Star Group L.P. (SGU) Drops 0.33% After Earnings
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Post Earning Analysis
Star Group L.P. (SGU) Drops 0.33% After Earnings
Star Group LP, founded in 1995 and headquartered in Stamford, Connecticut, specializes in the distribution and provision of home heating oil, propane, and related services primarily to residential and commercial customers. The company also offers diesel fuel, gasoline, and home heating oil through delivery-only services, establishing itself as a reliable supplier in the energy sector.
The current price of the asset is $11.95, showing a slight decline today by 0.33%. This price is near the upper middle range when compared to its 52-week spread between $10.46 and $13.13, and it has seen similar highs and lows year-to-date. Recently, the asset has traded closer to its weekly high of $12.12 and significantly above its weekly low of $11.79.
The Relative Strength Index (RSI) at 51.63 suggests a neutral momentum, neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) value of 0.07 indicates a weak bullish signal, as it is slightly above zero, suggesting some upward price momentum.
The price is slightly below the 20-day moving average by 0.02% but above the 50-day and 200-day moving averages by 1.43% and 1.27%, respectively. This indicates a generally positive trend in the medium to long term, despite the short-term fluctuations.
In summary, the asset is currently stable with a slight bullish inclination in the medium to long term, though recent trading sessions show minor volatility.
Star Group, L.P. reported its fiscal year 2025 results, showing a modest revenue increase of 1.0% to $1.8 billion, attributed to a significant 11.5% rise in volume sold, totaling 282.6 million gallons of home heating oil and propane. This increase was driven by colder temperatures, despite a decline in selling prices linked to lower wholesale product costs. Net income for the year surged by $38.3 million to $73.5 million, bolstered by a $32.4 million favorable adjustment in the fair value of derivative instruments and a $24.8 million rise in Adjusted EBITDA.
For the fourth quarter, revenue grew by 3.1% to $247.7 million, primarily due to increased sales in services and installations. However, the quarter saw a net loss of $28.7 million, a $6.4 million improvement from the previous year, despite higher operating expenses and lower margins contributing to a $3.3 million increase in Adjusted EBITDA loss to $33.0 million.
Overall, the company experienced a full-year revenue growth of 1.0% and a 22.2% increase in Adjusted EBITDA compared to fiscal year 2024. The quarterly results reflected an 8.1% increase in volume and a 3.1% increase in revenue year-over-year, with a notable reduction in quarterly net loss.
Dividend Payments Table
| Date | Dividend |
|---|---|
| 2025-10-27 | 0.185 |
| 2025-07-28 | 0.185 |
| 2025-04-28 | 0.185 |
| 2025-01-27 | 0.173 |
| 2024-10-28 | 0.173 |
| 2024-07-29 | 0.173 |
| 2024-04-26 | 0.173 |
| 2024-01-19 | 0.163 |
The dividend data spanning from January 2024 to October 2025 indicates a clear trend of increment in the dividend payouts over the observed periods. Initially, in January 2024, the dividend stood at $0.163. This figure remained constant throughout the subsequent quarters of 2024, with each quarter reflecting a consistent payment of $0.173, suggesting a modest increase from the initial value noted at the beginning of the year.
Starting from January 2025, a further increase was observed, where dividends rose to $0.185, marking a continuation of the upward trend in dividend payments. This increased rate was maintained consistently across the four quarters of 2025, highlighting a stable growth pattern in dividend distribution over the two-year span.
This steady increase in dividends could be indicative of the company’s improving financial health and commitment to returning value to its shareholders. The consistent upward adjustment in dividend payments reflects positively on the company’s financial management and its strategic priorities towards shareholders’ rewards.
As of the latest data, the stock is trading at a current price of $11.95. This pricing is notably lower when compared to the average target price provided by analysts, which stands at $15.00. This indicates a potential upside of approximately 25.5% from the current trading price, suggesting that analysts might be seeing underlying value or growth prospects that are not yet reflected in the market price.
In terms of earnings per share (EPS), there has been a noticeable trend of improvement, suggesting operational efficiency or increased profitability that could be driving analyst optimism. Additionally, dividend trends have been stable, which might appeal to income-focused investors. This stability in dividends, coupled with a positive EPS trend, provides a dual incentive for both growth and income investors. However, potential investors should consider market conditions, company-specific news, and broader economic factors that could impact these predictions and trends.
Disclaimer: The information provided here is for educational and informational purposes only and should not be interpreted as financial advice, investment recommendations, or trading guidance. Markets involve risk, and past performance is not indicative of future results. You should always conduct your own research and consult with a qualified financial advisor before making any investment decisions. By acting, you accept full responsibility for your choices.