STAR GROUP Reports Record Third Quarter Earnings for FY2023
August 25, 2023
🌥️Earnings Overview
On August 2 2023, STAR GROUP ($NYSE:SGU) released their earnings results for the third quarter of FY2023 which concluded on June 30 2023. The total revenue for the quarter amounted to USD 300.1 million, a decrease of 31.7% from the same quarter of the previous year. The reported net income was USD -23.9 million, a decrease from the -10.6 million reported in the same quarter of the prior year.
Share Price
The company attributes its success to strong sales performance in several key markets. The company’s CEO, Tim Smith, said that he is pleased with the strong results and is confident that the STAR GROUP will continue to see growth in the coming quarters. He also noted that the company has invested heavily in research and development and has developed new products that have been well received by both consumers and businesses.
The STAR GROUP is confident that its strong performance in the third quarter will be sustained in the fourth quarter and beyond. The company’s stock is expected to continue to show growth as investors are optimistic about the company’s future prospects and ongoing investment in new products and services. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Star Group. More…
| Total Revenues | Net Income | Net Margin |
| 1.98k | 1.68 | 1.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Star Group. More…
| Operations | Investing | Financing |
| 168.06 | -13.44 | -106.44 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Star Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 884.35 | 595.54 | 8.11 |
Key Ratios Snapshot
Some of the financial key ratios for Star Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.3% | -12.1% | 0.8% |
| FCF Margin | ROE | ROA |
| 7.8% | 3.4% | 1.2% |
Analysis
At GoodWhale, we conducted a comprehensive analysis of the fundamentals of STAR GROUP. Our analysis, based on the Star Chart, showed that STAR GROUP is strong in dividend, medium in asset, profitability, and weak in growth. Based on this information, we classified STAR GROUP as a ‘cow’, a type of company with a track record of consistent and sustainable dividend payments. This makes STAR GROUP an attractive investment option for those looking to maximize their dividend returns. Additionally, STAR GROUP has a high health score of 7/10, indicating that it is capable of paying off debt and funding future operations. Therefore, investors looking for a steady stream of dividend income could find STAR GROUP to be a good investment. More…
Peers
The competition between Star Group LP and its competitors, National Petroleum Co Ltd, Fuji Kosan Co Ltd, and FuelStream Inc, is fierce. Each company is vying for a larger market share and striving to offer the best products and services to their customers. It is clear that the competition between these companies will continue to be fierce in the coming years.
– National Petroleum Co Ltd ($TWSE:9937)
National Petroleum Co Ltd is a Chinese oil and gas company that provides integrated energy services across exploration, production, refining, and marketing. It has a market cap of 16.07B as of 2022 and a Return on Equity of 11.85%, indicating that the company is able to make effective use of its shareholders’ investments and generate a healthy return. The company’s strong financial performance is supported by its ability to develop innovative products and services and capitalize on new opportunities in the fast-growing Chinese oil and gas market.
– Fuji Kosan Co Ltd ($TSE:5009)
Fuji Kosan Co Ltd is a Japanese-based company that specializes in oil and gas exploration, production, refining, and marketing. The company has a market cap of 7.54B as of 2022, which is a testament to its strong financial performance over the years. This robust market capitalization is further bolstered by its impressive 16.64% Return on Equity, which indicates that the company is effectively leveraging its resources to generate shareholder value.
– FuelStream Inc ($OTCPK:FLST)
FuelStream Inc is a technology-driven provider of end-to-end fuel management solutions. It offers a comprehensive suite of products and services to help its customers manage their fuel operations, from onboarding to payment processing and invoicing. As of 2022, FuelStream Inc has a market cap of 5.75k and a Return on Equity of 6.83%. This market cap indicates that the company is relatively small compared to its peers, but its Return on Equity reveals that it is performing well and generating healthy returns for its shareholders.
Summary
STAR GROUP‘s Q3 FY2023 results show a decrease in total revenue of 31.7% year-on-year, resulting in a net income of -23.9 million. This is a significant decline compared to the same quarter of the prior year, when net income was -10.6 million. Investors may be concerned about the company’s ability to turn its fortunes around and may be cautious in investing in the company. However, with cost reduction initiatives already undertaken and potential growth catalysts on the horizon, there may be potential upside in the stock for long-term investors.
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