Is UGI Corporation (UGI) Attractively Valued Now? - InvestingChannel

Is UGI Corporation (UGI) Attractively Valued Now?

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -2.25% compared to a -2.96% return for the Russell 2000 Value Index. The Fund returned 2.57% YTD compared to -0.53% for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

FPA Queens Road Small Cap Value Fund highlighted stocks like UGI Corporation (NYSE:UGI) in the third quarter 2023 investor letter. Headquartered in King of Prussia, Pennsylvania, UGI Corporation (NYSE:UGI) markets and distributes energy products and services. On November 17, 2023, UGI Corporation (NYSE:UGI) stock closed at $22.51 per share. One-month return of UGI Corporation (NYSE:UGI) was 11.11%, and its shares lost 44.88% of their value over the last 52 weeks. UGI Corporation (NYSE:UGI) has a market capitalization of $4.715 billion.

FPA Queens Road Small Cap Value Fund made the following comment about UGI Corporation (NYSE:UGI) in its Q3 2023 investor letter:

UGI Corporation (NYSE:UGI) owns gas utilities and pipelines in Pennsylvania and West Virginia and the largest propane distribution businesses in the United States and Europe. This is our kind of company – despite its disparate parts, UGI has increased earnings at a relatively steady high single digit rate historically while distributing excess cash through dividends.24 We believe shares are down primarily because of poor execution at AmeriGas, UGI’s U.S. propane business, but also because of losses at the company’s European energy marketing business and the negative effects of warm weather on earnings. We believe UGI is attractive at less than 10x earnings, and we have been incrementally adding to the Fund’s position.”

20 Countries With the Cheapest Electricity in the World Photo by Matthew Henry on Unsplash

UGI Corporation (NYSE:UGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held UGI Corporation (NYSE:UGI) at the end of second quarter which was 20 in the previous quarter.

We discussed UGI Corporation (NYSE:UGI) in another article and shared the list of dividend champions according to dividend yields. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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