Global Partners (GLP) AI Stock Analysis

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Global Partners

(NYSE:GLP)

57Neutral

Global Partners' stock score reflects a mix of moderate financial performance with revenue growth but declining profit margins and liquidity challenges. While technical analysis suggests bearish momentum, strong earnings call results and a high dividend yield help mitigate concerns. Strategic expansions and favorable market conditions in the wholesale segment position the company for potential future growth.

Positive Factors

Flexibility and Sourcing

Global's infrastructure system is flexible and can source crude from numerous supply points, such as the US, Canada, Europe, and the Caribbean.

Market Performance

GLP units have increased 23% compared to the AMZ's 10% increase.

Negative Factors

Cost Management

GLP is currently evaluating potential scenarios around Canadian tariffs, as increased costs are likely.

Earnings

GLP posted 4Q24 results below expectations, driven by lower fuel margins in GDSO.

Valuation

GLP is considered fairly valued, leading to a downgrade from Buy to Hold.

Global Partners (GLP) vs. S&P 500 (SPY)

Market Cap

$1.59B

Dividend Yield6.02%

Average Volume (3M)42.64K

Price to Earnings (P/E)14.8

Beta (1Y)0.75

Revenue Growth6.04%

EPS Growth18.28%

CountryUS

Employees3,300

SectorEnergy

Sector Strength52

IndustryOil & Gas Midstream

Share Statistics

EPS (TTM)0.36

Shares Outstanding33,995,564

10 Day Avg. Volume44,301

30 Day Avg. Volume42,644

Financial Highlights & Ratios

PEG Ratio-0.72

Price to Book (P/B)2.54

Price to Sales (P/S)0.00

P/FCF Ratio9.25

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$56.00

Price Target Upside16.25% Upside

Rating ConsensusHold

Number of Analyst Covering1

Global Partners Business Overview & Revenue Model

Company DescriptionGlobal Partners LP (GLP) is a leading energy supply company operating in the United States. The company is primarily involved in the wholesale distribution of gasoline, distillates, and other petroleum products. Additionally, Global Partners engages in the transportation, storage, and marketing of these fuels. It operates a network of gasoline stations under various brand names and is also involved in the logistics and terminal operations sectors, providing comprehensive energy solutions to a wide range of customers.

How the Company Makes MoneyGlobal Partners LP generates revenue primarily through the wholesale distribution of petroleum products such as gasoline and distillates. The company owns and operates a network of terminals and storage facilities that support its distribution capabilities. Additionally, Global Partners derives income from its retail segment, which includes a network of gasoline stations and convenience stores. The company also benefits from strategic partnerships and long-term contracts with suppliers and customers, ensuring a steady flow of products and stable revenue streams. Pricing strategies, volume sales, and logistical services contribute significantly to its earnings.

Global Partners Financial Statement Overview

Summary

Global Partners shows moderate revenue growth and stable operating efficiency, but faces challenges with declining net profit margins and increased financial leverage. Cash flow analysis reveals potential liquidity issues with negative free cash flow and decreased cash conversion efficiency. The company should focus on improving profitability and cash flow management to enhance financial stability.

Income Statement

Positive

The company experienced a significant gross profit margin improvement in 2024 compared to 2023, rising from 3.11% to 6.16%, indicating better cost management or pricing strategies. However, net profit margin decreased from 0.92% to 0.48%, reflecting challenges in controlling costs or expenses. Revenue growth from 2023 to 2024 was 4.08%, signaling moderate top-line growth. EBIT margin remained stable, suggesting consistent operating efficiency, even as EBITDA margin decreased from 2.16% to 1.46%.

Balance Sheet

Neutral

The debt-to-equity ratio rose from 1.93 in 2023 to 2.09 in 2024, indicating increased financial leverage and potential risk if earnings do not support debt levels. Return on equity decreased from 19.09% to 11.55%, suggesting reduced profitability relative to shareholder investment. The equity ratio improved slightly from 23.19% to 18.92%, indicating a slight increase in the proportion of equity financing.

Cash Flow

Neutral

Free cash flow turned negative in 2024, a decline from positive free cash flow in 2023, indicating potential liquidity issues or increased capital expenditures. The operating cash flow to net income ratio dropped significantly, suggesting inefficiencies in converting income into cash. The free cash flow to net income ratio also turned negative, highlighting challenges in cash generation relative to net income.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
17.16B	16.49B	18.88B	13.25B	8.32B
	Gross Profit
1.06B	513.83M	1.10B	719.26M	721.14M
	EBIT
251.22M	243.77M	460.29M	142.22M	192.27M
	EBITDA
251.22M	356.36M	565.08M	244.46M	285.24M
	Net Income Common Stockholders
107.69M	152.51M	362.21M	60.80M	102.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.21M	19.64M	4.04M	10.85M	9.71M
	Total Assets
3.79B	3.45B	3.16B	2.83B	2.54B
	Total Debt
1.50B	1.54B	1.43B	1.57B	1.49B
	Net Debt
1.49B	1.52B	1.43B	1.56B	1.48B
	Total Liabilities
3.07B	2.65B	2.37B	2.30B	2.05B
	Stockholders Equity
716.61M	798.83M	788.44M	-1.90M	1.60M
Cash Flow		Free Cash Flow
-71.70M	110.42M	373.20M	-51.50M	236.19M
	Operating Cash Flow
31.60M	512.44M	480.00M	50.22M	312.53M
	Investing Cash Flow
-276.87M	-492.38M	-236.19M	-115.05M	-69.73M
	Financing Cash Flow
233.84M	-4.46M	-250.61M	65.97M	-245.13M

Global Partners Technical Analysis

Technical Analysis Sentiment

Negative

Last Price48.17

Price Trends

50DMA

50.96

Negative

100DMA

51.23

Negative

200DMA

47.89

Positive

Market Momentum

MACD

-0.73

Positive

RSI

46.45

Neutral

STOCH

20.57

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLP, the sentiment is Negative. The current price of 48.17 is below the 20-day moving average (MA) of 49.61, below the 50-day MA of 50.96, and above the 200-day MA of 47.89, indicating a neutral trend. The MACD of -0.73 indicates Positive momentum. The RSI at 46.45 is Neutral, neither overbought nor oversold. The STOCH value of 20.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLP.

Global Partners Peers Comparison

Overall Rating

UnderperformOutperform

Sector (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DKL	68 Neutral	$2.08B	13.02	542.39%	11.22%	-8.79%	7.75%
GLP	57 Neutral	$1.59B	14.80	16.23%	6.02%	6.04%	18.28%
Sector *	56 Neutral	$7.17B	3.84	-4.86%	5.83%	0.24%	-51.87%
GEL	52 Neutral	$1.84B	―	-14.83%	4.37%	-17.81%	-590.48%
SMC	52 Neutral	$543.45M	5.86	-28.13%	―	-4.69%	-411.36%
NGL	44 Neutral	$427.72M	―	-19.22%	―	-19.76%	-323.41%
MMLP	41 Neutral	$118.73M	33.55	-6.93%	0.66%	-2.03%	-348.43%

* Energy Sector Average

Performance Comparison

GLP

Global Partners

48.71

9.32

23.66%

GEL

Genesis Energy

15.27

3.00

24.45%

MMLP

Martin Midstream

3.02

0.10

3.42%

NGL

NGL Energy Partners

3.38

-2.22

-39.64%

SMC

Summit Midstream

29.52

-4.60

-13.48%

DKL

Delek Logistics

40.44

5.50

15.74%

Global Partners Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -2.49%|

Next Earnings Date:Aug 01, 2025

Earnings Call Sentiment Positive

The earnings call reveals a strong first quarter with significant improvements in net income and EBITDA. The wholesale segment and gasoline distribution business performed well, contributing to overall growth. However, there were challenges with decreased station operations product margin and increased expenses. Overall, the highlights notably outweigh the lowlights.

Q1-2025 Updates

Positive Updates

Strong Financial Performance

Net income for Q1 2025 was $18.7 million, a significant improvement from a net loss of $5.6 million in Q1 2024. EBITDA increased to $91.9 million from $56.9 million, and adjusted EBITDA increased to $91.1 million from $56 million.

Increased Cash Distribution

The Board increased the quarterly cash distribution on common units to $0.7450 per unit, equating to $2.98 on an annualized basis. The distribution will be paid on May 15th to unitholders as of May 9th.

Wholesale Segment Growth

First quarter 2025 product margin in the wholesale segment increased by $44.2 million to $93.6 million, driven by more favorable market conditions and strategic acquisitions of terminals.

Gasoline Distribution Success

Product margin from gasoline distribution increased by $4.2 million to $125.8 million, with fuel margins increasing $0.02 per gallon to $0.35 in Q1 2025 from $0.33 in Q1 2024.

Negative Updates

Decrease in Station Operations Product Margin

Station operations product margin decreased by $4 million to $62.1 million in Q1 2025 due to the sales and conversions of certain company-operated sites.

Increased Operating and Interest Expenses

Operating expenses increased by $6.6 million to $126.7 million, and interest expense was $36 million, up $6.3 million from last year, primarily due to higher average balances on credit facilities.

Company Guidance

During the Global Partners First Quarter 2025 Financial Results Conference Call, the company provided guidance on several key metrics demonstrating significant growth. Net income for the quarter was $18.7 million, a notable recovery from a net loss of $5.6 million in the previous year. EBITDA rose to $91.9 million from $56.9 million, while adjusted EBITDA increased to $91.1 million from $56 million. Distributable cash flow was $45.7 million, up from $15.8 million, and adjusted ECF reached $46.4 million compared to $16 million last year. The wholesale segment was highlighted as the primary growth driver, with product margin increasing by $44.2 million to $93.6 million. The gasoline distribution product margin rose by $4.2 million to $125.8 million, largely due to improved fuel margins, which increased by $0.02 to $0.35 per gallon. Despite a $4 million decrease in station operations product margin to $62.1 million, the company remained focused on portfolio optimization, including a reduction of 40 company-operated sites. The company also announced an increased quarterly cash distribution on common units to $0.7450 per unit, equating to $2.98 on an annualized basis, reflecting its commitment to returning cash to unitholders.

Global Partners Corporate Events

Business Operations and StrategyFinancial Disclosures

Global Partners Reports Strong Q1 2025 Financial Results

Positive

May 8, 2025

On May 8, 2025, Global Partners LP reported strong financial results for the first quarter of 2025, with a net income of $18.7 million compared to a net loss in the same period of 2024. The company’s diversified portfolio, particularly its Wholesale segment, showed robust performance due to favorable market conditions and strategic asset integration. The results highlight Global Partners’ ability to leverage its integrated model and scale to capitalize on market opportunities, positioning it for continued growth and resilience amidst market volatility.

Spark’s Take on GLP Stock

According to Spark, TipRanks’ AI Analyst, GLP is a Neutral.

Global Partners’ overall stock score reflects a balanced view of its financial performance, technical analysis, and valuation. The company exhibits strengths in strategic expansion and a strong dividend yield, but these are offset by challenges in profitability, cash flow management, and a moderate overvaluation. Continued focus on improving cash flow and managing financial leverage will be crucial for enhancing its market position.

To see Spark’s full report on GLP stock, click here.

Dividends

Global Partners Announces Q1 2025 Cash Distribution

Positive

Apr 25, 2025

On April 25, 2025, Global Partners LP announced a quarterly cash distribution of $0.7450 per unit for the first quarter of 2025. The distribution, amounting to $2.98 on an annualized basis, will be paid on May 15, 2025, to unitholders of record as of May 9, 2025. This announcement reflects the company’s ongoing commitment to providing value to its stakeholders and maintaining its position as a key player in the energy sector.

Spark’s Take on GLP Stock

According to Spark, TipRanks’ AI Analyst, GLP is a Neutral.

Global Partners’ stock score reflects its stable yet challenged financial performance, with moderate revenue growth but declining profitability and cash flow issues. Technical analysis shows neutral momentum, and while the stock is slightly overvalued, the strong dividend yield remains a positive factor. The earnings call highlights strategic expansions and investments, positioning the company for future growth despite current financial pressures.

To see Spark’s full report on GLP stock, click here.

DividendsRegulatory Filings and Compliance

Global Partners Announces Quarterly Cash Distribution

Positive

Apr 14, 2025

On April 14, 2025, Global Partners LP announced a quarterly cash distribution of $0.59375 per unit for its 9.50% fixed-rate Series B preferred units, covering the period from February 15, 2025, to May 14, 2025. This distribution will be paid on May 15, 2025, to unitholders of record as of May 1, 2025. This announcement highlights the company’s commitment to returning value to its investors, while also providing important tax withholding information for non-U.S. investors, indicating the company’s proactive approach to compliance and investor relations.

Spark’s Take on GLP Stock

According to Spark, TipRanks’ AI Analyst, GLP is a Neutral.

Global Partners LP’s overall stock score reflects a balanced view of its financial performance, technical analysis, valuation, and earnings call outcomes. The company’s strengths in strategic expansion and strong dividend yield are offset by challenges in profitability, cash flow management, and a moderate overvaluation. Continued focus on improving cash flow and managing financial leverage will be crucial for enhancing its market position.

To see Spark’s full report on GLP stock, click here.

Executive/Board ChangesBusiness Operations and Strategy

Global Partners Announces New Senior VP of Legal

Neutral

Apr 11, 2025

On April 9, 2025, Global Partners LP announced that Sean T. Geary will resign as Chief Legal Officer effective January 1, 2026, but will remain as a Senior Legal Advisor. Kristin Seabrook will join as Senior Vice President of Legal Transformation on April 14, 2025, and will succeed Geary as Chief Legal Officer on January 1, 2026. Seabrook’s expertise in mergers and acquisitions, compliance, and corporate governance is expected to drive Global’s growth and transformation, supporting its strategy of acquiring, investing, and optimizing to deliver long-term value.

Spark’s Take on GLP Stock

According to Spark, TipRanks’ AI Analyst, GLP is a Neutral.

To see Spark’s full report on GLP stock, click here.

Business Operations and StrategyFinancial Disclosures

Global Partners Reports 2024 Financial Growth and Expansion

Positive

Feb 28, 2025

Global Partners LP reported its financial results for the fourth quarter and full year of 2024, highlighting a transformative year marked by significant growth in its U.S. liquid energy market operations. The company more than doubled its terminal count, expanding its network into 18 states with strategic acquisitions, including a 25-year contract with Motiva. Despite a decrease in net income compared to 2023, Global Partners saw an increase in EBITDA and adjusted EBITDA for the full year, reflecting its strengthened market position and expanded operational footprint. The company’s diverse assets and strategic expansions position it well for future growth opportunities, benefiting stakeholders and enhancing long-term value.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.