SUBURBAN PROPANE PARTNERS LP (SPH) Stock Fundamental Analysis
NYSE:SPH - New York Stock Exchange, Inc. - US8644821048 - Currency: USD
We assign a fundamental rating of 4 out of 10 to SPH. SPH was compared to 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 has a decent growth rate and is not valued too expensively.
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.
In the past 5 years SPH always reported a positive cash flow from operatings.
1.2 Ratios
SPH has a Return On Assets of 2.90%. This is comparable to the rest of the industry: SPH outperforms 50.00% of its industry peers.
SPH has a Return On Equity of 12.68%. This is amongst the best in the industry. SPH outperforms 85.71% of its industry peers.
With a decent Return On Invested Capital value of 6.98%, SPH is doing good in the industry, outperforming 78.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SPH is in line with the industry average of 7.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 12.68% | ||
| ROIC | 6.98% |
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 5.18%, SPH is doing worse than 64.29% of the companies in the same industry.
SPH's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 13.60%, SPH is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of SPH has remained more or less at the same level.
The Gross Margin of SPH (61.32%) is comparable to the rest of the industry.
SPH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.6% | ||
| PM (TTM) | 5.18% | ||
| GM | 61.32% |
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 11.84, which is on the high side as it means it would take SPH, 11.84 years of fcf income to pay off all of its debts.
SPH's Debt to FCF ratio of 11.84 is amongst the best of the industry. SPH outperforms 92.86% of its industry peers.
SPH has a Debt/Equity ratio of 2.39. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.39, SPH is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | 11.84 | ||
| Altman-Z | N/A |
ROIC/WACC1
WACC6.99%
2.3 Liquidity
SPH has a Current Ratio of 0.70. This is a bad value and indicates that SPH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.70, SPH is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that SPH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.51, SPH is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for SPH have decreased strongly by -33.33% 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.
Looking at the last year, SPH shows a decrease in Revenue. The Revenue has decreased by -4.50% in the last year.
SPH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.92% yearly.
EPS 1Y (TTM)-33.33%
EPS 3Y-20.63%
EPS 5Y0.72%
EPS Q2Q%-21.05%
Revenue 1Y (TTM)-4.5%
Revenue growth 3Y0.98%
Revenue growth 5Y0.92%
Sales Q2Q%2.05%
3.2 Future
Based on estimates for the next years, SPH will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.79% on average per year.
The Revenue is expected to grow by 2.97% on average over the next years.
EPS Next Y27.58%
EPS Next 2Y20.72%
EPS Next 3Y19.79%
EPS Next 5YN/A
Revenue Next Year6.07%
Revenue Next 2Y3.88%
Revenue Next 3Y2.97%
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 18.96 indicates a rather expensive valuation of SPH.
SPH's Price/Earnings is on the same level as the industry average.
SPH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.10, the valuation of SPH can be described as correct.
Based on the Price/Forward Earnings ratio, SPH is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.85, SPH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 12.1 |
4.2 Price Multiples
SPH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SPH is more expensive than 64.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SPH is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.78 | ||
| EV/EBITDA | 10.57 |
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.
SPH's earnings are expected to grow with 19.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)26.45
EPS Next 2Y20.72%
EPS Next 3Y19.79%
5. Dividend
5.1 Amount
SPH has a Yearly Dividend Yield of 6.27%, which is a nice return.
Compared to an average industry Dividend Yield of 3.86, 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 2.51, SPH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
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
120.43% of the earnings are spent on dividend by SPH. This is not a sustainable payout ratio.
DP120.43%
EPS Next 2Y20.72%
EPS Next 3Y19.79%
NYSE:SPH (4/21/2025, 8:04:00 PM)
20.1
-0.62 (-2.99%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners37.63%
Inst Owner Change0.05%
Ins Owners3.16%
Ins Owner Change5.73%
Market Cap1.30B
Analysts48.89
Price Target17.34 (-13.73%)
Short Float %1.79%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
Yearly Dividend1.3
Dividend Growth(5Y)-11.53%
DP120.43%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-49.91%
Min EPS beat(2)-56%
Max EPS beat(2)-43.82%
EPS beat(4)0
Avg EPS beat(4)-41.74%
Min EPS beat(4)-57.25%
Max EPS beat(4)-9.9%
EPS beat(8)2
Avg EPS beat(8)-23.64%
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)-6.25%
Min Revenue beat(2)-11.34%
Max Revenue beat(2)-1.17%
Revenue beat(4)0
Avg Revenue beat(4)-6.25%
Min Revenue beat(4)-11.34%
Max Revenue beat(4)-1.17%
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)3.03%
EPS NQ rev (1m)2.35%
EPS NQ rev (3m)13.54%
EPS NY rev (1m)-32.39%
EPS NY rev (3m)-33.44%
Revenue NQ rev (1m)0.92%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)16.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 12.1 | ||
| P/S | 0.97 | ||
| P/FCF | 11.78 | ||
| P/OCF | 7.12 | ||
| P/B | 2.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.57 |
EPS(TTM)1.06
EY5.27%
EPS(NY)1.66
Fwd EY8.27%
FCF(TTM)1.71
FCFY8.49%
OCF(TTM)2.82
OCFY14.05%
SpS20.7
BVpS8.45
TBVpS-10.97
PEG (NY)0.69
PEG (5Y)26.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 12.68% | ||
| ROCE | 8.83% | ||
| ROIC | 6.98% | ||
| ROICexc | 6.99% | ||
| ROICexgc | 17.97% | ||
| OM | 13.6% | ||
| PM (TTM) | 5.18% | ||
| GM | 61.32% | ||
| FCFM | 8.24% |
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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | 11.84 | ||
| Debt/EBITDA | 5.23 | ||
| Cap/Depr | 106.56% | ||
| Cap/Sales | 5.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.08% | ||
| Profit Quality | 159.13% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | N/A |
F-Score4
WACC6.99%
ROIC/WACC1
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)-33.33%
EPS 3Y-20.63%
EPS 5Y0.72%
EPS Q2Q%-21.05%
EPS Next Y27.58%
EPS Next 2Y20.72%
EPS Next 3Y19.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.5%
Revenue growth 3Y0.98%
Revenue growth 5Y0.92%
Sales Q2Q%2.05%
Revenue Next Year6.07%
Revenue Next 2Y3.88%
Revenue Next 3Y2.97%
Revenue Next 5YN/A
EBIT growth 1Y-6.09%
EBIT growth 3Y-7.04%
EBIT growth 5Y1.51%
EBIT Next Year63.22%
EBIT Next 3Y19.51%
EBIT Next 5Y14.05%
FCF growth 1Y-43.75%
FCF growth 3Y-19.88%
FCF growth 5Y-12.01%
OCF growth 1Y-24.14%
OCF growth 3Y-10.84%
OCF growth 5Y-6.67%