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UGI Corporation (UGI)

Company Dividend Discount ModelIndustry: Regulated GasSector: Utilities

Valuation Snapshot

Stable Growth$32.14 - $51.05$40.75
Multi-Stage$50.43 - $55.31$52.83
Blended Fair Value$46.79
Current Price$33.26
Upside40.67%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS3.36%-2.20%1.481.461.411.361.301.252.132.021.981.92
YoY Growth--1.26%3.25%4.05%4.96%3.30%-41.04%5.23%2.21%2.99%3.88%
Dividend Yield--4.45%5.17%5.75%3.67%2.82%3.59%4.71%3.79%4.21%4.17%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)678.00
(-) Cash Dividends Paid (M)321.00
(=) Cash Retained (M)357.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)135.6084.7550.85
Cash Retained (M)357.00357.00357.00
(-) Cash Required (M)-135.60-84.75-50.85
(=) Excess Retained (M)221.40272.25306.15
(/) Shares Outstanding (M)217.71217.71217.71
(=) Excess Retained per Share1.021.251.41
LTM Dividend per Share1.471.471.47
(+) Excess Retained per Share1.021.251.41
(=) Adjusted Dividend2.492.732.88
WACC / Discount Rate7.93%7.93%7.93%
Growth Rate0.16%1.16%2.16%
Fair Value$32.14$40.75$51.05
Upside / Downside-3.38%22.52%53.49%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)678.00685.87693.84701.90710.05718.30739.84
Payout Ratio47.35%55.88%64.41%72.94%81.47%90.00%92.50%
Projected Dividends (M)321.00383.24446.88511.95578.47646.47684.36

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.93%7.93%7.93%
Growth Rate0.16%1.16%2.16%
Year 1 PV (M)351.58355.09358.60
Year 2 PV (M)376.10383.65391.27
Year 3 PV (M)395.28407.24419.43
Year 4 PV (M)409.74426.35443.46
Year 5 PV (M)420.08441.48463.73
PV of Terminal Value (M)9,027.129,486.849,965.09
Equity Value (M)10,979.9111,500.6512,041.60
Shares Outstanding (M)217.71217.71217.71
Fair Value$50.43$52.83$55.31
Upside / Downside51.64%58.83%66.30%

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