- Following the turmoil of 2020, many investments have seen their prices broadly recover during 2021 but this has not been the case for the seemingly forgotten Suburban Propane Partners.
- Their cash flow performance remained resilient throughout the Covid-19 pandemic even though they still chose to halve their distributions.
- They have ample free cash flow and an adequately healthy financial position to see their distributions grow significantly in the coming years.
- Even only slow distribution growth places their intrinsic value over 100% above their current unit price but even if they remain unchanged perpetually into the future, their units still appear undervalued.
- Since this indicates that their units are currently over 50% undervalued, I believe that upgrading my rating to very bullish from bullish is appropriate.
For further details see:
Suburban Propane Partners: The Forgotten MLP That's Over 50% Undervalued