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Star Gas Partners (SGU)
:SGU
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Star Gas Partners
(NYSE:SGU)
63Neutral
Star Gas Partners (SGU) vs. S&P 500 (SPY)
Market Cap
$435.20M
Dividend Yield5.48%
Average Volume (3M)36.24K
Price to Earnings (P/E)10.0
Beta (1Y)0.31
Revenue Growth-5.82%
EPS Growth93.64%
CountryUS
Employees3,039
SectorEnergy
Sector Strength50
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)1.26
Shares Outstanding34,567,062
10 Day Avg. Volume36,257
30 Day Avg. Volume36,237
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)N/A
Price to Sales (P/S)0.27
Price to Cash Flow (P/CF)-1.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Star Gas Partners Business Overview & Revenue Model
Company DescriptionStar Group, L.P. sells home heating and air conditioning products and services to residential and commercial home heating oil and propane customers in the United States. It also sells diesel fuel, gasoline, and home heating oil on a delivery only basis, as well as provide plumbing services; and installs maintains, and repairs heating and air conditioning equipment. As of September 30, 2021, the company served approximately 422,200 full service residential and commercial home heating oil and propane customers and 71,100 customers on a delivery only basis. It also sells gasoline and diesel fuel to approximately 26,700 customers. Kestrel Heat, LLC operates as the general partner of the company. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was incorporated in 1995 and is based in Stamford, Connecticut.
How the Company Makes MoneyStar Gas Partners generates revenue through the sale and delivery of heating oil and propane to its customer base, which includes both residential and commercial clients. The company also earns income by providing HVAC services such as installation, maintenance, and repair of heating and cooling systems. A significant portion of its revenue comes from long-term service contracts and loyalty programs which ensure a steady stream of income. Additionally, Star Gas benefits from economies of scale and strategic acquisitions that expand its market share and enhance its operational efficiency.
Star Gas Partners Financial Statement Overview
Summary
Star Gas Partners exhibits a stable financial performance with decent profit margins and operational efficiency. The balance sheet is moderately leveraged with a good return on equity, though historical issues with negative equity should be monitored. Cash flows are strong, supporting operational needs and potential future growth.Income Statement
The company has shown stable gross and net profit margins in the TTM period with a gross profit margin of 48.12% and a net profit margin of 3.29%. However, the revenue growth is negative when compared to the previous annual period, indicating a decline in sales. The EBIT and EBITDA margins are also moderate at 5.13% and 6.56%, respectively, suggesting some operational efficiency but room for improvement.65
Positive
Balance Sheet
The balance sheet shows a debt-to-equity ratio of 0.98, which indicates a balanced approach to leveraging, though the equity ratio of 31.11% suggests that the company has a moderate equity base relative to its assets. The return on equity is strong at 18.48%, but it is important to note past instances of negative equity which can pose risks.55
Neutral
Cash Flow
The cash flow statement reflects a healthy operating cash flow to net income ratio of 1.88, indicating that the company is generating strong cash flows relative to its reported earnings. Additionally, the free cash flow growth rate is slightly negative compared to the previous period, but the free cash flow to net income ratio of 1.68 shows good cash conversion efficiency.70
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.73B | 1.77B | 1.95B | 2.01B | 1.50B | 1.47B | Gross Profit |
| 492.19M | 470.33M | 438.40M | 451.63M | 444.17M | 440.40M | EBIT |
| 88.51M | 61.10M | 62.55M | 43.23M | 58.63M | 53.38M | EBITDA |
| 119.52M | 92.60M | 94.89M | 93.05M | 163.69M | 120.87M | Net Income Common Stockholders |
| 51.34M | 32.10M | 29.06M | 35.29M | 87.74M | 55.92M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 53.57M | 117.33M | 45.19M | 14.62M | 4.77M | 56.91M | Total Assets |
| 609.15M | 939.61M | 875.48M | 912.48M | 853.86M | 838.62M | Total Debt |
| 101.92M | 304.56M | 243.75M | 282.96M | 219.09M | 227.85M | Net Debt |
| 48.35M | 187.22M | 198.56M | 268.34M | 214.32M | 170.94M | Total Liabilities |
| 280.58M | 675.72M | 611.75M | 654.56M | 575.66M | 582.80M | Stockholders Equity |
| 349.45M | 280.17M | 268.34M | -15.61M | -14.04M | -14.96M |
| Cash Flow | Free Cash Flow | ||||
| 95.24M | 100.33M | 114.65M | 15.21M | 53.79M | 161.54M | Operating Cash Flow |
| 106.72M | 110.98M | 123.66M | 33.91M | 68.88M | 175.67M | Investing Cash Flow |
| -59.96M | -61.19M | -28.20M | -32.63M | -50.33M | -28.14M | Financing Cash Flow |
| -17.89M | 22.35M | -64.89M | 8.57M | -70.69M | -95.52M |
Star Gas Partners Technical Analysis
Neutral
12.59
Price Trends
13.01
Negative
12.34
Positive
11.79
Positive
Market Momentum
-0.13
Positive
42.09
Neutral
48.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGU, the sentiment is Neutral. The current price of 12.59 is below the 20-day moving average (MA) of 12.90, below the 50-day MA of 13.01, and above the 200-day MA of 11.79, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 42.09 is Neutral, neither overbought nor oversold. The STOCH value of 48.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SGU.
Star Gas Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $8.99B | 9.80 | 28.38% | 5.96% | -1.63% | 80.11% | |
63 Neutral | $435.20M | 10.02 | 15.62% | 5.48% | -5.82% | 93.64% | |
60 Neutral | $781.57M | 3.02 | -2.64% | ― | -3.13% | -105.02% | |
55 Neutral | $7.11B | 3.51 | -6.23% | 6.00% | >-0.01% | -51.70% | |
54 Neutral | $900.11M | 46.04 | 666.62% | 8.75% | -6.57% | -50.55% | |
48 Neutral | $1.85B | 262.93 | 0.90% | 10.86% | -17.69% | -99.09% | |
44 Neutral | $331.47M | ― | -11.54% | ― | -2.19% | 16.69% |
* Energy Sector Average
Performance Comparison
SGU
Star Gas Partners
12.59
1.66
15.19%
CLNE
Clean Energy Fuels
1.48
-0.96
-39.34%
CVI
CVR Energy
18.41
-13.53
-42.36%
SUN
Sunoco
58.92
5.28
9.84%
CAPL
Crossamerica Partners
23.65
2.52
11.93%
PARR
Par Pacific Holdings
14.38
-18.05
-55.66%
Star Gas Partners Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 1.53% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant growth in EBITDA, strategic acquisitions, and improved service operations outweighing the challenges of increased expenses and customer attrition.Highlights
Increase in Adjusted EBITDA
Adjusted EBITDA rose by $3 million year over year, reaching $52 million, driven by recent acquisitions and improved per-gallon margins.
Strategic Acquisition
Completion of a sizable acquisition strengthens Star Group's propane presence, adding a quality brand and new employees.
Improvement in Service and Installation Business
Gross profit from service and installation increased by $2.5 million, attributed to acquisitions and productivity improvements.
Net Income Increase
Net income rose by $20 million to $33 million due to favorable non-cash changes in the fair value of derivative instruments and increased adjusted EBITDA.
Lowlights
Increased Expenses
Branch delivery and G&A expenses increased by $5 million due to recent acquisitions.
Customer Attrition Impact
Despite higher volumes from acquisitions, net customer attrition slightly offset gains, impacting home heating oil and propane volume.
Sluggish New Customer Additions
New customer additions were sluggish in the first quarter, impacted by warmer-than-normal temperatures and price stability.
Company Guidance
In the Star Group's fiscal 2025 first quarter results call, several key metrics were highlighted. Adjusted EBITDA increased by $3 million year over year, reaching $52 million, while net income rose by $20 million to $33 million. Home heating oil and propane volume saw a 3% increase, totaling approximately 82 million gallons, despite net customer attrition. The product gross profit climbed by $5.6 million to approximately $151 million, driven by higher per-gallon margins. Service and installation gross profit also improved significantly, rising to $6.9 million from $4.4 million in the previous year, attributed partly to recent acquisitions and enhanced base business performance. The colder temperatures, 4% below the prior year and 10.5% below normal, contributed to these outcomes. Furthermore, the company completed a strategic acquisition post-quarter, enhancing its propane segment.Star Gas Partners Corporate Events
Executive/Board Changes
Star Gas Partners Board Member Announces Retirement
Neutral
Jan 17, 2025
Henry D. Babcock, a long-serving member of the Board of Directors and Audit Committee of Kestrel Heat, LLC, the general partner of Star Group, L.P., announced his retirement effective January 15, 2025. His departure is not due to any disagreement with the company. Following his retirement, the board will reduce its size from eight to seven members.
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.