Suburban Propane Partners (SPH)
NYSE:SPH
Want to see SPH full AI Analyst Report?
Top Page
Suburban Propane
(NYSE:SPH)
Select Model
Select Model
Rating:69Neutral
Price Target:
$21.50
▲(4.47% Upside)
Action:Reiterated
Date:05/09/26
SPH scores strongest on fundamentals and recent operating/cash execution, supported by solid cash flow and a constructive earnings update (on-schedule RNG growth, tax credits, and continued debt paydown with strong distribution coverage). The score is tempered by soft revenue momentum, leverage still being elevated, and some financial statement consistency concerns, while technicals appear neutral-to-mildly supportive and the high dividend yield adds valuation support.
Positive Factors
Strong Cash Generation
Sustained operating and free cash flow provides durable funding for capex, debt reduction, and distributions. Robust cash generation supports financing of RNG projects and working capital through seasonal demand swings, reducing reliance on external financing over the next several quarters.
Negative Factors
Weak Revenue Momentum & Margin Anomaly
Declining revenue and an anomalous negative reported gross margin raise concerns about the stability and comparability of core retail margins. If the gross margin anomaly reflects timing or cost recognition issues, it complicates forecasting durable profitability across seasonal cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Sustained operating and free cash flow provides durable funding for capex, debt reduction, and distributions. Robust cash generation supports financing of RNG projects and working capital through seasonal demand swings, reducing reliance on external financing over the next several quarters.
Read all positive factors
Suburban Propane (SPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.35B
Dividend Yield6.97%
Average Volume (3M)138.73K
Price to Earnings (P/E)2.5
Beta (1Y)0.22
Revenue Growth-2.19%
EPS Growth37.18%
CountryUS
Employees3,098
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)2.00
Shares Outstanding66,343,056
10 Day Avg. Volume174,423
30 Day Avg. Volume138,731
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)2.02
Price to Sales (P/S)0.84
P/FCF Ratio10.57
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue1.04
Enterprise Value/Gross Profit3.23
Enterprise Value/Ebitda5.13
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.86
Revenue Forecast (FY)$1.43B
Suburban Propane Business Overview & Revenue Model
Company Description
Suburban Propane Partners, L.P., through its subsidiaries, engages in the retail marketing and distribution of propane, fuel oil, and refined fuels. The company operates in four segments: Propane, Fuel Oil and Refined Fuels, Natural Gas and Electr...
How the Company Makes Money
Suburban Propane primarily makes money by selling and delivering propane to end customers. Revenue is generated through (1) propane product sales, where customers pay based on gallons delivered (or contracted volumes) and pricing that reflects com...
Suburban Propane Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive tone driven by strong operational resilience in the heating season, debt reduction of over $64 million, improving RNG production (+16% sequential, +12% YoY) and recognition of $3.5 million in production tax credits. Management highlighted disciplined capital allocation, on-schedule RNG projects adding ~200,000 MMBtus annually, and maintained distributions with 2.2x coverage. Offsetting risks include flat quarter-over-quarter EBITDA, high U.S. propane inventories (+75% YoY) and a 23% decline in average wholesale propane prices, warm western weather that drove ~10% lower volumes in that region, hedge mark-to-market volatility, and still-elevated leverage (4.34x). Overall, the positive operational execution, balance sheet improvement, and RNG momentum outweigh the noted headwinds.Positive Updates
Solid Adjusted EBITDA and H1 Growth
Adjusted EBITDA for Q2 was $175.3 million (essentially flat YoY). Combined with Q1, adjusted EBITDA for the first half was $258.7 million, an increase of $8.4 million or 3.4% compared to the prior year first two quarters.
Negative Updates
Flat Quarter and Slight EPS Decline
Q2 adjusted EBITDA was flat YoY and adjusted net income per common unit was $2.09 versus $2.11 in the prior year second quarter (small decline in per-unit earnings).
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Adjusted EBITDA and H1 Growth
Adjusted EBITDA for Q2 was $175.3 million (essentially flat YoY). Combined with Q1, adjusted EBITDA for the first half was $258.7 million, an increase of $8.4 million or 3.4% compared to the prior year first two quarters.
Read all positive updates
Company Guidance
Management guided that its two RNG projects (Upstate New York digester and Columbus gas upgrade) remain on schedule for completion in the second half of fiscal 2026 and are expected to add roughly 200,000 MMBtus of annual RNG production, with PTC eligibility anticipated for the Upstate NY facility (the company recognized $3.5M of PTCs for Jan 2025–Mar 2026, including $2.0M catch‑up for FY2025 and $0.8M for Q1 FY2026); full‑year capital spending for the existing projects is estimated at $35–$40M (YTD RNG CapEx $19M; Q2 total CapEx $24.7M), and management reiterated a disciplined capital allocation strategy to use excess operating cash flow to pay down debt (repaid $64.3M in Q2, >$64M total), maintain ample revolver capacity, strengthen the balance sheet (trailing‑12‑month leverage improved to 4.34x from 4.54x), and support the $0.325 quarterly distribution (annualized $1.30, coverage 2.2x) while driving continued operational performance to sustain adjusted EBITDA (Q2 $175.3M; H1 $258.7M, +$8.4M or 3.4% Y/Y).Suburban Propane Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.39B | 1.43B | 1.33B | 1.43B | 1.50B | 1.29B |
| Gross Profit | 448.62M | 302.69M | 804.98M | 361.00M | 789.34M | 803.28M |
| EBITDA | 282.40M | 256.23M | 216.47M | 260.39M | 265.18M | 317.79M |
| Net Income | 133.35M | 106.57M | 74.17M | 123.75M | 139.71M | 122.79M |
Balance Sheet | ||||||
| Total Assets | 2.43B | 2.30B | 2.27B | 2.27B | 2.10B | 2.05B |
| Cash, Cash Equivalents and Short-Term Investments | 4.29M | 3.71M | 3.22M | 3.51M | 4.10M | 5.81M |
| Total Debt | 105.53M | 1.33B | 1.35B | 1.33B | 1.21B | 1.25B |
| Total Liabilities | 1.68B | 1.70B | 1.73B | 1.72B | 1.61B | 1.63B |
| Stockholders Equity | 743.90M | 598.57M | 547.06M | 546.36M | 497.53M | 425.42M |
Cash Flow | ||||||
| Free Cash Flow | 132.63M | 114.30M | 101.16M | 180.29M | 176.19M | 196.70M |
| Operating Cash Flow | 205.97M | 186.26M | 160.59M | 225.24M | 220.55M | 226.55M |
| Investing Cash Flow | -96.96M | -128.25M | -81.64M | -170.64M | -94.44M | -34.08M |
| Financing Cash Flow | -109.70M | -66.74M | -72.50M | -44.63M | -127.82M | -189.81M |
Suburban Propane Technical Analysis
Positive
20.58
Price Trends
19.62
Positive
19.48
Positive
18.66
Positive
Market Momentum
0.25
Negative
59.12
Neutral
84.26
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPH, the sentiment is Positive. The current price of 20.58 is above the 20-day moving average (MA) of 19.76, above the 50-day MA of 19.62, and above the 200-day MA of 18.66, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 59.12 is Neutral, neither overbought nor oversold. The STOCH value of 84.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPH.
Suburban Propane Risk Analysis
Suburban Propane disclosed 51 risk factors in its most recent earnings report. Suburban Propane reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Suburban Propane Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.35B | 2.47 | 20.40% | 6.97% | -2.19% | 37.18% | |
68 Neutral | $234.16M | 6.42 | 11.87% | 3.75% | 17.51% | 5.98% | |
67 Neutral | $3.04B | 12.75 | 9.49% | 2.15% | 17.14% | 15.65% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
57 Neutral | $3.05B | -73.53 | 4.27% | ― | 18.67% | 3110.38% | |
52 Neutral | $2.10B | 5.58 | 8.27% | 4.18% | 5.90% | 16.54% | |
42 Neutral | $181.09M | -0.11 | -379.42% | ― | -41.65% | -234.82% |
* Utilities Sector Average
SPH
Suburban Propane
20.29
2.39
13.33%
CPK
Chesapeake Utilities
126.52
7.29
6.11%
NWN
Northwest Gas
49.93
10.87
27.84%
RGCO
Rgc Resources
22.50
2.44
12.17%
NFE
New Fortress Energy
0.63
-2.16
-77.28%
CTRI
Centuri Holdings, Inc.
30.20
10.38
52.37%
Suburban Propane Corporate Events
Dividends
Suburban Propane Declares Stable Quarterly Distribution for Unitholders
Positive
Apr 23, 2026
Suburban Propane Partners, L.P., a major U.S. distributor of propane, renewable fuels, and related energy services, announced that its Board of Supervisors declared a quarterly distribution of $0.325 per common unit for the fiscal second quarter e...
Business Operations and StrategyFinancial Disclosures
Suburban Propane Schedules Fiscal Q2 2026 Earnings Call
Neutral
Apr 22, 2026
Suburban Propane Partners, L.P., the New Jersey‑based master limited partnership and nationwide distributor of propane, renewable fuels and other energy products, is emphasizing its dual role as a traditional fuel supplier and investor in lo...
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.