Jun. 26 at 10:20 AM
Read my latest article on
$UGI and why I believe it’s a hold at it’s current valuation, here’s a summary:
UGI Corporation is rated a hold due to ongoing debt restructuring and flat revenue growth, despite its diversified energy business and attractive dividend yield.
UGI’s reliance on refinancing debt with new senior notes, rather than using free cash flow, raises concerns about long-term financial health and capital allocation.
Recent infrastructure investments have expanded UGI’s customer base, but cyclical free cash flow and high current liabilities limit near-term upside.
While a DCF model suggests intrinsic value above current levels, lack of clear catalysts and climate-related demand risks temper expectations for significant price appreciation.
https://seekingalpha.com/article/4917696-ugi-corporation-hold-on-to-this-energy-leader-until-they-can-lower-their-debt-burden
