Suburban Propane Partners, L.P. (SPH) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Suburban Propane Partners, L.P. (SPH) Utility Operations & Dividend Profile

Suburban Propane Partners, L.P. focuses on the retail and wholesale distribution of propane, fuel oil, and refined fuels across the United States. With a diversified customer base and operations in 41 states, the company leverages its established infrastructure and market presence in the regulated gas sector.

What Is the Investment Thesis for SPH?

Suburban Propane Partners, L.P. presents a stable investment opportunity within the utilities sector, underlined by its established market presence and consistent dividend yield of 6.61%. The company's diversified operations across propane, fuel oil, natural gas, and electricity provide resilience against market fluctuations. Growth catalysts include expansion within deregulated energy markets and strategic acquisitions to increase market share. However, investors may want to evaluate potential risks such as fluctuating commodity prices and regulatory changes. The company's beta of 0.40 indicates lower volatility compared to the broader market, appealing to risk-averse investors. Monitoring the company’s ability to maintain its profit margin of 9.6% and gross margin of 32.1% is crucial for assessing long-term profitability.

Based on FMP financials and quantitative analysis

SPH Key Highlights

Market Cap of $1.15B reflects the company's established position in the propane and fuel distribution market.

• Dividend Yield of 6.61% offers a significant income stream for investors.
• Profit Margin of 9.6% indicates solid profitability in a competitive market.
• Gross Margin of 32.1% demonstrates effective cost management in product distribution.
• Beta of 0.40 suggests lower volatility compared to the broader market, making it a relatively stable investment.

Who Are SPH's Competitors?

SPH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are SPH's Key Strengths?

Established market presence in the propane and fuel distribution industry.

• Diversified operations across multiple energy segments.
• Extensive network of distribution centers and customer base.
• Consistent dividend yield provides an attractive income stream for investors.

What Are SPH's Weaknesses?

Exposure to fluctuating commodity prices.

• Dependence on weather patterns and seasonal demand.
• Limited presence in renewable energy markets.
• Geographic concentration in certain regions of the United States.

What Could Drive SPH Stock Higher?

Expansion in deregulated energy markets in New York and Pennsylvania, potentially increasing revenue streams.

• Strategic acquisitions of smaller propane and fuel oil distributors to expand geographic footprint.
• Potential investments in renewable energy sources to diversify energy offerings within the next year.
• Implementation of enhanced customer service and technology solutions over the next 1-2 years.

What Are the Key Risks for SPH?

Financial-distress signal — its Altman Z-Score of 1.28 sits in the distress zone (elevated bankruptcy risk).

• Inconsistent delivery — missed Wall Street EPS estimates in 6 of the last 8 reported quarters.
• Fluctuations in commodity prices impacting profitability.
• Dependence on weather patterns and seasonal demand affecting sales volume.
• Increasing competition from alternative energy sources reducing market share.
• Regulatory changes and environmental concerns impacting operations and compliance costs.

What Are the Growth Opportunities for SPH?

• Expansion in Deregulated Energy Markets: Suburban Propane can capitalize on growth opportunities by expanding its natural gas and electricity marketing efforts in deregulated markets like New York and Pennsylvania. This includes acquiring new customers and offering competitive pricing plans. The deregulated energy market is projected to grow as more states adopt deregulation policies, potentially increasing Suburban Propane's revenue streams. This expansion can be achieved within the next 3-5 years with strategic investments in marketing and infrastructure.
• Strategic Acquisitions: Suburban Propane can pursue strategic acquisitions of smaller propane and fuel oil distributors to expand its geographic footprint and increase its customer base. This inorganic growth strategy can provide access to new markets and synergies in operations and distribution. The market for acquisitions in the propane distribution industry remains active, with opportunities to consolidate regional players. These acquisitions could be completed within the next 2-3 years, enhancing the company's market share.
• Diversification into Renewable Energy: Suburban Propane can diversify its energy offerings by investing in renewable energy sources such as solar and wind power. This would allow the company to cater to environmentally conscious customers and reduce its reliance on fossil fuels. The renewable energy market is experiencing rapid growth, driven by government incentives and increasing consumer demand. Investments in renewable energy projects could begin within the next year, with tangible results expected in 3-5 years.
• Enhanced Customer Service and Technology: Suburban Propane can enhance customer service and leverage technology to improve operational efficiency and customer satisfaction. This includes implementing advanced metering systems, online account management tools, and mobile applications for ordering and service requests. Improved customer service can lead to higher customer retention rates and increased revenue. These technological enhancements can be rolled out over the next 1-2 years, providing immediate benefits.
• Expansion of Home Comfort Equipment Services: Suburban Propane can expand its sales, installation, and service offerings for home comfort equipment, including heating products, air cleaners, and humidifiers. This would allow the company to generate additional revenue from its existing customer base and attract new customers seeking comprehensive home comfort solutions. The market for home comfort equipment is driven by factors such as aging infrastructure and increasing demand for energy-efficient products. This expansion can be implemented within the next year, complementing the company's existing energy distribution services.

What Threats Does SPH Face?

• Increasing competition from alternative energy sources.
• Regulatory changes and environmental concerns.
• Economic downturns affecting customer demand.
• Disruptions in supply chains and distribution networks.

What Are SPH's Competitive Advantages?

• Established Infrastructure: Extensive network of distribution centers and storage facilities across 41 states.
• Customer Base: Serving approximately 1.0 million residential, commercial, industrial, and agricultural customers.
• Brand Recognition: Long-standing presence in the propane and fuel distribution market since 1945.
• Diversified Operations: Operations across propane, fuel oil, natural gas, electricity, and home comfort equipment.

What Does SPH Do?

Founded in 1945 and headquartered in Whippany, New Jersey, Suburban Propane Partners, L.P. has evolved into a significant player in the retail marketing and distribution of propane, fuel oil, and refined fuels. The company operates through four segments: Propane, Fuel Oil and Refined Fuels, Natural Gas and Electricity, and All Other. The Propane segment, which forms the core of its business, involves the retail distribution of propane to a diverse customer base, including residential, commercial, industrial, and agricultural clients. Propane is offered for various applications such as space heating, water heating, cooking, motor fuel, and industrial processes. The Fuel Oil and Refined Fuels segment focuses on distributing fuel oil, diesel, kerosene, and gasoline to residential and commercial customers, primarily for heating purposes. The Natural Gas and Electricity segment markets these utilities in deregulated markets in New York and Pennsylvania. The All Other segment provides home comfort equipment sales, installation, and services. As of September 25, 2021, Suburban Propane served approximately 1.0 million customers through 700 locations in 41 states, primarily along the east and west coasts, as well as parts of the Midwest and Alaska. Suburban Energy Services Group LLC acts as the general partner.

What Products and Services Does SPH Offer?

• Retail distribution of propane to residential, commercial, industrial, and agricultural customers.
• Wholesale distribution of propane to industrial end users.
• Retail distribution of fuel oil, diesel, kerosene, and gasoline.
• Marketing of natural gas and electricity in deregulated energy markets.
• Sales, installation, and servicing of home comfort equipment.
• Provide propane for space heating, water heating, and cooking.
• Offer propane as a motor fuel for vehicles and forklifts.

How Does SPH Make Money?

• Generate revenue through the retail sale of propane, fuel oil, and refined fuels.
• Earn income from the wholesale distribution of propane to industrial customers.
• Profit from the marketing and sale of natural gas and electricity in deregulated markets.
• Gain revenue from the sales, installation, and servicing of home comfort equipment.

What Industry Does SPH Operate In?

Suburban Propane Partners, L.P. operates within the regulated gas industry, which is characterized by stable demand and essential services. The industry is influenced by factors such as weather patterns, energy prices, and regulatory policies. Suburban Propane competes with other energy providers, including national and regional propane distributors, as well as companies offering alternative energy sources like natural gas and electricity. The market is seeing a gradual shift towards renewable energy sources, which presents both challenges and opportunities for companies like Suburban Propane to adapt and diversify their offerings. The company's established infrastructure and customer base provide a competitive advantage in this evolving landscape.

Who Are SPH's Key Customers?

• Residential customers who use propane and fuel oil for heating and cooking.
• Commercial customers, including businesses and institutions, that require propane and fuel oil for various applications.
• Industrial customers who use propane for processes such as cutting and firing furnaces.
• Agricultural customers who use propane for tobacco curing, crop drying, and poultry brooding.

Suburban Propane Partners, L.P. (SPH) Valuation Context

Valued at $1.15B, SPH is classified as a small-cap stock. Relative to its peer group, SPH's quantitative score of 57/100 is roughly in line with the peer average of 60/100.

SPH Revenue & Earnings Trend

In Q3 FY2026, SPH generated $261.4M in top-line revenue, marking a sequential decrease of 52.6%. The company recorded a net loss of $17.5M, with diluted EPS of $-0.26. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Utilities. Across the four most recent quarters, SPH averaged $0.49 in diluted EPS.

Company Profile

Suburban Propane Partners, L.P. operates in the Oil & Gas Energy industry within the Energy sector. It is headquartered in Whippany, US. The company is led by CEO Michael A. Stivala. SPH has traded publicly since 1996.

Return on equity for Suburban Propane Partners, L.P. stands at 20.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 5.5%, showing how much profit it generates from its asset base. SPH trades at a trailing price-to-earnings ratio of 8.83, below the Utilities sector average of ~16.60x. Its free cash flow yield is 11.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.08 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 11.5%, the inverse of the P/E and a quick read on earnings relative to price.

Suburban Propane Partners, L.P.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.28 places it in the distress zone, a signal of elevated financial risk.

Suburban Propane Partners, L.P. has missed Wall Street's EPS estimate in 6 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 23.9% below estimates on average.

The most recent 12 insider filings for Suburban Propane Partners, L.P. break down as 3 sales and 9 purchases. On net that is roughly 84K shares acquired (about $336K) — insiders putting money in tends to read as conviction.

SPH Financials

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SPH Analyst Consensus

SPH MoonshotScore

What Investors Ask About Suburban Propane Partners, L.P. (SPH) — Utilities

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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