Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (74596)	12/22/2023 4:50:50 PM
From: bruwin	Read Replies (1) \| Respond to of 78471

As a matter of interest UGI has shown Net Income losses over the last three 12 month LTM periods. It seems that the main contributing factor is its high SG&A cost. In the last period UGI had a Gross Profit of $1991mil. and an SG&A of $2125mil. resulting in -$134mil. That started the losses on its Income Statement. Needless to say, its EBITDA number will also be negative so its Debt Expense of -$373mil. will add to that loss. What do you think UGI will be able to do to reverse this Loss trend ?

To: E_K_S who wrote (74596)	12/30/2023 10:17:49 AM
From: E_K_S	Read Replies (3) \| Respond to of 78471

Ugi Corp(UGI) - Analyst sees a 50% upside to a price of $36/share UGI a Dividend Aristocrat yielding 6%; uninterrupted dividend streak for 139 years! DOWN 41% YTD With A 7% Yield! \| Time To BUY This 52 Week Low Stock? \| UGI Stock Analysis! \| (link To YouTube Video Value Analysis - 12 days ago) bit.ly ------------------------------------------------------------ Analysts does say this company is in a cyclical business and now in their down cycle. Over last 5 years has grown their dividend 8.5%. Reason for loss last year was the write down of the 'goodwill' from their AmeriGas division. My takeaway is both the (1) Discounted Cash Flow valuation Model & (2) Dividend Discount Model show fair value for UGI is at/near $36.00/share. This is similar to my analysis using similar & other fair value analysis. On top of that, management in October 2023 hired Goldman Sachs to review the company assets & operations to see ways to increase shareholder value. If you are a long term investor with a 10 year horizon and want to add income to your portfolio at a 50% undervalued price, UGI is one to look at.