SUNOCO LP (SUN) Stock Fundamental Analysis
NYSE:SUN - New York Stock Exchange, Inc. - US86765K1097 - Currency: USD
SUN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 208 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
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.
SUN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SUN has a Return On Assets of 4.80%. This is comparable to the rest of the industry: SUN outperforms 59.13% of its industry peers.
SUN has a better Return On Equity (16.58%) than 75.96% of its industry peers.
SUN's Return On Invested Capital of 5.75% is in line compared to the rest of the industry. SUN outperforms 49.52% of 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 23.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 16.58% | ||
| ROIC | 5.75% |
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 3.08%. This is comparable to the rest of the industry: SUN outperforms 40.87% of its industry peers.
SUN's Profit Margin has improved in the last couple of years.
SUN's Operating Margin of 3.74% is on the low side compared to the rest of the industry. SUN is outperformed by 69.23% 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 10.13%, SUN is doing worse than 70.67% of the companies in the same industry.
In the last couple of years the Gross Margin of SUN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.74% | ||
| PM (TTM) | 3.08% | ||
| GM | 10.13% |
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.
The number of shares outstanding for SUN has been increased compared to 5 years ago.
SUN has a better debt/assets ratio than last year.
2.2 Solvency
SUN has a debt to FCF ratio of 511.53. This is a negative value and a sign of low solvency as SUN would need 511.53 years to pay back of all of its debts.
SUN's Debt to FCF ratio of 511.53 is on the low side compared to the rest of the industry. SUN is outperformed by 62.02% of its industry peers.
A Debt/Equity ratio of 1.85 is on the high side and indicates that SUN has dependencies on debt financing.
SUN has a worse Debt to Equity ratio (1.85) than 78.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 511.53 | ||
| Altman-Z | N/A |
ROIC/WACC0.63
WACC9.12%
2.3 Liquidity
A Current Ratio of 1.55 indicates that SUN should not have too much problems paying its short term obligations.
The Current ratio of SUN (1.55) is better than 68.27% of its industry peers.
SUN has a Quick Ratio of 1.55. 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 0.86, SUN perfoms like the industry average, outperforming 45.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.43% over the past year.
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 -3.59%.
SUN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.46% yearly.
EPS 1Y (TTM)43.43%
EPS 3Y12.36%
EPS 5Y26.97%
EPS Q2Q%-46.46%
Revenue 1Y (TTM)-3.59%
Revenue growth 3Y8.85%
Revenue growth 5Y6.46%
Sales Q2Q%-5.82%
3.2 Future
The Earnings Per Share is expected to decrease by -4.74% 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 3.48% yearly.
EPS Next Y-29.08%
EPS Next 2Y-9.66%
EPS Next 3Y-4.74%
EPS Next 5YN/A
Revenue Next Year4.67%
Revenue Next 2Y5.86%
Revenue Next 3Y3.48%
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.
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 reasonably with a Price/Earnings ratio of 8.42.
78.85% of the companies in the same industry are more expensive than SUN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.24. SUN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.87, the valuation of SUN can be described as reasonable.
Based on the Price/Forward Earnings ratio, SUN is valued a bit cheaper than 70.19% of the companies in the same industry.
SUN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.42 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SUN is valued a bit more expensive than the industry average as 60.58% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, SUN is valued a bit more expensive than 60.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 492.88 | ||
| EV/EBITDA | 11.31 |
4.3 Compensation for Growth
SUN's earnings are expected to decrease with -4.74% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.31
EPS Next 2Y-9.66%
EPS Next 3Y-4.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.57%, SUN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.34, SUN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, SUN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.57% |
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.
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 92.02% 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.
DP92.02%
EPS Next 2Y-9.66%
EPS Next 3Y-4.74%
54.23
+0.56 (+1.04%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners46.04%
Inst Owner Change0.06%
Ins Owners0.47%
Ins Owner Change0.55%
Market Cap7.39B
Analysts82
Price Target65.69 (21.13%)
Short Float %3.25%
Short Ratio9.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.57% |
Yearly Dividend4.47
Dividend Growth(5Y)0.95%
DP92.02%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.02%
Min EPS beat(2)-34.64%
Max EPS beat(2)-9.4%
EPS beat(4)1
Avg EPS beat(4)21.63%
Min EPS beat(4)-79.43%
Max EPS beat(4)209.98%
EPS beat(8)3
Avg EPS beat(8)2.5%
EPS beat(12)5
Avg EPS beat(12)-3.21%
EPS beat(16)7
Avg EPS beat(16)11%
Revenue beat(2)0
Avg Revenue beat(2)-12.06%
Min Revenue beat(2)-16.02%
Max Revenue beat(2)-8.09%
Revenue beat(4)1
Avg Revenue beat(4)-6.12%
Min Revenue beat(4)-16.02%
Max Revenue beat(4)4.98%
Revenue beat(8)4
Avg Revenue beat(8)-0.06%
Revenue beat(12)8
Avg Revenue beat(12)5.58%
Revenue beat(16)12
Avg Revenue beat(16)6.35%
PT rev (1m)-0.31%
PT rev (3m)0.18%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-28.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-26%
Revenue NQ rev (1m)2.94%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)2.06%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.42 | ||
| Fwd PE | 8.87 | ||
| P/S | 0.33 | ||
| P/FCF | 492.88 | ||
| P/OCF | 17.64 | ||
| P/B | 1.78 | ||
| P/tB | 3.46 | ||
| EV/EBITDA | 11.31 |
EPS(TTM)6.44
EY11.88%
EPS(NY)6.11
Fwd EY11.27%
FCF(TTM)0.11
FCFY0.2%
OCF(TTM)3.07
OCFY5.67%
SpS164.11
BVpS30.48
TBVpS15.69
PEG (NY)N/A
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.8% | ||
| ROE | 16.58% | ||
| ROCE | 6.57% | ||
| ROIC | 5.75% | ||
| ROICexc | 5.83% | ||
| ROICexgc | 6.95% | ||
| OM | 3.74% | ||
| PM (TTM) | 3.08% | ||
| GM | 10.13% | ||
| FCFM | 0.07% |
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-Score3
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 511.53 | ||
| Debt/EBITDA | 5.82 | ||
| Cap/Depr | 83.99% | ||
| Cap/Sales | 1.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.81% | ||
| Profit Quality | 2.18% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | N/A |
F-Score3
WACC9.12%
ROIC/WACC0.63
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)43.43%
EPS 3Y12.36%
EPS 5Y26.97%
EPS Q2Q%-46.46%
EPS Next Y-29.08%
EPS Next 2Y-9.66%
EPS Next 3Y-4.74%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.59%
Revenue growth 3Y8.85%
Revenue growth 5Y6.46%
Sales Q2Q%-5.82%
Revenue Next Year4.67%
Revenue Next 2Y5.86%
Revenue Next 3Y3.48%
Revenue Next 5YN/A
EBIT growth 1Y14.99%
EBIT growth 3Y4.39%
EBIT growth 5Y9.46%
EBIT Next Year72.81%
EBIT Next 3Y35.07%
EBIT Next 5Y14.7%
FCF growth 1Y-97.75%
FCF growth 3Y-17.79%
FCF growth 5Y-6.51%
OCF growth 1Y-51.5%
OCF growth 3Y0.37%
OCF growth 5Y4.77%