SUNOCO LP (SUN) Stock Fundamental Analysis
USA - NYSE:SUN - US86765K1097
49.12 USD
-1.12 (-2.23%)
49.12 USD
0 (0%)
SUN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 210 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
In the past year SUN was profitable.
SUN had a positive operating cash flow in the past year.
In the past 5 years SUN has always been profitable.
In the past 5 years SUN always reported a positive cash flow from operatings.
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 49.05% of its industry peers.
SUN has a Return On Invested Capital (5.76%) which is in line with its industry peers.
SUN had an Average Return On Invested Capital over the past 3 years of 8.89%. This is significantly below the industry average of 21.66%.
| 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 61.43% of the companies in the same industry.
SUN's Profit Margin has improved in the last couple of years.
SUN has a Operating Margin of 3.90%. This is in the lower half of the industry: SUN underperforms 68.10% of its industry peers.
SUN's Operating Margin has improved in the last couple of years.
SUN has a Gross Margin of 10.52%. This is in the lower half of the industry: SUN underperforms 69.52% of its industry peers.
In the last couple of years the Gross Margin of SUN has grown nicely.
| 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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SUN has more shares outstanding
SUN has more shares outstanding than it did 5 years ago.
SUN has a better debt/assets ratio than last year.
2.2 Solvency
SUN has a debt to FCF ratio of 32.79. This is a negative value and a sign of low solvency as SUN would need 32.79 years to pay back of 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.
The Debt to Equity ratio of SUN (1.90) is worse than 79.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.9 | ||
| Debt/FCF | 32.79 | ||
| Altman-Z | N/A |
ROIC/WACC0.66
WACC8.77%
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.
With a decent Current ratio value of 1.52, SUN is doing good in the industry, outperforming 67.62% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.80, SUN is in line with its industry, outperforming 41.43% 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
Looking at the last year, SUN shows a decrease in Revenue. The Revenue has decreased by -8.65% 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)-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
The Earnings Per Share is expected to decrease by -9.41% on average over the next years.
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
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
SUN is valuated correctly with a Price/Earnings ratio of 16.82.
The rest of the industry has a similar Price/Earnings ratio as SUN.
Compared to an average S&P500 Price/Earnings ratio of 27.38, SUN is valued a bit cheaper.
A Price/Forward Earnings ratio of 8.69 indicates a reasonable valuation of SUN.
SUN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SUN is cheaper than 77.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. SUN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
SUN's Enterprise Value to EBITDA is on the same level as the industry average.
SUN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.19 | ||
| EV/EBITDA | 10.39 |
4.3 Compensation for Growth
A cheap valuation may be justified as SUN's earnings are expected to decrease with -9.41% in the coming years.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y-13.13%
EPS Next 3Y-9.41%
5. Dividend
5.1 Amount
SUN has a Yearly Dividend Yield of 7.20%, which is a nice return.
Compared to an average industry Dividend Yield of 6.18, SUN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, SUN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.2% |
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.
SUN's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP229.03%
EPS Next 2Y-13.13%
EPS Next 3Y-9.41%
49.12
-1.12 (-2.23%)
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 Cap6.71B
Analysts82
Price Target65.48 (33.31%)
Short Float %3.96%
Short Ratio11.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.2% |
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)-12.52%
EPS NQ rev (3m)-16.5%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-3.79%
Revenue NQ rev (1m)-1.52%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)-6.26%
Revenue NY rev (3m)-4.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 8.69 | ||
| P/S | 0.31 | ||
| P/FCF | 28.19 | ||
| P/OCF | 9.17 | ||
| P/B | 1.64 | ||
| P/tB | 3.22 | ||
| EV/EBITDA | 10.39 |
EPS(TTM)2.92
EY5.94%
EPS(NY)5.65
Fwd EY11.51%
FCF(TTM)1.74
FCFY3.55%
OCF(TTM)5.36
OCFY10.91%
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
WACC8.77%
ROIC/WACC0.66
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%