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Star Group, L.P. (SGU)

Company Dividend Discount ModelIndustry: Oil & Gas Refining & MarketingSector: Energy

Valuation Snapshot

Stable Growth$11.45 - $16.66$13.97
Multi-Stage$18.25 - $20.03$19.12
Blended Fair Value$16.55
Current Price$11.83
Upside39.89%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%0.00%0.000.730.690.680.680.710.750.750.710.67
YoY Growth---100.00%5.45%2.38%-1.09%-4.10%-4.46%-0.04%5.27%5.33%8.42%
Dividend Yield--0.00%6.33%6.01%5.61%6.35%7.58%7.89%8.00%6.60%6.26%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)52.80
(-) Cash Dividends Paid (M)19.48
(=) Cash Retained (M)33.32
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)10.566.603.96
Cash Retained (M)33.3233.3233.32
(-) Cash Required (M)-10.56-6.60-3.96
(=) Excess Retained (M)22.7626.7229.36
(/) Shares Outstanding (M)34.2834.2834.28
(=) Excess Retained per Share0.660.780.86
LTM Dividend per Share0.570.570.57
(+) Excess Retained per Share0.660.780.86
(=) Adjusted Dividend1.231.351.42
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-1.50%-0.50%0.50%
Fair Value$11.45$13.97$16.66
Upside / Downside-3.17%18.13%40.81%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)52.8052.5452.2752.0151.7551.5053.04
Payout Ratio36.90%47.52%58.14%68.76%79.38%90.00%92.50%
Projected Dividends (M)19.4824.9630.3935.7641.0846.3549.06

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-1.50%-0.50%0.50%
Year 1 PV (M)22.6522.8823.11
Year 2 PV (M)25.0225.5326.05
Year 3 PV (M)26.7227.5428.38
Year 4 PV (M)27.8529.0030.18
Year 5 PV (M)28.5129.9931.52
PV of Terminal Value (M)494.94520.58547.27
Equity Value (M)625.70655.52686.52
Shares Outstanding (M)34.2834.2834.28
Fair Value$18.25$19.12$20.03
Upside / Downside54.30%61.65%69.30%

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