Suburban Propane (SPH) AI Stock Analysis

• Market Cap: $1.27B
• Dividend Yield: 6.97%
• Average Volume (3M): 138.07K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.38
• Revenue Growth: 7.94%
• EPS Growth: 43.23%
• Country: US
• Employees: 3,098
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): -0.45
• Shares Outstanding: 66,157,310
• 10 Day Avg. Volume: 128,891
• 30 Day Avg. Volume: 138,067
• PEG Ratio: 0.27
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 10.57
• Enterprise Value/Market Cap: 2.01
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 2.98
• Enterprise Value/Ebitda: 10.35
• 1Y Price Target: $17.00
• Price Target Upside: -11.41% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.88
• Revenue Forecast (FY): $1.45B

• Rating: 68 Neutral
• Price Target: $20.50 ▲(6.83% Upside)

SPH’s score is driven primarily by solid financial performance (strong revenue growth, improved profitability, and healthy cash generation) and supportive valuation (low P/E with a high dividend yield). These strengths are partially offset by softer technical momentum and RNG-related operational and pricing headwinds highlighted on the earnings call.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market strategies, supporting long-term business expansion and sustainability.

Strategic Acquisitions

These acquisitions enhance market presence and operational scale, potentially driving future revenue and profitability.

Improved Leverage Ratio

A lower leverage ratio reflects better financial health, reducing risk and increasing capacity for future investments.

Negative Factors

Gross Margin Decline

A declining gross margin may indicate rising costs or pricing pressures, potentially impacting long-term profitability.

Challenges in RNG Operations

Operational challenges in RNG can hinder growth in renewable energy initiatives, affecting diversification and future revenue streams.

Impairment Charge

Impairment charges reflect potential missteps in investment strategy, impacting financial results and investor confidence.

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 Electricity, and All Other. The Propane segment is involved in the retail distribution of propane to residential, commercial, industrial, and agricultural customers, as well as in the wholesale distribution to industrial end users. It offers propane primarily for space heating, water heating, cooking, and clothes drying in the residential and commercial markets; for use as a motor fuel in internal combustion engines to power over-the-road vehicles, forklifts, and stationary engines, as well as to fire furnaces, as a cutting gas to the industrial customers, and in other process applications; and for tobacco curing, crop drying, poultry brooding, and weed control in the agricultural markets. The Fuel Oil and Refined Fuels segment engages in the retail distribution of fuel oil, diesel, kerosene, and gasoline to residential and commercial customers for use primarily as a source of heat in homes and buildings. The Natural Gas and Electricity segment markets natural gas and electricity to residential and commercial customers in the deregulated energy markets in New York and Pennsylvania. The All Other segment sells, installs, and services a range of home comfort equipment, including whole-house heating products, air cleaners, humidifiers, and space heaters. As of September 25, 2021, the company served approximately 1.0 million residential, commercial, industrial, and agricultural customers through 700 locations in 41 states primarily in the east and west coast regions of the United States, as well as portions of the Midwest region of the United States and Alaska. Suburban Energy Services Group LLC serves as a general partner of Suburban Propane Partners, L.P. The company was founded in 1945 and is headquartered in Whippany, New Jersey.

How the Company Makes Money

Suburban 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 Financial Statement Overview

Summary

Suburban Propane demonstrates strong revenue growth and improved profitability, with a significant reduction in leverage, enhancing financial stability. While the gross profit margin decline needs attention, the overall financial health is positive with strong cash flow generation and improved balance sheet metrics.

Income Statement

Suburban Propane shows a solid revenue growth rate of 19.1% in the latest year, indicating strong sales performance. The gross profit margin has decreased significantly from previous years, which could be a concern for cost management. However, the net profit margin has improved to 7.44%, reflecting better profitability. EBIT and EBITDA margins are stable, suggesting consistent operational efficiency.

Balance Sheet

The company has significantly improved its debt-to-equity ratio to 0.20, indicating a much stronger balance sheet position compared to previous years. Return on equity has improved to 17.80%, showcasing effective use of equity to generate profits. The equity ratio is still relatively low, suggesting potential risks if asset values fluctuate.

Cash Flow

Free cash flow has grown by 9.57%, indicating healthy cash generation. The operating cash flow to net income ratio is 0.62, which is reasonable, but there is room for improvement. The free cash flow to net income ratio is also strong at 0.61, reflecting good cash conversion from profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.43B	1.43B	1.33B	1.43B	1.50B	1.29B
Gross Profit	856.08M	302.69M	804.98M	361.00M	789.34M	803.28M
EBITDA	246.15M	256.23M	216.47M	260.39M	265.18M	317.79M
Net Income	97.12M	106.57M	74.17M	123.75M	139.71M	122.79M
Balance Sheet
Total Assets	2.31B	2.30B	2.27B	2.27B	2.10B	2.05B
Cash, Cash Equivalents and Short-Term Investments	4.63M	3.71M	3.22M	3.51M	4.10M	5.81M
Total Debt	1.35B	1.33B	1.35B	1.33B	1.21B	1.25B
Total Liabilities	1.67B	1.70B	1.73B	1.72B	1.61B	1.63B
Stockholders Equity	646.11M	598.57M	547.06M	546.36M	497.53M	425.42M
Cash Flow
Free Cash Flow	104.32M	114.30M	101.16M	180.29M	176.19M	196.70M
Operating Cash Flow	181.21M	186.26M	160.59M	225.24M	220.55M	226.55M
Investing Cash Flow	-136.58M	-128.25M	-81.64M	-170.64M	-94.44M	-34.08M
Financing Cash Flow	-51.48M	-66.74M	-72.50M	-44.63M	-127.82M	-189.81M

Suburban Propane Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 19.19 is above the 20-day moving average (MA) of 18.68, above the 50-day MA of 18.83, and above the 200-day MA of 18.43, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 59.68 is Neutral, neither overbought nor oversold. The STOCH value of 94.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPH.

Suburban Propane Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWN	73 Outperform	$1.95B	18.69	7.20%	4.18%	11.27%	20.04%
SPH	68 Neutral	$1.27B	11.81	18.60%	6.97%	7.94%	43.23%
RGCO	68 Neutral	$223.78M	16.78	11.98%	3.75%	12.63%	10.99%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CPK	64 Neutral	$2.95B	22.05	9.13%	2.15%	17.15%	15.00%
CTRI	56 Neutral	$2.77B	992.86	0.45%	―	―	―
NFE	39 Underperform	$404.07M	-0.29	-96.21%	―	-27.23%	-634.60%

Suburban Propane Corporate Events

Suburban Propane Completes $350 Million Senior Notes Offering

On December 22, 2025, Suburban Propane Partners, L.P. and its subsidiary Suburban Energy Finance Corp. completed a $350 million private issuance of 6.500% senior notes due 2035 to qualified institutional buyers and certain non-U.S. investors, under an indenture that imposes covenants limiting additional debt, dividends, asset sales, affiliate transactions and certain structural changes. The unsecured senior notes, which rank pari passu with Suburban’s existing unsecured senior debt and are structurally subordinated to the obligations of its operating subsidiaries, generated net proceeds of approximately $344.3 million that have been or will be used, together with borrowings under a revolving credit facility, to redeem all outstanding 5.875% senior notes due 2027, with the 2027 notes satisfied and discharged on December 22, 2025 and full redemption scheduled for January 7, 2026, effectively extending the company’s debt maturity profile and reshaping its capital structure.

The most recent analyst rating on (SPH) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Suburban Propane stock, see the SPH Stock Forecast page.

Suburban Propane Announces $350M Senior Notes Offering

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.

The most recent analyst rating on (SPH) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Suburban Propane stock, see the SPH Stock Forecast page.

Suburban Propane Announces $350M Senior Notes Offering

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.

The most recent analyst rating on (SPH) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Suburban Propane stock, see the SPH Stock Forecast page.

Suburban Propane Announces Quarterly Distribution

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.

The most recent analyst rating on (SPH) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Suburban Propane stock, see the SPH Stock Forecast page.

Suburban Propane Schedules Fiscal 2025 Results Call

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.

The most recent analyst rating on (SPH) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Suburban Propane stock, see the SPH Stock Forecast page.