SUBURBAN PROPANE PARTNERS LP (SPH) Stock Fundamental Analysis
NYSE:SPH - New York Stock Exchange, Inc. - US8644821048 - Currency: USD
Taking everything into account, SPH scores 5 out of 10 in our fundamental rating. SPH was compared to 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year SPH was profitable.
SPH had a positive operating cash flow in the past year.
Each year in the past 5 years SPH has been profitable.
SPH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SPH has a better Return On Assets (3.95%) than 71.43% of its industry peers.
Looking at the Return On Equity, with a value of 14.11%, SPH belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.41%, SPH is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
SPH had an Average Return On Invested Capital over the past 3 years of 8.09%. This is in line with the industry average of 6.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 14.11% | ||
| ROIC | 7.41% |
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
SPH's Profit Margin of 6.65% is on the low side compared to the rest of the industry. SPH is outperformed by 64.29% of its industry peers.
In the last couple of years the Profit Margin of SPH has remained more or less at the same level.
SPH has a Operating Margin of 14.26%. This is in the lower half of the industry: SPH underperforms 71.43% of its industry peers.
SPH's Operating Margin has been stable in the last couple of years.
SPH has a Gross Margin of 60.08%. This is comparable to the rest of the industry: SPH outperforms 50.00% of its industry peers.
SPH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.26% | ||
| PM (TTM) | 6.65% | ||
| GM | 60.08% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SPH is still creating some value.
The number of shares outstanding for SPH has been increased compared to 1 year ago.
SPH has more shares outstanding than it did 5 years ago.
SPH has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of SPH is 18.42, which is on the high side as it means it would take SPH, 18.42 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SPH (18.42) is better than 85.71% of its industry peers.
A Debt/Equity ratio of 1.93 is on the high side and indicates that SPH has dependencies on debt financing.
With a Debt to Equity ratio value of 1.93, SPH is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 18.42 | ||
| Altman-Z | N/A |
ROIC/WACC1.07
WACC6.91%
2.3 Liquidity
A Current Ratio of 1.06 indicates that SPH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.06, SPH belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
SPH has a Quick Ratio of 1.06. This is a bad value and indicates that SPH is not financially healthy enough and could expect problems in meeting its short term obligations.
SPH has a better Quick ratio (0.81) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for SPH have decreased strongly by -14.79% in the last year.
SPH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.72% yearly.
The Revenue has been growing slightly by 4.03% in the past 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)-14.79%
EPS 3Y-20.63%
EPS 5Y0.72%
EPS Q2Q%22.09%
Revenue 1Y (TTM)4.03%
Revenue growth 3Y0.98%
Revenue growth 5Y0.92%
Sales Q2Q%17.98%
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 18.75% yearly.
The Revenue is expected to grow by 3.20% on average over the next years.
EPS Next Y38.65%
EPS Next 2Y25.76%
EPS Next 3Y18.75%
EPS Next 5YN/A
Revenue Next Year9.03%
Revenue Next 2Y4.24%
Revenue Next 3Y3.2%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 12.76 indicates a correct valuation of SPH.
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.
When comparing the Price/Earnings ratio of SPH to the average of the S&P500 Index (27.45), we can say SPH is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.19, the valuation of SPH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SPH is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
SPH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.76 | ||
| Fwd PE | 10.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPH is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SPH is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.01 | ||
| EV/EBITDA | 9.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SPH's earnings are expected to grow with 18.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)17.8
EPS Next 2Y25.76%
EPS Next 3Y18.75%
5. Dividend
5.1 Amount
SPH has a Yearly Dividend Yield of 7.07%, which is a nice return.
SPH's Dividend Yield is rather good when compared to the industry average which is at 3.98. SPH pays more dividend than 100.00% of the companies in the same industry.
SPH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
5.2 History
The dividend of SPH decreases each year by -11.53%.
SPH has paid a dividend for at least 10 years, which is 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 88.04% of its income as dividend. This is not a sustainable payout ratio.
DP88.04%
EPS Next 2Y25.76%
EPS Next 3Y18.75%
18.38
+0.09 (+0.49%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners41.71%
Inst Owner Change4.95%
Ins Owners3.12%
Ins Owner Change-0.65%
Market Cap1.19B
Analysts48.89
Price Target17.34 (-5.66%)
Short Float %0.98%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
Yearly Dividend1.3
Dividend Growth(5Y)-11.53%
DP88.04%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-30.31%
Min EPS beat(2)-56%
Max EPS beat(2)-4.62%
EPS beat(4)0
Avg EPS beat(4)-40.42%
Min EPS beat(4)-57.25%
Max EPS beat(4)-4.62%
EPS beat(8)2
Avg EPS beat(8)-22.11%
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)2.5%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)6.18%
Revenue beat(4)1
Avg Revenue beat(4)-3.83%
Min Revenue beat(4)-11.34%
Max Revenue beat(4)6.18%
Revenue beat(8)1
Avg Revenue beat(8)-3.14%
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)5%
EPS NY rev (1m)8.68%
EPS NY rev (3m)-2.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.76 | ||
| Fwd PE | 10.19 | ||
| P/S | 0.84 | ||
| P/FCF | 17.01 | ||
| P/OCF | 8.12 | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.14 |
EPS(TTM)1.44
EY7.83%
EPS(NY)1.8
Fwd EY9.81%
FCF(TTM)1.08
FCFY5.88%
OCF(TTM)2.26
OCFY12.32%
SpS21.92
BVpS10.34
TBVpS-8.88
PEG (NY)0.33
PEG (5Y)17.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 14.11% | ||
| ROCE | 9.39% | ||
| ROIC | 7.41% | ||
| ROICexc | 7.43% | ||
| ROICexgc | 17.6% | ||
| OM | 14.26% | ||
| PM (TTM) | 6.65% | ||
| GM | 60.08% | ||
| FCFM | 4.93% |
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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 18.42 | ||
| Debt/EBITDA | 4.76 | ||
| Cap/Depr | 112.15% | ||
| Cap/Sales | 5.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.14% | ||
| Profit Quality | 74.09% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | N/A |
F-Score5
WACC6.91%
ROIC/WACC1.07
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)-14.79%
EPS 3Y-20.63%
EPS 5Y0.72%
EPS Q2Q%22.09%
EPS Next Y38.65%
EPS Next 2Y25.76%
EPS Next 3Y18.75%
EPS Next 5YN/A
Revenue 1Y (TTM)4.03%
Revenue growth 3Y0.98%
Revenue growth 5Y0.92%
Sales Q2Q%17.98%
Revenue Next Year9.03%
Revenue Next 2Y4.24%
Revenue Next 3Y3.2%
Revenue Next 5YN/A
EBIT growth 1Y-0.67%
EBIT growth 3Y-7.04%
EBIT growth 5Y1.51%
EBIT Next Year63.22%
EBIT Next 3Y18.97%
EBIT Next 5Y14.05%
FCF growth 1Y-61.9%
FCF growth 3Y-19.88%
FCF growth 5Y-12.01%
OCF growth 1Y-36.16%
OCF growth 3Y-10.84%
OCF growth 5Y-6.67%