Star Gas Partners LP (SGU) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Star Gas Partners LP stock $19.56, price $13.18, upside +48.4%, quality 69 out of 100. Rating: undervalued. Calculated from audited financials with 23 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $6.51 – $13.45 · fair‑value band $12.00 – $25.60 · the $13.18 price screens below the $19.56 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 3 fiscal years are left out: there the valuation rested on only a fraction of the usual models. As of Nov 8, 2026.
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Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States.
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It offers gasoline and diesel fuel; and installs, maintains, and repairs heating and air conditioning equipment and ancillary services.
As of September 30, 2025, the company served approximately 406,400 full-service residential and commercial home heating oil and propane customers and 63,200 customers on a delivery only basis. It sells gasoline and diesel fuel to approximately 27,700 customers.
The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. The company was incorporated in 1995 and is based in Stamford, Connecticut.
Stock analysis
Star Gas Partners LP (SGU) currently trades at $13.18, while our model-based Fair Value estimate is $19.56, implying the stock looks roughly 33% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $32.72 per share, and 20 of the 23 models we run sit above the $13.18 price.
Bear case: the Dividend Discount group reads lowest at $10.26, and 3 of the 23 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $12.00 (bear) to $25.60 (bull), the price of $13.18 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 69/100 (solid quality), in the Energy sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Star Gas Partners LP reported revenue of $1.8B in FY2025 versus $1.5B in FY2021, a compound +4.5%/yr. Reported net income was $63.1M in FY2025, compounding −7.9%/yr from FY2021.
Key figures
Market cap $433M Small · P/E ratio 5.8 · P/S ratio 0.23 · EPS (TTM) $2.27 · Dividend yield 5.8% · Net margin 4.5% · Return on equity 24.1% · Return on assets (EBIT) 7.1% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 40 out of 100 (medium confidence).
What moves the price
The share trades about 2% below its 52-week high and 18% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Energy peers we cover trades at −46% fair-value upside, at 48%, SGU screens cheaper than that median.
Fair Value models
Bear$12.00Fair Value $19.56Bull$25.60
Price $13.18 · Upside +48.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($1.51 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF$15.32$22.99$33.1478
Growth DCF$15.80$22.88$31.8676
Owner Earnings$12.77$19.45$28.2874
All 23 models by family
DCF Models
FCF DCF$15.32$22.99$33.1478
Owner Earnings$12.77$19.45$28.2874
5Y Revenue Exit$18.56$30.98$46.2669
5Y EBITDA Exit$19.49$32.62$47.2172
5Y P/E Exit$17.17$28.52$39.7468
10Y Revenue Exit$16.38$26.91$39.9164
10Y EBITDA Exit$17.64$27.98$40.5766
10Y P/E Exit$16.25$25.31$35.3562
Earnings-Based
Graham-Dodd$13.09$29.88$38.3063
PEG = 1.0$4.97$7.10$9.2355
EPV$13.62$16.37$18.7174
Dividend Discount
Gordon GGM$6.80$10.81$15.0966
DDM Multi-Stage$6.80$9.71$12.7565
Multiples
P/E Multiple$25.98$34.64$43.3063
P/S Multiple$24.54$32.72$40.8958
EV/EBIT$25.03$36.02$47.0165
EV/EBITDA$22.36$32.47$42.5767
EV/Revenue$18.73$30.16$41.5953
Growth DCF
Growth DCF$15.80$22.88$31.8676
Rev-Margin DCF$18.56$31.16$44.5470
Economic Profit
Residual Income$11.15$13.62$19.5573
ROIC Compounder$14.11$17.89$21.9770
Growth Earnings
Growth-Adj P/E$19.72$28.17$36.6265
The fair value above starts from this blend and is adjusted for a cyclical peak year.
In the last 6 months, no officer or director bought or sold shares on the open market.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+1.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−3.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.0%
Start year 2020 (pandemic). Over 10 years: +0.6% a year
Revenue growth 29 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.8%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+17.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+11.9%
Dividend (yield on the price)5.8%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.8.5% vs 11.9%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.4% → 5%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−2.3%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect
n/a
No analyst forecast available.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −4.6% a year for the price.
News mood ⓘNews mood, the average tone of recent news (74 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Oil & Gas Refining & Marketing · 115 stocks
Beats the industry median on 10/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score69 · Top 25%
Fair Value upside+48.4% · Top 25%
Profitability
Return on equity (12 months)24.1% · Top 25%
Return on assets6.7% · Top 25%
Net margin (12 months)4.5% · Above median
Operating margin (12 months)−10.0% · Bottom 25%
Growth and dividend
Revenue growth (quarter YoY)17.2% · Below median
Dividend yield (12 months)5.8% · Top 25%
Balance sheet
Debt / equity0.55× · Above median
Valuation Multiplesvs Oil & Gas Refining & Marketing median · lower = cheaper
P/E (12 months)5.8× · Cheapest 25%
P/B1.43× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)0.23× · Cheaper than median
Price / free cash flow (fiscal year)7.7× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Star Gas Partners LP Fair Value". https://www.fairvalue-calculator.com/stock/SGU
Frequently asked questions
Is Star Gas Partners LP (SGU) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $19.56 versus a price of $13.18, about +48% upside (undervalued).
What is the fair value of SGU?
Our model-based fair value for Star Gas Partners LP is $19.56 (as of Nov 8, 2026), built from audited fundamentals. The current price: $13.18.
What is the quality score of SGU?
Star Gas Partners LP has a Quality Score of 69/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Star Gas Partners LP (SGU)?
Our model-based price target is the fair value of $19.56 (as of Nov 8, 2026) from 23 valuation models. Cautious scenario $12.00, optimistic scenario $25.60. It is a calculation from audited fundamentals, not an analyst target.
What is the Star Gas Partners LP stock forecast for 2026?
Our models put fair value at $19.56, about +48% upside versus a price of $13.18 (undervalued). Cautious scenario $12.00, optimistic scenario $25.60. The calculation is refreshed regularly with new filings.
What is the revenue of Star Gas Partners LP (SGU)?
Star Gas Partners LP reported trailing-twelve-month revenue of about $1.9B (latest available figure, as of Nov 8, 2026).
Does Star Gas Partners LP pay a dividend?
Star Gas Partners LP currently shows a dividend yield of 5.80% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of Star Gas Partners LP (SGU) and when is the ex-dividend date?
Star Gas Partners LP pays a dividend of $0.765 per share a year, a dividend yield of 5.8%. The last ex-dividend date was Oct 26, 2026. A dividend has been paid every year since 2009. The payout ratio is 29.0% of earnings (on adjusted earnings, reported 33.7%). Free cash flow covers the dividend 2.23 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Star Gas Partners LP (SGU)?
For today's price to be fair in a discounted-cash-flow model, Star Gas Partners LP would have to grow free cash flow by -2.3 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.0 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of SGU use?
Our models discount Star Gas Partners LP at 9.8 %: a base by market capitalisation (small), damped by beta 0.30, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Star Gas Partners LP that is -2.3 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has Star Gas Partners LP (SGU) delivered so far?
Over the past 5 years revenue at Star Gas Partners LP grew +4.0 % a year. The price currently implies free-cash-flow growth of -2.3 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Star Gas Partners LP (SGU) growing?
The median revenue growth in the sector is +4.8 % a year. That is the yardstick for the growth priced into Star Gas Partners LP (-2.3 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Star Gas Partners LP (SGU)?
The free-cash-flow yield on the price is 12.95 %: that much free cash flow Star Gas Partners LP produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Star Gas Partners LP (SGU)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Star Gas Partners LP it is $19.56 per share (as of Nov 8, 2026), against a price of $13.18. It is the blended result of 23 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is Star Gas Partners LP stock overvalued or undervalued in 2026?
As of Nov 8, 2026, SGU trades below its calculated fair value: price $13.18, fair value $19.56, a gap of about +48% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SGU?
No. The price is what the market pays today ($13.18); the fair value is what the company's own numbers justify ($19.56). For Star Gas Partners LP the two are $6.38 per share apart. That gap is exactly why we show both numbers side by side.
How much is Star Gas Partners LP worth?
The market values Star Gas Partners LP at about $433M (market capitalisation, as of Nov 8, 2026). Per share that is $13.18; our models calculate a fair value of $19.56 per share.
What do the bullish and bearish scenarios say about SGU?
Our models span a range for Star Gas Partners LP: cautious scenario $12.00, base $19.56, optimistic $25.60 per share (as of Nov 8, 2026, price $13.18). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SGU?
Star Gas Partners LP trades at a price-to-earnings ratio of 5.8 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $19.56 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 6.2 (reported for FY2025: 7.2). Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 6 of the years ex one-offs: 11.3. Other multiples: P/B 1.4, P/S 0.2, EV/EBITDA 3.5.
How solid is the balance sheet of Star Gas Partners LP (SGU)?
Balance-sheet figures for Star Gas Partners LP (as of Nov 8, 2026): return on equity 24.1%, debt of 0.55 per unit of equity. They feed the Quality Score of 69/100, which measures business quality independently of the share price.
How far is SGU from its 52-week high?
Star Gas Partners LP trades at $13.18, about 2% below its 52-week high of $13.45 and 18% above the low of $11.16 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $19.56 is for.
Which stocks are comparable to Star Gas Partners LP?
From the same area (Energy) we also value Reliance Industries Limited, Valero Energy Corporation, Phillips 66, Marathon Petroleum Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Star Gas Partners LP stock attractive at the current price?
The data as of Nov 8, 2026: price $13.18, calculated fair value $19.56 (+48%), Quality Score 69/100, from 23 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SGU calculated?
We run Star Gas Partners LP through 23 models from 7 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $19.56 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Star Gas Partners LP currently trades 33% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Star Gas Partners LP (SGU)?
The closing price on Nov 6, 2026 was $13.18. Our model-based fair value is $19.56, about +48% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Star Gas Partners LP right now?
Solid quality (69/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($12.00 to $25.60) leaves room in how you read the outcome.
Where does the earnings growth of Star Gas Partners LP (SGU) come from?
Earnings per share at Star Gas Partners LP grew +7.3 % a year from 2014 to 2025. Broken into its drivers: revenue per share +7.2 %, EBIT margin −3.4 %, tax rate +2.7 %, residual (interest, one-offs) +0.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Star Gas Partners LP
How large is the market capitalisation of Star Gas Partners LP (SGU)?
The market capitalisation of Star Gas Partners LP is $433M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Star Gas Partners LP (SGU)?
The price-to-sales ratio of Star Gas Partners LP is 0.23 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Star Gas Partners LP (SGU)?
Earnings per share at Star Gas Partners LP are $2.27 (price ÷ EPS = P/E 5.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Star Gas Partners LP (SGU)?
The dividend yield of Star Gas Partners LP is 5.8% (payout 29.0%, on adjusted earnings, reported 33.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Star Gas Partners LP (SGU)?
The net margin of Star Gas Partners LP is 4.5% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Star Gas Partners LP (SGU)?
The return on equity (ROE) of Star Gas Partners LP is 24.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Star Gas Partners LP (SGU)?
On an EBIT basis the return on assets of Star Gas Partners LP is 7.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Star Gas Partners LP (SGU)?
The operating margin of Star Gas Partners LP is −10.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Star Gas Partners LP (SGU)?
Revenue at Star Gas Partners LP is growing +17.2% versus a year earlier (3y avg −3.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Star Gas Partners LP (SGU)?
Earnings per share at Star Gas Partners LP are growing +32.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Star Gas Partners LP (SGU) carry?
The net debt of Star Gas Partners LP is $261M (fiscal year 2025, ≈ 4.7 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 8, 2026