Star Group, L.P.

SGU

Oil & Gas Refining & Marketing · Energy

Price

$13.09

-0.05 (-0.38%)

Market Cap

$429.8M

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count falling — buybacks

−15.5% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 40.6M (2021) → 34.3M (2025)

Star Group, L.P. is a retail energy distributor that delivers heating oil and propane directly to homes and businesses, mostly in the northeastern United States. It also sells and services heating and cooling equipment, making it a one-stop shop for residential energy needs. The company is one of the largest retail heating oil distributors in the country.

Star Group makes money by selling fuel at a markup over wholesale prices and charging for equipment installation and maintenance services. It operates almost entirely in the Northeast, where cold winters drive consistent demand for home heating. The business has a loyal, subscription-like customer base and benefits from long-term service contracts, which provide some revenue stability. However, the company faces real risks from warm winters reducing fuel demand, rising competition from natural gas and electric heat pumps, and volatile crude oil prices that can squeeze profit margins.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.2% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+63.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

25.1%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Runway

~4 months

$12M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Star Group, L.P. has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

35.1%

Modest — 35.1% gross margin

Operating Margin

16.8%

Healthy — 16.8% operating margin

ROCE

18.0%

Strong — 18.0% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales YoY

+16.1%

Fast-growing sales (16.1% YoY)

EPS YoY

+658.2%

Earnings growing fast (658.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

93%

Modest — 93% of profit becomes cash

FCF Margin

5.6%

Thin free cash flow (5.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.66

Moderate — manageable debt (0.66)

Interest Cover

25.36x

Comfortably covers interest (25.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

3.1x

Attractive valuation — P/E 3.1

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

-20.3

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield

5.84%

Healthy income — 5.84% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth

+7.1%

Dividend growing modestly (7.1% YoY)

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