Global Partners LP Common Units representing Limited Partner Interests (GLP)

FairStock Score: 46/100 — MIXED

Key Financials

Strengths

• Generates $177 million in annual free cash flow (11.2% yield on market cap)
• Solid return on equity of 14.1% above cost of capital
• Attractive 6.6% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($31) with negative 51% margin of safety—limited downside protection
• High leverage at 3.07x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 1.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Global Partners LP Common Units representing Limited Partner Interests is a micro-cap energy company valued at $1.6 billion. The business generates $18.6 billion in annual revenue with a 0.1% net margin and $177 million in free cash flow. From a quality standpoint, Global shows distressed Altman Z-Score of 1.6 warrants caution and adequate 14% ROE. On valuation, the stock is reasonably priced at 22.4x earnings, with trades above its Graham Number with a negative 51% margin. Growth dynamics show revenue growing at 11.0% and profit growth of 5.0%. The 6.6% dividend yield adds an income component for patient holders. Our composite FairStock Score of 46/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $177 million in annual free cash flow (11.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 3.1x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer