olivLaw · US equity research
Star Group, L.P. SGU
Retail-Retail Stores, NEC · SIC 5990 · Vertical: Retail-Retail Stores, NEC (SIC 5990)
Star Group is the largest retail distributor of home heating oil in the United States by sales volume, also distributing propane and offering installation and maintenance services across the Northeast and Mid-Atlantic. The company is going through a volatile year in which the sharp rise in fuel costs after the Middle East conflict lifted revenue but pressured margins and cash flow. Revenue rose 17.2 percent in the third quarter of fiscal 2026, while the net loss widened to 28.0 million USD.
At the close of 04 Nov 2026, Star Group, L.P. (SGU) stock was 13.10 USD (+0.46% on the day), with market capitalisation 429.8 m USD, P/E 4.9, dividend yield 6.18%, beta 0.20, 52-week range 11.50–13.45 USD. Latest reported quarter (Q3 2026): revenue of 358.1 m USD (+17.2% YoY), net income of -28.0 m USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 55.8
- strong (55–70)
- Bollinger (20, 2)
- 12.85 – 13.17
- in the upper half of the band · %B 0.77 · band width 2.5%
- SMA 50 / 200
- 12.88 / 12.77
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.03 / 0.04
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +1.6% | −1.1% | +2.6 pp | — |
| 3 months | +1.9% | −0.5% | +2.4 pp | — |
| 6 months | −0.4% | +4.4% | −4.8 pp | — |
| Year to date | +10.6% | +12.3% | −1.7 pp | — |
| 1 year | +9.3% | +13.5% | −4.3 pp | −26.6% |
| 3 years | +12.4% | +76.4% | −64.0 pp | −49.3% |
| 5 years | +17.7% | +63.7% | −46.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 240.3 m | 488.1 m | 743.0 m | 305.6 m | 247.7 m | 539.3 m | 766.7 m | 358.1 m |
| Gross profit | 57.9 m | 157.7 m | 259.9 m | 85.9 m | 59.4 m | — | — | — |
| Operating income | -48.6 m | 49.2 m | 125.4 m | -19.2 m | -40.9 m | 54.2 m | 157.2 m | -34.1 m |
| Depreciation & amortisation | 8.4 m | 8.2 m | 8.9 m | 9.2 m | 9.6 m | 9.0 m | 8.3 m | 8.3 m |
| Interest expense | — | — | — | 3.6 m | — | — | — | 3.6 m |
| Pre-tax income | -50.6 m | 45.9 m | 120.7 m | -23.1 m | -40.6 m | 50.2 m | 152.8 m | -37.9 m |
| Income tax | -15.6 m | 13.0 m | 34.8 m | -6.5 m | -11.9 m | 14.4 m | 44.5 m | -9.9 m |
| Net income | -35.1 m | 32.9 m | 85.9 m | -16.6 m | -28.7 m | 35.8 m | 108.3 m | -28.0 m |
| Operating cash flow | 38.6 m | -64.6 m | 48.6 m ≈ | 72.5 m ≈ | 14.4 m | -55.2 m | -5.9 m ≈ | 118.3 m ≈ |
| Capex | 3.0 m | 4.0 m | 2.5 m ≈ | 3.8 m ≈ | 4.6 m | 4.6 m | 3.2 m ≈ | 2.5 m ≈ |
| Dividends paid | 6.3 m | 6.3 m | 6.3 m ≈ | 6.8 m ≈ | 6.6 m | 6.5 m | 6.5 m ≈ | 6.9 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
EPS unavailable in the issuer's structured filings (e.g. a partnership reports per unit, not per share).
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.7 bn | 1.8 bn | 1.5 bn | 1.5 bn | 2.0 bn | 2.0 bn | 1.8 bn | 1.8 bn |
| Revenue YoY | +26.8% | +4.5% | −16.3% | +2.0% | +34.0% | −2.7% | −9.6% | +1.0% |
| Net income | 55.5 m | 17.6 m | 55.9 m | 87.7 m | 35.3 m | 31.9 m | 35.2 m | 73.5 m |
| Net income YoY | +106.3% | −68.2% | +217.0% | +56.9% | −59.8% | −9.5% | +10.3% | +108.7% |
| Diluted EPS | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | 3.3% | 1.0% | 3.8% | 5.9% | 1.8% | 1.6% | 2.0% | 4.1% |
| Free cash flow | 43.9 m | 86.1 m | 161.5 m | 53.8 m | 15.2 m | 114.6 m | 100.3 m | 56.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 30 Sept 2025
- Cash
- 24.7 m USD
- Financial debt
- 188.1 m USD
- Net debt
- 163.4 m USD
- Equity
- unavailable USD
- Total assets
- 937.3 m USD
- Debt / equity
- unavailable
- Current ratio
- 0.59x
- ROE
- unavailable
- ROA
- 7.8%
- FCF margin
- 3.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.5 bn | 1.5 bn | 2.0 bn | 2.0 bn | 1.8 bn | 1.8 bn | SEC (XBRL)· 09 Dec 2025verified |
| Gross profit | 475.0 m | 477.7 m | 484.2 m | 470.8 m | 501.8 m | 562.9 m | SEC (XBRL)· 09 Dec 2025verified |
| Operating income | 93.0 m | 130.2 m | 60.5 m | 62.5 m | 61.1 m | 114.5 m | SEC (XBRL)· 09 Dec 2025verified |
| Depreciation & amortisation | 35.6 m | 34.5 m | 33.6 m | 33.4 m | 32.5 m | 36.4 m | SEC (XBRL)· 09 Dec 2025verified |
| EBITDA | 128.6 m ≈ | 164.7 m ≈ | 94.0 m ≈ | 96.0 m ≈ | 93.6 m ≈ | 150.9 m ≈ | SEC (XBRL)· 09 Dec 2025derived |
| Pre-tax income | 76.5 m | 121.4 m | 49.0 m | 45.9 m | 48.6 m | 102.9 m | SEC (XBRL)· 09 Dec 2025verified |
| Income tax | 20.6 m | 33.7 m | 13.7 m | 14.0 m | 13.3 m | 29.4 m | SEC (XBRL)· 09 Dec 2025verified |
| Net income | 55.9 m | 87.7 m | 35.3 m | 31.9 m | 35.2 m | 73.5 m | SEC (XBRL)· 09 Dec 2025verified |
| Weighted average diluted shares | 45.7 m | 40.6 m | 37.4 m | 35.7 m | 35.3 m | 34.3 m | SEC (XBRL)· 09 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 56.9 m | 4.8 m | 14.6 m | 45.2 m | 117.3 m | 24.7 m | SEC (XBRL)· 09 Dec 2025verified |
| Receivables | 83.6 m | 99.7 m | 138.3 m | 114.1 m | 95.0 m | 102.1 m | SEC (XBRL)· 09 Dec 2025verified |
| Inventories | 50.3 m | 61.2 m | 83.6 m | 56.5 m | 41.6 m | 47.0 m | SEC (XBRL)· 09 Dec 2025verified |
| Current assets | 226.3 m | 222.0 m | 288.3 m | 254.7 m | 281.5 m | 207.3 m | SEC (XBRL)· 09 Dec 2025verified |
| Property, plant & equipment, net | 93.5 m | 99.1 m | 107.7 m | 105.4 m | 104.5 m | 128.6 m | SEC (XBRL)· 09 Dec 2025verified |
| Goodwill | 240.3 m | 253.4 m | 254.1 m | 262.1 m | 275.8 m | 293.4 m | SEC (XBRL)· 09 Dec 2025verified |
| Intangibles (excl. goodwill) | 90.3 m | 95.5 m | 84.5 m | 76.3 m | 98.7 m | 124.9 m | SEC (XBRL)· 09 Dec 2025verified |
| Total assets | 838.6 m | 853.9 m | 912.5 m | 875.5 m | 939.6 m | 937.3 m | SEC (XBRL)· 09 Dec 2025verified |
| Accounts payable | 30.8 m | 37.3 m | 49.1 m | 35.6 m | 31.5 m | 33.7 m | SEC (XBRL)· 09 Dec 2025verified |
| Short-term debt | 13.0 m | 17.6 m | 12.4 m | 20.5 m | 21.0 m | 21.0 m | SEC (XBRL)· 09 Dec 2025verified |
| Long-term debt | 109.8 m | 92.4 m | 151.7 m | 127.3 m | 187.8 m | 167.1 m | SEC (XBRL)· 09 Dec 2025verified |
| Current liabilities | 344.9 m | 345.0 m | 381.1 m | 364.9 m | 373.8 m | 349.2 m | SEC (XBRL)· 09 Dec 2025verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 175.7 m | 68.9 m | 33.9 m | 123.7 m | 111.0 m | 71.0 m | SEC (XBRL)· 09 Dec 2025verified |
| Capex | 14.1 m | 15.1 m | 18.7 m | 9.0 m | 10.7 m | 14.9 m | SEC (XBRL)· 09 Dec 2025verified |
| Free cash flow | 161.5 m ≈ | 53.8 m ≈ | 15.2 m ≈ | 114.6 m ≈ | 100.3 m ≈ | 56.0 m ≈ | SEC (XBRL)· 09 Dec 2025derived |
| Investing cash flow | -28.1 m | -50.3 m | -32.6 m | -28.2 m | -61.2 m | -99.9 m | SEC (XBRL)· 09 Dec 2025verified |
| Financing cash flow | -95.5 m | -70.7 m | 8.6 m | -64.9 m | 22.4 m | -63.7 m | SEC (XBRL)· 09 Dec 2025verified |
| Dividends paid | 24.5 m | 23.4 m | 23.2 m | 23.7 m | 25.0 m | 26.1 m | SEC (XBRL)· 09 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 69 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 429.8 m USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet42
- Valuation95
- Quality64
- Growth0
- Returns93
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 18.95 – 124.48 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDA60.96 – 124.48 (Mid 96.48)4 companies used · median multiple 19.3x · quartiles 12.5x – 24.6xSBH, TITN, TKLF, ULTA
- Peers: P/E18.95 – 76.26 (Mid 45.45)6 companies used · median multiple 17.1x · quartiles 7.1x – 28.6xBBWI, JD, RENT, SBH, ULTA, WOOF
- Dividend discount (DDM)unavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 69/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 4.6% | 78 (vs peers) | 8% |
| FCF conversion · Quality | 65.0% | 50 (on a fixed band) | 8% |
| Revenue CAGR 3Y · Growth | -3.8% | 0 (on a fixed band) | 11% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 0.8x | 57 (vs peers) | 14% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 0.9x | 6 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 4.9x | 86 (vs peers) | 14% |
| EV/EBITDA · Valuation | 3.4x | 100 (on a fixed band) | 14% |
| FCF yield · Valuation | 13.2% | 100 (on a fixed band) | 11% |
| Shareholder yield (distributions) · Returns | 6.2% | 88 (on a fixed band) | 8% |
| Payout ratio (FCF) · Returns | 46.8% | 100 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet42/100 · 2/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality64/100 · 2/3 factors with a value
- Returns93/100 · 2/2 factors with a value
- Valuation95/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
STAR GROUP, L.P. (SGU). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 1.8 bn USD in 2025; YoY growth 1.0%; net margin 4.6%; net debt/EBITDA 0.8x.
The estimated value range is 39.96–100.37 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 70.96 USD, the price of 13.10 USD leaves a potential of 441.7% (value / price − 1) and a margin of safety of 81.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 69/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 4.6%
- P/E (TTM): 4.9x
- EV/EBITDA: 3.4x
- FCF yield: 13.2%
- Shareholder yield (distributions): 6.2%
- Payout ratio (FCF): 46.8%
- The price is below the estimated value range
What contradicts it
- Revenue CAGR 3Y: -3.8%
- Current ratio: 0.9x
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, Interest coverage.
Versus the vertical median
Retail-Retail Stores, NEC (SIC 5990) · same industry (4-digit SIC) · compared with 18 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ULTAUlta Beauty, Inc. | 28.2 bn | 24.1 | 46.1% | 9.3% | +9.7% | +23% / +55% |
| BBWIBath & Body Works, Inc. | 4.7 bn | 6.1 | — | 10.8% | −0.2% | +35% / −28% |
| SBHSally Beauty Holdings, Inc. | 1.8 bn | 10.0 | 23.5% | 5.2% | −0.4% | +21% / +99% |
| YJYunji Inc. | 1.3 bn | — | -13.5% | -42.0% | −20.8% | −27% / −62% |
| TITNTitan Machinery Inc. | 530.0 m | — | -9.7% | -2.5% | −10.2% | +22% / −1% |
| SGUStar Group, L.P. | 429.8 m | 4.9 | — | 4.6% | +1.0% | +9% / +12% |
| NAASNaaS Technology Inc. | 223.8 m | — | — | -454.5% | −38.9% | −44% / −100% |
| NEGGNewegg Commerce, Inc. | 207.4 m | — | -3.7% | -0.3% | +16.9% | −87% / −61% |
| RENTRent the Runway, Inc. | 83.1 m | 0.2 | — | 11.8% | +7.7% | −49% / −77% |
| BARKBark, Inc. | 75.2 m | — | -36.7% | -8.4% | −18.5% | −42% / −49% |
| TKLFTokyo Lifestyle Co., Ltd. | 58.0 m | 68.5 | 1.7% | 0.2% | +77.6% | −48% / −82% |
| BQBoqii Holding Limited | 10.5 m | — | -2.8% | -1.2% | −5.7% | −79% / −98% |
| INHDInno Holdings Inc. | 8.7 m | — | -7.2% | -72.7% | +221.4% | −97% / unavailable |
| RCTRedCloud Holdings plc | 2.3 m | — | — | -95.3% | +4.3% | −98% / unavailable |
| LESLLeslie’s, Inc. | 955.3 k | — | — | -21.2% | −6.6% | unavailable / unavailable |
| WOOFPetco Health & Wellness Company, Inc. | — | 31.1 | 2.6% | 0.5% | −2.5% | −2% / +4% |
| FLWS1 800 Flowers Com Inc | — | — | -65.4% | -9.0% | −10.8% | −17% / −68% |
| HITIHigh Tide Inc. | — | — | -44.0% | -8.5% | +13.7% | +8% / +85% |
| JDJD.com, Inc. | — | 30.1 | 10.2% | 1.8% | +17.9% | −7% / +1% |
1- and 3-year price returns: for SGU from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 7.09 Total return -46% · Per year -46% | 12.60 Total return -4% · Per year -4% | 19.05 Total return 45% · Per year 45% |
| 3 years | 5.78 Total return -56% · Per year -24% | 11.65 Total return -11% · Per year -4% | 19.50 Total return 49% · Per year 14% |
| 5 years | 4.71 Total return -64% · Per year -19% | 10.77 Total return -18% · Per year -4% | 19.95 Total return 52% · Per year 9% |
- Exit P/E± 2.91
- Net margin± 2.04
- Annual revenue growth± 1.82
- Annual dilution± 0.17
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Star Group is the largest retail distributor of home heating oil in the United States by sales volume, also distributing propane and offering installation and maintenance services across the Northeast and Mid-Atlantic. The company is going through a volatile year in which the sharp rise in fuel costs after the Middle East conflict lifted revenue but pressured margins and cash flow. Revenue rose 17.2 percent in the third quarter of fiscal 2026, while the net loss widened to 28.0 million USD.
SWOT
Strengths
- The company presents itself as the largest retail distributor of heating oil in the United States, with a broad customer base that gives it scale advantages 1.
- Installation, maintenance and service contracts provide complementary revenue and help retain customers 1.
- The company uses derivative instruments and weather hedge contracts to partly limit its exposure to prices and weather 12.
Weaknesses
- Net customer attrition is persistent, and the cost of adding a new customer usually exceeds the margin earned from that customer 1.
- Revenue is strongly seasonal, and the company reports losses in its third and fourth fiscal quarters 1.
- Derivative instruments can cause accounting volatility and tie up liquidity through required margin deposits 1.
Opportunities
- The company says it is actively assessing several possible acquisition opportunities, which could add customers and volume 3.
- Installation and service of equipment, where the company sees room for growth, could become a larger source of profit 3.
- If prices stabilize, per gallon margins could recover, especially if volumes steady 23.
Threats
- Conversions to natural gas and electricity steadily reduce the heating oil customer base, and total demand could decline 1.
- Oil price volatility tied to geopolitical conflicts could affect margins and funding capacity 2.
- New biofuel rules and tariffs could raise costs or change competitive positions 1.
Risks
- Heating oil price volatilityhigh
Sharp increases in wholesale cost can reduce margins, raise working capital needs and cause customer losses 12.
- Exposure to derivative instrumentshigh
Hedging prices for price protected customers can produce losses if actual consumption differs from the hedged volume 1.
- Continued customer lossesmedium
The net customer attrition rate has stayed negative for several years, and reversing this trend could remain difficult 1.
- Weather dependencemedium
Warmer than normal temperatures reduce volumes, and the weather hedge has a cap, which limits protection 12.
- Supply chain disruptionsmedium
Interruptions at terminals, pipelines or haulers could prevent deliveries and raise procurement costs 1.
Investment thesis
What would need to be true (bull case)
- Its leading position in heating oil distribution and a large customer base could support steady revenue, especially if prices normalize 13.
- Revenue and adjusted EBITDA growth in the first nine months of fiscal 2026 suggest margins could recover if costs stabilize 3.
- Acquisitions the company is assessing could add customers and volume, and installation services could raise profitability 3.
What would break the thesis
- The heating oil market is mature, and conversions to natural gas and electricity could steadily reduce long term demand 1.
- The net loss widened in the third quarter of fiscal 2026, and losses from seasonal operations and derivatives could pressure profitability 3.
- Higher financing costs and working capital needs could limit financial flexibility if prices remain volatile 2.
What to watch
- Trend in heating oil cost and per gallon marginsQ4 2026
- Net customer attrition rate and heating oil volume soldnext 10-K
- Announced acquisitions and their effect on the customer base2027
- Terms of the weather hedge contract and collections in the 2026-2027 seasonQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Star Group, L.P. is a distributor of home heating oil and propane with heating equipment services, serving residential and commercial customers who heat their homes and buildings in the Northeast and Mid-Atlantic U.S. regions 1. As of September 30, 2025, the company sold heating oil and propane to about 406,400 full service customers and 63,200 delivery only customers 1. Operations run through Petro Holdings, Inc. under local brands such as Petro Home Services, Meenan and Griffith Energy Services 1. The company has one reportable operating segment and is listed on the NYSE as a partnership that is taxed as a corporation 13.
The business model rests on per gallon margins over wholesale cost, and the company generally passes wholesale price changes through to customers, though not always in full 1. Customers can choose variable or price-protected plans, and derivative instruments are used to manage exposure to product prices 1. The strategy includes acquiring distributors, customer service and complementary offerings such as cooling equipment and standby generators, and revenue is highly seasonal, with profits in the first two fiscal quarters and losses in the last two 1.
Segments
Heating oil and propane
Heating oil and propane account for most of the sales, about 63 percent in fiscal 2025 1. In fiscal 2025 the company sold 282.6 million gallons of heating oil and propane 1.
Other petroleum products
Diesel and gasoline sold to commercial and industrial customers make up about 18 percent of sales, and the company sold 123.9 million gallons of such products in fiscal 2025 1.
Installation and repair
Installation and repair of heating and air conditioning equipment account for about 19 percent of fiscal 2025 sales, and the company also holds service contracts for natural gas and other heating systems 1.
Market context
The retail home heating oil market is mature and highly fragmented among small local distributors, and total demand could decline over time as customers convert to natural gas and electricity 1. The company estimates its market share at more than 5.5 percent by volume in the United States 1. Diesel prices rose sharply after the start of the Middle East conflict, and the NYMEX ultra low sulfur diesel contract closed at 4.12 USD per gallon on July 31, 2026 2.
The propane market is also highly competitive, with multi-state and local distributors, and customers choose suppliers on service, safety, reputation and price 1. If wholesale prices stay high, pressure on customers could increase and conservation could reduce volumes 13.
Trends
- Extreme oil price volatility after the Middle East conflictheadwind
After the United States launched a joint military operation with Israel against Iran on February 28, 2026, the cost of heating oil rose sharply, and the company reports a significant increase in its product cost 2. If prices stay volatile, hedging costs and working capital needs could remain elevated 2.
- Revenue growth from higher pricesmixed
Revenue rose to 358.1 million USD in the third quarter of fiscal 2026 mainly because average selling prices were higher, while volume declined 3. This dynamic could support a margin recovery if prices stabilize 3.
- Conversions to natural gas and electricityheadwind
Customers switching to natural gas or electric systems are a steady source of lost customers, with annual conversion rates between 1.1 and 1.6 percent over the last five years 1. The company expects this trend to continue or even increase 1.
- Changes to biofuel blending rulesmixed
Since July 1, 2025, the minimum biodiesel blend in heating oil increased from 5 to 10 percent in New York and Connecticut and from 10 to 20 percent in Rhode Island, which could change costs relative to competitors 1.
Competitive position
Most locations compete with numerous distributors, mainly on price, reliability of service and response to customer needs 1. The heating oil industry is highly fragmented, with many small independent distributors 1. Local competition is decisive because each location operates in its own competitive environment 1.
In propane, competitors include large multi-state distributors and small independent local suppliers, and customers choose on service, safety, reputation and price 1. The company cannot secure its position through size alone, so retaining customers remains a challenge 1.
- Multi-state propane distributors
Large propane distributors in the region compete directly with Star Group for residential and commercial propane customers 1.
- Local independent heating oil distributors
A large number of small independent distributors compete locally in heating oil, usually on price and service 1.
- Heating and cooling equipment and generator providers
Firms that sell and install heating, cooling or standby generators compete for the same customers for complementary services 1.
- Fuel distributors for commercial customers
Suppliers of diesel and gasoline to commercial and industrial customers compete through contracts and competitive bidding 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report15 Oct 2026Other events · Financial statements and exhibits
- Current report05 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report17 Jul 2026Departure or appointment of officers · Financial statements and exhibits
- Current report16 Jul 2026Other events · Financial statements and exhibits
- Current report06 May 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report06 May 2026
- Current report16 Apr 2026Other events · Financial statements and exhibits
- Current report13 Feb 2026Other events
- Current report04 Feb 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / Star Group, L.P. · 09 Dec 2025
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Star Group, L.P. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Star Group, L.P. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.