SUNOCO LP (SUN) Stock Fundamental Analysis
NYSE:SUN - New York Stock Exchange, Inc. - US86765K1097 - Currency: USD
SUN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. While SUN is still in line with the averages on profitability rating, there are concerns on its financial health. SUN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SUN had positive earnings in the past year.
In the past year SUN had a positive cash flow from operations.
SUN had positive earnings in each of the past 5 years.
Each year in the past 5 years SUN had a positive operating cash flow.
1.2 Ratios
SUN's Return On Assets of 4.80% is in line compared to the rest of the industry. SUN outperforms 59.24% of its industry peers.
SUN's Return On Equity of 16.58% is fine compared to the rest of the industry. SUN outperforms 74.88% of its industry peers.
The Return On Invested Capital of SUN (5.75%) is comparable to the rest of the industry.
SUN had an Average Return On Invested Capital over the past 3 years of 8.89%. This is significantly below the industry average of 23.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 16.58% | ||
| ROIC | 5.75% |
ROA(3y)5.12%
ROA(5y)5.12%
ROE(3y)30.51%
ROE(5y)33.58%
ROIC(3y)8.89%
ROIC(5y)9.54%
1.3 Margins
SUN has a Profit Margin (3.08%) which is comparable to the rest of the industry.
SUN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 3.74%, SUN is not doing good in the industry: 68.72% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of SUN has grown nicely.
SUN has a worse Gross Margin (10.13%) than 70.14% of its industry peers.
SUN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.74% | ||
| PM (TTM) | 3.08% | ||
| GM | 10.13% |
OM growth 3Y-4.1%
OM growth 5Y2.82%
PM growth 3Y7.57%
PM growth 5Y17.38%
GM growth 3Y6.41%
GM growth 5Y4.76%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SUN is destroying value.
Compared to 1 year ago, SUN has more shares outstanding
Compared to 5 years ago, SUN has more shares outstanding
SUN has a better debt/assets ratio than last year.
2.2 Solvency
SUN has a debt to FCF ratio of 511.53. This is a negative value and a sign of low solvency as SUN would need 511.53 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 511.53, SUN is doing worse than 61.14% of the companies in the same industry.
SUN has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SUN (1.85) is worse than 79.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 511.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.61
WACC9.47%
2.3 Liquidity
A Current Ratio of 1.55 indicates that SUN should not have too much problems paying its short term obligations.
SUN has a better Current ratio (1.55) than 68.25% of its industry peers.
A Quick Ratio of 0.86 indicates that SUN may have some problems paying its short term obligations.
SUN's Quick ratio of 0.86 is in line compared to the rest of the industry. SUN outperforms 43.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.43% over the past year.
Measured over the past years, SUN shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.97% on average per year.
SUN shows a decrease in Revenue. In the last year, the revenue decreased by -3.59%.
SUN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.46% yearly.
EPS 1Y (TTM)43.43%
EPS 3Y12.36%
EPS 5Y26.97%
EPS Q2Q%-46.46%
Revenue 1Y (TTM)-3.59%
Revenue growth 3Y8.85%
Revenue growth 5Y6.46%
Sales Q2Q%-5.82%
3.2 Future
Based on estimates for the next years, SUN will show a decrease in Earnings Per Share. The EPS will decrease by -4.70% on average per year.
Based on estimates for the next years, SUN will show a small growth in Revenue. The Revenue will grow by 1.73% on average per year.
EPS Next Y-29.08%
EPS Next 2Y-9.66%
EPS Next 3Y-4.7%
EPS Next 5YN/A
Revenue Next Year2.56%
Revenue Next 2Y4.06%
Revenue Next 3Y1.73%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.31 indicates a reasonable valuation of SUN.
SUN's Price/Earnings ratio is rather cheap when compared to the industry. SUN is cheaper than 81.04% of the companies in the same industry.
SUN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 8.76, the valuation of SUN can be described as reasonable.
SUN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SUN is cheaper than 72.51% of the companies in the same industry.
SUN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 8.76 |
4.2 Price Multiples
SUN's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SUN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 486.52 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
A cheap valuation may be justified as SUN's earnings are expected to decrease with -4.70% in the coming years.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-9.66%
EPS Next 3Y-4.7%
5. Dividend
5.1 Amount
SUN has a Yearly Dividend Yield of 6.81%, which is a nice return.
Compared to an average industry Dividend Yield of 6.51, SUN pays a bit more dividend than its industry peers.
SUN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.81% |
5.2 History
The dividend of SUN has a limited annual growth rate of 0.95%.
SUN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of SUN decreased in the last 3 years.
Dividend Growth(5Y)0.95%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
92.02% of the earnings are spent on dividend by SUN. This is not a sustainable payout ratio.
SUN's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP92.02%
EPS Next 2Y-9.66%
EPS Next 3Y-4.7%
53.53
+0.8 (+1.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners46.04%
Inst Owner Change0%
Ins Owners0.47%
Ins Owner Change0.55%
Market Cap7.30B
Analysts82
Price Target65.89 (23.09%)
Short Float %3.03%
Short Ratio7.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.81% |
Yearly Dividend4.47
Dividend Growth(5Y)0.95%
DP92.02%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.02%
Min EPS beat(2)-34.64%
Max EPS beat(2)-9.4%
EPS beat(4)1
Avg EPS beat(4)21.63%
Min EPS beat(4)-79.43%
Max EPS beat(4)209.98%
EPS beat(8)3
Avg EPS beat(8)2.5%
EPS beat(12)5
Avg EPS beat(12)-3.21%
EPS beat(16)7
Avg EPS beat(16)11%
Revenue beat(2)0
Avg Revenue beat(2)-12.06%
Min Revenue beat(2)-16.02%
Max Revenue beat(2)-8.09%
Revenue beat(4)1
Avg Revenue beat(4)-6.12%
Min Revenue beat(4)-16.02%
Max Revenue beat(4)4.98%
Revenue beat(8)4
Avg Revenue beat(8)-0.06%
Revenue beat(12)8
Avg Revenue beat(12)5.58%
Revenue beat(16)12
Avg Revenue beat(16)6.35%
PT rev (1m)-0.36%
PT rev (3m)0.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-34.3%
EPS NY rev (1m)-3.98%
EPS NY rev (3m)-29.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 8.76 | ||
| P/S | 0.33 | ||
| P/FCF | 486.52 | ||
| P/OCF | 17.42 | ||
| P/B | 1.76 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 11.15 |
EPS(TTM)6.44
EY12.03%
EPS(NY)6.11
Fwd EY11.42%
FCF(TTM)0.11
FCFY0.21%
OCF(TTM)3.07
OCFY5.74%
SpS164.11
BVpS30.48
TBVpS15.69
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 16.58% | ||
| ROCE | 6.57% | ||
| ROIC | 5.75% | ||
| ROICexc | 5.83% | ||
| ROICexgc | 6.95% | ||
| OM | 3.74% | ||
| PM (TTM) | 3.08% | ||
| GM | 10.13% | ||
| FCFM | 0.07% |
ROA(3y)5.12%
ROA(5y)5.12%
ROE(3y)30.51%
ROE(5y)33.58%
ROIC(3y)8.89%
ROIC(5y)9.54%
ROICexc(3y)8.98%
ROICexc(5y)9.64%
ROICexgc(3y)14.09%
ROICexgc(5y)16.17%
ROCE(3y)10.17%
ROCE(5y)10.9%
ROICexcg growth 3Y-32.48%
ROICexcg growth 5Y-17.73%
ROICexc growth 3Y-23.26%
ROICexc growth 5Y-9.85%
OM growth 3Y-4.1%
OM growth 5Y2.82%
PM growth 3Y7.57%
PM growth 5Y17.38%
GM growth 3Y6.41%
GM growth 5Y4.76%
F-Score3
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 511.53 | ||
| Debt/EBITDA | 5.82 | ||
| Cap/Depr | 83.99% | ||
| Cap/Sales | 1.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.81% | ||
| Profit Quality | 2.18% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | N/A |
F-Score3
WACC9.47%
ROIC/WACC0.61
Cap/Depr(3y)101.61%
Cap/Depr(5y)93.75%
Cap/Sales(3y)1.06%
Cap/Sales(5y)1.06%
Profit Quality(3y)82.29%
Profit Quality(5y)121.92%
High Growth Momentum
Growth
EPS 1Y (TTM)43.43%
EPS 3Y12.36%
EPS 5Y26.97%
EPS Q2Q%-46.46%
EPS Next Y-29.08%
EPS Next 2Y-9.66%
EPS Next 3Y-4.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.59%
Revenue growth 3Y8.85%
Revenue growth 5Y6.46%
Sales Q2Q%-5.82%
Revenue Next Year2.56%
Revenue Next 2Y4.06%
Revenue Next 3Y1.73%
Revenue Next 5YN/A
EBIT growth 1Y14.99%
EBIT growth 3Y4.39%
EBIT growth 5Y9.46%
EBIT Next Year72.81%
EBIT Next 3Y35.07%
EBIT Next 5Y14.7%
FCF growth 1Y-97.75%
FCF growth 3Y-17.79%
FCF growth 5Y-6.51%
OCF growth 1Y-51.5%
OCF growth 3Y0.37%
OCF growth 5Y4.77%