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 213 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
In the past year SUN was profitable.
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's Return On Assets of 4.98% is in line compared to the rest of the industry. SUN outperforms 56.81% of its industry peers.
SUN has a Return On Equity of 17.60%. This is in the better half of the industry: SUN outperforms 74.18% of its industry peers.
SUN's Return On Invested Capital of 5.88% is in line compared to the rest of the industry. SUN outperforms 47.42% 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 25.70%.
| 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's Profit Margin of 3.16% is on the low side compared to the rest of the industry. SUN is outperformed by 61.03% of its industry peers.
SUN's Profit Margin has improved in the last couple of years.
SUN has a Operating Margin of 3.68%. This is in the lower half of the industry: SUN underperforms 69.48% of its industry peers.
In the last couple of years the Operating Margin of SUN has grown nicely.
SUN's Gross Margin of 9.25% is on the low side compared to the rest of the industry. SUN is outperformed by 71.83% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SUN is destroying value.
Compared to 1 year ago, SUN has more shares outstanding
Compared to 5 years ago, SUN has more shares outstanding
SUN has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of SUN is 36.52, which is on the high side as it means it would take SUN, 36.52 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 36.52, SUN is in line with its industry, outperforming 41.78% of the companies in the same industry.
A Debt/Equity ratio of 1.84 is on the high side and indicates that SUN has dependencies on debt financing.
The Debt to Equity ratio of SUN (1.84) is worse than 80.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | 36.52 | ||
| Altman-Z | N/A |
ROIC/WACC0.56
WACC10.59%
2.3 Liquidity
SUN has a Current Ratio of 1.27. 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 1.27 is in line compared to the rest of the industry. SUN outperforms 57.28% of its industry peers.
A Quick Ratio of 0.72 indicates that SUN may have some problems paying its short term obligations.
SUN's Quick ratio of 0.72 is on the low side compared to the rest of the industry. SUN is outperformed by 65.73% 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.
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 -1.63% in the last year.
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)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
The Earnings Per Share is expected to grow by 4.89% on average over the next years.
SUN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.44% yearly.
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
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
A Price/Earnings ratio of 7.29 indicates a rather cheap valuation of SUN.
Based on the Price/Earnings ratio, SUN is valued a bit cheaper than 77.00% of the companies in the same industry.
SUN is valuated cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.60, the valuation of SUN can be described as very cheap.
Based on the Price/Forward Earnings ratio, SUN is valued a bit cheaper than the industry average as 75.12% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, SUN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 7.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SUN is valued a bit more expensive than 62.91% of the companies in the same industry.
SUN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.27 | ||
| EV/EBITDA | 12.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y4.28%
EPS Next 3Y4.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.29%, SUN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.27, SUN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, SUN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
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
79.05% of the earnings are spent on dividend by SUN. 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%
54.57
-3.37 (-5.82%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners44.93%
Inst Owner Change4.13%
Ins Owners0.49%
Ins Owner Change1.01%
Market Cap7.43B
Analysts81.67
Price Target65.57 (20.16%)
Short Float %1.52%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
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)0.45%
PT rev (3m)2.27%
EPS NQ rev (1m)-24.84%
EPS NQ rev (3m)-12.37%
EPS NY rev (1m)-4.75%
EPS NY rev (3m)-8.49%
Revenue NQ rev (1m)7.07%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)5.76%
Revenue NY rev (3m)3.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 7.6 | ||
| P/S | 0.33 | ||
| P/FCF | 36.27 | ||
| P/OCF | 13.54 | ||
| P/B | 1.83 | ||
| P/tB | 3.64 | ||
| EV/EBITDA | 12.7 |
EPS(TTM)7.49
EY13.73%
EPS(NY)7.18
Fwd EY13.15%
FCF(TTM)1.5
FCFY2.76%
OCF(TTM)4.03
OCFY7.38%
SpS166.57
BVpS29.86
TBVpS15
PEG (NY)N/A
PEG (5Y)0.27
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
WACC10.59%
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%