Suburban Propane AI Stock Analysis
Want to see SPH full AI Analyst Report?
Suburban Propane (SPH) AI Stock Analysis
Suburban Propane
(NYSE:SPH)
SPH scores well primarily due to improved fundamentals (strong TTM profitability, revenue growth, and sharply reduced leverage) and an attractive income/valuation profile (low P/E and high yield). The score is tempered by mixed technicals (below longer-term moving averages and elevated Stoch) and softer recent free cash flow conversion and trend.
Suburban Propane (SPH) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.17B
- Dividend Yield
- 7.52%
- Average Volume (3M)
- 197.45K
- Price to Earnings (P/E)
- 8.9
- Beta (1Y)
- 0.13
- Revenue Growth
- -2.48%
- EPS Growth
- 31.10%
- Country
- US
- Employees
- 3,266
- Sector
- Utilities
- Sector Strength
- 66
- Industry
- Oil & Gas Energy
Suburban Propane Business Overview & Revenue Model
Company Description
Suburban Propane Partners, L.P. is a nationwide marketer and distributor of a diverse array of energy-related products, specializing in propane, fuel oil and refined fuels. It serves approximately 1 million residential, commercial, industrial, and ag...
How the Company Makes Money
Suburban Propane primarily makes money by selling propane (and, to a lesser extent, related fuels/products and services) to end customers through its distribution network. Key revenue streams and drivers include: 1) Propane sales (core revenue): The...
Suburban Propane Earnings Call Summary
The call conveyed a generally positive tone driven by strong operational resilience in the heating season, debt reduction of over $64 million, improving RNG production (+16% sequential, +12% YoY) and recognition of $3.5 million in production tax credits. Management highlighted disciplined capital allocation, on-schedule RNG projects adding ~200,000 MMBtus annually, and maintained distributions with 2.2x coverage. Offsetting risks include flat quarter-over-quarter EBITDA, high U.S. propane inventories (+75% YoY) and a 23% decline in average wholesale propane prices, warm western weather that drove ~10% lower volumes in that region, hedge mark-to-market volatility, and still-elevated leverage (4.34x). Overall, the positive operational execution, balance sheet improvement, and RNG momentum outweigh the noted headwinds.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management guided that its two RNG projects (Upstate New York digester and Columbus gas upgrade) remain on schedule for completion in the second half of fiscal 2026 and are expected to add roughly 200,000 MMBtus of annual RNG production, with PTC eligibility anticipated for the Upstate NY facility (the company recognized $3.5M of PTCs for Jan 2025–Mar 2026, including $2.0M catch‑up for FY2025 and $0.8M for Q1 FY2026); full‑year capital spending for the existing projects is estimated at $35–$40M (YTD RNG CapEx $19M; Q2 total CapEx $24.7M), and management reiterated a disciplined capital allocation strategy to use excess operating cash flow to pay down debt (repaid $64.3M in Q2, >$64M total), maintain ample revolver capacity, strengthen the balance sheet (trailing‑12‑month leverage improved to 4.34x from 4.54x), and support the $0.325 quarterly distribution (annualized $1.30, coverage 2.2x) while driving continued operational performance to sustain adjusted EBITDA (Q2 $175.3M; H1 $258.7M, +$8.4M or 3.4% Y/Y).
Suburban Propane Financial Statement Overview
Summary
Financial performance is solid overall: TTM margins are healthy (net ~9.4%, operating ~14.9%, EBITDA ~19.8%) with positive TTM revenue growth (~8.8%) and improved net income. The balance sheet is notably stronger with much lower leverage (debt-to-equity ~0.15) and strong ROE (~19.5%). Offsets are historical margin volatility and only moderate/softening free cash flow conversion (FCF ~50% of net income; TTM FCF growth ~-5.48%).
Income Statement
74PositiveBalance Sheet
78PositiveCash Flow
63Positive| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.39B | 1.43B | 1.33B | 1.43B | 1.50B | 1.29B |
| Gross Profit | 448.36M | 302.69M | 804.98M | 361.00M | 789.34M | 803.28M |
| EBITDA | 275.64M | 256.23M | 216.47M | 260.39M | 259.64M | 296.59M |
| Net Income | 130.66M | 106.57M | 74.17M | 123.75M | 139.71M | 122.79M |
Balance Sheet | ||||||
| Total Assets | 2.36B | 2.30B | 2.27B | 2.27B | 2.10B | 2.05B |
| Cash, Cash Equivalents and Short-Term Investments | 5.03M | 3.71M | 3.22M | 3.51M | 4.10M | 5.81M |
| Total Debt | 1.33B | 1.33B | 1.35B | 1.33B | 1.21B | 1.25B |
| Total Liabilities | 1.64B | 1.70B | 1.73B | 1.72B | 1.61B | 1.63B |
| Stockholders Equity | 713.02M | 598.57M | 547.06M | 546.36M | 497.53M | 425.42M |
Cash Flow | ||||||
| Free Cash Flow | 125.36M | 114.30M | 101.16M | 180.29M | 176.19M | 196.70M |
| Operating Cash Flow | 250.01M | 186.26M | 160.59M | 225.24M | 220.55M | 226.55M |
| Investing Cash Flow | -165.79M | -128.25M | -81.64M | -170.64M | -94.44M | -34.08M |
| Financing Cash Flow | -76.68M | -66.74M | -72.50M | -44.63M | -127.82M | -189.81M |
Suburban Propane Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPH, the sentiment is Positive. The current price of 17.61 is above the 20-day moving average (MA) of 17.31, above the 50-day MA of 16.90, and below the 200-day MA of 17.97, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 59.63 is Neutral, neither overbought nor oversold. The STOCH value of 44.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPH.
Suburban Propane Risk Analysis
Suburban Propane disclosed 51 risk factors in its most recent earnings report. Suburban Propane reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksSuburban Propane Peers Comparison
Overall Rating
- SPH70Outperform
CPK69Neutral
SR69Neutral
UGI69Neutral
SWX67Neutral
OGS66Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SPH | 70Outperform | $1.18B | 8.94 | 19.49% | 7.52% | -2.48% | 31.10% |
| CPK | 69Neutral | $3.44B | 22.08 | 9.20% | 2.02% | 13.91% | 12.26% |
| SR | 69Neutral | $5.29B | 9.82 | 15.87% | 3.74% | 4.12% | 93.82% |
| UGI | 69Neutral | $8.05B | 12.03 | 13.15% | 4.00% | -0.50% | 60.66% |
| SWX | 67Neutral | $6.67B | 25.67 | 6.42% | 2.73% | -56.99% | -43.86% |
| OGS | 66Neutral | $5.17B | 17.45 | 8.35% | 3.29% | -1.89% | 9.38% |
| Sector * | 66Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
* Utilities Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SPH | Suburban Propane Partners | 17.61 | -0.14 | -0.81% | |
| CPK | Chesapeake Utilities | 140.67 | 9.73 | 7.43% | |
| SR | Spire Inc | 88.27 | 2.58 | 3.01% | |
| SWX | Southwest Gas | 92.67 | 13.56 | 17.15% | |
| UGI | UGI Corp | 37.52 | 3.96 | 11.79% | |
| OGS | ONE Gas Inc | 82.37 | 3.02 | 3.80% |
Suburban Propane Corporate Events
Suburban Propane Raises Quarterly Cash Distribution to Unitholders
PositiveOn October 22, 2026, Suburban Propane Partners, L.P. announced that its Board of Supervisors increased the quarterly cash distribution on common units for the fiscal fourth quarter, raising it from $0.325 to $0.35 per unit for the three months ended...
Suburban Propane to Review Fiscal 2026 Results
NeutralSuburban Propane Partners, L.P., a major U.S. distributor of propane, renewable fuels and related energy services, said it will hold a conference call to discuss its fiscal 2026 full‑year and fourth‑quarter results. The master limited partnership, ba...
Suburban Propane Declares Quarterly Distribution for Unitholders
PositiveOn July 23, 2026, Suburban Propane Partners, L.P. announced that its Board of Supervisors declared a quarterly distribution of $0.325 per common unit for the fiscal third quarter ended June 27, 2026, equivalent to an annualized rate of $1.30 per comm...
Suburban Propane Schedules Fiscal Q3 2026 Earnings Call
NeutralOn July 22, 2026, Suburban Propane Partners, L.P. announced it had scheduled its fiscal 2026 third quarter results conference call for Thursday, August 6, 2026 at 9:00 a.m. Eastern Time. Analysts, investors and other interested parties were invited t...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 22, 2026