Suburban Propane (SPH) AI Stock Analysis

• Market Cap: $1.29B
• Dividend Yield: 6.67%
• Average Volume (3M): 128.37K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.42
• 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: 90,072
• 30 Day Avg. Volume: 128,371
• 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: 1.97
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 2.98
• Enterprise Value/Ebitda: 10.35
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.85
• Revenue Forecast (FY): $1.45B

• Rating: 79 Outperform
• Price Target: $22.00 ▲(13.93% Upside)

Suburban Propane's strong financial performance, positive technical indicators, and attractive valuation contribute to a high overall score. The earnings call further supports this with strategic growth and improved leverage, despite some challenges in RNG operations.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for propane and related services, supporting long-term business expansion and market presence.

Strategic Acquisitions

Strategic acquisitions enhance market presence and geographic reach, providing a foundation for sustained growth and competitive advantage.

Leverage Ratio Improvement

Improved leverage ratio reflects stronger financial health, increasing the company's financial flexibility and reducing risk.

Negative Factors

Gross Profit Margin Decline

Declining gross profit margins may indicate rising costs or pricing pressures, potentially impacting profitability if not addressed.

Challenges in RNG Operations

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

Depressed RNG Credit Prices

Lower credit prices for RNG can reduce profitability in renewable segments, impacting overall earnings and strategic goals.

Suburban Propane Business Overview & Revenue Model

Company Description

Suburban 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 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 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.43B	―	1.43B	1.33B	1.43B	1.50B
Gross Profit	856.08M	―	302.69M	804.98M	361.00M	789.34M
EBITDA	246.15M	―	256.23M	216.47M	260.39M	265.18M
Net Income	97.12M	―	106.57M	74.17M	123.75M	139.71M
Balance Sheet
Total Assets	2.31B	―	2.30B	2.27B	2.27B	2.10B
Cash, Cash Equivalents and Short-Term Investments	4.63M	―	405.00K	3.22M	3.51M	4.10M
Total Debt	1.35B	―	118.01M	1.35B	1.33B	1.21B
Total Liabilities	1.67B	―	1.70B	1.73B	1.72B	1.61B
Stockholders Equity	646.11M	―	598.57M	547.06M	546.36M	-12.60M
Cash Flow
Free Cash Flow	104.32M	―	114.30M	101.16M	180.29M	176.19M
Operating Cash Flow	181.21M	―	186.26M	160.59M	225.24M	220.55M
Investing Cash Flow	-136.58M	―	-128.25M	-81.64M	-170.64M	-94.44M
Financing Cash Flow	-51.48M	―	-66.74M	-72.50M	-44.63M	-127.82M

Suburban Propane Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.31
• 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 19.31 is above the 20-day moving average (MA) of 18.77, above the 50-day MA of 18.46, and above the 200-day MA of 18.60, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 65.77 is Neutral, neither overbought nor oversold. The STOCH value of 88.77 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
SPH	79 Outperform	$1.29B	12.00	18.60%	6.67%	7.94%	43.23%
NWN	73 Outperform	$2.03B	19.47	7.20%	4.06%	11.27%	20.04%
CPK	73 Outperform	$3.25B	24.34	9.13%	1.99%	17.15%	15.00%
RGCO	68 Neutral	$227.57M	17.11	11.98%	3.69%	12.63%	10.99%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CTRI	61 Neutral	$1.75B	-533.60	0.45%	―	―	―
NFE	42 Neutral	$352.85M	-0.25	-96.21%	―	-27.23%	-634.60%

Suburban Propane Corporate Events

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.

Suburban Propane Reports Improved Q3 Results Amid Challenges

Suburban Propane Partners, L.P., a publicly traded master limited partnership based in Whippany, New Jersey, is a nationwide distributor of propane, renewable propane, renewable natural gas, fuel oil, and related products and services, serving approximately 1 million customers across 42 states.

Suburban Propane Partners’ Earnings Call Highlights Strategic Gains Amid Challenges

The recent earnings call for Suburban Propane Partners revealed a balanced sentiment, highlighting both strategic achievements and challenges. The company made significant strides in debt reduction, a strategic acquisition, and growth in renewable energy initiatives. However, these positive developments were tempered by challenges in RNG production, decreased federal D3 RIN prices, and a higher net loss.