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Star Group (SGU) Fair Value & Analysis

Energy · US · Market cap $414M

SG Star Group logo Star Group SGU · US
Price$12.87
Fair Value$18.42
Upside+43.1%
Quality71/100
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Healthy Growth
Thin margins · 5.3% net margin
Moderate debt · generates free cash flow
6.04% dividend yield
Ranks above peers (12/14)
Moderate moat 54/100
Evidence: High Range $11.23 – $27.10 Share as image

Fair value as of: Jul 24, 2026

From 25 valuation models · updated 17 days ago

Fair value updated Jul 24, 2026, revised from $26.35 to $18.42 (−30.1%) since Jun 25, 2026. Share price −1.2% over the past month.

A solid business, screening 43% undervalued on our models.

What matters now

  • The rarer combination: high quality (71/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • A fairly wide model range ($11.23 to $27.10) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$13.45 $6.51 Fair Value $18.42 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 24, 2026.

How to read this chart

60‑month range $6.51 – $13.45 · fair‑value band $11.23 – $27.10 · the $12.87 price screens below the $18.42 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 24, 2026.

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Analysis

Star Group (SGU) currently trades at $12.87, while our model-based Fair Value estimate is $18.42, implying the stock looks roughly 43.1% undervalued today. The Quality Score stands at 71/100 (solid quality), in the Energy sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Star Group generated revenue of $1.9B at a net margin of 5.3%. Revenue grew 3.2% year over year. It earns a return on equity of 24.9%. Net debt stands at $261M. Fundamentals as of Jul 24, 2026

Our scenario range runs from $11.23 (bear case) to $27.10 (bull case); at $12.87, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 5% below its 52-week high and 21% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at -48% fair-value upside, at 43%, SGU screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF $10.96 $15.62 $21.12 80
Residual Income $10.75 $13.94 $40.21 76
Rev-Margin DCF $16.44 $28.23 $40.71 74
All 25 models by family
DCF Models
FCF DCF $10.69 $15.80 $22.08 38
Owner Earnings $18.36 $26.08 $35.57 31
5Y Revenue Exit $16.44 $28.11 $42.51 39
5Y EBITDA Exit $17.32 $29.66 $43.41 41
5Y P/E Exit $15.12 $25.78 $36.33 38
10Y Revenue Exit $13.19 $22.48 $33.99 36
10Y EBITDA Exit $14.32 $23.44 $34.59 37
10Y P/E Exit $13.07 $21.05 $29.90 35
Earnings-Based
Graham-Dodd $13.08 $29.86 $38.28 54
PEG = 1.0 $4.97 $7.10 $9.23 46
EPV $11.93 $14.15 $15.99 59
Dividend Discount
Gordon GGM $6.18 $9.36 $12.44 70
DDM Multi-Stage $6.18 $8.56 $10.86 61
Multiples
P/E Multiple $25.96 $34.62 $43.27 63
P/S Multiple $24.52 $32.69 $40.87 58
P/B Multiple $12.47 $16.63 $20.79 55
EV/EBIT $28.61 $39.59 $50.58 53
EV/EBITDA $25.95 $36.04 $46.14 54
EV/Revenue $22.31 $33.74 $45.16 43
Asset-Based
NCAV (Graham) $4.62 $6.19 $9.24 50
Growth DCF
Growth DCF $10.96 $15.62 $21.12 80
Rev-Margin DCF $16.44 $28.23 $40.71 74
Economic Profit
Residual Income $10.75 $13.94 $40.21 76
ROIC Compounder $12.22 $15.16 $18.21 72
Growth Earnings
Growth-Adj P/E $19.70 $28.15 $36.59 68

Widest divergence: Multiples ($33.74) versus Asset-Based ($6.19). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $1.9B
Revenue growth (YoY) +3.2%
Net margin 5.3%
Return on equity 24.9%
Free cash flow $56.0M FY2025
P/E ratio 4.9
More key figures
Operating margin 20.3%
EPS (TTM) $2.57
Dividend yield 6.0%
EPS growth (YoY) +32.1%
Net debt $261M FY2025

Figures from reported company fundamentals · as of Jul 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 71/100

Of which business quality 66 · Market factors (momentum, volatility) 67

Profitability 70
Margins and returns on capital today
Quality Growth 66
Are margins and returns improving?
Cashflow 42
Earnings quality: real cash, not paper profit
Fin. Strength 48
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 97
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 64
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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. It offers gasoline and diesel fuel; and installs, maintains, and repairs heating and air conditioning equipment and ancillary services.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Star Group 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.

Growth Quality 66/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$1.8B
Latest YoY
+1.0%
Avg. growth/yr (3Y) 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.
−3.8%
Avg. growth/yr (5Y) 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.
+4.0%
Avg. growth/yr (29Y) 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.
+9.8%
Revenue +4.5%/yr
FY21 $1.5B
FY22 $2.0B
FY23 $2.0B
FY24 $1.8B
FY25 $1.8B
Net income −7.9%/yr
FY21 $87.7M
FY22 $35.3M
FY23 $29.3M
FY24 $32.1M
FY25 $63.1M
Character of growth · EPS growth decomposed (2014-2025) +7.3 % p.a.
Revenue per share +7.2 pp

of which total revenue +1.5 pp · buybacks/dilution +5.7 pp

EBIT margin −3.4 pp
Tax rate +2.7 pp
Residual (interest, one-offs) +0.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Star Group Fair Value". https://www.fairvalue-calculator.com/stock/SGU

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Oil & Gas Refining & Marketing · 114 stocks

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.

Quality Score 71 · Top 25%
Fair Value upside +43% · Top 25%
Return on equity (TTM) 25% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 5% · Top 25%
Operating margin (TTM) 20% · Top 25%
Revenue growth 3% · Above median
Dividend yield (TTM) 6.0% · Top 25%
Debt / equity 0.55× · Higher than median

Valuation Multiples vs Oil & Gas Refining & Marketing median · lower = cheaper

P/E (TTM) 4.9× · Cheaper than 75% of peers
P/B 1.37× · Cheaper than median
P/S (TTM) 0.22× · Cheaper than median
P/FCF 7.4× · Pricier than median
EV/EBITDA 3.1× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 91 · sector 15
FUTURE 16 · sector 15
PAST 100 · sector 32
HEALTH 72 · sector 80
DIVIDEND 100 · sector 50

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Oil & Gas Refining & Marketing stocks, each showing price versus our Fair Value estimate (as of Jul 24, 2026).

Stock Price Fair Value vs Fair Value
Reliance Industries Limited RELIANCE ₹1,293 ₹835.66 -35%
Valero Energy Corporation VLO $309.65 $127.32 -59%
Marathon Petroleum Corporation MPC $283.74 $135.80 -52%
Phillips 66 PSX $196.16 $101.04 -48%
Neste Oyj NESTE €31.10 €4.07 -87%
Formosa Petrochemical Corporation 6505 81.30 TWD 16.68 TWD -79%
Indian Oil Corporation IOC ₹138.96 ₹417.35 +200%
HF Sinclair Corporation DINO $88.59 $48.90 -45%
Bharat Petroleum Corporation BPCL ₹315.55 ₹846.81 +168%
SK Innovation Co 096770 121,400 KRW 58,865 KRW -52%

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Frequently asked questions

Is Star Group (SGU) overvalued or undervalued?
As of Jul 24, 2026, our model estimates a fair value of $18.42 versus a price of $12.87, about +43% (undervalued).
What is the fair value of SGU?
Our model-based fair value for Star Group is $18.42 (as of Jul 24, 2026), built from audited fundamentals. The current price is $12.87.
What is the quality score of SGU?
Star Group has a Quality Score of 71/100. 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 revenue of Star Group (SGU)?
Star Group reported trailing-twelve-month revenue of about $1.9B (latest available figure, as of Jul 24, 2026).
What is the net profit margin of SGU?
The net profit margin of Star Group is about 5.3%, meaning it keeps roughly 5.3% of revenue as net income. Based on the latest reported figures.
Does Star Group pay a dividend?
Star Group currently shows a dividend yield of about 6.04% relative to its recent price (as of Jul 24, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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