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Star Gas Partners
(NYSE:SGU)
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Rating:66Neutral
Price Target:
$14.00
▲(7.28% Upside)
Action:Reiterated
Date:08/06/26
SGU’s score is anchored by strong valuation (low P/E and high dividend yield) and improving profitability/balance-sheet metrics, but it is held back primarily by the sharp TTM cash flow deterioration and, secondarily, by Q3 operational/seasonal pressure and higher costs discussed on the earnings call. Technicals are mildly supportive but not strongly bullish.
Positive Factors
Strong ROE & improving profitability
A sustained ~20% ROE and rising net income indicate the business is earning solid returns on capital. That level of profitability supports reinvestment, distributions and M&A funding capacity, and reflects durable operational effectiveness beyond transient commodity cycles.
Negative Factors
Deteriorating cash generation
A sharp drop in operating cash flow and negative free cash flow signal weaker cash conversion of earnings. That undermines the company's ability to self-fund capex, acquisitions and distributions, increases reliance on external financing, and raises medium‑term liquidity risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong ROE & improving profitability
A sustained ~20% ROE and rising net income indicate the business is earning solid returns on capital. That level of profitability supports reinvestment, distributions and M&A funding capacity, and reflects durable operational effectiveness beyond transient commodity cycles.
Read all positive factors
Star Gas Partners (SGU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$411.74M
Dividend Yield6.1%
Average Volume (3M)23.93K
Price to Earnings (P/E)5.2
Beta (1Y)0.33
Revenue Growth3.12%
EPS Growth41.70%
CountryUS
Employees3,024
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)2.06
Shares Outstanding32,833,935
10 Day Avg. Volume20,051
30 Day Avg. Volume23,928
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.34
Price to Sales (P/S)0.23
P/FCF Ratio7.24
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Star Gas Partners Business Overview & Revenue Model
Company Description
Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. It offers gasoline and diesel fuel; and installs, maintains, and repairs he...
How the Company Makes Money
Star Gas Partners primarily makes money by selling propane and by providing fee-based services tied to propane delivery and heating/energy equipment. Its main revenue stream is retail propane sales: the company purchases propane in bulk (from whol...
Star Gas Partners Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 09, 2026
Earnings Call Sentiment Positive
The call conveyed a mix of near-term seasonal and operational challenges concentrated in Q3 (notably a $28M net loss, increased insurance claims, and a 9.4% drop in Q3 volumes) offset by strong year-to-date operating performance: 9-month volume growth (+3.3%), product gross profit up 10% ($48M), adjusted EBITDA up $20M to $189M, and year-to-date net income improvement. Management highlights strategic progress in service/installation margin expansion, HVAC expansion, and an active M&A pipeline. Given that the positive, company-level 9-month results and strategic momentum materially offset the quarter-specific weaknesses, the overall tone is constructive.Positive Updates
Service & Installation Improvement (Quarter)
Service and installation gross profit of $15.6 million in Q3, up $1.4 million year-over-year, reflecting successful execution of value-added sales and expanded HVAC offerings.
Negative Updates
Q3 Net Loss and Worsening vs Prior Year
Reported a Q3 net loss of $28 million, $11.4 million worse than the prior year period, reflecting higher operating expenses and non-cash items.
Read all updates
Q3-2026 Updates
Positive
Negative
Service & Installation Improvement (Quarter)
Service and installation gross profit of $15.6 million in Q3, up $1.4 million year-over-year, reflecting successful execution of value-added sales and expanded HVAC offerings.
Read all positive updates
Company Guidance
Management's guidance was largely qualitative: they said Star is "on track for strong financial performance in fiscal 26," is using the summer to strengthen operations, streamline where appropriate and continue investing in its service & installation business (service & installation gross profit rose to $15.6M, +$1.4M YoY), and expects to be operationally ready for the winter while securing wholesaler contracts (no product availability issues). They reiterated an active but non‑transformational acquisition pipeline (two small deals YTD; one small heating‑oil dealer closed post‑period) and warned higher fuel prices could delay customer sign‑ups. Key metrics and risks to watch called out on the call include Q3 volumes of 33.0M gallons (–3.4M, –9.4% YoY) and YTD volumes of 271M gallons (+8.6M, +3.3% YoY); product gross profit Q3 $72M (flat) and YTD $529M (+$48M, +10%); adjusted EBITDA Q3 loss $17.7M (worse by $7M YoY) and YTD $189M (+$20M YoY); Q3 net loss $28M (down $11.4M) and YTD net income $116M (+$14M); higher operating costs (delivery/branch/G&A +$8.7M Q3, +$25M YTD including $6.2M higher insurance in Q3 and $3.2M from recent acquisitions); weather effects (Q3 degree days 16% colder vs prior year but 6% warmer vs normal; YTD 11.5% colder vs prior year and 3% colder vs normal); a $5M weather‑hedge expense YTD (vs $3.1M prior year, $1.9M of delivery/branch/G&A attributed to hedging) and an $8.6M unfavorable non‑cash derivative fair‑value mark in Q3.Star Gas Partners Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.91B | 1.78B | 1.77B | 1.95B | 2.01B | 1.50B |
| Gross Profit | 582.63M | 527.51M | 470.33M | 438.40M | 451.63M | 444.17M |
| EBITDA | 174.94M | 153.65M | 92.60M | 94.89M | 93.05M | 163.69M |
| Net Income | 74.02M | 63.14M | 32.10M | 29.34M | 35.29M | 87.74M |
Balance Sheet | ||||||
| Total Assets | 1.01B | 937.33M | 939.61M | 875.48M | 912.48M | 853.86M |
| Cash, Cash Equivalents and Short-Term Investments | 27.00M | 24.68M | 117.33M | 45.19M | 14.62M | 4.77M |
| Total Debt | 269.88M | 285.26M | 283.56M | 243.75M | 351.97M | 285.49M |
| Total Liabilities | 621.24M | 640.55M | 675.72M | 611.75M | 654.56M | 575.66M |
| Stockholders Equity | 388.85M | 303.38M | 269.61M | 268.34M | -15.61M | -14.04M |
Cash Flow | ||||||
| Free Cash Flow | -11.98M | 56.03M | 100.33M | 114.65M | 15.21M | 53.79M |
| Operating Cash Flow | 10.53M | 70.95M | 110.98M | 123.66M | 33.91M | 68.88M |
| Investing Cash Flow | -23.12M | -99.85M | -61.19M | -28.20M | -32.63M | -50.33M |
| Financing Cash Flow | -986.00K | -63.75M | 22.35M | -64.89M | 8.57M | -70.69M |
Star Gas Partners Technical Analysis
Positive
13.05
Price Trends
12.62
Positive
12.48
Positive
12.12
Positive
Market Momentum
0.01
Positive
57.95
Neutral
51.96
Neutral
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 13.05 is above the 20-day moving average (MA) of 12.73, above the 50-day MA of 12.62, and above the 200-day MA of 12.12, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 51.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SGU.
Star Gas Partners Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $15.71B | 19.37 | 23.59% | 4.99% | 37.27% | -29.09% | |
66 Neutral | $411.74M | 5.18 | 24.23% | 5.86% | 3.12% | 41.70% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $2.04B | -12.46 | -13.21% | 2.09% | 7.56% | 58.21% | |
57 Neutral | $847.41M | 14.52 | -85.35% | 9.65% | -9.39% | 87.18% | |
52 Neutral | $427.24M | -4.25 | -17.35% | ― | 4.99% | 49.26% | |
48 Neutral | $106.25M | -1.27 | 24.28% | ― | -7.64% | 36.26% |
* Energy Sector Average
SGU
Star Gas Partners
12.85
1.79
16.21%
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-35.95%
Star Gas Partners Corporate Events
Business Operations and StrategyExecutive/Board Changes
Star Gas boosts CEO pay to market levels
Positive
Jul 18, 2026
On August 1, 2026, the Board of Directors of Kestrel Heat, LLC, acting as the compensation committee for Star Group, L.P., approved a substantial salary increase for President and Chief Executive Officer Jeffrey M. Woosnam, raising his annual pay ...
Business Operations and StrategyDividends
Star Gas Partners Declares Quarterly Cash Distribution
Positive
Jul 17, 2026
On July 16, 2026, Star Group, L.P. declared a quarterly cash distribution of $0.1975 per common unit for its fiscal third quarter, covering the three months ended June 30, 2026. The distribution will be paid on August 5, 2026 to unit holders of re...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.