if not managed carefully, and weather patterns can add an unpredictable twist to short-term performance.
There’s also the matter of regulatory risk. As global energy policies shift more aggressively toward renewables and carbon reduction, companies like UGI will need to evolve their asset mix and strategy. The company has made moves in this direction, but it’s a transition that carries its own set of execution challenges and capital requirements.
Financially, UGI still carries a sizable debt load. While current cash flows cover dividend and investment needs, leverage remains a watch item. Any tightening in credit markets or a surprise in earnings could change that equation. Investors should also remember the company was tied to a tragic gas-related incident in 2023. Though UGI is cooperating with ongoing reviews and legal processes, such events underline the importance of operational safety and the reputational risks that utilities must manage.
Final Thoughts
UGI has shown it can bounce back. The leadership transition, focus on cash flow, and gradual steps into renewables all suggest a company that is adapting rather than standing still. There’s a long history here of delivering shareholder value, particularly through steady dividends, and recent results show the business still has strength at its core.
At the same time, investors would do well to stay grounded in the realities of the energy space. It’s not just about commodity prices anymore—there are structural shifts in how energy is produced, delivered, and consumed. UGI appears to recognize that, and the current strategy seems aimed at balancing legacy strengths with the demands of a new energy future.
In this environment, UGI may not be the most exciting name in the sector, but it doesn’t need to be. For those who value consistency, long-term income, and a management team that’s focused on execution, it remains a name to keep on the radar. The road ahead will have its bumps, but the company seems better prepared for what’s coming than it was just a year ago.