CluenexUGI Corporation UGI
UGI Corporation scores weak on business quality (3.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What UGI Corporation does
UGI distributes propane, natural gas, and electric energy to residential and commercial customers primarily in the US and Europe, earning revenue through utility rates and fuel delivery. The company is navigating potential buyout interest from KKR as it manages capital allocation and asset optimization amid soft operational metrics.
- What it does best
UGI leverages extensive local distribution infrastructure to secure regional utility monopolies, locking in residential customers who face prohibitive switching costs. Its gross margin of 50.3% lags peers like NFG at 87.7%, reflecting heavier wholesale product costs.
- The main risk
A potential acquisition stall threatens the stock price after reports of a KKR buyout bid drove recent gains, leaving equity holders vulnerable if a deal fails to materialize.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins stand at 15.9% with a net margin of 8.2%, supported by steady utility demand. Scale yields limited operating leverage as margins compress under rising costs.
The utility asset base locks in regional utility customers via regulated service territories. Its operating margin sector percentile ranks in the bottom half at 28th, reflecting limited pricing power.
Revenue grew 1.1% to $7.3 billion, showing anemic top-line movement compared to historical double-digit drops and recoveries. Growth remains essentially flat.
Debt-to-equity sits at 1.5x with an interest coverage ratio of 2.8x, leaving narrow margin for error. Free cash flow dropped to $187 million from $390 million previously, pointing to a softer financial footing.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on UGI
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
UGI Corporation scores weak on the Cluenex quality check (3.3 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 18, 2026, after the close.
See UGI today
- Today's verdict on UGI, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “UGI Corporation (UGI)”, https://cluenex.com/stocks/ugi/, data as of Oct 10, 2026.