SPH - Suburban Propane: Attractive 10.4%-Yielding Dividend But Structural Decline In Its Business Will Continue
Investment Thesis
Suburban Propane Partners (SPH) delivered a poor Q3 F2019 due to warmer weather conditions in its service territory. Looking forward, we do not have a positive view about the company's business due to 1) structural decline in the propane market, 2) elevated debt level, and 3) unfavorable demographic trend in its rural markets. Hence, we think investors should seek opportunities elsewhere.
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Recent Development: Q3 F2019 Highlights
Suburban Propane delivered a poor Q3 F2019 due to unusually warm weather in its service territory. The quarter was 12% warmer than normal and