StarGas Partners LP operates as a home heating oil and propane distributor and services provider to residential and commercial customers in the United States. The company was founded in 1995 and is based in Stamford, Connecticut.
SGU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SGU, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Star Group Lp ranked in the 75th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 334.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for SGU, they are:
Star Group Lp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 6.42% of tickers in our DCF set.
Star Group Lp's effective tax rate, as measured by taxes paid relative to net income, is at 21 -- greater than 81.92% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 9.79% of stocks in its sector (Energy).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SGU, try MMLP, CAPL, FRO, HMLP, and ENLC.
Star Group (SGU) declares $0.1325/share quarterly dividend, in line with previous.Forward yield 5.83%Payable Aug. 4; for shareholders of record July 27; ex-div July 24.See SGU Dividend Scorecard, Yield Chart, & Dividend Growth....
In this article you are going to find out whether hedge funds think Star Group L.P. (NYSE:SGU) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]