(SPH) Suburban Propane Partners - Ratings and Ratios

Suburban Propane Partners LP (NYSE:SPH) is a leading energy provider in the United States, specializing in the distribution of propane, renewable propane, fuel oil, and refined fuels to a diverse customer base across residential, commercial, industrial, and agricultural sectors. The companys comprehensive service portfolio includes retail marketing, distribution, and wholesale supply of energy products, as well as the sale, installation, and maintenance of home comfort equipment. With a strong presence on the east and west coasts, as well as in the midwest and Alaska, Suburban Propane Partners LP has established itself as a reliable energy solutions provider.

By analyzing the companys operational segments, it becomes clear that Suburban Propane Partners LP has a diversified revenue stream. The Propane segment is a significant contributor, catering to various industries and households that rely on propane for heating, cooking, and other applications. The Fuel Oil and Refined Fuels segment serves residential and commercial customers, primarily for heating purposes. Additionally, the Natural Gas and Electricity segment allows the company to capitalize on deregulated energy markets in specific regions. The All Other segment provides opportunities for cross-selling and upselling of home comfort equipment and services, further enhancing customer relationships and revenue potential.

From a technical analysis perspective, the stocks current price is $18.17, with a 20-day SMA at $18.74 and a 50-day SMA at $19.35, indicating a potential downward trend. The ATR of 0.51 (2.80%) suggests moderate volatility. Given the 52-week high and low of $21.84 and $15.86, respectively, the stock is currently trading near the lower end of its recent range. Using this technical data, a potential forecast could be that the stock may continue to consolidate around its current levels or potentially break out if it can surpass the 20-day SMA.

Fundamental analysis reveals a market capitalization of $1.242 billion and a P/E ratio of 13.19, indicating a relatively undervalued stock compared to its earnings. The forward P/E of 16.61 suggests expected growth. With an RoE of 32.89%, the company demonstrates strong profitability. By combining these fundamental insights with the technical analysis, a forecast can be made that Suburban Propane Partners LP may experience a moderate increase in stock price as it approaches the 20-day SMA, driven by its solid earnings and relatively stable market presence.

Based on the analysis, a potential trading strategy could involve monitoring the stocks price action around the 20-day SMA and considering a long position if it breaks out above this level, with a target price near the 50-day SMA. Conversely, if the stock continues to trade below its current levels, a more cautious approach may be warranted, with a potential stop-loss around the 52-week low.