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Market Cap

US$419.8m

Last Updated

2021/05/15 22:01 UTC

Data Sources

Company Financials

Executive Summary

Star Group, L.P. sells home heating and air conditioning products and services to residential and commercial home heating oil and propane customers in the United States. More Details


Snowflake Analysis

Outstanding track record, undervalued and pays a dividend.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SGU's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-6.6%

SGU

-0.5%

US Gas Utilities

-1.9%

US Market


1 Year Return

39.4%

SGU

19.0%

US Gas Utilities

50.5%

US Market

Return vs Industry: SGU exceeded the US Gas Utilities industry which returned 19% over the past year.

Return vs Market: SGU underperformed the US Market which returned 50.5% over the past year.


Shareholder returns

SGUIndustryMarket
7 Day-6.6%-0.5%-1.9%
30 Day-7.4%2.4%-0.6%
90 Day6.0%13.8%0.1%
1 Year47.3%39.4%23.2%19.0%53.0%50.5%
3 Year24.9%6.3%13.6%3.6%61.1%51.0%
5 Year51.7%18.4%34.2%15.2%125.7%100.6%

Long-Term 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 ($10.36) is trading below our estimate of fair value ($33.32)

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 (5.7x) compared to the US Gas Utilities industry average (17.9x).

PE vs Market: SGU is good value based on its PE Ratio (5.7x) compared to the US market (19.9x).


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 (1.2x) compared to the US Gas Utilities industry average (1.8x).


Future Growth

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

6.1%

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?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGU has high quality earnings.

Growing Profit Margin: SGU's current net profit margins (5.6%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: SGU's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: SGU's earnings growth over the past year (270.9%) exceeds its 5-year average (13% per year).

Earnings vs Industry: SGU earnings growth over the past year (270.9%) exceeded the Gas Utilities industry 24.6%.


Return on Equity

High ROE: SGU's Return on Equity (27.5%) is considered high.


Financial Health

How is Star Group's financial position?


Financial Position Analysis

Short Term Liabilities: SGU's short term assets ($307.7M) do not cover its short term liabilities ($366.0M).

Long Term Liabilities: SGU's short term assets ($307.7M) exceed its long term liabilities ($243.0M).


Debt to Equity History and Analysis

Debt Level: SGU's debt to equity ratio (44.9%) is considered high.

Reducing Debt: SGU's debt to equity ratio has increased from 28.2% to 44.9% over the past 5 years.

Debt Coverage: SGU's debt is well covered by operating cash flow (86%).

Interest Coverage: SGU's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet


Dividend

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

5.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SGU's dividend (5.5%) is higher than the bottom 25% of dividend payers in the US market (1.25%).

High Dividend: SGU's dividend (5.5%) is in the top 25% of dividend payers in the US market (3.42%)


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 reasonably low payout ratio (29.7%), SGU's dividend payments are well 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.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Jeff Woosnam (52 yo)

2.17yrs

Tenure

US$1,272,456

Compensation

Mr. Jeffrey M. Woosnam, is also known as Jeff, is President, Chief Executive Officer and Director of Kestrel Heat LLC, the general partner of Star Group, L.P. since March 18, 2019. Mr. Woosnam was Senior V...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD1.27M) is about average for companies of similar size in the US market ($USD1.74M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SGU's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: SGU's board of directors are seasoned and experienced ( 15.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$419.839m
  • Market Cap: US$416.464m
  • Shares outstanding: 40.52m
  • 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


Biography

Star Group, L.P. sells home heating and air conditioning products and services to residential and commercial home heating oil and propane customers in the United States. It also sells diesel, gasoline, and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/15 22:01
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.