Global Partners Lp (NYSE: GLP)

Sector: Energy Industry: Oil & Gas Midstream CIK: 0001323468
Market Cap 1.45 Bn
P/B 2.12
P/E 20.21
P/S 0.08
ROIC (Qtr) 8.98
Div Yield % 8.71
Rev 1y % (Qtr) 6.15
Total Debt (Qtr) 2.00 Bn
Debt/Equity (Qtr) 2.93

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 251M provides strong 17.68x coverage of stock compensation 14.20M, indicating sustainable incentive practices.
  • Robust tangible asset base of 3.26B provides 16.30x coverage of working capital 200.22M, indicating strong operational backing.
  • Tangible assets of 3.26B provide robust 10.63x coverage of other current liabilities 306.96M, indicating strong asset backing.
  • Operating cash flow of 251M fully covers other non-current liabilities 221.99M by 1.13x, showing strong long-term stability.
  • Strong tangible asset base of 3.26B provides 15.08x coverage of acquisition spending 216.42M, enabling strategic growth.

Bear case

  • Operating cash flow of 251M barely covers its investment activities of (111.31M), with a coverage ratio of -2.26, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 17.93M against inventory of 478.51M, the 0.04 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 251M provides thin coverage of dividend payments of (124.90M) with a -2.01 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 17.93M provide limited coverage of acquisition spending of 216.42M, which is 0.08x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of (56.49M) provides weak coverage of capital expenditures of 307.49M, with a -0.18 ratio suggesting additional external financing needs for growth initiatives.

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Oil & Gas Midstream
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ENB Enbridge Inc 100.05 Bn 24.60 2.15 75.15 Bn
2 WMB Williams Companies, Inc. 73.60 Bn 31.09 6.40 27.99 Bn
3 EPD Enterprise Products Partners L.P. 69.94 Bn 12.09 1.32 33.58 Bn
4 KMI Kinder Morgan, Inc. 60.62 Bn 22.23 3.69 32.58 Bn
5 ET Energy Transfer LP 58.05 Bn 13.46 0.73 63.97 Bn
6 TRP Tc Energy Corp 55.97 Bn 22.78 5.27 44.47 Bn
7 MPLX Mplx Lp 54.03 Bn 11.23 4.22 25.92 Bn
8 OKE Oneok Inc /New/ 44.55 Bn 13.34 1.41 33.73 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.91 3.39
EV to Cash from Ops. EV/CFO 13.47 7.77
EV to Debt EV to Debt 1.69 -68.56
EV to EBIT EV/EBIT 14.34 12.77
EV to EBITDA EV/EBITDA 8.93 7.47
EV to Free Cash Flow [EV/FCF] EV/FCF -59.87 13.20
EV to Market Cap EV to Market Cap 2.34 2.49
EV to Revenue EV/Rev 0.19 4.48
Price to Book Value [P/B] P/B 2.12 94.01
Price to Earnings [P/E] P/E 20.21 12.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.48 -3.60
Dividend Payout Ratio % Div Payout % (Qtr) 140.50 72.05
Dividend per Basic Share Div per Share (Qtr) 2.97 1.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -177.76 32.66
Interest Coverage Int. cover (Qtr) 1.71 5.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 46.24 -17.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -12.81 16,113.89
Dividend Growth (1y) % Div 1y % (Qtr) 3.67 -1.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -8.13 -5.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -7.00 -4.54
EBIT Growth (1y) % EBIT 1y % (Qtr) -13.60 -11.94
EBT Growth (1y) % EBT 1y % (Qtr) -35.79 -230.00
EPS Growth (1y) % EPS 1y % (Qtr) -36.83 -44.55
FCF Growth (1y) % FCF 1y % (Qtr) 87.11 -0.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.16 -1.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 4.89 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.23 0.21
Cash Ratio Cash Ratio (Qtr) 0.02 0.81
Current Ratio Curr Ratio (Qtr) 1.21 1.65
Debt to Equity Ratio Debt/Equity (Qtr) 2.93 1.11
Interest Cover Ratio Int Coverage (Qtr) 1.71 5.11
Times Interest Earned Times Interest Earned (Qtr) 1.71 5.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.10 35.86
EBIT Margin % EBIT Margin % (Qtr) 1.30 27.76
EBT Margin % EBT Margin % (Qtr) 0.54 17.28
Gross Margin % Gross Margin % (Qtr) 5.90 48.56
Net Profit Margin % Net Margin % (Qtr) 0.40 15.36