Star Group, L.P.
Star Group, L.P. Fundamental Analysis
Star Group, L.P. (SGU) shows moderate financial fundamentals with a PE ratio of 6.40, profit margin of 3.67%, and ROE of 19.81%. The company generates $1.8B in annual revenue with weak year-over-year growth of 1.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SGU's fundamental strength across five key dimensions:
Efficiency Score
WeakSGU struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSGU trades at attractive valuation levels.
Growth Score
WeakSGU faces weak or negative growth trends.
Financial Health Score
WeakSGU carries high financial risk with limited liquidity.
Profitability Score
ModerateSGU maintains healthy but balanced margins.
Key Financial Metrics
Is SGU Expensive or Cheap?
P/E Ratio
SGU trades at 6.40 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SGU's PEG of 1.07 indicates fair valuation.
Price to Book
The market values Star Group, L.P. at 1.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.58 times EBITDA. This is generally considered low.
How Well Does SGU Make Money?
Net Profit Margin
For every $100 in sales, Star Group, L.P. keeps $3.67 as profit after all expenses.
Operating Margin
Core operations generate 6.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.81 in profit for every $100 of shareholder equity.
ROA
Star Group, L.P. generates $6.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Star Group, L.P. generates limited operating cash flow of $79.83M, signaling weaker underlying cash strength.
Free Cash Flow
Star Group, L.P. produces free cash flow of $68.98M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.10 in free cash annually.
FCF Yield
SGU converts 16.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How SGU Stacks Against Its Sector Peers
| Metric | SGU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.40 | 20.19 | Better (Cheaper) |
| ROE | 19.81% | 1019.00% | Weak |
| Net Margin | 3.67% | -44017.00% (disorted) | Weak |
| Debt/Equity | 1.08 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.74 | 4.60 | Weak Liquidity |
| ROA | 6.39% | -11655350.00% (disorted) | Weak |
SGU outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Star Group, L.P.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
61.97%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
75.07%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-46.20%
Industry Style: Cyclical, Value, Commodity
Declining