5 models fit Star Group L.P. Common Stock and they disagree: 2 of 5 land within 15% of the average.
Two or more of our models back this value.
Large discount(i)Silver76
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionStar Group L.P. Common Stock (SGU)
Fair value (5 models)
$19.96
ACCE price target
$13.50
Rating
Undervalued
Horizon
12 months
Fair value published on 24 Oct 2026, 17:04 CEST; previously $20.52 since 17 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Rating published on 24 Oct 2026, 17:04 CEST.
Price used: $13.15 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
34.1% below
+51.8% to fair value
ACCE score
76
out of 100
P/E
5.7x
forward 9.8x
1-year return
+9.4%
Dividend yield
5.92%
Star Group L.P. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Star Group distributes home heating oil and propane to residential customers across the Northeast and Mid-Atlantic, and it sells the associated service plans and equipment. The business is a seasonal, route-based delivery franchise, and its moat rests on dense local routes and a large base of recurring customers who rarely switch suppliers. Revenue grew 17.2% and return on equity is 24.1%, but the operating margin is negative at -10.0%, so the earnings picture depends heavily on how the reported figures are treated and on the winter heating season. At 5.7 times trailing earnings and 9.8 times forward, the market is pricing in a meaningful drop in profitability that the company's cash generation may or may not support. The question for the PM is whether the seasonal earnings base and the forward multiple justify a closer look at the cash flow and balance sheet, which the headline numbers alone cannot settle.