Star Gas Partners L.P. Stock Downgraded (SGU)
- SGU's revenue growth trails the industry average of 26.5%. Since the same quarter one year prior, revenues slightly increased by 0.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.70 is somewhat weak and could be cause for future problems.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Gas Utilities industry and the overall market on the basis of return on equity, STAR GAS PARTNERS -LP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for STAR GAS PARTNERS -LP is rather low; currently it is at 20.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.60% trails that of the industry average.
-- Written by a member of TheStreet Ratings Staff
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