SUBURBAN PROPANE PARTNERS LP (SPH) Stock Fundamental Analysis
USA - NYSE:SPH - US8644821048
18.56 USD
+0.06 (+0.32%)
18.878 USD
+0.32 (+1.71%)
SPH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. While SPH is still in line with the averages on profitability rating, there are concerns on its financial health. SPH scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year SPH was profitable.
In the past year SPH had a positive cash flow from operations.
SPH had positive earnings in each of the past 5 years.
SPH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SPH (4.20%) is better than 85.71% of its industry peers.
SPH's Return On Equity of 15.03% is amongst the best of the industry. SPH outperforms 85.71% of its industry peers.
The Return On Invested Capital of SPH (7.67%) is better than 78.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SPH is in line with the industry average of 6.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 15.03% | ||
| ROIC | 7.67% |
ROA(3y)5.12%
ROA(5y)4.86%
ROE(3y)21.43%
ROE(5y)21.99%
ROIC(3y)8.09%
ROIC(5y)7.99%
1.3 Margins
The Profit Margin of SPH (6.79%) is worse than 64.29% of its industry peers.
SPH's Profit Margin has been stable in the last couple of years.
The Operating Margin of SPH (14.02%) is worse than 71.43% of its industry peers.
SPH's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 59.87%, SPH perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
SPH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.02% | ||
| PM (TTM) | 6.79% | ||
| GM | 59.87% |
OM growth 3Y-7.95%
OM growth 5Y0.58%
PM growth 3Y-16.29%
PM growth 5Y0.65%
GM growth 3Y-0.9%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SPH is creating some value.
The number of shares outstanding for SPH has been increased compared to 1 year ago.
Compared to 5 years ago, SPH has more shares outstanding
Compared to 1 year ago, SPH has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of SPH is 11.75, which is on the high side as it means it would take SPH, 11.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SPH (11.75) is better than 92.86% of its industry peers.
A Debt/Equity ratio of 1.90 is on the high side and indicates that SPH has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.90, SPH is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 11.75 | ||
| Altman-Z | N/A |
ROIC/WACC1.13
WACC6.77%
2.3 Liquidity
A Current Ratio of 0.70 indicates that SPH may have some problems paying its short term obligations.
SPH has a Current ratio of 0.70. This is comparable to the rest of the industry: SPH outperforms 50.00% of its industry peers.
A Quick Ratio of 0.46 indicates that SPH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.46, SPH is doing worse than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
SPH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.33%.
Measured over the past 5 years, SPH shows a small growth in Earnings Per Share. The EPS has been growing by 0.72% on average per year.
Looking at the last year, SPH shows a small growth in Revenue. The Revenue has grown by 6.29% in the last year.
Measured over the past years, SPH shows a small growth in Revenue. The Revenue has been growing by 0.92% on average per year.
EPS 1Y (TTM)-1.33%
EPS 3Y-20.63%
EPS 5Y0.72%
EPS Q2Q%14.81%
Revenue 1Y (TTM)6.29%
Revenue growth 3Y0.98%
Revenue growth 5Y0.92%
Sales Q2Q%2.18%
3.2 Future
SPH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.23% yearly.
The Revenue is expected to grow by 2.50% on average over the next years.
EPS Next Y38.65%
EPS Next 2Y25.76%
EPS Next 3Y18.75%
EPS Next 5Y15.23%
Revenue Next Year9.03%
Revenue Next 2Y4.24%
Revenue Next 3Y3.2%
Revenue Next 5Y2.5%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.54, the valuation of SPH can be described as correct.
SPH's Price/Earnings ratio is a bit cheaper when compared to the industry. SPH is cheaper than 78.57% of the companies in the same industry.
SPH is valuated cheaply when we compare the Price/Earnings ratio to 27.49, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.29 indicates a reasonable valuation of SPH.
SPH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPH is cheaper than 78.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SPH to the average of the S&P500 Index (22.99), we can say SPH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 10.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPH indicates a somewhat cheap valuation: SPH is cheaper than 71.43% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPH indicates a rather cheap valuation: SPH is cheaper than 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.65 | ||
| EV/EBITDA | 8.97 |
4.3 Compensation for Growth
SPH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SPH may justify a higher PE ratio.
SPH's earnings are expected to grow with 18.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)17.49
EPS Next 2Y25.76%
EPS Next 3Y18.75%
5. Dividend
5.1 Amount
SPH has a Yearly Dividend Yield of 7.10%, which is a nice return.
Compared to an average industry Dividend Yield of 3.87, SPH pays a better dividend. On top of this SPH pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, SPH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.1% |
5.2 History
The dividend of SPH decreases each year by -11.53%.
SPH has been paying a dividend for at least 10 years, so it has a reliable track record.
SPH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-11.53%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
SPH pays out 86.21% of its income as dividend. This is not a sustainable payout ratio.
DP86.21%
EPS Next 2Y25.76%
EPS Next 3Y18.75%
18.56
+0.06 (+0.32%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners41.5%
Inst Owner Change0.05%
Ins Owners2.72%
Ins Owner Change-0.52%
Market Cap1.22B
Analysts48.89
Price Target17.34 (-6.57%)
Short Float %0.79%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.1% |
Yearly Dividend1.3
Dividend Growth(5Y)-11.53%
DP86.21%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.24%
Min EPS beat(2)-19.85%
Max EPS beat(2)-4.62%
EPS beat(4)0
Avg EPS beat(4)-31.07%
Min EPS beat(4)-56%
Max EPS beat(4)-4.62%
EPS beat(8)1
Avg EPS beat(8)-25.44%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.79%
Min Revenue beat(2)-4.6%
Max Revenue beat(2)6.18%
Revenue beat(4)1
Avg Revenue beat(4)-2.73%
Min Revenue beat(4)-11.34%
Max Revenue beat(4)6.18%
Revenue beat(8)1
Avg Revenue beat(8)-3.49%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 10.29 | ||
| P/S | 0.85 | ||
| P/FCF | 11.65 | ||
| P/OCF | 6.71 | ||
| P/B | 1.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.97 |
EPS(TTM)1.48
EY7.97%
EPS(NY)1.8
Fwd EY9.71%
FCF(TTM)1.59
FCFY8.58%
OCF(TTM)2.77
OCFY14.91%
SpS21.84
BVpS9.87
TBVpS-9.16
PEG (NY)0.32
PEG (5Y)17.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 15.03% | ||
| ROCE | 9.72% | ||
| ROIC | 7.67% | ||
| ROICexc | 7.68% | ||
| ROICexgc | 19.39% | ||
| OM | 14.02% | ||
| PM (TTM) | 6.79% | ||
| GM | 59.87% | ||
| FCFM | 7.3% |
ROA(3y)5.12%
ROA(5y)4.86%
ROE(3y)21.43%
ROE(5y)21.99%
ROIC(3y)8.09%
ROIC(5y)7.99%
ROICexc(3y)8.11%
ROICexc(5y)8.01%
ROICexgc(3y)22.07%
ROICexgc(5y)22.37%
ROCE(3y)10.24%
ROCE(5y)10.12%
ROICexcg growth 3Y-12.63%
ROICexcg growth 5Y-4.17%
ROICexc growth 3Y-10.39%
ROICexc growth 5Y-0.47%
OM growth 3Y-7.95%
OM growth 5Y0.58%
PM growth 3Y-16.29%
PM growth 5Y0.65%
GM growth 3Y-0.9%
GM growth 5Y0.4%
F-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 11.75 | ||
| Debt/EBITDA | 4.51 | ||
| Cap/Depr | 108.43% | ||
| Cap/Sales | 5.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.76% | ||
| Profit Quality | 107.41% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | N/A |
F-Score5
WACC6.77%
ROIC/WACC1.13
Cap/Depr(3y)78.69%
Cap/Depr(5y)58.5%
Cap/Sales(3y)3.53%
Cap/Sales(5y)3.17%
Profit Quality(3y)136.04%
Profit Quality(5y)171.85%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.33%
EPS 3Y-20.63%
EPS 5Y0.72%
EPS Q2Q%14.81%
EPS Next Y38.65%
EPS Next 2Y25.76%
EPS Next 3Y18.75%
EPS Next 5Y15.23%
Revenue 1Y (TTM)6.29%
Revenue growth 3Y0.98%
Revenue growth 5Y0.92%
Sales Q2Q%2.18%
Revenue Next Year9.03%
Revenue Next 2Y4.24%
Revenue Next 3Y3.2%
Revenue Next 5Y2.5%
EBIT growth 1Y1.38%
EBIT growth 3Y-7.04%
EBIT growth 5Y1.51%
EBIT Next Year61.49%
EBIT Next 3Y18.84%
EBIT Next 5Y14.05%
FCF growth 1Y-39.46%
FCF growth 3Y-19.88%
FCF growth 5Y-12.01%
OCF growth 1Y-16.42%
OCF growth 3Y-10.84%
OCF growth 5Y-6.67%