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Suburban Propane Partners LP SPH

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Suburban Delivers Strong Results; Management Wisely Reduces Leverage

Andrew Bischof, CFA, CPA Senior Equity Analyst

Analyst Note

| Andrew Bischof, CFA, CPA |

We are maintaining our $14.50 per unit fair value estimate for Suburban Propane Partners after the partnership reported that its propane, refined fuels, and energy marketing businesses generated $172 million in adjusted EBITDA for the 2021 fiscal second quarter, up sharply from $130.6 million in the same the year-ago period. Net income was $127.2 million compared with $77.4 million in the 2020 second quarter. We increased our full-year expectations, which did not have a material impact on our fair value estimate. Our long-term outlook remains unchanged. We are reaffirming our no-moat and negative moat trend ratings.

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Company Profile

Business Description

Suburban Propane Partners distributes propane, fuel oil, and other refined fuels to customers primarily in the East Coast and West Coast regions of the United States. Other operations include natural gas and electricity marketing in the deregulated New York and Pennsylvania markets.

Contact
240 Route 10 West, P.O. Box 206
Whippany, NJ, 07981
T +1 973 887-5300
Sector Utilities
Industry Utilities - Regulated Gas
Most Recent Earnings Mar 31, 2021
Fiscal Year End Sep 26, 2021
Stock Type Slow Growth
Employees 3,274

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