Star Group LP, headquartered in Stamford, Connecticut, provides home heating oil, propane, and related services, employing 3,052 people. The company operates through Petro Holdings and serves residential and commercial customers in various U.S. regions.
Based on our analysis, Star Group L.P. has been rated undervalued at 4 out of 5 stars by Cashu, reflecting its strong potential for growth relative to its current market price. Key financial ratios indicate that the company is trading at attractive levels compared to its sector peers.
The price-to-earnings (P/E) ratio for Star Group L.P. stands at 6.22, significantly lower than the sector average of 19.34. This suggests that the market may be undervaluing the company's earnings potential. Similarly, the price-to-book (P/B) ratio of 1.54 is below the sector's average of 1.77, indicating the stock may be trading at a discount relative to its net asset value.
Despite a net profit margin of 1.99, which is below the sector average of 8.99, Star Group L.P. shows robust efficiency in generating profits with a return on equity (ROE) of 13.35, outperforming the sector's 7.57. This indicates strong management performance and effective use of shareholder equity.
The company also offers a dividend yield of 5.96, well above the sector average of 3.53, making it an attractive option for income-focused investors. Additionally, Star Group's return on assets (ROA) of 3.75 exceeds the sector's 2.26, highlighting its ability to efficiently utilize its assets to generate earnings.
These factors collectively suggest that Star Group L.P. presents a compelling investment opportunity at its current valuation.
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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