SUBURBAN PROPANE PARTNERS LP (SPH) Stock Fundamental Analysis
NYSE:SPH - New York Stock Exchange, Inc. - US8644821048 - Currency: USD
We assign a fundamental rating of 4 out of 10 to SPH. SPH was compared to 14 industry peers in the Gas Utilities industry. SPH has a medium profitability rating, but doesn't score so well on its financial health evaluation. SPH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SPH had positive earnings in the past year.
SPH had a positive operating cash flow in the past year.
SPH had positive earnings in each of the past 5 years.
In the past 5 years SPH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.95%, SPH is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
SPH has a better Return On Equity (14.11%) than 85.71% of its industry peers.
SPH's Return On Invested Capital of 7.41% is fine compared to the rest of the industry. SPH outperforms 78.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SPH is in line with the industry average of 6.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 14.11% | ||
| ROIC | 7.41% |
ROA(3y)5.12%
ROA(5y)4.86%
ROE(3y)21.43%
ROE(5y)21.99%
ROIC(3y)8.09%
ROIC(5y)7.99%
1.3 Margins
SPH has a Profit Margin of 6.65%. This is in the lower half of the industry: SPH underperforms 64.29% of its industry peers.
SPH's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 14.26%, SPH is doing worse than 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of SPH has remained more or less at the same level.
The Gross Margin of SPH (60.08%) is comparable to the rest of the industry.
SPH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.26% | ||
| PM (TTM) | 6.65% | ||
| GM | 60.08% |
OM growth 3Y-7.95%
OM growth 5Y0.58%
PM growth 3Y-16.29%
PM growth 5Y0.65%
GM growth 3Y-0.9%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SPH is creating some value.
The number of shares outstanding for SPH has been increased compared to 1 year ago.
The number of shares outstanding for SPH has been increased compared to 5 years ago.
Compared to 1 year ago, SPH has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of SPH is 18.42, which is on the high side as it means it would take SPH, 18.42 years of fcf income to pay off all of its debts.
SPH has a better Debt to FCF ratio (18.42) than 85.71% of its industry peers.
SPH has a Debt/Equity ratio of 1.93. This is a high value indicating a heavy dependency on external financing.
SPH has a Debt to Equity ratio of 1.93. This is amonst the worse of the industry: SPH underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 18.42 | ||
| Altman-Z | N/A |
ROIC/WACC1.06
WACC7%
2.3 Liquidity
SPH has a Current Ratio of 1.06. This is a normal value and indicates that SPH is financially healthy and should not expect problems in meeting its short term obligations.
SPH's Current ratio of 1.06 is amongst the best of the industry. SPH outperforms 85.71% of its industry peers.
A Quick Ratio of 0.81 indicates that SPH may have some problems paying its short term obligations.
The Quick ratio of SPH (0.81) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
SPH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.79%.
SPH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.72% yearly.
The Revenue has been growing slightly by 4.03% in the past year.
Measured over the past years, SPH shows a small growth in Revenue. The Revenue has been growing by 0.92% on average per year.
EPS 1Y (TTM)-14.79%
EPS 3Y-20.63%
EPS 5Y0.72%
EPS Q2Q%22.09%
Revenue 1Y (TTM)4.03%
Revenue growth 3Y0.98%
Revenue growth 5Y0.92%
Sales Q2Q%17.98%
3.2 Future
Based on estimates for the next years, SPH will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.79% on average per year.
The Revenue is expected to grow by 2.97% on average over the next years.
EPS Next Y27.58%
EPS Next 2Y20.72%
EPS Next 3Y19.79%
EPS Next 5YN/A
Revenue Next Year6.07%
Revenue Next 2Y3.88%
Revenue Next 3Y2.97%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.15, SPH is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SPH indicates a somewhat cheap valuation: SPH is cheaper than 71.43% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SPH to the average of the S&P500 Index (26.20), we can say SPH is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.40, the valuation of SPH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SPH is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SPH to the average of the S&P500 Index (22.13), we can say SPH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
SPH's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SPH is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.52 | ||
| EV/EBITDA | 9.31 |
4.3 Compensation for Growth
SPH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SPH's earnings are expected to grow with 19.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)18.35
EPS Next 2Y20.72%
EPS Next 3Y19.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.85%, SPH is a good candidate for dividend investing.
SPH's Dividend Yield is rather good when compared to the industry average which is at 3.98. SPH pays more dividend than 100.00% of the companies in the same industry.
SPH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.85% |
5.2 History
The dividend of SPH decreases each year by -11.53%.
SPH has paid a dividend for at least 10 years, which is a reliable track record.
SPH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-11.53%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
SPH pays out 88.04% of its income as dividend. This is not a sustainable payout ratio.
DP88.04%
EPS Next 2Y20.72%
EPS Next 3Y19.79%
18.94
-0.16 (-0.84%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners37.63%
Inst Owner Change4.95%
Ins Owners3.16%
Ins Owner Change-1.98%
Market Cap1.23B
Analysts48.89
Price Target17.34 (-8.45%)
Short Float %1.56%
Short Ratio5.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.85% |
Yearly Dividend1.3
Dividend Growth(5Y)-11.53%
DP88.04%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-30.31%
Min EPS beat(2)-56%
Max EPS beat(2)-4.62%
EPS beat(4)0
Avg EPS beat(4)-40.42%
Min EPS beat(4)-57.25%
Max EPS beat(4)-4.62%
EPS beat(8)2
Avg EPS beat(8)-22.11%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.5%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)6.18%
Revenue beat(4)1
Avg Revenue beat(4)-3.83%
Min Revenue beat(4)-11.34%
Max Revenue beat(4)6.18%
Revenue beat(8)1
Avg Revenue beat(8)-3.14%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-65.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-32.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)12.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 11.4 | ||
| P/S | 0.86 | ||
| P/FCF | 17.52 | ||
| P/OCF | 8.36 | ||
| P/B | 1.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.31 |
EPS(TTM)1.44
EY7.6%
EPS(NY)1.66
Fwd EY8.77%
FCF(TTM)1.08
FCFY5.71%
OCF(TTM)2.26
OCFY11.96%
SpS21.92
BVpS10.34
TBVpS-8.88
PEG (NY)0.48
PEG (5Y)18.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.95% | ||
| ROE | 14.11% | ||
| ROCE | 9.39% | ||
| ROIC | 7.41% | ||
| ROICexc | 7.43% | ||
| ROICexgc | 17.6% | ||
| OM | 14.26% | ||
| PM (TTM) | 6.65% | ||
| GM | 60.08% | ||
| FCFM | 4.93% |
ROA(3y)5.12%
ROA(5y)4.86%
ROE(3y)21.43%
ROE(5y)21.99%
ROIC(3y)8.09%
ROIC(5y)7.99%
ROICexc(3y)8.11%
ROICexc(5y)8.01%
ROICexgc(3y)22.07%
ROICexgc(5y)22.37%
ROCE(3y)10.24%
ROCE(5y)10.12%
ROICexcg growth 3Y-12.63%
ROICexcg growth 5Y-4.17%
ROICexc growth 3Y-10.39%
ROICexc growth 5Y-0.47%
OM growth 3Y-7.95%
OM growth 5Y0.58%
PM growth 3Y-16.29%
PM growth 5Y0.65%
GM growth 3Y-0.9%
GM growth 5Y0.4%
F-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 18.42 | ||
| Debt/EBITDA | 4.76 | ||
| Cap/Depr | 112.15% | ||
| Cap/Sales | 5.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.14% | ||
| Profit Quality | 74.09% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | N/A |
F-Score5
WACC7%
ROIC/WACC1.06
Cap/Depr(3y)78.69%
Cap/Depr(5y)58.5%
Cap/Sales(3y)3.53%
Cap/Sales(5y)3.17%
Profit Quality(3y)136.04%
Profit Quality(5y)171.85%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.79%
EPS 3Y-20.63%
EPS 5Y0.72%
EPS Q2Q%22.09%
EPS Next Y27.58%
EPS Next 2Y20.72%
EPS Next 3Y19.79%
EPS Next 5YN/A
Revenue 1Y (TTM)4.03%
Revenue growth 3Y0.98%
Revenue growth 5Y0.92%
Sales Q2Q%17.98%
Revenue Next Year6.07%
Revenue Next 2Y3.88%
Revenue Next 3Y2.97%
Revenue Next 5YN/A
EBIT growth 1Y-0.67%
EBIT growth 3Y-7.04%
EBIT growth 5Y1.51%
EBIT Next Year63.22%
EBIT Next 3Y18.97%
EBIT Next 5Y14.05%
FCF growth 1Y-61.9%
FCF growth 3Y-19.88%
FCF growth 5Y-12.01%
OCF growth 1Y-36.16%
OCF growth 3Y-10.84%
OCF growth 5Y-6.67%