Suburban Propane Partners (SPH)
NYSE:SPH
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Suburban Propane
(NYSE:SPH)
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Rating:60Neutral
Price Target:
$20.00
▼(-2.82% Downside)
Action:ReiteratedDate:04/24/26
The score reflects a mix of strong valuation (low P/E and high yield) and constructive earnings-call execution (EBITDA growth and improving leverage), offset by middling financial quality due to high leverage and weakening TTM revenue/free cash flow, plus weak near-term technical momentum (negative MACD and trading below key moving averages).
Positive Factors
Profitability & ROE
Sustained mid-teens operating margins and ~21% ROE reflect an efficient, cash-generative distribution model. High profitability provides durable internal funding for capex, distributions and debt service, improving resilience through commodity cycles and supporting long-term returns.
Negative Factors
Elevated Leverage
Above-average leverage limits financial flexibility and raises sensitivity to interest-cost and working-capital swings. High debt burdens constrain strategic moves, increase refinancing needs, and amplify downside risk if volumes or margins deteriorate across seasonal cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & ROE
Sustained mid-teens operating margins and ~21% ROE reflect an efficient, cash-generative distribution model. High profitability provides durable internal funding for capex, distributions and debt service, improving resilience through commodity cycles and supporting long-term returns.
Read all positive factors
Suburban Propane (SPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.33B
Dividend Yield6.97%
Average Volume (3M)98.89K
Price to Earnings (P/E)6.8
Beta (1Y)0.21
Revenue Growth7.11%
EPS Growth90.26%
CountryUS
Employees3,098
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.70
Shares Outstanding66,331,480
10 Day Avg. Volume89,726
30 Day Avg. Volume98,892
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 Cap2.11
Enterprise Value/Revenue1.97
Enterprise Value/Gross Profit4.65
Enterprise Value/Ebitda9.96
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.8
Revenue Forecast (FY)$1.45B
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:Feb 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial performance: solid top-line volume growth, double-digit adjusted EBITDA improvement (+10.8%), higher net income and EPS, progress on RNG projects, targeted acquisitions, and proactive balance-sheet actions (refinancing and improved leverage). Headwinds include weaker wholesale propane prices (down 14%), elevated inventories (up 34% YoY), modest expense increases, weather-driven regional demand variability, and seasonally higher revolver borrowings — but management frames these as manageable and consistent with strategy. On balance, the positive operational momentum, margin expansion, RNG and M&A progress, and strong distribution coverage outweigh the near-term market and cost pressures.Positive Updates
Adjusted EBITDA Growth
Adjusted EBITDA of $83.4 million for the quarter, an increase of $8.1 million or 10.8% year-over-year, driven by higher volumes and improved unit margins.
Negative Updates
Wholesale Propane Price Pressure
Average wholesale propane price was $0.66 per gallon (Mont Belvieu), down 14% compared to the prior year first quarter, driven by elevated U.S. inventories and regional weather variability.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EBITDA Growth
Adjusted EBITDA of $83.4 million for the quarter, an increase of $8.1 million or 10.8% year-over-year, driven by higher volumes and improved unit margins.
Read all positive updates
Company Guidance
The call’s guidance was operational and capital-focused: management reiterated RNG project timing (capital projects on track for completion toward the end of Q2 with RNG injections scheduled to begin in the second half of fiscal 2026) and maintained full-year RNG capital spending of $30–35 million, noting $6.8 million of RNG spend in Q1 (total Q1 capex $19.8 million, $13.0 million for propane operations). They signaled continued disciplined balance-sheet management — including refinancing 2027 senior notes to a 10‑year maturity at an attractive rate, $115.4 million drawn on the revolver in Q1, $3.1 million net ATM proceeds, and ample revolver capacity — and said working capital typically peaks late February/early March after which they expect to generate excess cash to strengthen the balance sheet. Key reported metrics reinforcing the outlook included Q1 net income of $46.6 million ($0.70/unit), adjusted EBITDA of $83.4 million (up $8.1 million or 10.8% YoY), retail gallons sold of 110.2 million (up 4.2% YoY), gross margin of $238.6 million (up $16.1 million or 7.2%), propane unit margin improvement of $0.08/gal (4%), average wholesale propane price of $0.66/gal (down 14% YoY), US propane inventories of 89 million barrels (+34% YoY, +28% vs. historical avg), Q1 net interest expense $19.8 million (flat), consolidated leverage of 4.57x (TTM Dec 2025, improved from 4.99x), and declared quarterly distribution $0.0325/unit (annualized $1.30, distribution coverage 2.19x TTM).Suburban Propane Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
46
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.43B | 1.43B | 1.33B | 1.43B | 1.50B | 1.29B |
| Gross Profit | 604.61M | 302.69M | 804.98M | 361.00M | 789.34M | 803.28M |
| EBITDA | 282.16M | 256.23M | 216.47M | 260.39M | 265.18M | 317.79M |
| Net Income | 132.93M | 106.57M | 74.17M | 123.75M | 139.71M | 122.79M |
Balance Sheet | ||||||
| Total Assets | 2.40B | 2.30B | 2.27B | 2.27B | 2.10B | 2.05B |
| Cash, Cash Equivalents and Short-Term Investments | 3.51M | 3.71M | 3.22M | 3.51M | 4.10M | 5.81M |
| Total Debt | 1.51B | 1.33B | 1.35B | 1.33B | 1.21B | 1.25B |
| Total Liabilities | 1.77B | 1.70B | 1.73B | 1.72B | 1.61B | 1.63B |
| Stockholders Equity | 626.22M | 598.57M | 547.06M | 546.36M | 497.53M | 425.42M |
Cash Flow | ||||||
| Free Cash Flow | 61.89M | 114.30M | 101.16M | 180.29M | 176.19M | 196.70M |
| Operating Cash Flow | 129.81M | 186.26M | 160.59M | 225.24M | 220.55M | 226.55M |
| Investing Cash Flow | -95.03M | -128.25M | -81.64M | -170.64M | -94.44M | -34.08M |
| Financing Cash Flow | -45.62M | -66.74M | -72.50M | -44.63M | -127.82M | -189.81M |
Suburban Propane Technical Analysis
Negative
20.58
Price Trends
20.16
Negative
19.50
Negative
18.68
Positive
Market Momentum
-0.29
Positive
31.87
Neutral
9.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPH, the sentiment is Negative. The current price of 20.58 is above the 20-day moving average (MA) of 19.88, above the 50-day MA of 20.16, and above the 200-day MA of 18.68, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 31.87 is Neutral, neither overbought nor oversold. The STOCH value of 9.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $2.20B | 16.85 | 7.78% | 4.18% | 11.83% | 37.42% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $236.27M | 11.15 | 11.11% | 3.75% | 12.33% | 6.71% | |
64 Neutral | $3.03B | 20.80 | 8.31% | 2.15% | 18.02% | 13.83% | |
60 Neutral | $1.33B | 6.81 | 20.91% | 6.97% | 7.11% | 90.26% | |
60 Neutral | $3.79B | 103.12 | 3.50% | ― | 13.10% | ― | |
41 Neutral | $197.60M | -0.17 | -177.43% | ― | -36.77% | -447.86% |
* Utilities Sector Average
SPH
Suburban Propane
19.89
0.74
3.86%
CPK
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126.94
-3.04
-2.34%
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Northwest Gas
52.86
11.47
27.70%
RGCO
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24.40
3.52
16.88%
NFE
New Fortress Energy
0.73
-5.35
-87.96%
CTRI
Centuri Holdings, Inc.
39.25
20.67
111.25%
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.