On August 18, 2026, UGI Corp UGI shares rose 9.4% to a current price of $38.39, marking a significant uptick within its 52-week range of $31.62 to $41.34. This performance comes amid a year of growth, with shares up 15.7% over the past year.
- GF Valueâ„¢ verdict: Current price $38.39 vs GF Valueâ„¢ of $31.90, indicating 20.3% overvaluation.
- GF Scoreâ„¢ of 71/100 suggests the company is rated as above average in overall quality.
- Notable signal: Insiders sold $3.6M worth of stock over the past 12 months with no recorded buying activity.
Is UGI Overvalued or Undervalued?
UGI Corp's current price of $38.39 is significantly higher than the GF Valueâ„¢ estimate of $31.90, indicating that the stock is overvalued by approximately 20.3%. The GF Valueâ„¢ is GuruFocus' proprietary estimate that incorporates various factors, including historical trading multiples and projections of future performance. Given that UGI is labeled as "Modestly Overvalued," investors should consider the risks associated with purchasing shares at this premium price. A high valuation can lead to potential price corrections if the company's future performance does not meet market expectations.
Moreover, the current valuation poses questions about the sustainability of the dividend, an important consideration for income-focused investors. If the stock price remains elevated without commensurate growth in earnings, the dividend yield could become less attractive, or worse, unsustainable. Thus, while the company's performance has been positive, the overvaluation raises cautionary flags.
How Does UGI's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 12.8x | 11.8x (5-Year Median) |
| Forward P/E | 11.7x | N/A |
The current P/E ratio of 12.8x is 9% above its 5-year median of 11.8x, suggesting that UGI is trading at a higher multiple compared to its historical valuation. This aligns with the GF Valueâ„¢ assessment of being overvalued, reinforcing the notion that the stock may be priced beyond its intrinsic worth based on historical performance.
What Does UGI's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ evaluates a company's overall quality based on various criteria, including financial strength, profitability, growth, valuation, and momentum. UGI has a GF Scoreâ„¢ of 71/100, indicating that it is rated above average. The strongest sub-ranks are in Profitability (7/10) and Valuation (7/10), while the weakest rank is in Growth (3/10).
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 71 |
| Financial Strength | 4/10 |
| Profitability | 7/10 |
| Growth | 3/10 |
| Valuation | 7/10 |
| Momentum | 7/10 |
Overall, UGI's strong profitability rank indicates effective management of its resources and operations, yet the low growth rank signals potential challenges in expanding its business. The solid valuation score suggests that while the stock might be overvalued at present, it has been viewed favorably in terms of valuation metrics historically. However, this discrepancy between profitability and growth raises concerns about the company's future potential.
What Are Gurus and Insiders Doing with UGI?
Currently, 7 gurus hold shares in UGI, with 4 increasing their positions and 5 trimming them in recent quarters. This mixed activity highlights a divergence in sentiment among professional investors. The lack of insider buying, accompanied by the $3.6 million in sales over the past year, suggests that insiders may not have confidence in the stock's current valuation or future growth prospects.
The recent trend of insider selling without any buying could be interpreted as a bearish signal, potentially indicating that those closest to the company do not believe the stock is undervalued. Such patterns can influence investor sentiment and warrant careful monitoring.
What This Means for Investors
Considering the current price of $38.39 against the GF Valueâ„¢ of $31.90, UGI Corp appears to be overvalued. While the company has demonstrated stability and reasonable profitability, the high valuation and insider selling may suggest caution for investors prioritizing dividend sustainability and long-term growth. For more detailed data and insights, visit the UGI Corp UGI stock page.
Frequently Asked Questions
What is UGI's GF Scoreâ„¢?
UGI's GF Scoreâ„¢ is 71/100, indicating that it is rated above average in terms of quality and performance metrics.
Is UGI overvalued or undervalued?
UGI is currently overvalued, with a GF Valueâ„¢ of $31.90 compared to the current price of $38.39.
What is UGI's P/E ratio?
UGI's P/E ratio is 12.8x, which is higher than its 5-year median of 11.8x, suggesting that it is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
