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Star Gas Partners LP (SGU) Fair Value & Analysis

Energy · US · Market cap $414M · ISIN US85512C1053

What is Star Gas Partners LP really worth?

SG Star Gas Partners LP logo Star Gas Partners LP SGU · US
Price$12.85
Fair Value$18.10
Upside+40.9%
Quality71/100

A solid business, trading 29% below our fair value of $18.10.

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Strengths

Moderate debt · generates free cash flow
Ranks above peers (12/14)

Risks

!Weak Growth (revenue 5y +4.0 %/yr)
!Thin margins · 5.3% net margin
!Moderate moat 54/100
!Weak on future: 16 out of 100

For context

·5.86% dividend yield
Evidence: High Range $11.04 – $26.76

Fair value as of: Aug 21, 2026

From 25 valuation models · updated 15 days ago

Fair value updated Aug 21, 2026, revised from $25.90 to $18.10 (−30.1%) since Aug 13, 2026. Share price +0.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The rarer combination: high quality (71/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • A fairly wide model range ($11.04 to $26.76) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$13.45 $6.51 Fair Value $18.10 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range $6.51 – $13.45 · fair‑value band $11.04 – $26.76 · the $12.85 price screens below the $18.10 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 3 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

Star Gas Partners LP (SGU) currently trades at $12.85, while our model-based Fair Value estimate is $18.10, implying the stock looks roughly 29.0% undervalued today. The Quality Score stands at 71/100 (solid quality), in the Energy sector. Bull case: the Multiples group reads highest at a median of $33.74 per share, and 21 of the 25 models we run sit above the $12.85 price. Bear case: the Asset-Based group reads lowest at $6.19, and 4 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Star Gas Partners LP generated revenue of $1.9B at a net margin of 5.3%. Revenue grew 3.2% year over year. It earns a return on equity of 24.9%. Net debt stands at $261M. Fundamentals as of Aug 21, 2026

Our scenario range runs from $11.04 (bear case) to $26.76 (bull case); at $12.85, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 5% below its 52-week high and 21% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at −59% fair-value upside, at 41%, SGU screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 11 months have passed since. In that time the company retained roughly $1.69 per share, which is 9.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF $10.69 $15.80 $22.08 78
Growth DCF $10.96 $15.62 $21.12 77
Owner Earnings $18.36 $26.08 $35.57 75
All 25 models by family
DCF Models
FCF DCF $10.69 $15.80 $22.08 78
Owner Earnings $18.36 $26.08 $35.57 75
5Y Revenue Exit $16.44 $28.11 $42.51 69
5Y EBITDA Exit $17.32 $29.66 $43.41 72
5Y P/E Exit $15.12 $25.78 $36.33 68
10Y Revenue Exit $13.19 $22.48 $33.99 64
10Y EBITDA Exit $14.32 $23.44 $34.59 65
10Y P/E Exit $13.07 $21.05 $29.90 61
Earnings-Based
Graham-Dodd $13.08 $29.86 $38.28 63
PEG = 1.0 $4.97 $7.10 $9.23 55
EPV $11.93 $14.15 $15.99 74
Dividend Discount
Gordon GGM $6.18 $9.36 $12.44 66
DDM Multi-Stage $6.18 $8.56 $10.86 65
Multiples
P/E Multiple $25.96 $34.62 $43.27 63
P/S Multiple $24.52 $32.69 $40.87 58
P/B Multiple $12.47 $16.63 $20.79 55
EV/EBIT $28.61 $39.59 $50.58 66
EV/EBITDA $25.95 $36.04 $46.14 67
EV/Revenue $22.31 $33.74 $45.16 53
Asset-Based
NCAV (Graham) $4.62 $6.19 $9.24 54
Growth DCF
Growth DCF $10.96 $15.62 $21.12 77
Rev-Margin DCF $16.44 $28.23 $40.71 70
Economic Profit
Residual Income $10.75 $13.94 $40.21 64
ROIC Compounder $12.22 $15.16 $18.21 70
Growth Earnings
Growth-Adj P/E $19.70 $28.15 $36.59 65

Widest divergence: Multiples ($33.74) versus Asset-Based ($6.19). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 5.0
P/S ratio 0.18 P/E × margin
EPS (TTM) $2.57 price ÷ EPS = P/E 5.0
Dividend yield 5.9% payout 29.3%
Net margin 3.5% FY2025
Return on equity 24.9% TTM
More key figures
Profitability
Return on assets (EBIT) 7.1% avg 5y
Operating margin 20.3% TTM
Growth
Revenue (TTM) $1.9B TTM
Revenue growth (YoY) +3.2% 3y avg −3.8%
EPS growth (YoY) +32.1%
Balance sheet & cash flow
Free cash flow $56.0M FY2025
Net debt $261M FY2025 · ≈ 4.7 yrs of FCF

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 71/100

Of which business quality 66 · Market factors (momentum, volatility) 65

Profitability 70
Margins and returns on capital today
Quality Growth 66
Are margins and returns improving?
Cashflow 42
Earnings quality: real cash, not paper profit
Fin. Strength 48
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 98
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 63
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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, maintains, and repairs heating and air conditioning equipment and ancillary services.

Full company description

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, maintains, and repairs heating and air conditioning equipment and ancillary services. As of September 30, 2025, the company served approximately 406,400 full-service residential and commercial home heating oil and propane customers and 63,200 customers on a delivery only basis. It sells gasoline and diesel fuel to approximately 27,700 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Star Gas Partners LP reported revenue of $1.8B in FY2025 versus $1.5B in FY2021, a compound +4.5%/yr. Reported net income was $63.1M in FY2025, compounding −7.9%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$1.8B
Latest YoY
+1.0%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.8%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.0%
Avg. revenue growth/yr (29Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.8%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+14.4% (8.5 + 5.9)
Revenue +4.5%/yr
FY21 $1.5B
FY22 $2.0B
FY23 $2.0B
FY24 $1.8B
FY25 $1.8B
Net income −7.9%/yr
FY21 $87.7M
FY22 $35.3M
FY23 $29.3M
FY24 $32.1M
FY25 $63.1M
Character of growth · EPS growth decomposed (2014-2025) +7.3 % p.a.
Revenue per share +7.2 %

of which total revenue +1.5 % · buybacks/dilution +5.6 %

EBIT margin −3.4 %
Tax rate +2.7 %
Residual (interest, one-offs) +0.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Star Gas Partners LP Fair Value". https://www.fairvalue-calculator.com/stock/SGU

Peer Group

Oil & Gas Refining & Marketing · 109 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 71 · Top 25%
Fair Value upside +41% · Top 25%
Return on equity (TTM) 25% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 5% · Top 25%
Operating margin (TTM) 20% · Top 25%
Revenue growth 3% · Above median
Dividend yield (TTM) 5.9% · Top 25%
Debt / equity 0.55× · Higher than median

Valuation Multiples vs Oil & Gas Refining & Marketing median · lower = cheaper

P/E (TTM) 5.0× · Cheaper than 75% of peers
P/B 1.37× · Cheaper than median
P/S (TTM) 0.22× · Cheaper than median
P/FCF 7.4× · Pricier than median
EV/EBITDA 3.1× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE88 · sector 13
FUTURE16 · sector 15
PAST100 · sector 33
HEALTH72 · sector 83
DIVIDEND100 · sector 55

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

Similar stocks

10 more Oil & Gas Refining & Marketing stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

Stock Price Fair Value vs Fair Value
Reliance Industries Limited RELIANCE ₹1,314 ₹835.66 −36%
Valero Energy Corporation VLO $352.36 $127.32 −64%
Marathon Petroleum Corporation MPC $368.83 $133.18 −64%
Phillips 66 PSX $246.58 $99.41 −60%
Neste Oyj NESTE €31.28 €3.83 −88%
Formosa Petrochemical Corporation 6505 75.80 TWD 15.32 TWD −80%
HF Sinclair Corporation DINO $87.93 $44.96 −49%
Bharat Petroleum Corporation BPCL ₹318.00 ₹846.81 +166%
SK Innovation Co 096770 131,500 KRW 53,541 KRW −59%
Sunoco LP, SUN $75.55 $53.36 −29%

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Frequently asked questions

Is Star Gas Partners LP (SGU) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of $18.10 versus a price of $12.85, about +41% upside (undervalued).
What is the fair value of SGU?
Our model-based fair value for Star Gas Partners LP is $18.10 (as of Aug 21, 2026), built from audited fundamentals. The current price: $12.85.
What is the quality score of SGU?
Star Gas Partners LP has a Quality Score of 71/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Star Gas Partners LP (SGU)?
Star Gas Partners LP reported trailing-twelve-month revenue of about $1.9B (latest available figure, as of Aug 21, 2026).
What is the net profit margin of SGU?
The net profit margin of Star Gas Partners LP is about 5.3%, meaning it keeps roughly 5.3% of revenue as net income. Based on the latest reported figures.
Does Star Gas Partners LP pay a dividend?
Star Gas Partners LP currently shows a dividend yield of about 5.86% relative to its recent price (as of Aug 21, 2026).
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