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Showing posts with label AmeriGas Partners. Show all posts
Showing posts with label AmeriGas Partners. Show all posts

12 Best Yielding Utilities With Double-Digit EPS Growth Potential

Utilities with best dividend yields and high earnings per share growth forecasts originally published at "long-term-investments.blogspot.com". Utilities are well-known for its stability and high dividend payments but they offer also high debt and low growth rates. Sure, utilities can give you some kind of safeness but the only thing that let’s your wealth grow is growth.

Growth is very expensive within the utility sector and I am not sure how it works in the United States but in many countries on the world, utilities are regulated by the government, so they cannot increase prices how they like.

Utilities are essential supplier for basic consumptions products like electricity, water, garbage and so on. Prices should be low in order to realize an optimized prosperity of the nation. If prices are too high, the government will be changed at the next election.

For investors is this fact a very hard environment to make money. You can do it but it is much easier in other sectors. If you invest money in foreign utilities, you bet mainly on an inflation growth and a currency gain.

However, a high dividend is not the only solution of wealth. Growth is more important. I prefer low yielding stocks with no legislative rules and high growth. This will help me to grow faster than the inflation.

Today, I like to show you some of the best yielding utilities with the highest expected earnings per share growth for the next half-decade. From 123 listed utilities pay 107 a dividend but only for 12 companies, earnings per share is expected to grow yearly by more than 10 percent.


Gas utilities are the dominant players on my screening result - There are five stocks from the industry. It could be possible that analysts expecting lower gas prices for the mid-term due to the shale gas boom.


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)