Star Gas Partners (SGU) AI Stock Analysis

• Market Cap: $390.17M
• Dividend Yield: 6.14%
• Average Volume (3M): 54.42K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.23
• Revenue Growth: -0.87%
• EPS Growth: 33.52%
• Country: US
• Employees: 3,039
• Sector: Energy
• Sector Strength: 64
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -0.48
• Shares Outstanding: 33,606,422
• 10 Day Avg. Volume: 37,574
• 30 Day Avg. Volume: 54,424
• 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: 1.68
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.24
• Enterprise Value/Ebitda: 4.65
• 1Y Price Target: $12.50
• Price Target Upside: 7.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: $12.50 ▲(7.67% Upside)

Star Gas Partners' overall stock score is driven by its attractive valuation and commitment to shareholder returns through dividends. However, financial performance challenges, neutral technical indicators, and mixed earnings call results temper the overall outlook.

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 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: Positive
• Last Price: 11.61
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 11.61 is below the 20-day moving average (MA) of 11.63, below the 50-day MA of 11.62, and below the 200-day MA of 11.86, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.95 is Neutral, neither overbought nor oversold. The STOCH value of 59.41 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.54B	7.27	2.96%	5.23%	4.26%	-62.58%
SUN	65 Neutral	$7.93B	25.45	6.62%	6.82%	-8.65%	-73.25%
SGU	62 Neutral	$390.17M	7.61	16.22%	6.14%	-0.87%	33.52%
CLNE	60 Neutral	$578.92M	―	-30.98%	―	4.92%	-156.72%
CVI	55 Neutral	$2.84B	268.82	-50.65%	9.31%	-15.98%	-160.88%
CAPL	54 Neutral	$800.86M	19.02	666.62%	10.02%	-10.51%	101.44%
PARR	52 Neutral	$1.64B	3.02	-1.59%	―	-13.09%	-103.24%

Star Gas Partners Corporate Events

Star Gas Partners Announces Quarterly Distribution

On July 17, 2025, Star Group, L.P. announced a quarterly distribution of $0.1850 per common unit for the fiscal third quarter ended June 30, 2025. The record date for this distribution is July 28, 2025, with a payment date set for August 6, 2025. This announcement reflects the company’s ongoing commitment to providing value to its stakeholders through consistent distributions, reinforcing its strong market position in the home energy sector.

Star Gas Partners Finalizes Unit Purchase Agreement

On May 30, 2025, Star Group, L.P. entered into a Unit Purchase Agreement with Bandera Master Fund, L.P. to acquire 0.7 million common units for approximately $8.4 million in a private transaction, which was finalized on June 2, 2025. This acquisition was conducted outside of Star Group’s unit repurchase plan, indicating a strategic move to consolidate ownership, potentially impacting its market position and stakeholder interests.