What is Star Group LP Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Star Group LP's Probability of Financial Distress (%) is 0.04%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Star Group LP's Probability of Financial Distress (%)
For the Oil & Gas Refining & Marketing subindustry, Star Group LP's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Star Group LP's Probability of Financial Distress (%) Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Star Group LP's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Star Group LP's Probability of Financial Distress (%) falls into.
Star Group LP Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -7.93 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.04% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Star Group LP (Star Group LP) Business Description
Traded in Other Exchanges
N/A
Address
9 West Broad Street, Suite 310, Stamford, CT, USA, 06902
Star Group LP is a company engaged in providing home heating products and services to residential and commercial customers. It offers heating and air conditioning equipment, as well as home security and plumbing services. The company also sells diesel fuel, gasoline, and home heating oil. Geographically, the company operates in U.S.
Executives
| Bandera Partners Llc |
10 percent owner |
50 BROAD STREET, SUITE 1820, NEW YORK NY 10004 |
| Jeffrey M Woosnam |
director, officer: CEO and President |
9 W. BROAD ST., STE. 310, STAMFORD CT 06902 |
| Richard Ambury |
officer: CFO |
9 WEST BROAD STREET, SUITE 310, STAMFORD CT 06902 |
| Daniel P. Donovan |
director |
C/O STAR GAS PARTNERS, L.P., 9 WEST BROAD STREET, SUITE 310, STAMFORD CT 06902 |
| Vermylen Paul A Jr |
director |
C/O STAR GAS PARTNERS, L.P., 9 WEST BROAD STREET, SUITE 310, STAMFORD CT 06902 |
| Joseph R Mcdonald |
officer: Chief Customer Officer |
9 W. BROAD ST., STE. 310, STAMFORD CT 06902 |
| Jeffrey S Hammond |
officer: Chief Operating Officer |
9 W BROAD ST STE 310, STAMFORD CT 06902 |
| Henry D Babcock |
director |
9 WEST BROAD STREET, SUITE 310, STAMFORD CT 06902 |
| Steven Jay Goldman |
director, officer: President and CEO |
C/O STAR GAS PARTNERS, L.P., 9 WEST BROAD STREET, SUITE 310, STAMFORD CT 06902 |
| David Michael Bauer |
director |
833 E. MICHIGAN ST, SUITE 1500, MILWAUKEE WI 53202 |
| Yorktown Vi Associates Llc |
10 percent owner |
410 PARK AVENUE, 19TH FLOOR, NEW YORK NY 10022 |
| Kestrel Energy Partners Llc |
10 percent owner |
2 COUNT RUMFORD LANE, HUNTINGTON NY 11743 |
| Sheldon B Lubar |
director |
C/O C2 INC, 700 NORTH WATER ST SUITE 1200, MILWAUKEE WI 53202 |
| Yorktown Energy Partners Vi Lp |
10 percent owner |
410 PARK AVENUE, 19TH FLOOR, NEW YORK NY 10022 |
| Bryan H Lawrence |
director |
C/O CROSSTEX ENERGY HOLDINGS INC, 2501 CEDAR SPRINGS STE 600, DALLAS TX 75201 |
Star Group LP (Star Group LP) Headlines
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