SUNOCO LP (SUN) Stock Fundamental Analysis
NYSE:SUN - New York Stock Exchange, Inc. - US86765K1097 - Currency: USD
We assign a fundamental rating of 4 out of 10 to SUN. SUN was compared to 212 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 is valued correctly, but it does not seem to be growing.
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.
In the past 5 years SUN always reported a positive cash flow from operatings.
1.2 Ratios
SUN has a Return On Assets (4.98%) which is comparable to the rest of the industry.
SUN has a better Return On Equity (17.60%) than 74.06% of its industry peers.
SUN has a Return On Invested Capital (5.88%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SUN is significantly below the industry average of 27.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 17.6% | ||
| ROIC | 5.88% |
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 worse Profit Margin (3.16%) than 61.32% of its industry peers.
SUN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 3.68%, SUN is not doing good in the industry: 69.34% of the companies in the same industry are doing better.
SUN's Operating Margin has improved in the last couple of years.
The Gross Margin of SUN (9.25%) is worse than 72.17% of its industry peers.
In the last couple of years the Gross Margin of SUN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.68% | ||
| PM (TTM) | 3.16% | ||
| GM | 9.25% |
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
The number of shares outstanding for SUN has been increased compared to 5 years ago.
Compared to 1 year ago, SUN has an improved debt to assets ratio.
2.2 Solvency
SUN has a debt to FCF ratio of 36.52. This is a negative value and a sign of low solvency as SUN would need 36.52 years to pay back of all of its debts.
SUN has a Debt to FCF ratio (36.52) which is comparable to the rest of the industry.
SUN has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
SUN's Debt to Equity ratio of 1.84 is on the low side compared to the rest of the industry. SUN is outperformed by 80.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 36.52 | ||
| Altman-Z | N/A |
ROIC/WACC0.56
WACC10.51%
2.3 Liquidity
A Current Ratio of 1.27 indicates that SUN should not have too much problems paying its short term obligations.
SUN's Current ratio of 1.27 is in line compared to the rest of the industry. SUN outperforms 56.60% of its industry peers.
SUN has a Quick Ratio of 1.27. 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 has a Quick ratio of 0.72. This is in the lower half of the industry: SUN underperforms 66.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
SUN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 105.77%, which is quite impressive.
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.
Looking at the last year, SUN shows a decrease in Revenue. The Revenue has decreased by -1.63% in the last year.
SUN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.46% yearly.
EPS 1Y (TTM)105.77%
EPS 3Y12.36%
EPS 5Y26.97%
EPS Q2Q%174.67%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y8.85%
Revenue growth 5Y6.46%
Sales Q2Q%-6.59%
3.2 Future
SUN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.89% yearly.
Based on estimates for the next years, SUN will show a decrease in Revenue. The Revenue will decrease by -9.44% on average per year.
EPS Next Y-4.16%
EPS Next 2Y4.28%
EPS Next 3Y4.89%
EPS Next 5YN/A
Revenue Next Year6.09%
Revenue Next 2Y4.56%
Revenue Next 3Y-9.44%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SUN is valuated cheaply with a Price/Earnings ratio of 7.87.
Compared to the rest of the industry, the Price/Earnings ratio of SUN indicates a somewhat cheap valuation: SUN is cheaper than 76.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.79, SUN is valued rather cheaply.
A Price/Forward Earnings ratio of 8.21 indicates a reasonable valuation of SUN.
Based on the Price/Forward Earnings ratio, SUN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SUN to the average of the S&P500 Index (21.38), we can say SUN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 8.21 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SUN indicates a slightly more expensive valuation: SUN is more expensive than 62.74% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SUN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.16 | ||
| EV/EBITDA | 12.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y4.28%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.11%, SUN is a good candidate for dividend investing.
SUN's Dividend Yield is a higher than the industry average which is at 7.35.
Compared to an average S&P500 Dividend Yield of 2.47, SUN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
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
SUN pays out 79.05% of its income as dividend. This is not a sustainable payout ratio.
SUN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP79.05%
EPS Next 2Y4.28%
EPS Next 3Y4.89%
NYSE:SUN (4/25/2025, 8:04:00 PM)
58.92
+0.15 (+0.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners44.93%
Inst Owner Change-60.94%
Ins Owners0.49%
Ins Owner Change1.01%
Market Cap8.03B
Analysts81.67
Price Target65.57 (11.29%)
Short Float %1.78%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.11% |
Yearly Dividend4.47
Dividend Growth(5Y)0.95%
DP79.05%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-57.03%
Min EPS beat(2)-79.43%
Max EPS beat(2)-34.64%
EPS beat(4)2
Avg EPS beat(4)41.86%
Min EPS beat(4)-79.43%
Max EPS beat(4)209.98%
EPS beat(8)4
Avg EPS beat(8)4.87%
EPS beat(12)6
Avg EPS beat(12)10.99%
EPS beat(16)8
Avg EPS beat(16)21.5%
Revenue beat(2)0
Avg Revenue beat(2)-10.68%
Min Revenue beat(2)-16.02%
Max Revenue beat(2)-5.33%
Revenue beat(4)2
Avg Revenue beat(4)-3.07%
Min Revenue beat(4)-16.02%
Max Revenue beat(4)4.98%
Revenue beat(8)5
Avg Revenue beat(8)1.97%
Revenue beat(12)9
Avg Revenue beat(12)7.83%
Revenue beat(16)12
Avg Revenue beat(16)6.75%
PT rev (1m)1.12%
PT rev (3m)1.35%
EPS NQ rev (1m)-7.55%
EPS NQ rev (3m)9.21%
EPS NY rev (1m)-4.75%
EPS NY rev (3m)18.82%
Revenue NQ rev (1m)7.07%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)3.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 8.21 | ||
| P/S | 0.35 | ||
| P/FCF | 39.16 | ||
| P/OCF | 14.62 | ||
| P/B | 1.97 | ||
| P/tB | 3.93 | ||
| EV/EBITDA | 12.81 |
EPS(TTM)7.49
EY12.71%
EPS(NY)7.18
Fwd EY12.18%
FCF(TTM)1.5
FCFY2.55%
OCF(TTM)4.03
OCFY6.84%
SpS166.57
BVpS29.86
TBVpS15
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 17.6% | ||
| ROCE | 6.73% | ||
| ROIC | 5.88% | ||
| ROICexc | 5.93% | ||
| ROICexgc | 7.09% | ||
| OM | 3.68% | ||
| PM (TTM) | 3.16% | ||
| GM | 9.25% | ||
| FCFM | 0.9% |
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-Score6
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 36.52 | ||
| Debt/EBITDA | 6.22 | ||
| Cap/Depr | 93.48% | ||
| Cap/Sales | 1.52% | ||
| Interest Coverage | 2.47 | ||
| Cash Conversion | 45.6% | ||
| Profit Quality | 28.63% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | N/A |
F-Score6
WACC10.51%
ROIC/WACC0.56
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)105.77%
EPS 3Y12.36%
EPS 5Y26.97%
EPS Q2Q%174.67%
EPS Next Y-4.16%
EPS Next 2Y4.28%
EPS Next 3Y4.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y8.85%
Revenue growth 5Y6.46%
Sales Q2Q%-6.59%
Revenue Next Year6.09%
Revenue Next 2Y4.56%
Revenue Next 3Y-9.44%
Revenue Next 5YN/A
EBIT growth 1Y33.12%
EBIT growth 3Y4.39%
EBIT growth 5Y9.46%
EBIT Next Year67.75%
EBIT Next 3Y23.31%
EBIT Next 5Y14.04%
FCF growth 1Y-46.75%
FCF growth 3Y-17.79%
FCF growth 5Y-6.51%
OCF growth 1Y-8.5%
OCF growth 3Y0.37%
OCF growth 5Y4.77%