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what it is
Star Group delivers heating oil, propane, gasoline, and diesel, then fixes the equipment that keeps your building warm.
how it gets paid
Last year Star Lp made $1.8B in revenue.
why it's growing
Ignore triple-digit “revenue growth” here—it is a mis-tagged vs. prior year after restatement/M&A, not organic gallons. 11.0% gross margin matters because this is a low-margin fuel business.
what just happened
Latest quarter revenue hit $539M, but the real story is that this business still rises and falls with heating season math.
At a glance
B balance sheet — gets the job done, barely
30/100 earnings predictability — expect surprises
7.5x trailing p/e — the market's not buying it — or you found a deal
6.0% dividend yield — cash in your pocket every quarter
12.8% return on capital — respectable for a fuel distributor
xvary composite: 52/100 — below average
What they do
Star Group delivers heating oil, propane, gasoline, and diesel, then fixes the equipment that keeps your building warm.
When your heat dies in January, you call the company that already knows your house, your tank, and your service history. Star served about 404,900 full-service heating customers and 65,200 delivery-only customers at December 31, 2025. Switching costs (switching costs → changing providers is a hassle → most people stay put when the boiler is the problem) are boring, local, and real.
How they make money
$1.8B
annual revenue · vs. prior year % shown in feeds is unreliable (restatement/M&A); use gallons and margin, not that headline
total revenue
$1.8B
n/c
The products that matter
delivers home heating fuel
Heating Oil
$1.4B · largest segment
it's a $1.4B business serving a customer base that depends on cold Northeast winters showing up on schedule.
core revenue driver
alternative heating fuel
Propane
$300M · second fuel leg
this $300M segment diversifies the mix, but it is still another fuel business with cost and demand tied to commodity swings.
fuel mix support
maintains heating systems
Service & Installation
$100M · steadier than fuel
at $100M and flat growth, this is the calmer part of the company — smaller than fuel sales, but useful because furnaces still break whether oil prices cooperate or not.
stability pocket
Key numbers
7.5x
trailing p/e
P/E (price-to-earnings ratio → how many dollars you pay for $1 of profit → you are paying a low price for a business expected to earn $1.82 a share in fiscal 2025).
6.0%
dividend yield
Dividend yield (cash payout yield → the annual cash return on your stock price → SGU pays you more than many stocks before the share price does anything).
12.8%
return on capital
Return on capital (profit on invested money → how efficiently management turns business assets into earnings → 12.8% is solid for a local fuel-and-service operator).
37%
debt to capital
Debt to capital (leverage ratio → how much of the business is financed by debt → Star uses debt, but not at a level that obviously overwhelms the equity story).
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $242M (37% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for SGU right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Latest quarter revenue hit $539M, but the real story is that this business still rises and falls with heating season math.
Revenue rose 10% vs. prior year in the latest quarter, while gross margin was 11.0%. Consensus shows the last reported EPS at -$0.65, which fits the business's winter-heavy earnings pattern.
$539M
revenue
−$0.65
eps (loss)
11.0%
gross margin
the number that mattered
11.0% gross margin matters because this is a low-margin fuel business, so small changes in spread can move a lot of profit on $539M of quarterly sales.
source: company earnings report, 2026
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What could go wrong
the #1 risk is warm Northeast winters. you own a company whose largest segment is $1.4B heating oil, so weather is not background noise here.
high
warm winter demand shock
heating oil is a $1.4B segment. if winter is mild, gallons sold can fall fast. this business does not get to negotiate with the weather.
largest revenue stream weakens immediately
high
fuel price volatility
$1.7B of the $2B revenue base comes from heating oil and propane. when input costs move around, margins can get noisy even if customer demand holds up.
the bulk of revenue is exposed to fuel economics
med
acquisition growth fading
the eye-catching 620% segment growth came from buying a competitor. if integration disappoints or there is no next deal, the growth narrative gets a lot quieter.
headline growth can compress toward the underlying 1.0% business pace
med
debt and dividend tension
long-term debt is $242M, or 37% of capital, and operating cash flow covers 31.5% of debt. that is manageable, but it leaves less room for mistakes in a lumpy earnings business paying a 6.0% yield.
income appeal gets less durable if cash flow softens
$1.7B of a $2B revenue base comes from heating oil and propane. if winters warm up or fuel economics turn against them, most of the business feels it quickly.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next estimated earnings date
wednesday, may 6, 2026. this quarter lands outside peak winter demand, which makes it a cleaner test of how much earnings power is left after the cold-weather rush.
metric
EPS versus the $1.82 full-year estimate
that estimate is holding up the cheap-looking 7.5x multiple. if quarterly results drift away from it, the stock's value case gets weaker fast.
risk
cash flow coverage versus $242M of debt
operating cash flow covers 31.5% of debt. you do not need a balance-sheet crisis for that number to matter — just one soft heating season.
trend
whether 620% growth rolls over into 1.0% reality
last year's segment growth looked explosive because of an acquisition. watch whether the next few reports show durable customer volume or just harder comparisons.
Analyst rankings
earnings predictability
30 / 100
in human-speak, analysts do not view this as a steady metronome. weather, fuel costs, and deal comparisons can move the numbers around.
risk rank
3
risk rank 3 means this sits near the middle rather than the bunker end of the spectrum. safer than the wild stuff, less predictable than the best operators.
balance sheet
B
B means functional. you are not buying fortress finances here. you are buying a business that looks serviceable if conditions stay normal.
source: institutional data
Institutional activity
institutional ownership data for SGU is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$13
current price
n/a
target midpoint · n/a from current
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