Star Group, L.P. (SGU) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+158.4%

$33.28

vs $12.88 price

Levered DCF

$32.13

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.7

Grey zone

Rating

A+

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	6.5×	13.04×	14.85×	9.56×	4.74×	7.99×	27.06×	10.89×
P/B	1.34×	1.54×	1.6×	1.16×	1.47×	1.72×	-28.47×	-29.82×
P/S	0.23×	0.23×	0.22×	0.15×	0.28×	0.3×	0.27×	0.32×
EV / EBITDA	4.34×	6.49×	6.62×	6.15×	3.83×	5.06×	8.83×	5.95×
Gross margin	29.6%	26.6%	22.4%	22.5%	29.7%	30.0%	25.9%	25.7%
Operating margin	5.4%	4.3%	3.0%	3.6%	8.7%	6.3%	1.6%	3.9%
Net margin	3.5%	1.8%	1.5%	1.6%	5.9%	3.8%	1.0%	2.9%
Current ratio	0.59×	0.75×	0.69×	0.75×	0.63×	0.65×	0.7×	0.91×
Debt / equity	0.94×	1.13×	0.91×	1.08×	0.78×	0.88×	-9.08×	-5.6×
Interest coverage	6.71×	6.53×	3.8×	6.99×	16.66×	9.58×	2.46×	7.58×
Dividend yield	6.4%	6.0%	5.5%	7.6%	5.7%	5.5%	5.3%	4.8%
Payout ratio	41.4%	78.0%	80.9%	72.3%	26.7%	43.7%	145.1%	52.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	20.8%	11.9%	10.9%	12.3%	31.2%	21.6%	-104.4%	-273.1%
Return on invested capital	10.3%	8.5%	7.5%	9.1%	17.1%	12.9%	4.2%	12.7%
Return on assets	6.5%	3.3%	3.4%	3.5%	10.3%	6.7%	2.3%	6.7%
Free cash flow yield	13.8%	24.2%	26.7%	5.0%	13.0%	36.3%	17.9%	8.2%
Earnings yield	15.6%	7.8%	6.8%	10.5%	21.2%	12.6%	3.7%	9.2%
Enterprise value	$666.1M	$601.3M	$628M	$572.3M	$627.6M	$616.1M	$629.8M	$622.9M
Net debt / EBITDA	1.7×	2.02×	2.09×	2.88×	1.31×	1.4×	2.08×	0.82×
Cash conversion cycle (days)	25	22	26	33	33	28	34	35