Star Group LP, headquartered in Stamford, Connecticut with 3,052 employees, distributes home heating oil, propane, and related services through its subsidiary, Petro Holdings, Inc. The company operates in the Northeast, Central, and Southeast U.S., also offering diesel, gasoline, plumbing services, and equipment maintenance.
Based on our analysis, Star Group L.P. appears undervalued relative to its sector. This assessment is based on several key financial ratios that suggest the company is performing well financially yet is not priced accordingly in the market.
Star Group L.P. has a Price to Earnings (PE) Ratio of 9.32, which is significantly lower than the sector average of 16.71. The PE Ratio indicates how much investors are willing to pay for each dollar of earnings. A lower PE relative to the sector suggests that the company's earnings are potentially undervalued.
The Return on Equity (ROE) Ratio for Star Group L.P. is 12.11, compared to the sector average of 7.24. ROE measures a company's profitability from shareholders' perspectives, indicating how effectively management is using a company’s assets to create profits. A higher ROE suggests that Star Group is more efficiently generating income relative to its sector.
Additionally, the Dividend Yield of Star Group is 6.96%, which is much higher than the sector average of 3.82%. Dividend Yield represents the ratio between a company's annual dividend and its current share price. A higher yield can be attractive to investors looking for income as well as potential capital gains.
The company’s Return on Assets (ROA) Ratio is 3.65, surpassing the sector average of 2.00. ROA shows how capable management is at using its assets to generate earnings. A higher ROA indicates that Star Group is more effective in converting its investments into profit.
While the Price to Book (PB) Ratio of Star Group is 1.64, nearly in line with the sector average of 1.58, it does not detract from the overall positive financial health of the company.
These factors contribute to Cashu's 4 out of 5 stars undervalued rating for Star Group L.P. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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