Suburban Propane Partners, L.P.
Suburban Propane Partners, L.P. Fundamental Analysis
Suburban Propane Partners, L.P. (SPH) shows moderate financial fundamentals with a PE ratio of 10.12, profit margin of 9.30%, and ROE of 20.91%. The company generates $1.4B in annual revenue with moderate year-over-year growth of 7.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SPH's fundamental strength across five key dimensions:
Efficiency Score
WeakSPH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSPH trades at attractive valuation levels.
Growth Score
ExcellentSPH delivers strong and consistent growth momentum.
Financial Health Score
WeakSPH carries high financial risk with limited liquidity.
Profitability Score
ModerateSPH maintains healthy but balanced margins.
Key Financial Metrics
Is SPH Expensive or Cheap?
P/E Ratio
SPH trades at 10.12 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SPH's PEG of 0.43 indicates potential undervaluation.
Price to Book
The market values Suburban Propane Partners, L.P. at 2.15 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 SPH Make Money?
Net Profit Margin
For every $100 in sales, Suburban Propane Partners, L.P. keeps $9.30 as profit after all expenses.
Operating Margin
Core operations generate 14.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.91 in profit for every $100 of shareholder equity.
ROA
Suburban Propane Partners, L.P. generates $5.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Suburban Propane Partners, L.P. generates limited operating cash flow of $129.95M, signaling weaker underlying cash strength.
Free Cash Flow
Suburban Propane Partners, L.P. produces free cash flow of $61.95M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.93 in free cash annually.
FCF Yield
SPH converts 4.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How SPH Stacks Against Its Sector Peers
| Metric | SPH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.12 | 19.72 | Better (Cheaper) |
| ROE | 20.91% | 908.00% | Weak |
| Net Margin | 9.30% | 8804.00% | Weak |
| Debt/Equity | 2.42 | 1.80 | Weak (High Leverage) |
| Current Ratio | 0.87 | 1.50 | Weak Liquidity |
| ROA | 5.55% | -6152.00% (disorted) | Weak |
SPH outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Suburban Propane Partners, L.P.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.72%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
67.83%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-14.88%
Industry Style: Defensive, Dividend, Income
Declining