FERRELLGAS PARTNERS L P (FGPR) Jun 2024 Earnings Report
Ferrellgas Partners LP New Com (FGPR): Investment Report
Overview
Ferrellgas Partners LP New Com (FGPR) is a leading propane distributor and marketer in the United States, operating through a network of 49 service centers and 803 service units. As a key player in the energy sector, FGPR's stock performance is closely tied to the fluctuating prices of propane and refined fuels. With a market capitalization of $270.36 million, FGPR presents an attractive opportunity for investors seeking exposure to the oil and gas refining and marketing industry. However, before making an investment decision, it is essential to delve deeper into the company's financial performance, growth prospects, and recent news.
Core Metrics
- Current price: $11.50 USD
- 52-week high: $18.00 USD
- 52-week low: $6.00 USD
- Market Cap: $270.36 million USD
- P/E Ratio: N/A (due to negative EPS)
- Earnings per Share: -$5.21
- 50-day average: $13.36
- 200-day average: $9.29
- Analyst Recommendations: Underperform (1 analyst)
Financial Performance
FGPR's financial performance has been under pressure in recent quarters, with revenue growth declining by 12.2% and gross margins contracting to 53.5%. The company's EBITDA margins also narrowed to 16.3%, indicating increased operational costs. Furthermore, FGPR reported a net loss of $171 million in the third quarter of fiscal 2024, primarily due to a court judgment against the company.
Growth Prospects
Despite the recent challenges, FGPR's growth prospects remain tied to the increasing demand for propane and refined fuels in the United States. The company's diversified customer base, including residential, industrial, and commercial segments, provides a stable revenue stream. However, FGPR must address its operational inefficiencies and high debt levels to capitalize on these opportunities.
News and Updates
Recent news highlights include the company's third-quarter fiscal 2024 earnings call, which avoided discussing the significant court judgment against FGPR. Additionally, Tamria Zertuche was appointed as the new President and CEO of the company, effective August 1, 2023.
Upgrades and Downgrades
There have been no recent upgrades or downgrades for FGPR's stock.
Summary
In conclusion, Ferrellgas Partners LP New Com (FGPR) presents a complex investment opportunity. While the company's diversified customer base and growing demand for propane and refined fuels offer potential for long-term growth, its current financial performance and high debt levels pose significant risks. Investors should exercise caution and closely monitor FGPR's progress in addressing its operational inefficiencies and debt levels before making an investment decision. Key takeaways from this report include:
- FGPR's financial performance has been under pressure in recent quarters
- The company's growth prospects are tied to the increasing demand for propane and refined fuels
- Operational inefficiencies and high debt levels pose significant risks
- Investors should exercise caution and closely monitor FGPR's progress before making an investment decision
Disclosures
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