Suburban Propane Partners (SPH)
NYSE:SPH
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Suburban Propane
(NYSE:SPH)
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Rating:65Neutral
Price Target:
$21.00
▲(2.04% Upside)
Action:DowngradedDate:02/07/26
SPH’s score is driven by attractive valuation (low P/E and high yield) and improving/constructive momentum in the share price, supported by a largely positive earnings-call backdrop (EBITDA growth, RNG progress, refinancing and improved leverage). Offsetting these positives, the financial profile remains constrained by high leverage, weaker TTM revenue, and a meaningful decline in free cash flow/cash conversion.
Positive Factors
EBITDA & Margin Resilience
Sustained adjusted EBITDA growth and resilient operating margins indicate durable operational leverage: higher volumes and slight unit margin gains show the core distribution business can expand profitability even when wholesale prices move, supporting reinvestment, distributions and long-term cash generation.
Negative Factors
Elevated Leverage
High absolute leverage and a debt-heavy capital structure constrain strategic optionality: interest obligations and covenants limit free cash deployment, increase refinancing sensitivity in stress periods, and reduce resilience to protracted commodity price weakness or prolonged demand softness.
Read all positive and negative factors
Positive Factors
Negative Factors
EBITDA & Margin Resilience
Sustained adjusted EBITDA growth and resilient operating margins indicate durable operational leverage: higher volumes and slight unit margin gains show the core distribution business can expand profitability even when wholesale prices move, supporting reinvestment, distributions and long-term cash generation.
Read all positive factors
Suburban Propane (SPH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.31B
Dividend Yield6.97%
Average Volume (3M)115.26K
Price to Earnings (P/E)6.8
Beta (1Y)0.27
Revenue Growth7.94%
EPS Growth43.23%
CountryUS
Employees3,098
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.70
Shares Outstanding66,331,480
10 Day Avg. Volume120,286
30 Day Avg. Volume115,258
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 Cap2.16
Enterprise Value/Revenue1.99
Enterprise Value/Gross Profit4.70
Enterprise Value/Ebitda10.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.96
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 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 incl...
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
Neutral
20.58
Price Trends
20.20
Negative
19.40
Positive
18.60
Positive
Market Momentum
-0.10
Positive
43.10
Neutral
48.35
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 20.58 is above the 20-day moving average (MA) of 20.29, above the 50-day MA of 20.20, and above the 200-day MA of 18.60, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 48.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $2.27B | 16.85 | 7.78% | 4.18% | 11.27% | 20.04% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $1.31B | 6.81 | 20.91% | 6.97% | 7.94% | 43.23% | |
65 Neutral | $225.14M | 11.15 | 11.11% | 3.75% | 12.63% | 10.99% | |
64 Neutral | $3.07B | 20.80 | 9.13% | 2.15% | 17.15% | 15.00% | |
58 Neutral | $3.03B | 103.12 | 3.50% | ― | ― | ― | |
43 Neutral | $170.73M | ― | -87.35% | ― | -27.23% | -634.60% |
* Utilities Sector Average
SPH
Suburban Propane
20.04
2.09
11.67%
CPK
Chesapeake Utilities
129.91
7.52
6.14%
NWN
Northwest Gas
55.04
16.46
42.67%
RGCO
Rgc Resources
21.63
0.57
2.72%
NFE
New Fortress Energy
0.59
-4.83
-89.10%
CTRI
Centuri Holdings, Inc.
30.67
15.49
102.04%
Suburban Propane Corporate Events
Dividends
Suburban Propane Declares Quarterly Cash Distribution for Unitholders
Positive
Jan 22, 2026
On January 22, 2026, Suburban Propane Partners, L.P. announced that its Board of Supervisors declared a quarterly cash distribution of $0.325 per common unit for the fiscal first quarter ended December 27, 2025, equivalent to an annualized rate of...
Business Operations and StrategyFinancial Disclosures
Suburban Propane Sets Call on Fiscal Q1 Outlook
Neutral
Jan 21, 2026
On January 21, 2026, Suburban Propane Partners, L.P. announced it will hold a conference call on February 5, 2026, at 9:00 a.m. Eastern Time to discuss its fiscal 2026 first-quarter results and business outlook, with live access and replay availab...
Business Operations and StrategyPrivate Placements and Financing
Suburban Propane Completes $350 Million Senior Notes Offering
Positive
Dec 22, 2025
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, unde...
Business Operations and StrategyPrivate Placements and Financing
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 bo...
Business Operations and StrategyPrivate Placements and Financing
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 fa...
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.