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Dividend Stock Review: Financial Analysis of AmeriGas Partners (NYSE:APU)

Here is a financial analysis of AmeriGas Partners (NYSE:APU). The article gives investors a brief overview of the company’s financial situation (quick financial ratios) as well as the valuation level (market ratios) and dividend policy.

Company Profile:
AmeriGas Partners, L.P. (the Partnership) is a retail propane distributor in the United States. As of September 30, 2011, the Partnership served approximately 1.3 million residential, commercial, industrial, agricultural and motor fuel customers in all 50 states from nearly 1,200 propane distribution locations. The Partnership is a holding company and it conducts its business principally through its subsidiary, AmeriGas Propane, L.P. (AmeriGas OLP) and AmeriGas OLP's subsidiary AmeriGas Eagle Propane, L.P. (Eagle OLP). AmeriGas Propane, Inc. is its general partner (the General Partner) and is responsible for managing the Company's operations. During the fiscal year ended September 30, 2011, the Company completed the acquisition of 16 propane distribution businesses. In January 2012, the Partnership acquired propane operations (Heritage) of Energy Transfer Partners, L.P.

More from Reuters…

AmeriGas Partners (NYSE:APU) has a market capitalization of $2.44 Billion. The company employs 5,460 people, generates revenues of $2,537.96 million and has a net income of $140.92 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $284.43 million. Because of these figures, the EBITDA margin is 11.21 percent (operating margin 8.07 percent and the net profit margin finally 5.55 percent).

Financial Analysis:
The total debt representing 57.30 percent of the company’s assets and the total debt in relation to the equity amounts to 303.85 percent. Due to the financial situation, a return on equity of 36.92 percent was realized. Twelve trailing months earnings per share reached a value of $2.30. Last fiscal year, the company paid $2.89 in form of dividends to shareholders.

Market Valuation:
Here are the price ratios of the company: The P/E ratio is 18.60, Price/Sales 0.96 and Price/Book ratio 7.29. Dividend Yield: 7.13 percent. The beta ratio is 0.40.

Long-Term Stock History Chart Of AmeriGas Partners, L.P. (Click to enlarge)

Long-Term Dividends History of AmeriGas Partners, L.P. (Click to enlarge)

Long-Term Dividend Yield History of AmeriGas Partners, L.P. (Click to enlarge)


  1. Anonymous1/22/2012

    Calling a list of facts an analysis is a misnomer. I would be more interested in an interpretation of these facts, according to a dictionary definition of analysis:
    "to examine carefully and in detail so as to identify causes, key factors, possible results, etc."
    Such an analysis might aid decision-making.

  2. Yes you are right, but the sense of the post was to give a litte overview of the company and their dividends and financial situtation. Out there are more than 6,000 companies listed on a stock exchange. We need a quick overview for a deeper analysis.


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