FERRELLGAS PARTNERS L P (FGPR) Jun 2024 Earnings Report

Ferrellgas Partners LP: Investment Report

Overview

Ferrellgas Partners LP, a leading propane distribution company, has been making headlines in the energy sector. With a rich history dating back to 1939, the company has established itself as a reliable supplier of propane and related equipment. However, recent news surrounding a $171.7 million judgment against Ferrellgas has raised concerns among investors. This report provides an in-depth analysis of the company's financial performance, growth prospects, and recent news, helping investors make informed decisions.

Core Metrics

  • Current price: $11.50
  • 52-week high: $18.00
  • 52-week low: $6.00
  • Market Cap: $270.36 million
  • 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

Ferrellgas Partners LP's financial performance has been a mixed bag. While the company has reported revenue growth of -0.122%, its EBITDA margins have improved to 0.16314. The company's operating cash flow stands at $245.04 million, and free cash flow is $102.31 million. However, the recent judgment against Ferrellgas has raised concerns about its ability to meet its financial obligations.

Growth Prospects

Ferrellgas Partners LP's growth prospects are closely tied to the demand for propane and related equipment. As the company continues to operate a network of 49 service centers and 803 service units for propane distribution locations, it is well-positioned to capitalize on growth opportunities in the energy sector. However, the company faces intense competition from established players, which may limit its growth potential.

News and Updates

The company's recent earnings call avoided discussing the $171.7 million judgment against Ferrellgas, which has raised concerns among investors. The company has also appointed Tamria Zertuche as its new President and CEO, effective August 1, 2023.

Upgrades and Downgrades

According to recent reports, there have been no upgrades or downgrades from analysts in the past few months. However, the current analyst recommendation stands at Underperform, indicating a bearish sentiment towards the stock.

Summary

In conclusion, Ferrellgas Partners LP's financial performance and growth prospects are closely tied to its ability to navigate the challenges posed by the energy sector. While the company has reported improved EBITDA margins and a strong operating cash flow, the recent judgment against Ferrellgas has raised concerns about its ability to meet its financial obligations. Investors should exercise caution and closely monitor the company's developments before making investment decisions.

Disclosures

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