NYSE:SGU

Stock Analysis Report

Executive Summary

Star Group, L.P. operates as a home heating oil and propane distributor and services provider in the United States.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Star Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SGU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

SGU

-10.3%

US Gas Utilities

-10.6%

US Market


1 Year Return

-8.9%

SGU

-11.9%

US Gas Utilities

5.2%

US Market

Return vs Industry: SGU exceeded the US Gas Utilities industry which returned -11.9% over the past year.

Return vs Market: SGU underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

SGUIndustryMarket
7 Day-1.2%-10.3%-10.6%
30 Day-5.4%-9.1%-8.5%
90 Day-5.2%-6.1%-4.6%
1 Year-4.0%-8.9%-9.6%-11.9%7.4%5.2%
3 Year10.9%-4.0%8.2%0.3%31.7%23.2%
5 Year51.9%20.1%58.8%38.9%56.4%39.3%

Price Volatility Vs. Market

How volatile is Star Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Star Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGU ($8.9) is trading below our estimate of fair value ($161.13)

Significantly Below Fair Value: SGU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SGU is good value based on its PE Ratio (11.4x) compared to the Gas Utilities industry average (22.6x).

PE vs Market: SGU is good value based on its PE Ratio (11.4x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SGU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SGU is good value based on its PB Ratio (1.5x) compared to the US Gas Utilities industry average (1.9x).

Future Growth

How is Star Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.7%

Forecasted Utilities industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Star Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Star Group performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGU has high quality earnings.

Growing Profit Margin: SGU's current net profit margins (2.2%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: SGU's earnings have declined by -0.4% per year over the past 5 years.

Accelerating Growth: SGU's earnings growth over the past year (48.6%) exceeds its 5-year average (-0.4% per year).

Earnings vs Industry: SGU earnings growth over the past year (48.6%) exceeded the Gas Utilities industry 5.9%.


Return on Equity

High ROE: SGU's Return on Equity (15.9%) is considered low.

Financial Health

How is Star Group's financial position?


Financial Position Analysis

Short Term Liabilities: SGU's short term assets ($340.0M) do not cover its short term liabilities ($447.5M).

Long Term Liabilities: SGU's short term assets ($340.0M) exceed its long term liabilities ($250.7M).


Debt to Equity History and Analysis

Debt Level: SGU's debt to equity ratio (89.3%) is considered high.

Reducing Debt: SGU's debt to equity ratio has increased from 43.9% to 89.3% over the past 5 years.

Debt Coverage: SGU's debt is well covered by operating cash flow (44.9%).

Interest Coverage: SGU's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

Inventory Level: SGU has a high level of physical assets or inventory.

Debt Coverage by Assets: SGU's debt is covered by short term assets (assets are 1.4x debt).

Dividend

What is Star Group's current dividend yield, its reliability and sustainability?

5.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SGU's dividend (5.62%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: SGU's dividend (5.62%) is in the top 25% of dividend payers in the US market (4.09%)


Stability and Growth of Payments

Stable Dividend: SGU's dividends per share have been stable in the past 10 years.

Growing Dividend: SGU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.2%), SGU's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

Jeff Woosnam (51yo)

0.9yrs

Tenure

US$773,189

Compensation

Mr. Jeffrey M. Woosnam, is also known as Jeff, serves as President & Chief Executive Officer of Star Group, L.P. (“Company”) or (“Star”) since March 18, 2019 and is also appointed as a Director of Kestrel  ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD773.19K) is below average for companies of similar size in the US market ($USD1.76M).

Compensation vs Earnings: Insufficient data to compare Jeff's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Woosnam
President0.9yrsUS$773.19k0.017% $73.1k
Richard Ambury
Executive VP13.8yrsUS$1.09m0.079% $332.4k
Jeffrey Hammond
Chief Operating Officer of Kestrel Heat LLC0.9yrsUS$661.11k0.011% $45.7k
Joseph McDonald
Chief Customer Officer of Kestrel Heat LLC0.9yrsUS$709.68k0.012% $50.2k
Richard Oakley
Senior Vice President of Accounting - Kestrel Heat LLC5.8yrsUS$466.95kno data
Chris Witty
Investor Relations Contact0yrsno datano data
Geoffrey Mearns
Chief Customer Officer of Kestrel Heat0.9yrsno datano data
Cory Czekanski
VP & Controller of Kestrel Heat LLC0yrsno datano data

0.9yrs

Average Tenure

57yo

Average Age

Experienced Management: SGU's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Woosnam
President0.9yrsUS$773.19k0.017% $73.1k
Bryan Lawrence
Director of Kestrel Heat LLC13.8yrsno data2.38% $10.1m
William Nicoletti
Independent Director of Kestrel Heat LLC13.8yrsUS$102.78k0.077% $324.3k
David Bauer
Independent Director of Kestrel Heat LLC0yrsUS$81.33kno data
Paul Vermylen
Chairman of the Board of Kestrel Heat LLC13.8yrsUS$273.97k2.78% $11.7m
Daniel Donovan
Director of Kestrel Heat LLC13.8yrsUS$602.46k0.034% $145.2k
Henry Babcock
Independent Director of Kestrel Heat LLC13.8yrsUS$89.60k0.23% $951.0k
C. Scott Baxter
Independent Director of Kestrel Heat LLC13.8yrsUS$91.10kno data

13.8yrs

Average Tenure

72.5yo

Average Age

Experienced Board: SGU's board of directors are seasoned and experienced ( 13.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SGU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Star Group, L.P.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Star Group, L.P.
  • Ticker: SGU
  • Exchange: NYSE
  • Founded: 1995
  • Industry: Gas Utilities
  • Sector: Utilities
  • Implied Market Cap: US$422.385m
  • Market Cap: US$419.430m
  • Shares outstanding: 46.57m
  • Website: https://www.stargrouplp.com

Number of Employees


Location

  • Star Group, L.P.
  • 9 West Broad Street
  • Suite 310
  • Stamford
  • Connecticut
  • 6902
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGUNYSE (New York Stock Exchange)YesCommon UnitsUSUSDDec 1995

Biography

Star Group, L.P. operates as a home heating oil and propane distributor and services provider in the United States. It also installs, maintains, and repairs heating and air conditioning equipment, as well as offers plumbing services. As of September 30, 2019, the company sold home heating oil and propane to approximately 453,000 full service residential and commercial customers. It also sells home heating oil and propane to approximately 56,000 customers and gasoline and diesel fuel to approximately 27,000 customers on a delivery only basis. Kestrel Heat, LLC operates as the general partner of the company. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was founded in 1995 and is based in Stamford, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:27
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.