SUNOCO LP (SUN) Stock Fundamental Analysis
USA - NYSE:SUN - US86765K1097
48.93 USD
-1.04 (-2.08%)
48.9884 USD
+0.06 (+0.12%)
Taking everything into account, SUN scores 3 out of 10 in our fundamental rating. SUN was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of SUN while its profitability can be described as average. SUN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
SUN had positive earnings in the past year.
SUN had a positive operating cash flow in the past year.
Each year in the past 5 years SUN has been profitable.
SUN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SUN has a Return On Assets (1.93%) which is comparable to the rest of the industry.
SUN's Return On Equity of 6.81% is in line compared to the rest of the industry. SUN outperforms 49.29% of its industry peers.
SUN has a Return On Invested Capital (5.76%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SUN is significantly below the industry average of 21.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 6.81% | ||
| ROIC | 5.76% |
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 of 1.29%. This is in the lower half of the industry: SUN underperforms 61.61% of its industry peers.
In the last couple of years the Profit Margin of SUN has grown nicely.
SUN has a worse Operating Margin (3.90%) than 67.77% of its industry peers.
In the last couple of years the Operating Margin of SUN has grown nicely.
Looking at the Gross Margin, with a value of 10.52%, SUN is doing worse than 69.19% of the companies in the same industry.
SUN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.9% | ||
| PM (TTM) | 1.29% | ||
| GM | 10.52% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SUN is creating some value.
SUN has more shares outstanding than it did 1 year ago.
SUN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SUN has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of SUN is 32.79, which is on the high side as it means it would take SUN, 32.79 years of fcf income to pay off all of its debts.
SUN has a Debt to FCF ratio (32.79) which is comparable to the rest of the industry.
SUN has a Debt/Equity ratio of 1.90. This is a high value indicating a heavy dependency on external financing.
SUN has a worse Debt to Equity ratio (1.90) than 79.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 32.79 | ||
| Altman-Z | N/A |
ROIC/WACC0.65
WACC8.82%
2.3 Liquidity
SUN has a Current Ratio of 1.52. This is a normal value and indicates that SUN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SUN (1.52) is better than 66.82% of its industry peers.
SUN has a Quick Ratio of 1.52. This is a bad value and indicates that SUN is not financially healthy enough and could expect problems in meeting its short term obligations.
SUN's Quick ratio of 0.80 is in line compared to the rest of the industry. SUN outperforms 41.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for SUN have decreased strongly by -61.38% in the last year.
SUN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.97% yearly.
SUN shows a decrease in Revenue. In the last year, the revenue decreased by -8.65%.
The Revenue has been growing slightly by 6.46% on average over the past years.
EPS 1Y (TTM)-61.38%
EPS 3Y12.36%
EPS 5Y26.97%
EPS Q2Q%-91.43%
Revenue 1Y (TTM)-8.65%
Revenue growth 3Y8.85%
Revenue growth 5Y6.46%
Sales Q2Q%-12.7%
3.2 Future
Based on estimates for the next years, SUN will show a decrease in Earnings Per Share. The EPS will decrease by -9.54% on average per year.
Based on estimates for the next years, SUN will show a small growth in Revenue. The Revenue will grow by 1.78% on average per year.
EPS Next Y-40.8%
EPS Next 2Y-20.71%
EPS Next 3Y-9.54%
EPS Next 5YN/A
Revenue Next Year-1.84%
Revenue Next 2Y4%
Revenue Next 3Y1.78%
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 16.76 indicates a correct valuation of SUN.
Compared to the rest of the industry, the Price/Earnings ratio of SUN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SUN to the average of the S&P500 Index (27.70), we can say SUN is valued slightly cheaper.
A Price/Forward Earnings ratio of 10.39 indicates a reasonable valuation of SUN.
66.82% of the companies in the same industry are more expensive than SUN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SUN to the average of the S&P500 Index (23.15), we can say SUN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 10.39 |
4.2 Price Multiples
SUN's Enterprise Value to EBITDA is on the same level as 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 | 28.08 | ||
| EV/EBITDA | 10.27 |
4.3 Compensation for Growth
SUN's earnings are expected to decrease with -9.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y-20.71%
EPS Next 3Y-9.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.29%, SUN is a good candidate for dividend investing.
SUN's Dividend Yield is a higher than the industry average which is at 6.07.
SUN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.29% |
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.
SUN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.95%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
229.03% of the earnings are spent on dividend by SUN. This is not a sustainable payout ratio.
The Dividend Rate of SUN has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP229.03%
EPS Next 2Y-20.71%
EPS Next 3Y-9.54%
48.93
-1.04 (-2.08%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners45.89%
Inst Owner Change0%
Ins Owners0.47%
Ins Owner Change0%
Market Cap6.68B
Analysts82
Price Target65.48 (33.82%)
Short Float %4.13%
Short Ratio11.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.29% |
Yearly Dividend4.47
Dividend Growth(5Y)0.95%
DP229.03%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-41.15%
Min EPS beat(2)-72.9%
Max EPS beat(2)-9.4%
EPS beat(4)0
Avg EPS beat(4)-49.09%
Min EPS beat(4)-79.43%
Max EPS beat(4)-9.4%
EPS beat(8)3
Avg EPS beat(8)-1.79%
EPS beat(12)4
Avg EPS beat(12)-10.14%
EPS beat(16)6
Avg EPS beat(16)1.64%
Revenue beat(2)0
Avg Revenue beat(2)-8.49%
Min Revenue beat(2)-8.89%
Max Revenue beat(2)-8.09%
Revenue beat(4)0
Avg Revenue beat(4)-9.58%
Min Revenue beat(4)-16.02%
Max Revenue beat(4)-5.33%
Revenue beat(8)4
Avg Revenue beat(8)-1.13%
Revenue beat(12)7
Avg Revenue beat(12)1.79%
Revenue beat(16)11
Avg Revenue beat(16)5.3%
PT rev (1m)-0.31%
PT rev (3m)-0.62%
EPS NQ rev (1m)-24.35%
EPS NQ rev (3m)-30.38%
EPS NY rev (1m)-16.7%
EPS NY rev (3m)-16.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-4.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 10.39 | ||
| P/S | 0.31 | ||
| P/FCF | 28.08 | ||
| P/OCF | 9.13 | ||
| P/B | 1.63 | ||
| P/tB | 3.2 | ||
| EV/EBITDA | 10.27 |
EPS(TTM)2.92
EY5.97%
EPS(NY)4.71
Fwd EY9.62%
FCF(TTM)1.74
FCFY3.56%
OCF(TTM)5.36
OCFY10.95%
SpS158.05
BVpS29.99
TBVpS15.28
PEG (NY)N/A
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 6.81% | ||
| ROCE | 6.59% | ||
| ROIC | 5.76% | ||
| ROICexc | 5.81% | ||
| ROICexgc | 6.91% | ||
| OM | 3.9% | ||
| PM (TTM) | 1.29% | ||
| GM | 10.52% | ||
| FCFM | 1.1% |
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-Score5
Asset Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 32.79 | ||
| Debt/EBITDA | 5.57 | ||
| Cap/Depr | 88.69% | ||
| Cap/Sales | 2.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.29% | ||
| Profit Quality | 85.3% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | N/A |
F-Score5
WACC8.82%
ROIC/WACC0.65
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)-61.38%
EPS 3Y12.36%
EPS 5Y26.97%
EPS Q2Q%-91.43%
EPS Next Y-40.8%
EPS Next 2Y-20.71%
EPS Next 3Y-9.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.65%
Revenue growth 3Y8.85%
Revenue growth 5Y6.46%
Sales Q2Q%-12.7%
Revenue Next Year-1.84%
Revenue Next 2Y4%
Revenue Next 3Y1.78%
Revenue Next 5YN/A
EBIT growth 1Y5.24%
EBIT growth 3Y4.39%
EBIT growth 5Y9.46%
EBIT Next Year70.5%
EBIT Next 3Y30.53%
EBIT Next 5Y15.34%
FCF growth 1Y-43.74%
FCF growth 3Y-17.79%
FCF growth 5Y-6.51%
OCF growth 1Y14.2%
OCF growth 3Y0.37%
OCF growth 5Y4.77%