UGI (UGI - Get Report) engages in the distribution and marketing of energy products and services in the U.S. and internationally. The company also operates a heating, ventilation, air conditioning and refrigeration business serving customers in the Mid-Atlantic region.
The numbers: Fiscal second-quarter revenue dropped 9.5% to $2.1 billion as net income increased 25% to $158 million and earnings per share improved 24% to $1.45, continuing a trend of positive growth for eight consecutive quarters. A quick ratio of 0.9 indicates a less-than-ideal liquidity position and a debt-to-equity ratio of 1.5 reflects sizable leverage. Operating margin improved to 17% and net margin moved past 7%.
The stock: UGI has climbed 6% in 2009, outperforming the Dow and S&P 500. Still, the stock trades at a price-to-earnings ratio under 10, indicating a significant discount to the market, and offers a 3.1% dividend yield.