Yahoo Finance Should Value Investors Buy UGI (UGI) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is UGI (UGI). UGI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.06 right now. For comparison, its industry sports an average P/E of 13.88. Over the past year, UGI's Forward P/E has been as high as 9.53 and as low as 6.25, with a median of 8.07.
UGI is also sporting a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UGI's industry has an average PEG of 2.30 right now. Within the past year, UGI's PEG has been as high as 1.19 and as low as 0.78, with a median of 1.
Another valuation metric that we should highlight is UGI's P/B ratio of 1.10. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.13. Over the past 12 months, UGI's P/B has been as high as 1.37 and as low as 1, with a median of 1.15.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. UGI has a P/S ratio of 0.63. This compares to its industry's average P/S of 1.64.
Finally, investors should note that UGI has a P/CF ratio of 4.72. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.56. UGI's P/CF has been as high as 7.51 and as low as -77.20, with a median of -14.73, all within the past year.
These are just a handful of the figures considered in UGI's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that UGI is an impressive value stock right now.
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UGI Corporation (UGI) : Free Stock Analysis Report
