Star Group, L.P. (SGU)
Valuation Overview•Is Star Group, L.P. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 50/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street sentiment is generally neutral. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
SGU demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company is facing top-line contraction (-3.8% 3Y CAGR) paired with highly explosive earnings growth (28.9% EPS 3Y CAGR). Operating efficiency remains adequate with margins around 8.2%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $766.7M | +1.0% | -3.8% | +4.0% | +0.6% | |
| EBITDA | $165.5M | — | +20.5% | — | — | |
| Net Income | $108.3M | +96.7% | +21.4% | — | +6.3% | |
| EPS (Diluted) | $3.29 | +102.2% | +28.9% | +11.2% | +11.9% | |
| Free Cash Flow | -$9.1M | -44.2% | +54.5% | -19.1% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 16.4% | 26.2% | 26.2% | 27.3% |
| Operating Margin | 8.2% | 4.0% | 3.6% | 3.9% |
| Net Margin | 5.6% | 2.3% | 2.9% | 2.8% |
| FCF Margin | 0.5% | 4.9% | 3.8% | 4.6% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | — | $2.66 | — | ||
| Q1'26 | — | $0.89 | — | ||
| Q4'25 | — | $-0.84 | — | ||
| Q3'25 | — | $-0.48 | — | ||
| Q2'25 | — | $2.01 | — | ||
| Q1'25 | — | $0.79 | — | ||
| Q4'24 | — | $-1.00 | — | ||
| Q3'24 | — | $-0.31 | — |
Total return is +13.0% (1Y), lagging the benchmark by -12.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +8.3% | -1.0% | — |
| 1Y | +13.0% | -12.0% | +6.4% |
| 3YCAGR | +1.2% | -18.6% | +15.0% |
| 5YCAGR | +7.1% | -5.7% | +29.6% |
| 10YCAGR | +7.9% | -5.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Star Group, L.P. (SGU) valuation, health, and returns.
Based on peer relative multiples, Star Group, L.P. appears Cheap versus peers compared to industry peers.
Star Group, L.P. has multiple valuation anchors: Peer Relative Fair Value: $36.52. A convergence of these signals offers higher conviction.
Star Group, L.P. displays fair financial health with a composite quality score of 50/100, supported by a Altman Z-Score of 2.2 (grey zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 14.6%.
Star Group, L.P. pays a 6.1% dividend yield, covered by a 41% payout ratio with 13 years of growth, supplemented by a 3.8% buyback yield.
Star Group, L.P.'s current growth trajectory is Accelerating. The company achieved +1.0% 1Y revenue growth and +102.2% 1Y EPS growth, compared to its 3Y revenue CAGR of -3.8%.
Wall Street consensus is Sell based on 1 analysts, beating EPS expectations in 13% of recent quarters with a -3-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Star Group, L.P. include: -8.2% 1-year max drawdown. Volatility risk is characterized by a beta of 0.14x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.