Is UGI a high-quality business?

AlphaMadera's AlphaQuality grade scores UGI Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how UGI compares to a Buffett-style quality bar.

What is UGI Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to UGI based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes UGI a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

UGI - UGI Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $43.33 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

D 37.4 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

D- 31.3

5yr Avg ROIC 6.9% 45/100
Operating Margin Trend -3.85 pp/yr 0/100

Capital Efficiency

Weight: 15%

C- 50.5

5yr Avg ROE 8.3% 52/100
5yr Share-Count CAGR 0.8% 49/100

Growth Quality

Weight: 15%

F 20.5

5yr Revenue CAGR -0.5% 19/100
5yr EPS CAGR -18.3% 0/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

C 51.5

5yr FCF Margin 4.4% 47/100
5yr FCF/NI Conversion 0.62x 57/100

Balance Sheet

Weight: 20%

D- 29.7

Net Debt / EBITDA 4.32x 25/100
Interest Coverage (EBIT/Int) 2.69x 40/100
Altman Z-Score 1.43 26/100

Stability

Weight: 15%

C- 45.1

EPS Volatility (σ/μ) 0.59 22/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 2/5 60/100

2 of 3 gurus held; 1 added; 1 full exit.

Holders: 2 -1
Avg Δ position: +12.9%
New buys: 0
Full exits: 1

Wood sold -100%
Dalio increased +26%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.