Suburban Propane Partners LP (SPH) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Suburban Propane Partners LP's EV/EBITDA of 8.6 is above its 5-year median of 6.5.

P/S below the industry

Suburban Propane Partners LP's price-to-sales of 0.84 is below the Miscellaneous Retail median of 1.10 (book value is negative, so we use sales).

Trading below fair value

The share price of $17.61 is below our fair value estimate of $23.04.

Margin of safety over 20%

The price is 23.6% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -1.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -9.4% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 34.5% over the last twelve months, against a 5-year average of 11.9% a year.

Growing slower than the industry

Revenue grew -2.5% over the last twelve months; the Miscellaneous Retail median is 10.1%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 63.1% over the last twelve months, against 59.9% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 11.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 9.4% over the last twelve months, against a 5-year average of 8.1%.

Net margin above the industry

Suburban Propane Partners LP's net margin of 9.4% is above the Miscellaneous Retail median of 1.5%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 14.8% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.8 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.78 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.29; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Suburban Propane Partners LP paid dividends worth 5.5% of the share price over the last twelve months.

Yield above Treasuries

The 5.5% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Suburban Propane Partners LP yields 5.5%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.