SUNOCO LP (SUN)
US86765K1097
We assign a fundamental rating of 4 out of 10 to SUN. SUN was compared to 214 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 decent growth rate and is not valued too expensively.
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.
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 4.56%, SUN is not doing good in the industry: 62.44% of the companies in the same industry are doing better.
SUN has a better Return On Equity (31.80%) than 77.46% of its industry peers.
With a Return On Invested Capital value of 9.10%, SUN perfoms like the industry average, outperforming 51.64% of the companies in the same industry.
SUN had an Average Return On Invested Capital over the past 3 years of 10.19%. This is significantly below the industry average of 45.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 31.8% | ||
| ROIC | 9.1% |
ROA(3y)6.01%
ROA(5y)4.98%
ROE(3y)42.98%
ROE(5y)36.26%
ROIC(3y)10.19%
ROIC(5y)9.34%
1.3 Margins
With a Profit Margin value of 1.35%, SUN is not doing good in the industry: 76.06% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of SUN has grown nicely.
SUN's Operating Margin of 2.72% is on the low side compared to the rest of the industry. SUN is outperformed by 81.22% of its industry peers.
SUN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 5.92%, SUN is not doing good in the industry: 80.75% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SUN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.72% | ||
| PM (TTM) | 1.35% | ||
| GM | 5.92% |
OM growth 3Y-11.38%
OM growth 5Y4.91%
PM growth 3Y2.27%
PM growth 5YN/A
GM growth 3Y-15.65%
GM growth 5Y-2.17%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SUN is still creating some 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.
The debt/assets ratio for SUN is higher compared to a year ago.
2.2 Solvency
SUN has a debt to FCF ratio of 9.30. This is a negative value and a sign of low solvency as SUN would need 9.30 years to pay back of all of its debts.
SUN has a Debt to FCF ratio (9.30) which is in line with its industry peers.
A Debt/Equity ratio of 3.66 is on the high side and indicates that SUN has dependencies on debt financing.
SUN has a worse Debt to Equity ratio (3.66) than 89.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.66 | ||
| Debt/FCF | 9.3 | ||
| Altman-Z | N/A |
ROIC/WACC1.27
WACC7.19%
2.3 Liquidity
SUN has a Current Ratio of 1.40. 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 1.40 is fine compared to the rest of the industry. SUN outperforms 60.56% of its industry peers.
SUN has a Quick Ratio of 1.40. This is a bad value and indicates that SUN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.76, SUN is not doing good in the industry: 68.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for SUN have decreased strongly by -22.39% in the last year.
SUN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.80% yearly.
SUN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.34%.
Measured over the past years, SUN shows a small growth in Revenue. The Revenue has been growing by 6.30% on average per year.
EPS 1Y (TTM)-22.39%
EPS 3Y31.8%
EPS 5YN/A
EPS growth Q2Q-457.14%
Revenue 1Y (TTM)-10.34%
Revenue growth 3Y29.14%
Revenue growth 5Y6.3%
Revenue growth Q2Q-4.68%
3.2 Future
SUN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.05% yearly.
Based on estimates for the next years, SUN will show a small growth in Revenue. The Revenue will grow by 0.20% on average per year.
EPS Next Y66.78%
EPS Next 2Y38.2%
EPS Next 3Y30.05%
EPS Next 5YN/A
Revenue Next Year-1.75%
Revenue Next 2Y0.2%
Revenue Next 3YN/A
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 stable.
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
A Price/Earnings ratio of 15.42 indicates a correct valuation of SUN.
Compared to the rest of the industry, the Price/Earnings ratio of SUN indicates a slightly more expensive valuation: SUN is more expensive than 64.32% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SUN to the average of the S&P500 Index (24.95), we can say SUN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 9.25, the valuation of SUN can be described as reasonable.
Based on the Price/Forward Earnings ratio, SUN is valued a bit cheaper than the industry average as 70.42% of the companies are valued more expensively.
SUN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
67.14% of the companies in the same industry are cheaper than SUN, based on the Enterprise Value to EBITDA ratio.
SUN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.31 | ||
| EV/EBITDA | 10.15 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SUN's earnings are expected to grow with 30.05% in the coming years.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y38.2%
EPS Next 3Y30.05%
5. Dividend
5.1 Amount
SUN has a Yearly Dividend Yield of 6.19%, which is a nice return.
Compared to an average industry Dividend Yield of 5.79, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
5.2 History
The dividend of SUN decreases each year by -2.58%.
SUN has been paying a dividend for at least 10 years, so it has a reliable track record.
SUN has decreased its dividend recently.
Dividend Growth(5Y)-2.58%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SUN pays out 119.29% of its income as dividend. This is not a sustainable payout ratio.
DP119.29%
EPS Next 2Y38.2%
EPS Next 3Y30.05%
SUNOCO LP
NYSE:SUN (4/23/2024, 1:24:38 PM)
56.14
+0.24 (+0.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 9.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 31.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.72% | ||
| PM (TTM) | 1.35% | ||
| GM | 5.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-22.39%
EPS 3Y31.8%
EPS 5Y
EPS growth Q2Q
EPS Next Y66.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.34%
Revenue growth 3Y29.14%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y