📊 SGU Key Takeaways
Is Star Group, L.p. (SGU) a Good Investment?
Despite reporting strong net income growth of 108.7%, Star Group faces critical financial stress evidenced by negative operating cash flow (-$61.1M) and severely constrained liquidity (current ratio of 0.99x). With only $12.2M in cash against $265.2M in debt and minimal revenue growth of 1.0%, the company's earnings quality is questionable and its cash position is unsustainable.
Star Group, L.p. Key Strengths (SGU)
- Strong interest coverage ratio of 12.5x indicates ability to service debt obligations
- Decent profitability margins with 43.1% gross margin and 16.2% operating margin
- ROA of 12.4% demonstrates reasonable asset efficiency
SGU Stock Risks: Star Group, L.p. Investment Risks
- Negative operating cash flow of -$61.1M indicates core business is not generating cash
- Negative free cash flow of -$68.8M is unsustainable with $265.2M long-term debt and only $12.2M cash
- Current ratio of 0.99x and quick ratio of 0.81x signal acute liquidity stress
- Stagnant revenue growth of 1.0% YoY indicates no organic expansion
- Suspicious 108.7% net income growth with 1.0% revenue growth suggests non-recurring items masking underlying weakness
Key Metrics to Watch
- Operating cash flow trend - must turn positive within next 2-3 quarters
- Cash position and debt refinancing capabilities given current liquidity constraints
- Revenue growth acceleration - cannot sustain current trajectory at 1% growth
Star Group, L.p. (SGU) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
SGU Profit Margin, ROE & Profitability Analysis
SGU vs Consumer Sector: How Star Group, L.p. Compares
How Star Group, L.p. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Star Group, L.p. Stock Overvalued? SGU Valuation Analysis 2026
Based on fundamental analysis, Star Group, L.p. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Star Group, L.p. Balance Sheet: SGU Debt, Cash & Liquidity
SGU Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Star Group, L.p.'s revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion.
SGU Revenue Growth, EPS Growth & YoY Performance
SGU Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $743.0M | $85.9M | N/A |
| Q1 2026 | $488.1M | $32.9M | N/A |
| Q3 2025 | $305.6M | -$11.0M | N/A |
| Q2 2025 | $666.0M | $68.4M | N/A |
| Q1 2025 | $488.1M | $13.0M | N/A |
| Q3 2024 | $300.1M | -$11.0M | N/A |
| Q2 2024 | $666.0M | $62.0M | N/A |
| Q1 2024 | $528.1M | $13.0M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Star Group, L.p. Dividends, Buybacks & Capital Allocation
SGU SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Star Group, L.p. (CIK: 0001002590)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SGU
What is the AI rating for SGU?
Star Group, L.p. (SGU) has an AI grade of D with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SGU's key strengths?
Claude: Strong interest coverage ratio of 12.5x indicates ability to service debt obligations. Decent profitability margins with 43.1% gross margin and 16.2% operating margin.
What are the risks of investing in SGU?
Claude: Negative operating cash flow of -$61.1M indicates core business is not generating cash. Negative free cash flow of -$68.8M is unsustainable with $265.2M long-term debt and only $12.2M cash.
What is SGU's revenue and growth?
Star Group, L.p. reported revenue of $1.3B.
Does SGU pay dividends?
Star Group, L.p. pays dividends, with $13.0M distributed to shareholders in the trailing twelve months.
Where can I find SGU SEC filings?
Official SEC filings for Star Group, L.p. (CIK: 0001002590) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SGU's EPS?
Star Group, L.p. has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SGU's fundamental grade?
Based on our AI fundamental analysis in May 2026, Star Group, L.p. has a D grade with 85% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SGU stock overvalued or undervalued?
Valuation metrics for SGU: ROE of N/A (sector avg: 18%), net margin of 11.0% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is SGU's AI grade for 2026?
Our dual AI analysis gives Star Group, L.p. a combined D grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is SGU's free cash flow?
Star Group, L.p.'s operating cash flow is $-61.1M, with capital expenditures of $7.7M. FCF margin is -5.3%.
How does SGU compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 11.0% (avg: 8%), ROE N/A (avg: 18%), current ratio 0.99 (avg: 1.5).