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Star Group, L.P. operates as a home heating oil and propane distributor and services provider in the United States. The last earnings update was 16 days ago. More info.
7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
---|---|---|---|---|---|---|
Star Group (SGU) | 4.4% | 6.4% | 0.1% | 4.2% | 31.4% | 73.1% |
US Gas Utilities | 2.2% | 1.8% | -0.1% | 22% | 34.6% | 62.4% |
US Market | 1.4% | 5.6% | 5.7% | 2.3% | 44.2% | 40.9% |
Is Star Group undervalued based on future cash flows and its price relative to the stock market?
Below are the data sources, inputs and calculation used to determine the intrinsic value for Star Group.
Data Point | Source | Value |
---|---|---|
Valuation Model | 2 Stage Free Cash Flow to Equity | |
Levered Free Cash Flow | Extrapolated from most recent financials. | See below |
Discount Rate (Cost of Equity) | See below | 8.5% |
Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
Data Point | Calculation/ Source | Result |
---|---|---|
Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
Equity Risk Premium | S&P Global | 7.3% |
Gas Utilities Unlevered Beta | Simply Wall St/ S&P Global | 0.39 |
Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.394 (1 + (1- 21%) (37.5%)) |
0.51 |
Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 7.27%) |
8.55% |
Discounted Cash Flow Calculation for NYSE:SGU using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Star Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
2019 | 2020 | 2021 | 2022 | 2023 | |
Levered FCF (USD, Millions) | 12.74 | 12.07 | 11.43 | 10.83 | 10.26 |
Source | Est @ -5.27% | Est @ -5.27% | Est @ -5.27% | Est @ -5.27% | Est @ -5.27% |
Present Value Discounted (@ 8.55%) |
11.73 | 10.24 | 8.94 | 7.80 | 6.81 |
Present value of next 5 years cash flows | $45.52 |
Calculation | Result | |
---|---|---|
Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $10.26 × (1 + 2.73%) ÷ (8.55% – 2.73%) |
$181.19 |
Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $181.19 ÷ (1 + 8.55%)5 |
$120.24 |
Calculation | Result | |
---|---|---|
Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $45.52 + $120.24 |
$165.77 |
Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $165.77 / 52.30 |
$3.17 |
Calculation | Result | |
---|---|---|
Value per share (USD) | From above. | $3.17 |
Current discount | Discount to share price of
$9.76
= -1 x ($9.76 - $3.17) / $3.17 |
-207.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Data Point | Source | Value |
---|---|---|
Earnings Per Share * | Company Filings (2018-12-31) in USD | $0.48 |
NYSE:SGU Share Price ** | NYSE (2019-02-21) in USD | $9.76 |
United States of America Gas Utilities Industry PE Ratio | Median Figure of 10 Publicly-Listed Gas Utilities Companies | 23.1x |
United States of America Market PE Ratio | Median Figure of 3,045 Publicly-Listed Companies | 17.39x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Star Group.
Calculation | Outcome | |
---|---|---|
PE Ratio | = NYSE:SGU Share Price ÷ EPS (both in USD) = 9.76 ÷ 0.48 |
20.37x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
Data Point | Source | Value |
---|---|---|
PE Ratio | See PE Ratio Section | 20.37x |
Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts |
Not available |
United States of America Gas Utilities Industry PEG Ratio | Median Figure of 9 Publicly-Listed Gas Utilities Companies | 3.45x |
United States of America Market PEG Ratio | Median Figure of 2,118 Publicly-Listed Companies | 1.44x |
*Line of best fit is calculated by linear regression .
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
Data Point | Source | Value |
---|---|---|
Book Value per Share | Company Filings (2018-12-31) in USD | $5.92 |
NYSE:SGU Share Price * | NYSE (2019-02-21) in USD | $9.76 |
United States of America Gas Utilities Industry PB Ratio | Median Figure of 12 Publicly-Listed Gas Utilities Companies | 2.34x |
United States of America Market PB Ratio | Median Figure of 5,129 Publicly-Listed Companies | 1.87x |
Calculation | Outcome | |
---|---|---|
PB Ratio | = NYSE:SGU Share Price ÷ Book Value per Share (both in USD) = 9.76 ÷ 5.92 |
1.65x |
* Primary Listing of Star Group.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
How is Star Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?
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 Simply Wall St do have past financial data. You can see them here.
Data Point | Source | Value (per year) |
---|---|---|
United States of America Gas Utilities Industry Earnings Growth Rate | Market Cap Weighted Average | 9.8% |
United States of America Gas Utilities Industry Revenue Growth Rate | Market Cap Weighted Average | 3.6% |
United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 12.7% |
United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Data Point | Source | Value |
---|---|---|
Past Financials | Company Filings (1 month ago) | See Below |
Future Estimates | Average of up to 0 Analyst Estimates (S&P Global) | See Below |
Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
---|
Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
---|---|---|---|
2018-12-31 | 1,776 | 58 | 26 |
2018-09-30 | 1,678 | 57 | 49 |
2018-06-30 | 1,630 | 28 | 52 |
2018-03-31 | 1,528 | -3 | 46 |
2017-12-31 | 1,376 | 23 | 35 |
2017-09-30 | 1,324 | 21 | 26 |
2017-06-30 | 1,304 | 15 | 25 |
2017-03-31 | 1,296 | -8 | 35 |
2016-12-31 | 1,226 | 33 | 45 |
2016-09-30 | 1,161 | 102 | 40 |
2016-06-30 | 1,166 | 151 | 19 |
2016-03-31 | 1,194 | 207 | 14 |
*GAAP earnings excluding extraordinary items.
Data Point | Source | Value |
---|---|---|
Past Financials | Company Filings (1 month ago) | See Below |
Future Estimates | Average of up to 0 Analyst Estimates (S&P Global) | See Below |
All data from Star Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
---|
Date (Data in USD Millions) | EPS * |
---|---|
2018-12-31 | 0.48 |
2018-09-30 | 0.89 |
2018-06-30 | 0.94 |
2018-03-31 | 0.83 |
2017-12-31 | 0.63 |
2017-09-30 | 0.46 |
2017-06-30 | 0.44 |
2017-03-31 | 0.62 |
2016-12-31 | 0.80 |
2016-09-30 | 0.70 |
2016-06-30 | 0.33 |
2016-03-31 | 0.24 |
*GAAP earnings excluding extraordinary items.
How has Star Group performed over the past 5 years?
All data from Star Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
---|---|---|---|---|
2018-12-31 | 1,776.03 | 25.88 | 394.44 | |
2018-09-30 | 1,677.84 | 48.85 | 381.81 | |
2018-06-30 | 1,629.80 | 51.76 | 372.29 | |
2018-03-31 | 1,528.25 | 46.47 | 356.96 | |
2017-12-31 | 1,376.27 | 35.37 | 341.90 | |
2017-09-30 | 1,323.56 | 25.83 | 331.53 | |
2017-06-30 | 1,304.04 | 24.76 | 322.71 | |
2017-03-31 | 1,296.43 | 34.80 | 318.90 | |
2016-12-31 | 1,226.40 | 45.11 | 316.73 | |
2016-09-30 | 1,161.34 | 40.15 | 299.86 | |
2016-06-30 | 1,166.44 | 19.10 | 302.61 | |
2016-03-31 | 1,193.85 | 14.00 | 303.29 | |
2015-12-31 | 1,494.13 | 31.25 | 320.66 | |
2015-09-30 | 1,674.29 | 34.03 | 334.93 | |
2015-06-30 | 1,729.49 | 49.56 | 328.77 | |
2015-03-31 | 1,810.40 | 48.33 | 329.51 | |
2014-12-31 | 1,940.33 | 29.71 | 315.42 | |
2014-09-30 | 1,961.72 | 32.69 | 305.24 | |
2014-06-30 | 1,916.97 | 42.17 | 293.42 | |
2014-03-31 | 1,852.98 | 44.16 | 280.29 | |
2013-12-31 | 1,745.88 | 35.31 | 269.49 | |
2013-09-30 | 1,741.80 | 27.74 | 268.57 | |
2013-06-30 | 1,738.23 | 34.38 | 265.22 | |
2013-03-31 | 1,708.19 | 30.20 | 257.64 | |
2012-12-31 | 1,552.64 | 30.73 | 235.82 | |
2012-09-30 | 1,497.59 | 24.71 | 236.07 | |
2012-06-30 | 1,476.71 | 1.18 | 244.35 | |
2012-03-31 | 1,491.01 | -5.21 | 252.74 |
*GAAP earnings excluding extraordinary items.
How is Star Group's financial health and their level of debt?
All data from Star Group Company Filings, last reported 1 month ago.
Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
---|---|---|---|
2018-12-31 | 309.27 | 191.83 | 23.79 |
2018-09-30 | 309.79 | 100.78 | 14.53 |
2018-06-30 | 341.36 | 109.91 | 9.42 |
2018-03-31 | 366.26 | 185.84 | 35.43 |
2017-12-31 | 330.26 | 152.43 | 21.14 |
2017-09-30 | 306.07 | 75.72 | 52.46 |
2017-06-30 | 329.07 | 78.16 | 94.57 |
2017-03-31 | 348.39 | 80.57 | 52.90 |
2016-12-31 | 314.23 | 83.01 | 37.08 |
2016-09-30 | 301.49 | 91.64 | 139.19 |
2016-06-30 | 337.25 | 95.00 | 171.16 |
2016-03-31 | 346.11 | 97.50 | 146.61 |
2015-12-31 | 296.75 | 100.00 | 86.89 |
2015-09-30 | 289.89 | 100.00 | 100.51 |
2015-06-30 | 340.67 | 124.66 | 122.65 |
2015-03-31 | 354.26 | 124.63 | 37.13 |
2014-12-31 | 283.34 | 124.60 | 28.11 |
2014-09-30 | 273.25 | 124.57 | 49.00 |
2014-06-30 | 306.09 | 164.09 | 7.12 |
2014-03-31 | 320.49 | 290.26 | 12.96 |
2013-12-31 | 272.77 | 224.84 | 83.23 |
2013-09-30 | 259.28 | 124.46 | 85.06 |
2013-06-30 | 276.77 | 124.43 | 44.38 |
2013-03-31 | 297.29 | 185.46 | 10.57 |
2012-12-31 | 261.26 | 161.09 | 14.32 |
2012-09-30 | 260.15 | 124.36 | 108.09 |
2012-06-30 | 271.19 | 124.33 | 91.23 |
2012-03-31 | 287.35 | 156.71 | 25.05 |
What is Star Group's current dividend yield, its reliability and sustainability?
Data Point | Source | Value |
---|---|---|
Past Annualized Dividend Yield | S&P Global Market Data | See Below |
Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
Future Dividends per Share Estimates | Average of up to 0 Analyst Estimates (S&P Global) | See Below |
United States of America Gas Utilities Industry Average Dividend Yield | Market Cap Weighted Average of 11 Stocks | 2.4% |
United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2001 Stocks | 2.5% |
United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
United States of America Top 25% Dividend Yield | 75th Percentile | 3.5% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
---|
Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
---|---|---|
2019-01-17 | 0.470 | 5.039 |
2018-10-18 | 0.470 | 4.929 |
2018-07-19 | 0.470 | 4.863 |
2018-04-17 | 0.470 | 4.884 |
2018-01-18 | 0.440 | 4.532 |
2017-10-12 | 0.440 | 4.138 |
2017-07-20 | 0.440 | 4.061 |
2017-04-18 | 0.440 | 4.346 |
2017-01-19 | 0.410 | 4.237 |
2016-10-20 | 0.410 | 4.054 |
2016-07-21 | 0.410 | 4.483 |
2016-04-18 | 0.410 | 4.724 |
2016-01-20 | 0.380 | 4.879 |
2015-10-15 | 0.380 | 4.910 |
2015-07-16 | 0.380 | 4.195 |
2015-04-20 | 0.380 | 4.577 |
2015-01-20 | 0.350 | 4.955 |
2014-10-30 | 0.350 | 5.647 |
2014-07-17 | 0.350 | 5.927 |
2014-04-21 | 0.350 | 5.510 |
2014-01-16 | 0.330 | 5.691 |
2013-10-29 | 0.330 | 6.056 |
2013-07-22 | 0.330 | 6.613 |
2013-04-16 | 0.330 | 6.772 |
2013-01-17 | 0.310 | 6.829 |
2012-10-26 | 0.310 | 7.448 |
2012-07-19 | 0.310 | 7.199 |
2012-04-19 | 0.310 | 7.807 |
2012-01-19 | 0.310 | 7.086 |
2011-10-25 | 0.310 | 6.363 |
2011-07-14 | 0.310 | 6.186 |
2011-04-14 | 0.310 | 5.654 |
2011-01-25 | 0.310 | 5.696 |
2010-10-26 | 0.290 | 5.541 |
2010-07-19 | 0.290 | 6.334 |
2010-04-27 | 0.290 | 6.668 |
2010-01-21 | 0.290 | 6.718 |
2009-10-22 | 0.270 | 6.822 |
2009-07-22 | 0.270 | 7.575 |
2009-04-22 | 0.270 | 8.018 |
2009-02-23 | 0.270 | 10.046 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
Mr. Daniel P. Donovan, also known as Dan, has been the Interim Chief Executive Officer and President of Kestrel Heat LLC at STAR GROUP, L.P. since December 22, 2018. Mr. Donovan has been a Consultant to Kestrel Heat LLC, the General Partner of Star Gas Partners, L.P. since September 30, 2013. Mr. Donovan served as the Chief Executive Officer and President of Kestrel Heat LLC from May 31, 2007 to September 30, 2013 and from April 28, 2006 to September 30, 2013 respectively. Mr. Donovan served as Chief Operating Officer of Kestrel Heat LLC from April 28, 2006 to May 30, 2007. He served as President and Chief Operating Officer of Star Gas LLC, General Partner of Star Gas Partners LP from March 7, 2005 to April 28, 2006. He served as President and Chief Operating Officer of the heating oil segment of Star Gas LLC-General Partner of Star Gas Partners LP from May 2004 to March 2005. From January 1980 to May 2004, he served various management positions with Meenan Oil, including Vice President and General Manager. From 1971 to 1980, he served President and General Manager of Mobil Oil's heating oil subsidiary in New York City. He has been a Director of Kestrel Heat LLC, the General Partner of Star Gas Partners, L.P. since April 28, 2006. Mr. Donovan is a graduate of St. Francis College in Brooklyn, New York and received an M.B.A. from Iona College.
Average tenure and age of the Star Group management team in years:
Average tenure and age of the Star Group board of directors in years:
Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
---|---|---|---|---|---|---|---|---|---|---|
16. Aug 18 | Buy | Steven Goldman | Individual | 16. Aug 18 | 16. Aug 18 | 3,000 | $9.38 | $28,132 | ||
16. Aug 18 | Buy | Richard Ambury | Individual | 16. Aug 18 | 16. Aug 18 | 4,000 | $9.42 | $37,680 | ||
15. Aug 18 | Buy | Steven Goldman | Individual | 14. Aug 18 | 14. Aug 18 | 10,600 | $9.60 | $100,549 | ||
15. Aug 18 | Buy | Richard Ambury | Individual | 14. Aug 18 | 14. Aug 18 | 5,000 | $9.40 | $46,990 |
Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently Star Group is able to use capital to create earnings will help us understand your potential return.
Simply Wall St - – Full articleBut should the relatively competitive multiple be the final verdict of SGU’s undervaluation. … This is because multiples like PE tend to overlook key company-specific factors such as future growth and capital structure … To resolve this problem, I’ll identify some important factors to consider when judging the relative valuation of
Simply Wall St - – Full articleIn this article, I will take a look at Star Group LP's (NYSE:SGU) most recent earnings update (31 March 2018) and compare these latest figures against its performance over the past few years, along with how the rest of SGU's industry performed. … Did SGU beat its long-term earnings growth trend and its industry. … SGU's trailing twelve-month earnings (from 31 March 2018) of US$47.35m has
Simply Wall St - – Full articleI've been keeping an eye on Star Group LP (NYSE:SGU) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe SGU has a lot to offer. … , dividend-paying company with a
Simply Wall St - – Full articleNYSE:SGU Historical Dividend Yield Apr 28th 18 EMC Insurance Group Inc. … NasdaqGS:EMCI Historical Dividend Yield Apr 28th 18 Maiden Holdings, Ltd. … NasdaqGS:MHLD Historical Dividend Yield Apr 28th 18 For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
Simply Wall St - – Full articleView our latest analysis for Star Group 5 questions I ask before picking a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is it paying an annual yield above 75% of dividend payers? … NYSE:SGU Historical Dividend Yield Apr 17th 18 Does Star Group pass our checks? … Next Steps: Taking into account the dividend metrics, Star Group ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers.
Simply Wall St - – Full articleAfter reading Star Group LP.'s (NYSE:SGU) most recent earnings announcement (31 December 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … See our latest analysis for Star Group Was SGU's recent earnings decline indicative of a tough track record? … For Star Group, its most recent earnings (trailing twelve month) is US$35.37M, which, relative to the prior year's level, has declined by -21.59%.
Simply Wall St - – Full articleFormula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SGU Price per share = $10.76 Earnings per share = $0.462 ∴ Price-Earnings Ratio = $10.76 ÷ $0.462 = 23.3x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you accidentally compared lower growth firms with SGU, then SGU’s P/E would naturally be higher since investors would reward SGU’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with SGU, SGU’s P/E would again be higher since investors would reward SGU’s lower risk with a higher price as well.
Simply Wall St - – Full articleCheck out our latest analysis for Star Group Did SGU beat its long-term earnings growth trend and its industry? … For Star Group, the most recent earnings is $24.8M, which compared to the prior year's figure, has increased by 29.68%. … This suggests that any tailwind the industry is profiting from, Star Group is capable of leveraging this to its advantage.What does this mean?
Simply Wall St - – Full article
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, 2018, the company sold home heating oil and propane to approximately 454,000 full service residential and commercial customers. It also sells home heating oil, gasoline, and diesel fuel to approximately 74,000 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 headquartered in Stamford, Connecticut.
Name: | Star Group, L.P. |
SGU | |
Exchange: | NYSE |
Founded: | 1995 |
$511,481,609 | |
$508,295,979 | |
52,298,733 | |
Website: | http://www.stargrouplp.com |
Address: |
Star Group, L.P. 9 West Broad Street, Suite 310, Stamford, Connecticut, 06902, United States |
Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
---|---|---|---|---|---|---|---|
NYSE | SGU | Common Units | New York Stock Exchange | US | USD | 15. Dec 1995 |
Gas Utilities | |
Utilities |
Area | Date (UTC time) |
---|---|
Company Analysis updated: | 2019/02/21 23:46 |
End of day share price update: | 2019/02/21 00:00 |
Last estimates confirmation: | 2017/12/06 |
Last earnings filing: | 2019/02/05 |
Last earnings reported: | 2018/12/31 |
Last annual earnings reported: | 2018/09/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.