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Ugi Corp
Sure, here's an overview of UGI Corporation (ticker symbol: UGI) and its financial performance:
UGI Corporation is a publicly-listed holding company that operates through its subsidiaries and operates in the diversified utilities sector.
Key financial metrics:
* Revenue (TTM): $6,983 million
* Net Income (TTM): $708 million
* EPS (TTM): $3.48
* P/E Ratio (Forward): 23.44
* Dividend Yield: 3.75%
* Current Ratio (MRQ): 1.01
Revenue and Earnings Growth:
UGI's revenue has grown consistently over the past five years, with a compound annual growth rate (CAGR) of 12.5%. Net income has also increased, with a five-year CAGR of 12.9%.
Segment Breakdown:
UGI's operations are divided into four main segments:
1. AmeriGas Propane: This segment is responsible for the retail distribution of propane in the United States.
2. UGI International: Focusing on natural gas and electricity supply, this segment operates in Europe andrenewable energy solutions.
3. Midstream & Marketing: This division handles the gathering and processing of natural gas, along with marketing energy commodities.
4. UGI Utilities: Provides natural gas and electricity to customers in Pennsylvania, Maryland, and parts of New Jersey.
Performance by Segment:
* AmeriGas Propane: Revenue has been steadily increasing, with a five-year CAGR of 8.2%.
* UGI International: Revenue has fluctuated, with a five-year CAGR of -0.5%.
* Midstream & Marketing: Revenue has grown rapidly, with a five-year CAGR of 21.6%.
* UGI Utilities: Revenue has been relatively stable, with a five-year CAGR of 1.3%.
Key Risks:
* Regulatory Risks: UGI's operations are subject to various environmental and safety regulations, which could lead to increased expenses or restrictions on operations.
* Commodity Price Risks: The prices of natural gas, propane, and electricity can significantly impact UGI's profitability.
* Competition Risks: The diversified utilities sector is competitive, which can create challenges for UGI in retaining customers and market share.
Key Opportunities:
* Growth through Acquisitions: UGI has a history of acquiring companies to expand its operations and customer base.
* Expansion into Renewable Energy: With increasing interest in renewable energy, UGI can leverage its existing infrastructure to grow its renewable energy offerings.
* Natural Gas Infrastructure: The transition to cleaner energy sources may lead to increased demand for natural gas infrastructure, providing opportunities for UGI's midstream & marketing segment.
Valuation multiples:
* P/E Ratio (Forward): 23.44 (industry median: 20.98)
* P/E Ratio (Trailing): 28.68 (industry median: 24.81)
* Price-to-Book (MRQ): 2.03 (industry median: 1.95)
It is essential to note that the valuation multiples may fluctuate based on market conditions and company performance.
Overall, UGI Corporation has a strong track record of steady revenue growth and moderate profitability. The company has diversified operations and a strong presence in the diversified utilities sector. However, it is exposed to risks such as environmental regulations and competition. Furthermore, the company has opportunities in renewable energy expansion and natural gas infrastructure.