SPH Stock Intrinsic Value – Mercer Global Advisors ADV Acquires Stake in Suburban Propane Partners, L.P. on May 29, 2023
June 1, 2023
🌥️Trending News
On May 29, 2023, Mercer Global Advisors Inc. ADV announced that they had acquired a stake in Suburban Propane Partners ($NYSE:SPH), L.P. through their financial reports. Suburban Propane also offers a variety of energy-related products and services, including energy-efficient space-heating and water-heating solutions for both residential and commercial customers. In addition to their core propane business, Suburban Propane also has a presence in the alternative energy space, with propane autogas and renewable energy offerings.
Market Price
This price drop is a sign of the market’s overall uncertainty regarding the long-term impact of the acquisition on the company’s performance. The acquisition by Mercer Global Advisors Inc. ADV could prove to be beneficial for Suburban Propane Partners in the long run as the investors can provide capital that can be used to expand operations and capitalize on potential growth opportunities in the industry. This could lead to increased profits and a higher stock price for the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SPH. More…
| Total Revenues | Net Income | Net Margin |
| 1.46k | 93.18 | 6.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SPH. More…
| Operations | Investing | Financing |
| 240.15 | -94.44 | -127.82 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SPH. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.17k | 1.64k | 8.23 |
Key Ratios Snapshot
Some of the financial key ratios for SPH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.2% | 11.9% | 10.9% |
| FCF Margin | ROE | ROA |
| 13.4% | 19.1% | 4.6% |
Analysis – SPH Stock Intrinsic Value
At GoodWhale, we have conducted a thorough analysis of SUBURBAN PROPANE PARTNERS’s fundamentals. Our proprietary Valuation Line has determined that the intrinsic value of their share is around $16.8. Currently, SUBURBAN PROPANE PARTNERS stock is traded at $14.6, indicating that it is undervalued by 12.9%. This could be a great opportunity for those looking to invest in this company. Therefore, we recommend taking a closer look at SUBURBAN PROPANE PARTNERS and consider investing in it, if it suits your investment goals. More…
Peers
The company faces competition from other large propane companies such as Atmos Energy Corp, Spire Inc and Unimot SA, who all strive to provide competitively priced and efficient services to their respective customers.
– Atmos Energy Corp ($NYSE:ATO)
Atmos Energy Corp is an integrated natural gas company that provides natural gas distribution and related services to over three million residential, commercial, public authority, and industrial customers in eight states. As of 2023, Atmos Energy Corp had a market cap of 15.35 billion and a Return on Equity (ROE) of 6.44%. The market cap of a company is the total value of its outstanding shares of stock and is calculated by multiplying the number of outstanding shares by the current market price of the stock. Atmos Energy Corp’s market cap indicates that it is a large and stable company that has been able to generate consistent returns for its investors. The company’s ROE is a measure of how efficiently it is using its shareholders’ investments to generate profits. Atmos Energy Corp’s 6.44% ROE indicates that it is using its resources to generate a relatively stable and consistent return for its investors.
– Spire Inc ($NYSE:SR)
Spire Inc is a leading energy services company that operates natural gas infrastructure, utility services, and renewable energy solutions in the United States. With a market cap of 3.68B as of 2023, Spire Inc is well positioned to continue to capitalize on energy markets for the foreseeable future. Its Return on Equity (ROE) has also been strong at 8.82%, indicating that the company is generating a healthy return for shareholders. This healthy return has allowed the company to make strategic investments in new technologies and services that have kept it competitive in the ever-changing energy market.
– Unimot SA ($LTS:0ROK)
Unimot SA is a Polish fuel and energy company that operates in the retail fuel and energy sector. The company has a market capitalization of 746M as of 2023, which ranks it among the largest publicly-traded companies in Poland. Unimot SA has also maintained a strong Return on Equity (ROE) of 37.34%, a sign of the company’s strong financial performance. Unimot SA has been able to generate strong returns for its stockholders thanks to its successful business model and efficient management. The company is well-positioned to continue delivering growth in the years to come.
Summary
Suburban Propane Partners, L.P. (SUB) has been identified as an attractive investment by Mercer Global Advisors Inc. ADV who recently acquired a stake in the company. Analysts have noted that SUB offers a high dividend yield, strong growth potential, and a low cost of capital. Suburban Propane’s investment portfolio is well diversified across residential and commercial customers, providing stability and strong cash flows. The company has established a strong distribution network and has benefited from its long-term relationships with suppliers.
Additionally, company management is focused on cost control and operational efficiency, helping to keep costs down. Overall, SUB is an attractive investment for those looking for income and long-term growth potential.
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