Suburban Propane (SPH) AI Stock Analysis

• Market Cap: $1.18B
• Dividend Yield: 7.1%
• Average Volume (3M): 108.38K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.42
• Revenue Growth: 6.29%
• EPS Growth: -1.67%
• Country: US
• Employees: 3,098
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): -0.18
• Shares Outstanding: 65,473,320
• 10 Day Avg. Volume: 146,836
• 30 Day Avg. Volume: 108,377
• PEG Ratio: -0.38
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 11.33
• Enterprise Value/Market Cap: 2.17
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 3.54
• Enterprise Value/Ebitda: 10.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $20.00 ▲(5.37% Upside)

Suburban Propane's overall stock score reflects a stable financial position with strong cash flows and a reasonable valuation. The high dividend yield is a significant positive factor. However, challenges such as high leverage, declining revenue, and recent net losses weigh on the score. The balanced sentiment from the earnings call and neutral technical indicators further contribute to the moderate score.

Positive Factors

Debt Reduction

Reducing debt improves financial flexibility and lowers interest expenses, strengthening the company's balance sheet and long-term stability.

Operational Improvements

Enhancements in RNG facilities are expected to boost long-term performance and sales, supporting growth in the renewable energy sector.

Strategic Acquisitions

Strategic acquisitions enhance market position and volume growth, contributing to revenue stability and competitive advantage.

Negative Factors

Declining Revenue Trend

A declining revenue trend can hinder growth prospects and affect the company's ability to invest in new opportunities, impacting long-term viability.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to withstand economic downturns.

Net Loss

Sustained net losses can erode shareholder value and limit the company's capacity to reinvest in growth initiatives, impacting long-term sustainability.

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, catering to both residential and commercial customers. The company operates in the energy sector, focusing on the sale of propane, as well as offering a range of services including propane tank installation, maintenance, and delivery. Suburban Propane also provides heating oil, natural gas utilities, and renewable energy solutions, positioning itself as a comprehensive energy provider.

How the Company Makes Money

Suburban Propane generates revenue primarily through the sale of propane and related services. The company earns money by delivering propane to residential and commercial customers, charging for both the fuel itself and the delivery service. Additionally, Suburban Propane offers propane tank installation and maintenance services, which contribute to its revenue streams. The company also benefits from contracts with various commercial clients, including agricultural businesses and industrial operations. Seasonal demand for propane, particularly during winter months for heating purposes, significantly affects revenue. Furthermore, strategic partnerships with suppliers and investments in renewable energy sources, such as propane from biofuels, may also enhance its earnings potential.

Suburban Propane Financial Statement Overview

Summary

Suburban Propane shows stable financials with strong operational cash flows and decent profitability margins. However, high leverage and declining revenue trends are concerns. The focus on operational efficiency is positive, but revenue growth needs attention.

Income Statement

The income statement shows a mixed performance. The TTM gross profit margin is approximately 4.35%, which is relatively low. The TTM net profit margin is around 7.19%, indicating moderate profitability. Revenue has shown a declining trend over the years, but the company managed to improve its EBIT and EBITDA margins in the TTM period to 18.27% and 22.25%, respectively, suggesting a focus on cost control and operational efficiency.

Balance Sheet

The balance sheet reflects a challenging position with a high debt-to-equity ratio calculated at approximately 0.25, indicating significant leverage. The equity ratio stands at roughly 22.85%, reflecting a moderate level of equity financing. The return on equity (ROE) for the TTM is about 12.68%, indicating decent returns for shareholders despite the high leverage.

Cash Flow

Cash flow analysis reveals a solid performance with a strong operating cash flow to net income ratio of 2.63 for the TTM, indicating efficient cash generation from operations. The free cash flow to net income ratio is 1.59, highlighting effective capital expenditure management. However, free cash flow growth has been volatile, which could pose risks to future cash availability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	1.43B	1.33B	1.43B	1.27B	1.34B	1.19B
Gross Profit	722.73M	804.98M	361.00M	745.72M	751.78M	711.23M
EBITDA	246.15M	216.47M	260.39M	267.02M	283.36M	241.66M
Net Income	97.12M	74.17M	123.75M	68.63M	76.53M	37.99M
Balance Sheet
Total Assets	2.31B	2.27B	2.27B	2.00B	2.10B	2.17B
Cash, Cash Equivalents and Short-Term Investments	4.63M	3.22M	3.51M	2.44M	5.16M	2.79M
Total Debt	1.35B	1.35B	1.33B	1.23B	1.26B	1.27B
Total Liabilities	1.67B	1.73B	1.72B	1.57B	1.61B	1.62B
Stockholders Equity	646.11M	547.06M	546.36M	-26.19M	-24.67M	552.98M
Cash Flow
Free Cash Flow	104.32M	101.16M	180.29M	191.80M	175.64M	132.19M
Operating Cash Flow	181.21M	160.59M	225.24M	226.78M	208.54M	160.36M
Investing Cash Flow	-136.58M	-81.64M	-170.64M	-48.52M	-39.09M	-22.99M
Financing Cash Flow	-51.48M	-72.50M	-44.63M	-180.99M	-167.08M	-171.93M

Suburban Propane Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 18.98 is above the 20-day moving average (MA) of 18.26, above the 50-day MA of 18.23, and above the 200-day MA of 18.65, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 14.10 is Positive, 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	70 Outperform	$1.91B	18.46	7.20%	4.21%	11.27%	20.04%
RGCO	68 Neutral	$215.39M	15.76	12.11%	3.97%	12.04%	5.89%
SPH	66 Neutral	$1.18B	12.14	15.50%	7.10%	6.29%	-1.67%
CPK	66 Neutral	$3.10B	23.48	9.25%	1.99%	19.02%	20.13%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CTRI	51 Neutral	$1.75B	-533.60	0.45%	―	―	―
NFE	45 Neutral	$384.15M	―	-66.14%	6.71%	-15.57%	-423.86%

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.