Star Gas Partners (SGU)
NYSE:SGU
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Star Gas Partners
(NYSE:SGU)
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Rating:67Neutral
Price Target:
$14.00
▲(16.18% Upside)
Action:DowngradedDate:02/14/26
SGU scores as a solid, value-leaning setup: the biggest positives are attractive valuation (low P/E and high yield) and improving operating/cash performance, supported by a constructive technical trend. The main constraints are mid-tier financial strength due to thin margins and only moderate cash-flow coverage versus debt, plus earnings-call headwinds from higher costs and weaker service profitability.
Positive Factors
Cash generation & conversion
Sustained positive free cash flow (~$69M, +14.5%) with FCF roughly 86% of net income indicates durable internal funding. This level of cash conversion supports ongoing distributions, bolt-on M&A funding and reinvestment in delivery/service assets, improving long-term financial flexibility.
Negative Factors
Thin net margins
Net margins near 3.7% leave limited room for adverse swings in procurement or delivery costs. The retail propane model is commodity-linked and seasonal, so thin margins make earnings sensitive to weather, supply volatility and upkeep of service economics over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & conversion
Sustained positive free cash flow (~$69M, +14.5%) with FCF roughly 86% of net income indicates durable internal funding. This level of cash conversion supports ongoing distributions, bolt-on M&A funding and reinvestment in delivery/service assets, improving long-term financial flexibility.
Read all positive factors
Star Gas Partners (SGU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$415.59M
Dividend Yield6.14%
Average Volume (3M)24.90K
Price to Earnings (P/E)2.8
Beta (1Y)0.37
Revenue Growth1.04%
EPS Growth111.69%
CountryUS
Employees3,039
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)0.89
Shares Outstanding32,879,055
10 Day Avg. Volume15,298
30 Day Avg. Volume24,899
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.34
Price to Sales (P/S)0.23
P/FCF Ratio7.24
Enterprise Value/Market Cap1.81
Enterprise Value/Revenue0.41
Enterprise Value/Gross Profit1.34
Enterprise Value/Ebitda4.72
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. 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 ...
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. ...
Star Gas Partners Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial performance led by a 32% increase in adjusted EBITDA, 14% volume growth, and a $29 million increase in product gross profit. Those gains were partially offset by weather-driven costs, a $5 million derivative fair-value charge (a $10 million YoY swing), higher delivery and G&A expenses (+$11 million), and declines in service gross profit. Operational execution and acquisition contributions were cited as key drivers, while weather and related hedging and service costs were the main headwinds.Positive Updates
Adjusted EBITDA Growth
Adjusted EBITDA increased by $16.5 million, or 32% year-over-year, to $68 million for the quarter, driven by improvements in the base business and contributions from recent acquisitions.
Negative Updates
Service Gross Profit Deterioration
Combined service and installation gross profit decreased to $5.6 million from $6.9 million year-over-year; while installation gross profit rose by $1.4 million, service gross profit loss increased by $2.7 million due to high demand and related costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EBITDA Growth
Adjusted EBITDA increased by $16.5 million, or 32% year-over-year, to $68 million for the quarter, driven by improvements in the base business and contributions from recent acquisitions.
Read all positive updates
Company Guidance
Management’s guidance was essentially cautious and operational — stay vigilant on customer service, cost control and growing service & installation profitability, pursue acquisition opportunities into spring, and be prepared for continued cold weather — supported by Q1 metrics: volumes ~94 million gallons, up 11.5 million gallons (+14%); product gross profit +$29 million (+19%) to approximately $179 million; combined service & installation gross profit $5.6 million (vs $6.9 million prior), with installation profit +$1.4 million and service losses up $2.7 million; adjusted EBITDA +$16.5 million (+32%) to $68 million (base business +$16.8 million; acquisitions +$4.8 million); net income +$3 million to $36 million; a $5 million noncash derivative charge this quarter (vs $5 million credit prior year, a $10 million YoY swing); delivery/branch/G&A +$11 million (including $5 million from weather hedges and delivery expense +$3.8 million or +13%); other operating costs +$2.2 million (~+2%); higher D&A and net interest +$1.7 million; higher income tax expense +$1.3 million; and weather headwinds of ~19% colder than last year and 6% colder than normal for the quarter (January +2% vs last year and +9% vs normal).Star Gas Partners Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.84B | 1.78B | 1.77B | 1.95B | 2.01B | 1.50B |
| Gross Profit | 559.26M | 545.37M | 470.33M | 438.40M | 451.63M | 444.17M |
| EBITDA | 159.52M | 150.31M | 92.60M | 94.89M | 93.05M | 163.69M |
| Net Income | 67.39M | 72.82M | 32.10M | 29.34M | 35.29M | 87.74M |
Balance Sheet | ||||||
| Total Assets | 1.05B | 937.33M | 939.61M | 875.48M | 912.48M | 853.86M |
| Cash, Cash Equivalents and Short-Term Investments | 19.86M | 24.68M | 117.33M | 45.19M | 14.62M | 4.77M |
| Total Debt | 356.42M | 285.26M | 283.56M | 243.75M | 351.97M | 285.49M |
| Total Liabilities | 732.18M | 640.55M | 675.72M | 611.75M | 654.56M | 575.66M |
| Stockholders Equity | 328.51M | 303.38M | 269.61M | 268.34M | -15.61M | -14.04M |
Cash Flow | ||||||
| Free Cash Flow | 64.85M | 56.03M | 100.33M | 114.65M | 15.21M | 53.79M |
| Operating Cash Flow | 80.33M | 70.95M | 110.98M | 123.66M | 33.91M | 68.88M |
| Investing Cash Flow | -100.16M | -99.85M | -61.19M | -28.20M | -32.63M | -50.33M |
| Financing Cash Flow | -9.11M | -63.75M | 22.35M | -64.89M | 8.57M | -70.69M |
Star Gas Partners Technical Analysis
Positive
12.05
Price Trends
12.76
Negative
12.30
Positive
11.82
Positive
Market Momentum
-0.05
Negative
52.01
Neutral
71.00
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 12.50, below the 50-day MA of 12.76, and above the 200-day MA of 11.82, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 71.00 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $13.39B | 13.57 | 7.27% | 6.88% | -5.18% | -33.14% | |
67 Neutral | $415.59M | 2.76 | 19.81% | 6.14% | 1.04% | 111.69% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
55 Neutral | $524.44M | -2.09 | -38.08% | ― | 2.59% | -192.73% | |
53 Neutral | $1.22B | -2.09 | -23.84% | 3.30% | -15.32% | -442.37% | |
50 Neutral | $819.90M | 19.25 | -67.36% | 10.09% | -10.27% | 131.17% | |
50 Neutral | $184.57M | -1.19 | 26.07% | ― | -30.91% | 29.09% |
* Energy Sector Average
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Star Gas Partners Corporate Events
Business Operations and StrategyStock Buyback
Star Gas Partners Expands Common Unit Repurchase Authorization
Positive
Feb 13, 2026
On February 10, 2026, the board of directors of the general partner of Star Group, L.P. authorized an increase in the number of common units the company may repurchase in open-market transactions to a total of 2.0 million units, effective February...
Dividends
Star Gas Partners Announces Quarterly Cash Distribution
Positive
Jan 15, 2026
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. ...
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.