Star Gas Partners (SGU) AI Stock Analysis

• Market Cap: $388.83M
• Dividend Yield: 6.29%
• Average Volume (3M): 25.39K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.29
• Revenue Growth: -0.87%
• EPS Growth: 33.52%
• Country: US
• Employees: 3,039
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -0.48
• Shares Outstanding: 33,606,422
• 10 Day Avg. Volume: 20,793
• 30 Day Avg. Volume: 25,386
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.24
• Enterprise Value/Ebitda: 4.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $12.50 ▲(4.25% Upside)

Star Gas Partners' overall score reflects a balanced view of its financial stability, technical indicators, and valuation. The company's strong gross profit margins and attractive valuation are significant positives. However, challenges in revenue growth, cash flow, and recent earnings performance weigh on the score.

Star Gas Partners Business Overview & Revenue Model

Company Description

Star Gas Partners, L.P. (SGU) is a publicly traded company that operates in the liquid propane distribution sector. The company primarily serves residential, commercial, and industrial customers across the United States, offering a wide range of products and services related to propane and fuel distribution. SGU is involved in the distribution of propane, heating oil, and other fuels, as well as providing related services such as equipment installation and maintenance, making it a key player in the energy sector.

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 solid financial position with improved profitability and operational efficiency. While revenue growth remains modest, the company has strengthened its balance sheet and cash flow generation capabilities. Historical challenges with negative equity have been addressed, and the company is now on a stable financial trajectory.

Income Statement

Star Gas Partners shows a stable gross profit margin of 29.5% TTM, improving from previous margins due to better cost management. The net profit margin increased to 3.3% TTM, up from 1.8% last year, indicating enhanced profitability. Revenue growth was modest at 2.1% TTM compared to the previous period, showing slow but steady expansion. EBIT and EBITDA margins of 6.3% and 8.1% respectively suggest operational efficiency gains. Overall, the income statement reflects improving profitability but moderate revenue growth.

Balance Sheet

Star Gas Partners maintains a debt-to-equity ratio of 0.85, indicating moderate leverage. Return on Equity (ROE) improved significantly to 15.8% TTM, reflecting better utilization of equity. The equity ratio is at 35.5%, showing a strong equity position relative to assets. Despite improvements, the company had negative equity in past years, indicating historical financial struggles. The current balance sheet reflects improved stability and financial health.

Cash Flow

The company achieved a free cash flow growth rate of -11.2% TTM, reflecting a decline from previous levels. Operating cash flow to net income ratio is robust at 1.69, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.50, demonstrating effective conversion of profits into cash. While cash generation remains strong, the decline in free cash flow growth warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.78B	1.77B	1.95B	2.01B	1.50B	1.47B
Gross Profit	529.48M	470.33M	438.40M	451.63M	444.17M	440.40M
EBITDA	140.98M	92.60M	94.89M	93.05M	163.69M	120.87M
Net Income	53.98M	32.10M	29.34M	35.29M	87.74M	55.92M
Balance Sheet
Total Assets	963.80M	939.61M	875.48M	912.48M	853.86M	838.62M
Cash, Cash Equivalents and Short-Term Investments	28.08M	117.33M	45.19M	14.62M	4.77M	56.91M
Total Debt	287.97M	304.56M	243.75M	282.96M	219.09M	227.85M
Total Liabilities	626.23M	675.72M	611.75M	654.56M	575.66M	582.80M
Stockholders Equity	343.49M	269.61M	268.34M	-15.61M	-14.04M	-14.96M
Cash Flow
Free Cash Flow	81.76M	100.33M	114.65M	15.21M	53.79M	161.54M
Operating Cash Flow	95.15M	110.98M	123.66M	33.91M	68.88M	175.67M
Investing Cash Flow	-129.49M	-61.19M	-28.20M	-32.63M	-50.33M	-28.14M
Financing Cash Flow	16.72M	22.35M	-64.89M	8.57M	-70.69M	-95.52M

Star Gas Partners Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 11.99 is above the 20-day moving average (MA) of 11.67, above the 50-day MA of 11.54, and above the 200-day MA of 11.78, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.76 is Neutral, neither overbought nor oversold. The STOCH value of 16.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SGU.

Star Gas Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUN	―	$7.99B	25.65	6.62%	6.92%	-8.65%	-73.25%
SGU	―	$388.83M	7.52	16.22%	6.29%	-0.87%	33.52%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CLNE	―	$627.17M	-3.14	-30.98%	―	4.92%	-156.72%
WKC	―	$1.44B	―	-23.84%	2.86%	-15.32%	-442.37%
CAPL	―	$807.34M	19.18	―	9.92%	-10.51%	101.44%
AMTX	―	$134.70M	―	―	―	-19.77%	-47.88%

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.

Star Gas Partners’ Earnings Call: Mixed Results Amid Growth and Challenges

The recent earnings call for Star Gas Partners presented a mixed sentiment, highlighting both commendable achievements and notable challenges. The company successfully integrated acquisitions, leading to growth in volume and net income year-to-date. However, the third quarter was marked by decreased volumes, increased expenses, and a net loss, primarily attributed to unfavorable weather conditions and acquisition-related costs.

Star Group Reports Mixed Fiscal 2025 Q3 Results

Star Group, L.P. is a leading home energy distributor and services provider, specializing in the sale of home heating products and services across the Northeast and Mid-Atlantic U.S. regions. The company is recognized as the largest retail distributor of home heating oil in the nation based on sales volume.