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Global Partners Lp (GLP)
NYSE:GLP
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Global Partners
(NYSE:GLP)
60Neutral
Positive Factors
Infrastructure Flexibility
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.
Mergers and Acquisitions
Management believes the M&A market continues to be busy and will continue to look at deals that provide value to the partnership.
Negative Factors
Cost Concerns
GLP is currently evaluating potential scenarios around Canadian tariffs, as increased costs are likely.
Earnings Performance
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
$1.86B
Dividend Yield5.29%
Average Volume (3M)68.39K
Price to Earnings (P/E)22.7
Beta (1Y)0.85
Revenue Growth4.07%
EPS Growth-35.03%
CountryUS
Employees3,300
SectorEnergy
Sector Strength82
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)2.41
Shares Outstanding33,995,564
10 Day Avg. Volume60,161
30 Day Avg. Volume68,391
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.11
Price to Cash Flow (P/CF)6.70
P/FCF Ratio22.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$56.00Price Target Upside0.81% Upside
Rating ConsensusHold
Number of Analyst Covering1
Global Partners Business Overview & Revenue Model
Company DescriptionGlobal Partners LP engages in the purchasing, selling, gathering, blending, storing, and logistics of transporting gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, and propane to wholesalers, retailers, and commercial customers in the New England states, Mid-Atlantic region, and New York. The company is also involved in the transportation of petroleum products and renewable fuels through rail from the mid-continent region of the United States and Canada. Its Wholesale segment sells home heating oil, branded and unbranded gasoline and gasoline blendstocks, diesel, kerosene, residual oil, and propane to home heating oil retailers and wholesale distributors. It also aggregates crude oil through truck or pipeline in the mid-continent region of the United States and Canada, as well as transports it through rail and ships it through barge to refiners. The company's Gasoline Distribution and Station Operations segment sells branded and unbranded gasoline to gasoline station operators and sub-jobbers; operates gasoline stations and convenience stores; and provides car wash, lottery, and ATM services, as well as leases gasoline stations. Its Commercial segment sells and delivers unbranded gasoline, home heating oil, diesel, kerosene, residual oil, and bunker fuel to customers in the public sector, as well as to commercial and industrial end-users; and sells custom blended fuels. As of December 31, 2021, the company had a portfolio of 1,595 owned, leased, and supplied gasoline stations, which included 295 directly operated convenience stores; and owned, leased, or maintained storage facilities at 26 bulk terminals with a collective storage capacity of 11.9 million barrels. Global GP LLC serves as the general partner of the company. The company was incorporated in 2005 and is based in Waltham, Massachusetts.
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
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%.62
Positive
Balance Sheet
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.53
Neutral
Cash Flow
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.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Positive
55.55
Price Trends
55.19
Positive
52.61
Positive
47.51
Positive
Market Momentum
-0.36
Negative
51.99
Neutral
57.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLP, the sentiment is Positive. The current price of 55.55 is above the 20-day moving average (MA) of 54.09, above the 50-day MA of 55.19, and above the 200-day MA of 47.51, indicating a bullish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 51.99 is Neutral, neither overbought nor oversold. The STOCH value of 57.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLP.
Global Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $8.97B | 9.80 | 28.38% | 5.98% | -1.63% | 80.11% | |
67 Neutral | $45.68B | 14.53 | 16.33% | 2.37% | -6.70% | -57.85% | |
60 Neutral | $1.86B | 22.75 | 12.56% | 5.29% | 4.07% | -35.03% | |
58 Neutral | $9.12B | 5.24 | -7.59% | 7.51% | 0.53% | -65.25% | |
55 Neutral | $1.93B | 276.15 | 0.90% | 10.40% | -17.69% | -99.09% | |
47 Neutral | $957.69M | ― | -108.21% | 6.56% | -28.68% | -4373.94% | |
46 Neutral | $2.23B | ― | -8.87% | 5.45% | -13.59% | -127.47% |
* Energy Sector Average
Performance Comparison
GLP
Global Partners
55.55
12.76
29.82%
CVI
CVR Energy
17.87
-18.08
-50.29%
DK
Delek US Holdings
15.48
-15.69
-50.34%
MPC
Marathon Petroleum
147.90
-63.85
-30.15%
PBF
PBF Energy
19.55
-39.38
-66.83%
SUN
Sunoco
59.13
3.82
6.91%
Global Partners Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: -1.80% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant achievements in terminal expansion and strategic growth, countered by declines in EBITDA and increased expenses. Despite some financial challenges, the company remains well-positioned for future growth due to strategic investments and a robust operational framework.Highlights
Expansion and Integration of Terminals
Global Partners integrated thirty new terminals across various regions, doubling storage capacity to approximately twenty-two million barrels. This includes terminals acquired in December 2023, supported by a 25-year contract with Motiva Enterprises.
Robust Segment Growth
The wholesale segment product margin increased by $90 million, while the GDSO product margin rose by almost $26 million for the year, demonstrating strong growth despite challenging conditions.
Successful Distribution and Financial Position
The board declared a $0.74 distribution on common units, marking the thirteenth consecutive quarterly increase, reflecting a strong financial position.
Strategic Positioning for Future Opportunities
Global Partners expanded its operating footprint and strengthened its asset base, preparing to leverage supply, terminalling, and marketing expertise for future growth opportunities.
Lowlights
Decrease in Adjusted EBITDA and DCF
Adjusted EBITDA for Q4 2024 was $97.8 million compared to $112.1 million in Q4 2023. Adjusted DCF was $46.1 million versus $58.8 million in 2023, primarily due to a strong fuel margin environment in Q4 2023.
GDSO Product Margin Decrease
The GDSO product margin decreased by $31.8 million in Q4 2024 to $213.6 million, with gasoline distribution margins particularly affected by lower fuel margins year over year.
Increased Operating and Interest Expenses
Operating expenses increased by $12.1 million due to recent acquisitions. Interest expense rose to $34.4 million from $20.7 million in 2023, attributed to senior notes and higher credit facility balances.
Company Guidance
During the Global Partners Fourth Quarter and Full Year 2024 Financial Results Conference Call, several key metrics and strategic developments were highlighted. The company expanded its storage capacity to approximately 22 million barrels by integrating 30 new terminals across various regions, supported by $528 million in strategic investments. The wholesale segment showed strong growth with a $90 million increase in product margin, while the GDSO (Gasoline Distribution and Station Operations) product margin increased by nearly $26 million for the year. Despite a decrease in adjusted EBITDA from $112.1 million in Q4 2023 to $97.8 million in Q4 2024, the retail fuel margin environment remained above historical averages. Additionally, the company declared a distribution of $0.74 per common unit, marking the thirteenth consecutive quarterly increase. Looking ahead, Global Partners LP expects maintenance capital expenditures for 2025 to be between $60 million to $70 million and expansion capital expenditures to range from $75 million to $85 million. The company also expressed confidence in its ability to navigate potential tariffs on oil and gas imports, emphasizing the flexibility of its supply system.Global Partners Corporate Events
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.
Dividends
Global Partners Announces Q4 2024 Cash Distribution
Positive
Jan 29, 2025
On January 29, 2025, Global Partners LP announced a quarterly cash distribution of $0.7400 per unit for the fourth quarter of 2024, payable on February 14, 2025, to unitholders of record by February 10, 2025. The distribution reflects Global Partners’ ongoing commitment to returning value to its stakeholders, while the notice to brokers emphasizes its impact on non-U.S. investors, who are subject to specific federal income tax withholding requirements.
Dividends
Global Partners Declares Quarterly Cash Distribution
Positive
Jan 13, 2025
On January 13, 2025, Global Partners LP announced a quarterly cash distribution of $0.59375 per unit on its Series B preferred units for the period from November 15, 2024, through February 14, 2025. This distribution, to be paid on February 18, 2025, reflects the company’s financial commitments to its stakeholders and indicates its stable market positioning amid the ongoing energy transition.
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.