# Star Gas Partners LP (SGU.US)

Canonical: https://gigainvestors.com/s/SGU

Analysis as of: 2026-10-16T07:31:52.539Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $13.01 per share; close as of 2026-10-15.

Estimated value: low $19.45 per share, central $22.13 per share, high $25.70 per share. Buy at or below the central value $22.13 per share. Valuation as of 2026-10-16T07:31:52.539Z; scenarios are not confidence intervals.

Expected annual return: 15.1% at the stated quote. About 15.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.42×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.08×

- FY2017: 0.04×

- FY2018: 0.04×

- FY2019: 0.02×

- FY2020: 0.06×

- FY2021: 0.09×

- FY2022: 0.04×

- FY2023: 0.03×

- FY2024: 0.04×

- FY2025: 0.05×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 29.3%

- ROIC, second-lowest year: 20.4%

- Typical minus recent gross margin: 1.1 pp

- Typical gross margin (annual median): 27.7%

- Recent gross margin (lower of latest and 3-year median): 26.6%

- Years with nonpositive capital: 2

- Capital spending / revenue: 0.9%

- ROIC including acquisitions, ten-year median: 15.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 84.4%

- FY2017: 28.3%

- FY2018: 70.2%

- FY2019: 14.1%

- FY2020: 35.9%

- FY2021: 43.6%

- FY2022: 20.4%

- FY2023: 21.1%

- FY2024: 30.3%

- FY2025: 25.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.42×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $346M

- Net income, five-year total: $244M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -2.7 pp

- Working capital / revenue, final three-year average: 6.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.22×

- FY2022: 1.46×

- FY2023: 1.83×

- FY2024: 1.68×

- FY2025: 1.34×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 70.2% vs 25.4%

- Per-share earnings: 0.60 to 0.91 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -5.0%

- Ordinary dilution, 5-year annual growth: -5.6%

- Market cap gain: -$229M

- Cumulative retained earnings: $146M

- Diluted shares, 10-year annual growth: -5.0%

- Diluted shares, 5-year annual growth: -5.6%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 5.4%

- Per-share value change: $0.31

- Per-share value, starting three-year median: $0.60

- Per-share value, ending three-year median: $0.91

- Buybacks concentrated in cheaper years (correlation): 0.17

- Average buyback yield: 6.7%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: $353M

- Cumulative net income, 10 years: $433M

- ROIC, first three-year median: 70.2%

- ROIC, last three-year median: 25.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.72

- FY2017: $0.46

- FY2018: $0.93

- FY2019: $0.37

- FY2020: $1.22

- FY2021: $2.16

- FY2022: $0.86

- FY2023: $0.82

- FY2024: $0.91

- FY2025: $1.84

### accounting: pass

- Sloan accruals: -0.8%

- Receivables to sales index (DSRI): 1.06×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.12×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.38×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.9%

- FY2017: 0.7%

- FY2018: -1.1%

- FY2019: -10.6%

- FY2020: -14.3%

- FY2021: 2.2%

- FY2022: -0.2%

- FY2023: -10.8%

- FY2024: -8.0%

- FY2025: -0.8%

## Holders

- [Bryan Lawrence](https://gigainvestors.com/OCL): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to shrink 5.8% a year for ten years · sales +1%

Story as of 2026-10-16T09:59:34.490Z; price observation 2026-10-15.

Price needs cash profits to shrink 5.8% a year for ten years

### Sales · FY2024–2025

sales +1%; source https://www.sec.gov/Archives/edgar/data/1002590/000119312525311490/sgu-20250930.htm; observed 2025-12-09.

- FY2016: $1.2B 

- FY2017: $1.3B 

- FY2018: $1.7B 

- FY2019: $1.8B 

- FY2020: $1.5B 

- FY2021: $1.5B 

- FY2022: $2.0B 

- FY2023: $2.0B 

- FY2024: $1.8B 

- FY2025: $1.8B 

### Gross margin · FY2025

gross margin 29.6%; source https://www.sec.gov/Archives/edgar/data/1002590/000119312525311490/sgu-20250930.htm; observed 2025-12-09.

- FY2016: 31.5% 

- FY2017: 28.8% 

- FY2018: 25.7% 

- FY2019: 25.9% 

- FY2020: 30.0% 

- FY2021: 29.7% 

- FY2022: 22.5% 

- FY2023: 22.4% 

- FY2024: 26.6% 

- FY2025: 29.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas refining & marketing; annual sales are USD 1.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1002590/000119312525311490/sgu-20250930.htm (filed 2025-12-09); FY2025: revenue 1784418000; grossProfit 527514000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); SGU.US: Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. It offers gasoline and diesel fuel; and installs, maintains, and repairs heating and air conditioning equipment and ancillary services. As of September 30, 2025, the company served approximately 406,400 full-service residential and commercial home heating oil and propane customers and 63,200 customers on a delivery only basis. It sells gasoline and diesel fuel to approximately 27,700 customers. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. The company was incorporated in 1995 and is based in Stamford, Connecticut.

### Why customers stay

Margins ranged from 22.4% to 29.6% during 2023–25; it earns 29.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); FY2023: grossProfit / revenue = 22.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); FY2024: grossProfit / revenue = 26.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1002590/000119312525311490/sgu-20250930.htm (filed 2025-12-09); FY2025: grossProfit / revenue = 29.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); 10-year return on capital observations [[2016,0.8441693907875186],[2017,0.28303704228344784],[2018,0.7019728413114503],[2019,0.14120165387819794],[2020,0.3594642685133369],[2021,0.43614173554096686],[2022,0.2035406909952465],[2023,0.21140298906893748],[2024,0.3027651872795658],[2025,0.25381172996211776]]; median 0.2929011147815068. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 15.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); FY2016: growth capex 0; upkeep 10134000; cash acquisitions 9815000; owner earnings 56796000. Growth capex plus acquisitions / owner earnings = 0.17281146559616875.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); FY2017: growth capex 0; upkeep 12164000; cash acquisitions 43304000; owner earnings 41704000. Growth capex plus acquisitions / owner earnings = 1.038365624400537.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); FY2018: growth capex 0; upkeep 13590000; cash acquisitions 23747000; owner earnings 67150000. Growth capex plus acquisitions / owner earnings = 0.3536411020104244.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); FY2019: growth capex 0; upkeep 11301000; cash acquisitions 60904000; owner earnings 39237000. Growth capex plus acquisitions / owner earnings = 1.5522083747483242.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); FY2020: growth capex 0; upkeep 14127000; cash acquisitions 4228000; owner earnings 77413000. Growth capex plus acquisitions / owner earnings = 0.05461614974229135.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); FY2021: growth capex 0; upkeep 15083000; cash acquisitions 40708000; owner earnings 107111000. Growth capex plus acquisitions / owner earnings = 0.38005433615595036.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); FY2022: growth capex 0; upkeep 18701000; cash acquisitions 13121000; owner earnings 46910000. Growth capex plus acquisitions / owner earnings = 0.27970581965465785.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); FY2023: growth capex 0; upkeep 9012000; cash acquisitions 19800000; owner earnings 53767000. Growth capex plus acquisitions / owner earnings = 0.3682556214778582.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); FY2024: growth capex 0; upkeep 10653000; cash acquisitions 49379000; owner earnings 53927000. Growth capex plus acquisitions / owner earnings = 0.9156637676859458.

- Source: https://www.sec.gov/Archives/edgar/data/1002590/000119312525311490/sgu-20250930.htm (filed 2025-12-09); FY2025: growth capex 0; upkeep 14920000; cash acquisitions 88143000; owner earnings 84643000. Growth capex plus acquisitions / owner earnings = 1.0413501411811963.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); Dividend observations: [[2016,23092000],[2017,24322000],[2018,25603000],[2019,25593000],[2020,24451000],[2021,23448000],[2022,23192000],[2023,23744000],[2024,25038000],[2025,26116000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1002590/000119312525311490/sgu-20250930.htm (filed 2025-12-09); FY2025: cash repurchases 15595000 USD.

### Are managers owners

Insiders own 15.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); SGU.US SharesStats.PercentInsiders = 15.198 percentage points; cache date 2026-10-05.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/1002590/000119312525311490/sgu-20250930.htm (filed 2025-12-09); ity to deliver our products and services in a timely manner, cause an increase in wholesale prices and a decrease in supply, lost sales, customer attrition, increased supply chain costs, or damage to our reputation, and could negatively impact our financial performance or financial condition. Constraints have been and could be caused by numerous factors including disruption within our supply chain network due to unforeseen events beyond our control. Such disruptions may result from weather-related events; natural disasters; international trade disputes or trade policy changes or restrictions; tariffs or import-related taxes; third-party strikes, lock-outs, work stoppages or slowdowns; shortages of supply chain labor, including truck drivers; shipping capacity constraints, including shortages of related equipment; third-party contract disputes; supply or shipping interruptions or costs; military conflicts; acts of terrorism; public health issues, including pandemics and related shut-downs, re-openings, or other actions by the government; civil unrest; or other factors beyond our control. In addition, constraints in physical product supplies could be caused by s, imbalances in supply and demand of liquid product, exacerbated by geopolitical forces, such as the wars in the Ukraine and in the Middle East. Further, backwardated energy markets, which exist when the current market price of wholesale product is higher than the futures price, have caused and may in the future cause suppliers to reduce physical inventories. We expect to cover a substantial majority of our expected heating oil and propane needs during the heating season for our full service residential and commercial customers with physical supply contracts and inventory on-hand at the beginning of the heating season. The remainder of our customer’s needs are satisfied through spot product purchases. During periods when supplies are constrained, we have paid and may continue to pay significant premiums over the wholesale product cost to ensure prompt delivery of spot purchases. In certain cases, these premium payments cannot be passed on to our customers, thereby reducing our profit margins.

If service at our third-party terminals, the common carrier pipelines used, the barge companies or third-party haulers we hire to move product is interrupted, our operations would be adversely affected.

The products that we sell are transported in either barge, pipeline or in truckload quantities to third-party terminals where we have contracts to temporarily store our products. Any significant interruption in the service of these third-party terminals, the common carrier pipelines used, the barge companies and third-party haulers that we hire to move product would adversely affect our ability to obtain product.

The risk of global terrorism, political unrest and war may adversely affect the economy and

### What the price says

The price assumes cash profits shrink 5.8% yearly over ten years; actual growth was 10.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-12-09); Ten-year compound average after fade. Initial solved rate -0.09402383588409663. Price 13.01; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.8978718946945758 → FY2025 2.469453845256156. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $9.50 per share

- 2016-11: $9.75 per share

- 2016-12: $10.76 per share

- 2017-01: $10.81 per share

- 2017-02: $9.52 per share

- 2017-03: $9.20 per share

- 2017-04: $9.37 per share

- 2017-05: $9.99 per share

- 2017-06: $10.84 per share

- 2017-07: $10.98 per share

- 2017-08: $10.92 per share

- 2017-09: $11.35 per share

- 2017-10: $11.07 per share

- 2017-11: $10.32 per share

- 2017-12: $10.75 per share

- 2018-01: $10.61 per share

- 2018-02: $9.30 per share

- 2018-03: $9.35 per share

- 2018-04: $9.72 per share

- 2018-05: $9.33 per share

- 2018-06: $9.80 per share

- 2018-07: $9.61 per share

- 2018-08: $9.56 per share

- 2018-09: $9.77 per share

- 2018-10: $9.56 per share

- 2018-11: $9.63 per share

- 2018-12: $9.34 per share

- 2019-01: $9.15 per share

- 2019-02: $9.85 per share

- 2019-03: $9.60 per share

- 2019-04: $9.49 per share

- 2019-05: $9.69 per share

- 2019-06: $9.99 per share

- 2019-07: $9.62 per share

- 2019-08: $9.20 per share

- 2019-09: $9.47 per share

- 2019-10: $9.29 per share

- 2019-11: $9.39 per share

- 2019-12: $9.46 per share

- 2020-01: $9.28 per share

- 2020-02: $8.98 per share

- 2020-03: $7.70 per share

- 2020-04: $7.90 per share

- 2020-05: $7.90 per share

- 2020-06: $8.77 per share

- 2020-07: $9.42 per share

- 2020-08: $9.80 per share

- 2020-09: $9.75 per share

- 2020-10: $9.46 per share

- 2020-11: $9.57 per share

- 2020-12: $9.41 per share

- 2021-01: $9.56 per share

- 2021-02: $9.63 per share

- 2021-03: $10.59 per share

- 2021-04: $10.59 per share

- 2021-05: $10.45 per share

- 2021-06: $11.20 per share

- 2021-07: $11.79 per share

- 2021-08: $10.98 per share

- 2021-09: $10.19 per share

- 2021-10: $11.35 per share

- 2021-11: $9.85 per share

- 2021-12: $10.77 per share

- 2022-01: $10.44 per share

- 2022-02: $9.75 per share

- 2022-03: $11.10 per share

- 2022-04: $10.68 per share

- 2022-05: $10.05 per share

- 2022-06: $9.17 per share

- 2022-07: $9.84 per share

- 2022-08: $9.19 per share

- 2022-09: $8.13 per share

- 2022-10: $8.82 per share

- 2022-11: $8.73 per share

- 2022-12: $12.05 per share

- 2023-01: $11.95 per share

- 2023-02: $12.57 per share

- 2023-03: $12.97 per share

- 2023-04: $13.53 per share

- 2023-05: $14.00 per share

- 2023-06: $13.66 per share

- 2023-07: $13.56 per share

- 2023-08: $11.73 per share

- 2023-09: $12.03 per share

- 2023-10: $11.76 per share

- 2023-11: $12.90 per share

- 2023-12: $11.53 per share

- 2024-01: $11.31 per share

- 2024-02: $10.93 per share

- 2024-03: $10.02 per share

- 2024-04: $11.50 per share

- 2024-05: $10.73 per share

- 2024-06: $10.64 per share

- 2024-07: $11.06 per share

- 2024-08: $11.53 per share

- 2024-09: $11.74 per share

- 2024-10: $11.13 per share

- 2024-11: $12.66 per share

- 2024-12: $11.54 per share

- 2025-01: $11.87 per share

- 2025-02: $13.02 per share

- 2025-03: $13.18 per share

- 2025-04: $12.45 per share

- 2025-05: $11.96 per share

- 2025-06: $11.70 per share

- 2025-07: $11.70 per share

- 2025-08: $11.65 per share

- 2025-09: $11.83 per share

- 2025-10: $11.57 per share

- 2025-11: $12.00 per share

- 2025-12: $11.84 per share

- 2026-01: $12.64 per share

- 2026-02: $12.85 per share

- 2026-03: $12.28 per share

- 2026-04: $12.67 per share

- 2026-05: $12.55 per share

- 2026-06: $12.84 per share

- 2026-07: $12.54 per share

- 2026-08: $12.78 per share

- 2026-09: $12.84 per share

- 2026-10: $13.01 per share

## Annual estimated value (USD per share)

- FY2016: low $7.70 per share, central $8.47 per share, high $9.50 per share

- FY2017: low $8.42 per share, central $9.51 per share, high $10.97 per share

- FY2018: low $10.92 per share, central $12.43 per share, high $14.43 per share

- FY2019: low $12.78 per share, central $14.54 per share, high $16.89 per share

- FY2020: low $14.66 per share, central $16.60 per share, high $19.18 per share

- FY2021: low $16.17 per share, central $18.40 per share, high $21.37 per share

- FY2022: low $23.48 per share, central $26.72 per share, high $31.03 per share

- FY2023: low $16.94 per share, central $19.21 per share, high $22.23 per share

- FY2024: low $19.04 per share, central $21.34 per share, high $24.41 per share

- FY2025: low $17.38 per share, central $19.77 per share, high $22.96 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1002590/000119312525311490/sgu-20250930.htm); period 2025-09-30, filed 2025-12-09.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.