Star Gas Partners (SGU) AI Stock Analysis

• Market Cap: $416.82M
• Dividend Yield: 6.14%
• Average Volume (3M): 27.00K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.34
• 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: 22,781
• 30 Day Avg. Volume: 27,005
• 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: 0.38
• Enterprise Value/Gross Profit: 1.41
• Enterprise Value/Ebitda: 4.61
• 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: 73 Outperform
• Price Target: $13.50 ▲(12.03% Upside)

The score is driven primarily by attractive valuation (low P/E and high dividend yield) and supportive technical momentum (trading above key moving averages with positive MACD). Financial performance is improving, but is tempered by historical balance-sheet weakness and recent cash flow softness. Earnings call tone was constructive on growth and EBITDA, with some cost and cash flow headwinds.

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

Profitability improved meaningfully in 2025 (higher net income and better margins), but the balance sheet remains mixed due to a history of negative equity and ongoing moderate leverage. Cash generation is positive with solid free cash flow, though operating cash flow and free cash flow declined versus 2024, reflecting some volatility.

Income Statement

Annual results show a meaningful rebound in profitability in 2025, with net income rising to about $73.5M from ~$32.1M in 2024 and net margin improving to ~4.1% (from ~1.8%). Revenue has been volatile—down in 2023–2024, then up sharply in 2025 (+41.4%). Profitability is positive and improving recently, but margins remain relatively modest and prior-year performance was uneven.

Balance Sheet

Leverage is moderate with debt-to-equity around ~0.9–1.1 in 2023–2025 and total debt roughly stable (~$244M–$285M). Equity has improved materially versus 2020–2022, when equity was negative (a key historical risk signal). Return on equity strengthened to ~23.5% in 2025 (from ~11.9% in 2024), but the balance sheet’s history of negative equity and ongoing reliance on debt keep the profile more mixed than strong.

Cash Flow

Cash generation is generally positive, with free cash flow remaining solid in 2025 (~$56.0M) and covering net income at ~0.79x. However, cash flow weakened in 2025 versus 2024 (operating cash flow ~$71.0M vs ~$111.0M; free cash flow down ~31%), indicating less cash conversion year over year. Overall, the business produces cash, but recent momentum has softened and cash flow has been somewhat variable across years.

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: Negative
• 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 12.05 is below the 20-day moving average (MA) of 12.24, above the 50-day MA of 11.92, and above the 200-day MA of 11.57, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 70.11 is Negative, neither overbought nor oversold. The STOCH value of 64.37 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
SGU	73 Outperform	$416.82M	6.94	20.37%	6.14%	1.04%	111.69%
SUN	71 Outperform	$8.81B	19.63	8.27%	6.88%	-5.18%	-33.14%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
WKC	51 Neutral	$1.50B	-3.48	-23.84%	3.30%	-15.32%	-442.37%
CAPL	50 Neutral	$859.62M	19.17	―	10.09%	-10.27%	131.17%
AMTX	49 Neutral	$101.29M	-0.96	―	―	-30.91%	29.09%
CLNE	43 Neutral	$482.46M	-2.34	-31.94%	―	2.59%	-192.73%

Star Gas Partners Corporate Events

Star Gas Partners Announces Quarterly Cash Distribution

On January 15, 2026, Star Group, L.P. declared a quarterly distribution of $0.1850 per common unit for its fiscal first quarter, which ended on December 31, 2025, with a record date of January 26, 2026 and a payment date set for February 4, 2026. The distribution announcement underscored the partnership’s continued cash returns to unit holders following the end of its first fiscal quarter, providing income visibility for investors in a sector exposed to fuel price volatility, weather-driven demand and evolving energy and environmental regulations.

The most recent analyst rating on (SGU) stock is a Buy 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 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.