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Star Gas Partners LP (SGU)



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Upturn Advisory Summary
03/27/2025: SGU (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type Stock | Historic Profit 9.86% | Avg. Invested days 42 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 426.68M USD | Price to earnings Ratio 9.93 | 1Y Target Price 13 |
Price to earnings Ratio 9.93 | 1Y Target Price 13 | ||
Volume (30-day avg) 36280 | Beta 0.42 | 52 Weeks Range 9.22 - 13.75 | Updated Date 03/23/2025 |
52 Weeks Range 9.22 - 13.75 | Updated Date 03/23/2025 | ||
Dividends yield (FY) 5.61% | Basic EPS (TTM) 1.24 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 2.8% | Operating Margin (TTM) -4.2% |
Management Effectiveness
Return on Assets (TTM) 5.88% | Return on Equity (TTM) 16.96% |
Valuation
Trailing PE 9.93 | Forward PE - | Enterprise Value 708989830 | Price to Sales(TTM) 0.26 |
Enterprise Value 708989830 | Price to Sales(TTM) 0.26 | ||
Enterprise Value to Revenue 0.41 | Enterprise Value to EBITDA 5.92 | Shares Outstanding 34661400 | Shares Floating 25640457 |
Shares Outstanding 34661400 | Shares Floating 25640457 | ||
Percent Insiders 14.64 | Percent Institutions 44.95 |
Analyst Ratings
Rating - | Target Price 13 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Star Gas Partners LP
Company Overview
History and Background
Star Gas Partners LP (now known as Superior Plus Energy Services LP after being acquired) was founded in 1995. It grew through acquisitions of regional heating oil and propane distributors. Its primary focus was on providing home heating solutions to residential and commercial customers.
Core Business Areas
- Heating Oil Distribution: Distribution of heating oil to residential and commercial customers.
- Propane Distribution: Distribution of propane gas for heating, cooking, and other uses.
- Other Services: Installation, maintenance, and repair services for heating and cooling systems, including plumbing services in some areas.
Leadership and Structure
Star Gas Partners LP operated as a limited partnership. Leadership typically consisted of a CEO, CFO, and other senior executives managing operations and finance. Its general partner structure oversaw operations and strategic decisions. Superior Plus is now the parent company.
Top Products and Market Share
Key Offerings
- Heating Oil: Heating oil accounts for a significant portion of Star Gas Partners LP's revenue. Market share varied regionally based on local competition. Competitors include local and regional heating oil distributors.
- Propane: Propane sales provide another key revenue stream, particularly in areas with limited natural gas infrastructure. Competitors include national propane distributors like Suburban Propane and AmeriGas.
- HVAC Services: Installation and maintenance of heating and cooling systems contribute to revenue. Competitors include local and regional HVAC contractors.
Market Dynamics
Industry Overview
The home heating oil and propane industry is mature and highly fragmented. Factors influencing the industry include weather patterns, energy prices, regulatory changes, and competition from other energy sources like natural gas and electricity.
Positioning
Star Gas Partners LP positioned itself as a leading regional provider of heating oil and propane, focusing on customer service and reliability. Competitive advantages included its established distribution network and customer base.
Total Addressable Market (TAM)
The TAM for home heating fuels and services is in the billions of dollars annually. Star Gas Partners LP aimed to capture a significant share of this market through acquisitions and organic growth. Precise TAM calculations were dependent on geographic coverage and service offerings.
Upturn SWOT Analysis
Strengths
- Established distribution network
- Large customer base
- Experienced management team
- Diversified product and service offerings
- Brand Recognition
Weaknesses
- Dependence on weather conditions
- Exposure to volatile energy prices
- High debt levels
- Seasonal business
- Geographic concentration
Opportunities
- Acquisitions of smaller competitors
- Expansion into new geographic markets
- Increased demand for propane in certain regions
- Development of new energy-efficient products and services
- Government incentives for renewable energy
Threats
- Fluctuations in energy prices
- Increased competition from natural gas and electricity
- Stringent environmental regulations
- Economic downturns
- Changes in consumer preferences
Competitors and Market Share
Key Competitors
- UGI (UGI)
- Suburban Propane Partners (SPH)
- AmeriGas Partners (no public ticker)
Competitive Landscape
Star Gas Partners LP competed with other regional and national heating oil and propane distributors. Advantages included its established distribution network and customer base. Disadvantages included its dependence on weather and volatile energy prices.
Major Acquisitions
Superior Plus
- Year: 2023
- Acquisition Price (USD millions): 843
- Strategic Rationale: Superior Plus acquired Star Gas Partners LP to expand its energy distribution footprint in the United States and diversify its product offerings.
Growth Trajectory and Initiatives
Historical Growth: Historical growth was primarily driven by acquisitions of regional heating oil and propane distributors. Organic growth was influenced by weather patterns and energy prices.
Future Projections: Future projections are no longer applicable since the company was acquired. Analysts covering the company prior to acquisition provided estimates for revenue, earnings, and unit price targets.
Recent Initiatives: Recent initiatives before the acquisition included cost-cutting measures, customer retention programs, and investments in new technology.
Summary
Star Gas Partners LP was a significant regional player in the heating oil and propane distribution market. Its strength was its established customer base and distribution network, which allowed it to capture consistent revenue. The company was exposed to the risks of volatile energy prices and weather dependence, impacting profitability. Now acquired by Superior Plus, its operations continue as part of a larger entity, while its future is interwoven with its parent company's strategy.
Similar Companies
- UGI
- SPH
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Website
- Industry Reports
- Financial News Outlets
Disclaimers:
This analysis is based on publicly available information and should not be considered financial advice. The information provided is for informational purposes only, and it is recommended to conduct further research and consult with a financial advisor before making any investment decisions. Since the company was acquired, some data may not be fully available or relevant.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Star Gas Partners LP
Exchange NYSE | Headquaters Stamford, CT, United States | ||
IPO Launch date 1995-12-14 | President, CEO & Director of Kestrel Heat LLC Mr. Jeffrey M. Woosnam | ||
Sector Energy | Industry Oil & Gas Refining & Marketing | Full time employees 3039 | Website https://www.stargrouplp.com |
Full time employees 3039 | Website https://www.stargrouplp.com |
Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. It offers gasoline and diesel fuel; and installs, maintain, and repairs heating and air conditioning equipment. As of September 30, 2024, the company served approximately 404,600 full service residential and commercial home heating oil and propane customers and 61,700 customers on a delivery only basis. It sells gasoline and diesel fuel to approximately 26,800 customers. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. The company was incorporated in 1995 and is based in Stamford, Connecticut.
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