UGIC - UGI: This 5.4% Yielding Aristocrat A 46% Discounted Buffett-Style 'Fat Pitch'

2023-05-28 07:00:00 ET

Summary

• UGI Corporation is in the worst bear market since 1988, having been cut in half.
• Its tough 2022 was due to temporary setbacks caused by the Russian invasion.
• Management reiterated its plan to grow 6% to 10% through 2026 in May.
• UGI has a 36-year dividend growth streak and hasn't missed a dividend payment in 139 years.
• UGI is almost 50% undervalued, trading at 8X cash-adjusted earnings, pricing in -1% growth. It could double in three years, almost triple in six, and the last time it was this undervalued, it delivered 15X returns in 15 years. UGI is trading at the same P/E as its Pandemic and Great Recession lows.

For further details see: