Sprague Resources LP Common Units representing Limited Partner Interests (SRLP) Company Bio
Sprague Resource Partners LP engages in the purchase, storage, distribution, and sale of refined petroleum products and natural gas in the United States. The company operates through four segments: Refined Products, Natural Gas, Materials Handling, and Other Operations. The company was founded in 1870 and is based in Portsmouth, New Hampshire.
SRLP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Sprague Resources LP with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Sprague Resources LP ranked in the 9th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for SRLP, they are:
Its compound free cash flow growth rate, as measured over the past 5.25 years, is -0.25% -- higher than merely 6.67% of stocks in our DCF forecasting set.
40% of the company's capital comes from equity, which is greater than only 14.03% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 8. This value is greater than merely 20.47% stocks in the Energy sector that generate free cash flow.
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 SRLP, try EPSN, FPPP, PHX, PTR, and VTNR.
Sprague announces a cash distribution of $0.6675 per unitPORTSMOUTH, N.H., Jan. 22, 2021 (GLOBE NEWSWIRE) -- Sprague Resources LP (“Sprague”) (NYSE: SRLP) announced today that the Board of Directors of its general partner, Sprague Resources GP LLC (the “General Partner”), declared a cash distribution of $0.6675 per unit ($2.67 per unit on an annualized basis) for the quarter ended December 31, 2020. The fourth quarter distribution is equal to all other distribution amounts in 2020. The announced distribution will be paid on Wednesday, February 10, 2021, to unitholders of record as of the close of business on February 2, 2021. Audited Fourth Quarter 2020 Financial Results and Earnings Conference CallSprague will release its Fourth quarter 2020 unaudited financial results before the openi...