Star Group vs Forum Energy Technologies
STAR GROUP LP and Forum Energy Technologies, Inc. This page compares their business models, financial performance, and market context with a clear, neutral approach suitable for readers seeking understanding of two industry players. Educational content, not financial advice.
STAR GROUP LP and Forum Energy Technologies, Inc. This page compares their business models, financial performance, and market context with a clear, neutral approach suitable for readers seeking unders...
Which Baskets Do They Appear In?
Australia's Fuel Retail Shake-Up
Ampol's acquisition of EG Group's Australian sites marks a major consolidation in the nation's fuel retail sector. This move intensifies competition, creating potential opportunities for other retailers and suppliers who may benefit from the shifting market dynamics.
Published: August 14, 2025
Explore BasketWhich Baskets Do They Appear In?
Australia's Fuel Retail Shake-Up
Ampol's acquisition of EG Group's Australian sites marks a major consolidation in the nation's fuel retail sector. This move intensifies competition, creating potential opportunities for other retailers and suppliers who may benefit from the shifting market dynamics.
Published: August 14, 2025
Explore BasketInvestment Analysis
Star Group
SGU
Pros
- Star Group benefits from a stable, recurring revenue base through its large residential and commercial heating oil and propane customer base, supporting consistent cash flow.
- The company maintains a conservative financial profile with a low beta, modest debt levels, and has recently increased its net income despite a decline in overall revenue.
- Star Group offers an attractive dividend yield, which may appeal to income-focused investors, alongside a low price-to-earnings ratio suggesting potential undervaluation.
Considerations
- Revenue contracted recently, reflecting sensitivity to volatile energy prices and potential customer attrition in a competitive and evolving residential energy market.
- Growth is largely dependent on acquisitions and customer satisfaction initiatives, which may face integration risks or limited scalability compared to organic expansion.
- The core business remains exposed to cyclical demand for heating fuels, regulatory changes around emissions, and long-term risks from the energy transition.
Pros
- Forum Energy Technologies operates across multiple segments in the global energy supply chain, diversifying its exposure to different stages of oil and gas activity.
- The company has demonstrated rapid share price appreciation in the past year, buoyed by improving sentiment in the energy equipment and services sector.
- Forum’s product portfolio includes highly engineered capital equipment and aftermarket services, providing both upfront sales and recurring service revenue.
Considerations
- Forum Energy Technologies recently reported a loss per share and missed analyst expectations, indicating ongoing profitability challenges despite top-line growth.
- The company’s negative price-to-earnings ratio highlights persistent earnings weakness, even as the broader sector recovers from pandemic-era lows.
- Revenue remains heavily tied to oil and gas industry cycles, exposing the business to volatility in commodity prices and capital spending by energy producers.
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