SUBURBAN PROPANE PARTNERS LP (SPH)
US8644821048
Overall SPH gets a fundamental rating of 4 out of 10. We evaluated SPH against 14 industry peers in the Gas Utilities industry. There are concerns on the financial health of SPH while its profitability can be described as average. SPH is cheap, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years SPH has been profitable.
Each year in the past 5 years SPH had a positive operating cash flow.
1.2 Ratios
SPH's Return On Assets of 3.26% is fine compared to the rest of the industry. SPH outperforms 64.29% of its industry peers.
Looking at the Return On Equity, with a value of 13.56%, SPH belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
The Return On Invested Capital of SPH (6.88%) is better than 78.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SPH is in line with the industry average of 6.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 13.56% | ||
| ROIC | 6.88% |
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
Looking at the Profit Margin, with a value of 5.59%, SPH is in line with its industry, outperforming 42.86% of the companies in the same industry.
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 12.90%. 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 (60.65%) which is in line with its industry peers.
In the last couple of years the Gross Margin of SPH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.9% | ||
| PM (TTM) | 5.59% | ||
| GM | 60.65% |
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.
SPH has more shares outstanding than it did 1 year ago.
SPH has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SPH is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of SPH is 11.96, which is on the high side as it means it would take SPH, 11.96 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 11.96, SPH belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
A Debt/Equity ratio of 2.21 is on the high side and indicates that SPH has dependencies on debt financing.
SPH has a Debt to Equity ratio of 2.21. This is amonst the worse of the industry: SPH underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 11.96 | ||
| Altman-Z | N/A |
ROIC/WACC0.96
WACC7.14%
2.3 Liquidity
SPH has a Current Ratio of 0.51. 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 Current ratio (0.51) which is in line with its industry peers.
SPH has a Quick Ratio of 0.51. 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 worse Quick ratio (0.33) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
SPH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.62%.
The Earnings Per Share has been growing slightly by 0.72% on average over the past years.
SPH shows a decrease in Revenue. In the last year, the revenue decreased by -7.14%.
SPH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.92% yearly.
EPS 1Y (TTM)-40.62%
EPS 3Y-20.63%
EPS 5Y0.72%
EPS Q2Q%-109.09%
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y0.98%
Revenue growth 5Y0.92%
Sales Q2Q%-7.92%
3.2 Future
The Earnings Per Share is expected to grow by 37.43% on average over the next years. This is a very strong growth
SPH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.89% yearly.
EPS Next Y91.66%
EPS Next 2Y48.23%
EPS Next 3Y37.43%
EPS Next 5YN/A
Revenue Next Year-8.73%
Revenue Next 2Y-3.89%
Revenue Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.83, SPH is valued correctly.
Based on the Price/Earnings ratio, SPH is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
SPH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.28.
Based on the Price/Forward Earnings ratio of 8.78, the valuation of SPH can be described as reasonable.
100.00% of the companies in the same industry are more expensive than SPH, based on the Price/Forward Earnings ratio.
SPH is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.83 | ||
| Fwd PE | 8.78 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SPH.
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 | 12.23 | ||
| EV/EBITDA | 10.14 |
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.
The decent profitability rating of SPH may justify a higher PE ratio.
A more expensive valuation may be justified as SPH's earnings are expected to grow with 37.43% in the coming years.
PEG (NY)0.18
PEG (5Y)23.48
EPS Next 2Y48.23%
EPS Next 3Y37.43%
5. Dividend
5.1 Amount
SPH has a Yearly Dividend Yield of 7.27%, which is a nice return.
SPH's Dividend Yield is rather good when compared to the industry average which is at 4.17. SPH pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, SPH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.27% |
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
112.02% of the earnings are spent on dividend by SPH. This is not a sustainable payout ratio.
DP112.02%
EPS Next 2Y48.23%
EPS Next 3Y37.43%
SUBURBAN PROPANE PARTNERS LP
NYSE:SPH (1/15/2025, 2:16:26 PM)
19.19
+0.46 (+2.46%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners35.83%
Inst Owner Change0%
Ins Owners3.11%
Ins Owner Change5.99%
Market Cap1.24B
Analysts48
Price Target16.83 (-12.3%)
Short Float %1.29%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.27% |
Dividend Growth(5Y)-11.53%
DP112.02%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-50.54%
Min EPS beat(2)-57.25%
Max EPS beat(2)-43.82%
EPS beat(4)0
Avg EPS beat(4)-37.81%
Min EPS beat(4)-57.25%
Max EPS beat(4)-9.9%
EPS beat(8)3
Avg EPS beat(8)-12.56%
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)0
Avg Revenue beat(2)-10.17%
Min Revenue beat(2)-11.34%
Max Revenue beat(2)-8.99%
Revenue beat(4)0
Avg Revenue beat(4)-6.15%
Min Revenue beat(4)-11.34%
Max Revenue beat(4)-0.76%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-7.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.83 | ||
| Fwd PE | 8.78 | ||
| P/S | 0.93 | ||
| P/FCF | 12.23 | ||
| P/OCF | 7.71 | ||
| P/B | 2.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.14 |
EPS(TTM)1.14
EY5.94%
EPS(NY)2.18
Fwd EY11.39%
FCF(TTM)1.57
FCFY8.17%
OCF(TTM)2.49
OCFY12.98%
SpS20.58
BVpS8.48
TBVpS-10.52
PEG (NY)0.18
PEG (5Y)23.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 13.56% | ||
| ROCE | 8.71% | ||
| ROIC | 6.88% | ||
| ROICexc | 6.89% | ||
| ROICexgc | 18.34% | ||
| OM | 12.9% | ||
| PM (TTM) | 5.59% | ||
| GM | 60.65% | ||
| FCFM | 7.62% |
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-Score4
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.21 | ||
| Debt/FCF | 11.96 | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | 88.73% | ||
| Cap/Sales | 4.48% | ||
| Interest Coverage | 2.33 | ||
| Cash Conversion | 67.41% | ||
| Profit Quality | 136.38% | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | N/A |
F-Score4
WACC7.14%
ROIC/WACC0.96
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)-40.62%
EPS 3Y-20.63%
EPS 5Y0.72%
EPS Q2Q%-109.09%
EPS Next Y91.66%
EPS Next 2Y48.23%
EPS Next 3Y37.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.14%
Revenue growth 3Y0.98%
Revenue growth 5Y0.92%
Sales Q2Q%-7.92%
Revenue Next Year-8.73%
Revenue Next 2Y-3.89%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-17.23%
EBIT growth 3Y-7.04%
EBIT growth 5Y1.51%
EBIT Next Year67.53%
EBIT Next 3Y23.81%
EBIT Next 5Y14.05%
FCF growth 1Y-43.89%
FCF growth 3Y-19.88%
FCF growth 5Y-12.01%
OCF growth 1Y-28.7%
OCF growth 3Y-10.84%
OCF growth 5Y-6.67%