SUBURBAN PROPANE PARTNERS LP

Third-largest U.S. propane retailer with strong margins and FCF, offset by high leverage and a declining core market.

Strengths

• Top-quartile operating margin (14.4%, 82nd) and FCF margin (8%, 90th); solid OCF margin (77th)
• Scaled national footprint (~750 locations, 42 states) with growing RNG/renewables optionality

Risks

• High MLP leverage with thin interest coverage (2.7x) and weak liquidity (current 0.55x); low ROA (4.6%)
• Secular decline in heating fuels and warm-winter weather sensitivity

Notable findings

• Weak liquidityCurrent ratio 0.55 (<1)