Star Group, L.P. (SGU) AI Stock Analysis

Star Group, L.P. specializes in providing home heating and air conditioning products and services to residential and commercial customers across the United States. Its primary offerings include the sale of heating oil and propane, along with delivery services for diesel fuel, gasoline, and home heating oil. The company also delivers plumbing services and installs, maintains, and repairs heating and air conditioning equipment. Operating under general partner Kestrel Heat, LLC, Star Group served approximately 422,200 full-service home heating oil and propane customers, 71,100 delivery-only customers, and 26,700 fuel customers as of September 30, 2021.

Star Group posted FY2025 revenue of $1.78B, up 1.0% year-over-year, following declines of 2.7% in FY2023 and 9.6% in FY2024. Net income rebounded to $63.1M in FY2025 from $32.1M in FY2024, raising net margin from 1.8% to 3.5% and EPS from $0.79 to $1.48. Gross margin reached 29.6% and operating margin stood at 5.4% in FY2025. Over the trailing twelve months, revenue was $1.91B with EPS of $2.27, despite an operating margin of -10.0%. For the latest quarter ended June 30, 2026, quarterly revenue grew 17.2% year-over-year while quarterly earnings expanded 32.1%.

As of June 30, 2026, Star Group held $27.0M in cash and short-term investments against total debt of $269.9M, resulting in net debt of $242.9M. Shareholders' equity was $388.8M out of $1.01B in total assets, yielding a debt-to-equity ratio of 0.69 and a current ratio of 0.87. In FY2025, operating cash flow reached $71.0M and free cash flow was $56.0M. Capital deployment in FY2025 included $14.9M in capital expenditures, $26.1M in dividends paid, and $15.6M in share buybacks, which contributed to a 15.3% reduction in share count over five years.

At $13.09, Star Group trades at a trailing P/E of 5.8x, a forward P/E of 9.8x, and an EV-to-EBITDA of 3.8x, all below the median of its US-listed Energy peers at 15.0x, 12.7x, and 8.0x, respectively. Its price-to-sales multiple is 0.2x compared to the peer median of 1.8x. Over the past year, the stock returned 18.5%, outperforming the S&P 500 (SPY) return of 16.8%. Over a five-year horizon, the stock's 62.5% gain trailed the S&P 500's 83.0% return. Star Group carries a market capitalization of $429.5M and an enterprise value of $662.5M.

Star Group pays a quarterly dividend with an annualized forward rate of $0.79, representing a dividend yield of 6.04%. The payout ratio is 41.5%, and the partnership has paid consecutive dividends for 18 years. Over the past five years, the dividend grew at an annualized rate of 6.8%. The last ex-dividend date was October 26, 2026.

Wall Street coverage lists a mean price target of $13.00, which sits 0.7% below the last close of $13.09. Insiders hold 15.2% of the company's equity, institutional ownership stands at 42.3%, and short interest represents 0.1% of float.

This page is an AI-written research summary of Star Group, L.P. (SGU). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SGU income statement, SGU balance sheet, SGU key metrics, SGU chart. See the SGU stock overview for the latest quote and news.