SUNOCO LP (SUN) Stock Fundamental Analysis
NYSE:SUN - US86765K1097
52.06 USD
+0.19 (+0.37%)
52.06 USD
0 (0%)
Taking everything into account, SUN scores 3 out of 10 in our fundamental rating. SUN was compared to 208 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 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.
In the past year SUN had a positive cash flow from operations.
In the past 5 years SUN has always been profitable.
SUN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.93%, SUN perfoms like the industry average, outperforming 41.35% of the companies in the same industry.
SUN has a Return On Equity of 6.81%. This is comparable to the rest of the industry: SUN outperforms 49.52% of its industry peers.
The Return On Invested Capital of SUN (5.76%) 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 23.39%.
| 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
Looking at the Profit Margin, with a value of 1.29%, SUN is doing worse than 62.98% of the companies in the same industry.
In the last couple of years the Profit Margin of SUN has grown nicely.
With a Operating Margin value of 3.90%, SUN is not doing good in the industry: 69.71% of the companies in the same industry are doing better.
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 70.19% 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
SUN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SUN has been increased compared to 1 year ago.
SUN has more shares outstanding than it did 5 years ago.
SUN has a better debt/assets ratio than last year.
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.
Looking at the Debt to FCF ratio, with a value of 32.79, SUN is in line with its industry, outperforming 41.35% of the companies in the same industry.
A Debt/Equity ratio of 1.90 is on the high side and indicates that SUN has dependencies on debt financing.
SUN has a worse Debt to Equity ratio (1.90) than 78.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 32.79 | ||
| Altman-Z | N/A |
ROIC/WACC0.61
WACC9.46%
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.
SUN's Current ratio of 1.52 is fine compared to the rest of the industry. SUN outperforms 67.31% of its industry peers.
A Quick Ratio of 0.80 indicates that SUN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.80, SUN is in line with its industry, outperforming 40.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
SUN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -61.38%.
The Earnings Per Share has been growing by 26.97% on average over the past years. This is a very strong growth
SUN shows a decrease in Revenue. In the last year, the revenue decreased by -8.65%.
Measured over the past years, SUN shows a small growth in Revenue. The Revenue has been growing by 6.46% on average per year.
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
SUN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.41% yearly.
SUN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.06% yearly.
EPS Next Y-28.94%
EPS Next 2Y-13.13%
EPS Next 3Y-9.41%
EPS Next 5YN/A
Revenue Next Year-1.89%
Revenue Next 2Y4.31%
Revenue Next 3Y2.06%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 17.83, which indicates a rather expensive current valuation of SUN.
The rest of the industry has a similar Price/Earnings ratio as SUN.
When comparing the Price/Earnings ratio of SUN to the average of the S&P500 Index (27.17), we can say SUN is valued slightly cheaper.
A Price/Forward Earnings ratio of 9.21 indicates a reasonable valuation of SUN.
73.08% of the companies in the same industry are more expensive than SUN, based on the Price/Forward Earnings ratio.
SUN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.83 | ||
| Fwd PE | 9.21 |
4.2 Price Multiples
SUN's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as SUN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.88 | ||
| EV/EBITDA | 10.55 |
4.3 Compensation for Growth
SUN's earnings are expected to decrease with -9.41% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.66
EPS Next 2Y-13.13%
EPS Next 3Y-9.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.01%, SUN is a good candidate for dividend investing.
SUN's Dividend Yield is a higher than the industry average which is at 6.33.
SUN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
5.2 History
The dividend of SUN has a limited annual growth rate of 0.95%.
SUN has paid a dividend for at least 10 years, which is 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
SUN pays out 229.03% of its income as dividend. 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-13.13%
EPS Next 3Y-9.41%
52.06
+0.19 (+0.37%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners46.39%
Inst Owner Change3.16%
Ins Owners0.47%
Ins Owner Change0%
Market Cap7.11B
Analysts82
Price Target65.69 (26.18%)
Short Float %3.52%
Short Ratio9.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.01% |
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%
PT rev (3m)-0.67%
EPS NQ rev (1m)-6.51%
EPS NQ rev (3m)-36.8%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-3.79%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)-4.33%
Revenue NY rev (3m)15.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.83 | ||
| Fwd PE | 9.21 | ||
| P/S | 0.33 | ||
| P/FCF | 29.88 | ||
| P/OCF | 9.72 | ||
| P/B | 1.74 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 10.55 |
EPS(TTM)2.92
EY5.61%
EPS(NY)5.65
Fwd EY10.86%
FCF(TTM)1.74
FCFY3.35%
OCF(TTM)5.36
OCFY10.29%
SpS158.05
BVpS29.99
TBVpS15.28
PEG (NY)N/A
PEG (5Y)0.66
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
WACC9.46%
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)-61.38%
EPS 3Y12.36%
EPS 5Y26.97%
EPS Q2Q%-91.43%
EPS Next Y-28.94%
EPS Next 2Y-13.13%
EPS Next 3Y-9.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.65%
Revenue growth 3Y8.85%
Revenue growth 5Y6.46%
Sales Q2Q%-12.7%
Revenue Next Year-1.89%
Revenue Next 2Y4.31%
Revenue Next 3Y2.06%
Revenue Next 5YN/A
EBIT growth 1Y5.24%
EBIT growth 3Y4.39%
EBIT growth 5Y9.46%
EBIT Next Year71.87%
EBIT Next 3Y38.95%
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%