Star Group L.P. Common Stock (SGU)

FairStock Score: 73/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Star Group as an old-fashioned distribution business: it sells home heating oil and propane to about 406,400 full-service customers and 63,200 delivery-only customers as of September 30, 2025. That is not a wide-moat enterprise. The product is largely a commodity, weather drives demand, and the latest filed fiscal Q3 2026, the quarter ended 2026-06-30, showed revenue of $358.1 million and a net loss of $28.0 million. Seasonality matters: fiscal Q2 2026, the quarter ended 2026-03-31, earned $108.3 million, and fiscal Q1 2026, the quarter ended 2025-12-31, earned $35.8 million. For full FY2025, the year ended 2025-09-30, revenue was $1.8 billion and net income was $73.5 million, versus $35.2 million in FY2024. So the core business can earn money when winter is normal. Financial health is mixed. FairStock ratios as of the 2026-10-13 close show a P/E of 5.77, P/B of 1.09, debt-to-equity of 0.69, and an Altman Z-score of 0.63, which is a warning sign. The Piotroski F-score is 4/9. But trailing free cash flow was $56.8 million, a 13.2% FCF yield, and EV/EBITDA is 3.85, which is undemanding. The Graham Number is $24.59, implying a 46.73% margin of safety at the $13.10 close. ROE is 24.07%, while ROCE is only 8.32%, so leverage flatters equity returns. FairStock categorizes this as CYCLICAL — Oil & Gas Refining & Marketing because earnings follow the economic cycle. I would call it a statistically cheap, cyclical security with a 6.25% dividend yield, not a wonderful business. The margin of safety is real only if cash flow holds through weather and commodity swings.

In plain English: Star Group sells heating oil and propane to homes and businesses, along with related heating and cooling services. Its profits swing with the seasons and energy prices; the latest filed quarter showed a loss, but the full year has been profitable and the business throws off cash. At the recent close, the price looks low compared with several simple value measures, though the balance sheet and steady growth are not especially strong.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q4 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer