Star Gas Partners (SGU) AI Stock Analysis

• Market Cap: $403.96M
• Dividend Yield: 6.14%
• Average Volume (3M): 34.21K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.33
• Revenue Growth: 1.04%
• EPS Growth: 111.69%
• Country: US
• Employees: 3,039
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -0.66
• Shares Outstanding: 32,976,517
• 10 Day Avg. Volume: 35,185
• 30 Day Avg. Volume: 34,212
• PEG Ratio: 0.04
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 7.24
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.37
• Enterprise Value/Ebitda: 4.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $13.00 ▲(7.88% Upside)

The score is driven by attractive valuation (low P/E and ~6.1% yield) and improving 2025 profitability, balanced by uneven financial history (prior negative equity and variable cash flow) and largely neutral technical signals. The latest earnings call was broadly positive on volumes, EBITDA, and acquisitions, but flagged cost and free-cash-flow pressures.

Positive Factors

Successful Acquisitions

Successful acquisitions have bolstered Star Gas Partners' market position, contributing positively to adjusted EBITDA and supporting long-term growth.

Improved Service and Installation Business

Enhancements in service and installation have increased gross profit, indicating effective operational improvements and potential for sustained profitability.

Increased Adjusted EBITDA

The rise in adjusted EBITDA reflects improved operational efficiency and successful integration of acquisitions, supporting financial stability.

Negative Factors

Negative Revenue Growth

Negative revenue growth highlights challenges in expanding sales, which could impact long-term financial performance if not addressed.

Increased Net Loss in Q3

The increased net loss in Q3 indicates financial strain, potentially affecting future profitability and necessitating cost management improvements.

Cash Flow Challenges

Negative cash flow growth suggests difficulties in generating cash, which could limit investment capacity and operational flexibility over time.

Star Gas Partners Business Overview & Revenue Model

Company Description

Star 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 Money

Star Gas Partners generates revenue primarily through the sale of propane and heating oil to its customers. The company employs a revenue model that includes both retail and wholesale distribution, allowing it to cater to a diverse customer base. Key revenue streams include the sale of propane for residential heating, commercial applications, and industrial uses. Additionally, SGU earns income from service-related activities, such as the installation and maintenance of propane tanks and heating systems. The company may also benefit from strategic partnerships with suppliers and distributors, enhancing its supply chain and allowing for competitive pricing. Seasonal demand fluctuations, especially during winter months, significantly impact the company’s earnings, as propane is a critical heating source in many regions.

Star Gas Partners Financial Statement Overview

Summary

Star Gas Partners demonstrates a stable but challenged financial performance. Strong gross profit margins and improved operational efficiency are offset by negative revenue growth and cash flow challenges. The balance sheet shows reduced leverage but potential for stronger equity financing.

Income Statement

Star Gas Partners shows a mixed performance in its income statement. The TTM gross profit margin of 29.80% is strong, indicating efficient cost management. However, the net profit margin is relatively low at 3.04%, suggesting limited profitability. Revenue growth has been negative, with a decline of 1.44% in the TTM period, reflecting challenges in increasing sales. Despite these challenges, the EBIT and EBITDA margins have improved over the years, indicating better operational efficiency.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved to 0.84 in the TTM period, showing a reduction in leverage compared to previous years. However, the return on equity of 16.79% is decent, indicating effective use of equity to generate profits. The equity ratio stands at 35.64%, suggesting a balanced capital structure but with room for improvement in equity financing.

Cash Flow

Cash flow analysis indicates some concerns. The free cash flow growth rate is negative at -8.18% in the TTM period, reflecting challenges in generating cash. However, the operating cash flow to net income ratio of 0.29 and the free cash flow to net income ratio of 0.86 suggest that the company is generating sufficient cash relative to its net income, although there is room for improvement in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.78B	1.78B	1.77B	1.95B	2.01B	1.50B
Gross Profit	479.72M	0.00	470.33M	438.40M	451.63M	444.17M
EBITDA	146.96M	123.93M	92.60M	94.89M	93.05M	163.69M
Net Income	52.80M	73.50M	32.10M	29.34M	35.29M	87.74M
Balance Sheet
Total Assets	937.33M	937.33M	939.61M	875.48M	912.48M	853.86M
Cash, Cash Equivalents and Short-Term Investments	24.68M	24.68M	117.33M	45.19M	14.62M	4.77M
Total Debt	285.26M	285.26M	283.56M	243.75M	351.97M	285.49M
Total Liabilities	624.38M	624.38M	675.72M	611.75M	654.56M	575.66M
Stockholders Equity	312.95M	312.95M	269.61M	268.34M	-15.61M	-14.04M
Cash Flow
Free Cash Flow	60.60M	56.03M	100.33M	114.65M	15.21M	53.79M
Operating Cash Flow	70.95M	70.95M	110.98M	123.66M	33.91M	68.88M
Investing Cash Flow	-99.85M	-99.85M	-61.19M	-28.20M	-32.63M	-50.33M
Financing Cash Flow	-63.75M	-63.75M	22.35M	-64.89M	8.57M	-70.69M

Star Gas Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGU, the sentiment is Positive. The current price of 12.05 is above the 20-day moving average (MA) of 11.86, above the 50-day MA of 11.85, and above the 200-day MA of 11.73, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 64.13 is Neutral, neither overbought nor oversold. The STOCH value of 85.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SGU.

Star Gas Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGU	70 Outperform	$403.96M	6.73	20.37%	6.14%	1.04%	111.69%
SUN	68 Neutral	$8.59B	19.13	8.27%	6.88%	-5.18%	-33.14%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CAPL	54 Neutral	$801.67M	17.88	―	10.09%	-10.27%	131.17%
WKC	51 Neutral	$1.49B	-3.48	-23.84%	3.30%	-15.32%	-442.37%
CLNE	43 Neutral	$478.08M	-2.32	-31.94%	―	2.59%	-192.73%
AMTX	42 Neutral	$107.91M	-1.02	―	―	-30.91%	29.09%

Star Gas Partners Corporate Events

Star Gas Partners Announces Quarterly Distribution

On October 16, 2025, Star Group, L.P. announced a quarterly distribution of $0.1850 per common unit for the fiscal fourth quarter ending September 30, 2025. The record date is set for October 27, 2025, with payment scheduled for November 5, 2025. This announcement reflects the company’s ongoing commitment to providing value to its stakeholders and maintaining its position as a leading energy distributor in the U.S.

The most recent analyst rating on (SGU) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Star Gas Partners stock, see the SGU Stock Forecast page.