Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Star Group LP's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 37.61%.
As of today (2026-08-01), Star Group LP's WACC % is 4.86%. Star Group LP's ROC % is 9.30% (calculated using TTM income statement data).
Star Group LP generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Star Group LP's WACC % is 4.86%. Star Group LP's ROC % is 9.30% (calculated using TTM income statement data).
Star Group LP generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Star Group LP ROC % Related Terms
Star Group LP ROC % Historical Data
* Premium members only.
The historical data trend for Star Group LP's ROC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Star Group LP (SGU) has a ROC % of 37.61% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Star Group LP and its competitors.
Is Star Group LP's ROC % too high?
Star Group LP's current ROC % is 37.61%. The Oil & Gas industry median ROC % is 3.72. Star Group LP's value of 37.61% is 912.4% above this industry median. Overall, Star Group LP has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Star Group LP's ROC % compare to CLNE and FGPR?
Star Group LP's ROC % of 37.61% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.72. Star Group LP's value of 37.61% is 912.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Oil & Gas company?
The median ROC % among Oil & Gas companies is 3.72, based on 998 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Star Group LP's current ROC % of 37.61% is 912.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Star Group LP and its competitors. For the Oil & Gas industry, the median ROC % is 3.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Star Group LP's current ROC % is 37.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Star Group LP stock overvalued right now?
Based on GuruFocus' analysis, Star Group LP (SGU) is currently considered Fairly Valued. The stock's GF Value™ is $12.68, compared to a current price of $12.54 — trading 1.1% below its estimated fair value. The current ROC % is 37.61% and 912.4% above the Oil & Gas industry median of 3.72. Star Group LP's overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Star Group LP (SGU), the current ROC % is 37.61% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Star Group LP (SGU) Overvalued in 2026?
Based on GuruFocus' analysis, Star Group LP stock appears to be undervalued.
The current stock price of $12.54 is trading 1.1% below its estimated GF Value™ of $12.68.
GuruFocus considers Star Group LP to be Fairly Valued.
Key valuation signals for SGU:
ROC %: 37.61%
GF Value™: $12.68 vs. price of $12.54 (1.1% below fair value)
Industry Position: 912.4% above the Oil & Gas median
No single metric tells the full story. See the SGU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Star Group LP is a home heating oil and propane distributor and services provider with one reportable operating segment that principally provides heating related services to residential and commercial customers. It serves residential and commercial customers whose primary use is to heat their homes and buildings in the Northeast and Mid-Atlantic U.S. regions. The company derives the majority of revenue from Petroleum products, which consist of home heating oil and propane as well as diesel fuel and gasoline.
79GF Score
Get the complete analysis for SGU
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SGU has been successfully added to your 
