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Suburban Propane Partners L.P. (SPH)
NYSE:SPH
US Market

Suburban Propane (SPH) AI Stock Analysis

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SPH

Suburban Propane

(NYSE:SPH)

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Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
$22.00
▲(13.93% Upside)
Suburban Propane's strong financial performance, positive technical indicators, and strategic corporate events contribute significantly to its overall score. The company's attractive valuation and high dividend yield further enhance its investment appeal. While challenges in RNG operations and a decline in gross profit margin are concerns, the overall outlook remains positive.

Suburban Propane (SPH) vs. SPDR S&P 500 ETF (SPY)

Suburban Propane Business Overview & Revenue Model

Company DescriptionSuburban Propane (SPH) is a leading provider of propane distribution and related services in the United States. The company operates primarily in the propane sector, delivering propane to residential, commercial, and industrial customers. Suburban Propane also offers a range of services, including tank installation, maintenance, and repair, as well as propane appliances and accessories. With a commitment to safety and customer service, Suburban Propane serves a diverse clientele across various regions, ensuring reliable energy solutions.
How the Company Makes MoneySuburban Propane generates revenue primarily through the sale of propane and related products and services. The company makes money by selling propane to residential, commercial, and industrial customers on a retail basis. Key revenue streams include the sale of propane fuel, lease and sale of propane tanks, and the provision of installation and maintenance services for propane systems. Additionally, Suburban Propane may engage in bulk propane sales to large industrial customers, creating further revenue opportunities. The company also benefits from strategic partnerships with suppliers and manufacturers of propane appliances, enhancing its product offerings and customer service capabilities. Overall, Suburban Propane's earnings are driven by the volume of propane sold, pricing strategies, and the efficiency of its distribution network.

Suburban Propane Earnings Call Summary

Earnings Call Date:Nov 13, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
Suburban Propane reported a successful fiscal year 2025 with strong growth in propane volumes and adjusted EBITDA, strategic acquisitions, and improvements in financial leverage. However, the company faced challenges in RNG operations due to production downtime and lower credit prices, alongside a notable impairment charge.
Q4-2025 Updates
Positive Updates
Increase in Propane Volumes
Propane volumes for fiscal 2025 increased nearly 6% compared to the prior year due to strong winter demand and strategic acquisitions.
Growth in Adjusted EBITDA
Adjusted EBITDA increased by $28 million or 11.2% compared to the prior year, driven by strong propane volumes and effective margin management.
Strategic Acquisitions
Acquired propane businesses in New Mexico, Arizona, and California for a total of $77 million, enhancing market presence.
RNG Operational Improvements
Implemented operational improvements at the Stanfield, Arizona facility and advanced projects in Columbus, Ohio, and Upstate New York.
Leverage Ratio Improvement
Leverage ratio improved to 4.29 times from 4.76 times, due to increased earnings and debt reduction.
Technology Modernization Initiative
Launched a multiyear initiative to simplify operations and improve customer service through technology upgrades.
Negative Updates
Challenges in RNG Operations
RNG production faced a 13% decrease due to downtime from operational improvement projects and external factors like power outages.
Depressed RNG Credit Prices
Faced headwinds from lower LCFS credits and federal D3 RINs prices, with a 25% decrease in average D3 RIN prices.
Impairment Charge
Recorded a $6 million impairment charge to write down an investment in an early-stage energy technology company.
Company Guidance
During the Suburban Propane Partners fiscal year 2025 fourth quarter and full year earnings call, the company reported a notable performance, with propane volumes increasing by nearly 6% compared to the prior year. This was attributed to a combination of sustained cold weather, heightened demand due to Hurricanes Helene and Milton, and strategic acquisitions. The company's adjusted EBITDA rose by $28 million or 11.2%, reaching $278 million, while net income increased to $128.4 million, equating to $1.97 per common unit. Suburban Propane executed on strategic growth initiatives by acquiring businesses in New Mexico, Arizona, and California, amounting to $77 million in total considerations. The company also expanded its renewable energy operations by securing over 2 million gallons of renewable propane sales and advancing RNG projects in Ohio and New York, with capital expenditures totaling $72 million for the year. Additionally, the company improved its leverage ratio from 4.76 to 4.29 times, reflecting a stronger balance sheet. Looking ahead, capital spending for propane operations will remain consistent at $40-$45 million, with RNG project expenditures expected to be between $30-$50 million in fiscal 2026.

Suburban Propane Financial Statement Overview

Summary
Income Statement
75
Positive
Balance Sheet
60
Neutral
Cash Flow
70
Positive
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Suburban Propane Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price19.31
Price Trends
50DMA
18.71
Negative
100DMA
18.41
Positive
200DMA
18.52
Positive
Market Momentum
MACD
-0.04
Positive
RSI
45.61
Neutral
STOCH
33.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPH, the sentiment is Neutral. The current price of 19.31 is above the 20-day moving average (MA) of 19.02, above the 50-day MA of 18.71, and above the 200-day MA of 18.52, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 33.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPH.

Suburban Propane Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.24B11.4818.60%6.97%7.94%43.23%
73
Outperform
$1.95B18.677.20%4.18%11.27%20.04%
68
Neutral
$233.72M17.1711.98%3.68%12.63%10.99%
64
Neutral
$2.94B22.159.13%2.15%17.15%15.00%
56
Neutral
$2.60B932.860.45%
39
Underperform
$332.93M-0.24-96.21%-27.23%-634.60%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SPH
Suburban Propane
18.66
2.58
16.04%
CPK
Chesapeake Utilities
125.18
5.68
4.75%
NWN
Northwest Gas
46.91
8.95
23.58%
RGCO
Rgc Resources
22.13
2.58
13.20%
NFE
New Fortress Energy
1.17
-13.34
-91.94%
CTRI
Centuri Holdings, Inc.
26.12
5.75
28.23%

Suburban Propane Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Suburban Propane Announces $350M Senior Notes Offering
Positive
Dec 8, 2025

On December 8, 2025, Suburban Propane Partners, L.P. announced the pricing of its $350 million offering of 6.500% senior notes due 2035 in a private placement. The offering is expected to close on December 22, 2025, and the proceeds, along with borrowings under its revolving credit facility, will be used to redeem all outstanding 5.875% senior notes due 2027. This strategic financial move aims to optimize the company’s debt structure and potentially enhance its market positioning.

Private Placements and FinancingBusiness Operations and Strategy
Suburban Propane Announces $350M Senior Notes Offering
Positive
Dec 8, 2025

On December 8, 2025, Suburban Propane Partners, L.P. announced its intention to offer $350 million in senior notes due 2035 through a private placement, subject to market conditions. The proceeds, along with borrowings from its revolving credit facility, are intended to redeem existing senior notes due 2027. This strategic financial move aims to manage the company’s debt obligations and reflects its ongoing commitment to financial stability and growth.

Dividends
Suburban Propane Announces Quarterly Distribution
Neutral
Oct 23, 2025

On October 23, 2025, Suburban Propane Partners, L.P. announced a quarterly distribution of $0.325 per Common Unit for the fiscal quarter ending September 27, 2025, equating to an annualized rate of $1.30 per Common Unit. This distribution, payable on November 11, 2025, is subject to federal income tax withholding for foreign investors, as it is effectively connected with a U.S. trade or business. The announcement underscores Suburban Propane’s commitment to providing returns to its investors, while also highlighting the tax implications for foreign stakeholders.

Financial Disclosures
Suburban Propane Schedules Fiscal 2025 Results Call
Neutral
Oct 22, 2025

On October 22, 2025, Suburban Propane Partners, L.P. announced it will hold its Fiscal 2025 Full Year and Fourth Quarter Results Conference Call on November 13, 2025. The call will provide analysts, investors, and interested parties with insights into the company’s financial performance and business outlook, potentially impacting stakeholder perceptions and market positioning.

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.Date of analysis: Dec 09, 2025