GLP Intrinsic Stock Value – Global Partners: An 8.7% Yield Stock and 7.0% Senior Notes Offer Income Investors an Ideal Opportunity
June 19, 2023
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Global ($NYSE:GLP) Partners LP (NYSE: GLP) is an ideal opportunity for income investors, providing a 8.7% yielding stock and 7.0% senior notes offer. The company is a midstream energy company with operations in the transportation, storage, and distribution of various energy products. Global Partners has a long and successful history of providing reliable, efficient, and cost-effective services to its customers. Global Partners LP is a publicly traded master limited partnership (MLP) headquartered in Waltham, Massachusetts. Global Partners’ products are distributed through its own distribution network as well as through railcars and barges. The company has also diversified its portfolio through its investments in renewable energy, natural gas, and storage and transportation assets.
The company’s stock has been a top performer in the midstream sector, offering investors an 8.7% yield on their shares. Global Partners has a strong balance sheet with modest leverage and consistent cash flow from operations. Furthermore, the company has a track record of paying regular and generous distributions to its shareholders and bondholders for the past several years. With its strong balance sheet, reliable cash flow from operations, and consistent dividend and interest payments, Global Partners is an ideal option for income seekers looking for consistent returns.
Analysis – GLP Intrinsic Stock Value
At GoodWhale, we recently conducted an analysis of GLOBAL PARTNERS LP’s wellbeing. After taking into account various factors such as financial performance, competitive landscape, and market sentiment, we have determined that the intrinsic value of GLOBAL PARTNERS LP’s share is around $31.9. This figure has been calculated through our proprietary Valuation Line. Currently, GLOBAL PARTNERS LP’s stock is trading at a price of $30.2, which is slightly below the intrinsic value. This suggests that the stock is currently undervalued by 5.4%. As such, we would recommend that investors take advantage of this opportunity and consider investing in the stock. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GLP. More…
| Total Revenues | Net Income | Net Margin |
| 18.41k | 339.16 | 1.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GLP. More…
| Operations | Investing | Financing |
| 438.04 | -41.46 | -400.35 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for GLP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.92k | 2.17k | 22.34 |
Key Ratios Snapshot
Some of the financial key ratios for GLP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.2% | 44.0% | 2.5% |
| FCF Margin | ROE | ROA |
| 1.8% | 37.0% | 9.8% |
Peers
Global Partners LP is one of the largest publicly traded partnerships and a leading independent owner, operator, and developer of midstream energy assets in North America. The company owns, controls, or has access to one of the largest terminal networks of refined petroleum products and renewable fuels in the Northeast. Global Partners competes with Martin Midstream Partners LP, YPF SA, and PBF Logistics LP.
– Martin Midstream Partners LP ($NASDAQ:MMLP)
Midstream Partners LP is a publicly traded partnership that owns, operates, and develops midstream assets in the United States. The company’s assets include crude oil and refined products pipelines, terminals, and storage facilities. Midstream Partners LP is headquartered in Houston, Texas.
– YPF SA ($NYSE:YPF)
YPF SA is an Argentine oil company with a market cap of 2.91B as of 2022. The company has a return on equity of 22.03%. YPF SA is engaged in the exploration, development, and production of oil and gas in Argentina. The company also produces and markets natural gas, electricity, and petrochemicals.
– PBF Logistics LP ($NYSE:PBFX)
PBF Logistics LP is a master limited partnership that owns, leases, operates and develops crude oil and refined petroleum products terminals, pipelines, storage tanks and trucks. As of December 31, 2020, the company’s assets included 27 terminals, six pipelines and two trucking fleets with a total capacity of approximately 33.5 million barrels.
PBF Logistics LP has a market cap of 1.33B as of December 31, 2020. The company’s Return on Equity for 2020 was 43.63%.
PBF Logistics LP is engaged in the business of owning, leasing, operating and developing crude oil and refined petroleum products terminals, pipelines, storage tanks and trucks. The company’s terminals are located in California, Louisiana, New Jersey, Ohio and Texas. The company’s pipelines transport crude oil and refined products in Ohio and Texas. The company’s trucking fleet delivers crude oil and refined products to customers in Ohio and Texas.
Summary
Global Partners LP (NYSE: GLP) is an attractive income investment option for investors seeking immediate income and long-term stability. The company’s 8.7% yielding common stock has a record of consistent dividend payments, and its 7.0% Senior Notes are a compelling investment for those looking for higher yield in the energy sector. Financial analysis reveals a well-run company with strong balance sheet fundamentals and very low debt to capital ratio.
The company’s distribution coverage ratio is strong, and it has considerable liquidity to fund operations and capital investments. Overall, Global Partners is an attractive income opportunity for investors who are willing to take on a moderate amount of risk.
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