SUNOCO LP (SUN) Stock Fundamental Analysis
NYSE:SUN - New York Stock Exchange, Inc. - US86765K1097 - Currency: USD
Overall SUN gets a fundamental rating of 3 out of 10. We evaluated SUN against 211 industry peers in the Oil, Gas & Consumable Fuels industry. SUN has a medium profitability rating, but doesn't score so well on its financial health evaluation. SUN has a valuation in line with the averages, 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.
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 3.45% is on the low side compared to the rest of the industry. SUN is outperformed by 62.25% of its industry peers.
SUN has a Return On Equity of 11.65%. This is comparable to the rest of the industry: SUN outperforms 53.43% of its industry peers.
SUN has a worse Return On Invested Capital (3.61%) than 70.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SUN is significantly below the industry average of 28.75%.
The 3 year average ROIC (10.19%) for SUN is well above the current ROIC(3.61%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 11.65% | ||
| ROIC | 3.61% |
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
The Profit Margin of SUN (2.11%) is worse than 69.12% of its industry peers.
In the last couple of years the Profit Margin of SUN has grown nicely.
SUN has a worse Operating Margin (2.45%) than 76.96% of its industry peers.
In the last couple of years the Operating Margin of SUN has grown nicely.
SUN has a worse Gross Margin (7.03%) than 76.47% of its industry peers.
SUN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.45% | ||
| PM (TTM) | 2.11% | ||
| GM | 7.03% |
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.
The number of shares outstanding for SUN has been increased compared to 5 years ago.
The debt/assets ratio for SUN has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of SUN is 23.29, which is on the high side as it means it would take SUN, 23.29 years of fcf income to pay off all of its debts.
SUN's Debt to FCF ratio of 23.29 is on the low side compared to the rest of the industry. SUN is outperformed by 62.75% of its industry peers.
SUN has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
SUN's Debt to Equity ratio of 1.74 is on the low side compared to the rest of the industry. SUN is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 23.29 | ||
| Altman-Z | N/A |
ROIC/WACC0.43
WACC8.33%
2.3 Liquidity
A Current Ratio of 1.16 indicates that SUN should not have too much problems paying its short term obligations.
SUN has a Current ratio (1.16) which is comparable to the rest of the industry.
SUN has a Quick Ratio of 1.16. This is a bad value and indicates that SUN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SUN (0.66) is worse than 75.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.66 |
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.
Measured over the past years, SUN shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.97% on average per year.
EPS 1Y (TTM)105.77%
EPS 3Y12.36%
EPS 5Y26.97%
EPS Q2Q%174.67%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-6.59%
3.2 Future
Based on estimates for the next years, SUN will show a small growth in Earnings Per Share. The EPS will grow by 2.04% on average per year.
SUN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.21% yearly.
EPS Next Y3.27%
EPS Next 2Y5.53%
EPS Next 3Y2.04%
EPS Next 5YN/A
Revenue Next Year2.27%
Revenue Next 2Y2.45%
Revenue Next 3Y-3.21%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.74, the valuation of SUN can be described as very cheap.
SUN's Price/Earnings ratio is a bit cheaper when compared to the industry. SUN is cheaper than 75.49% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. SUN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.49, the valuation of SUN can be described as very cheap.
Based on the Price/Forward Earnings ratio, SUN is valued a bit cheaper than 78.92% of the companies in the same industry.
SUN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 7.49 |
4.2 Price Multiples
SUN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SUN is more expensive than 73.53% 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 | 25.06 | ||
| EV/EBITDA | 18.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.36
PEG (5Y)0.29
EPS Next 2Y5.53%
EPS Next 3Y2.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.12%, SUN is a good candidate for dividend investing.
SUN's Dividend Yield is a higher than the industry average which is at 6.75.
Compared to an average S&P500 Dividend Yield of 2.29, SUN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.12% |
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
103.90% of the earnings are spent on dividend by SUN. This is not a sustainable payout ratio.
The dividend of SUN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP103.9%
EPS Next 2Y5.53%
EPS Next 3Y2.04%
57.95
+0.05 (+0.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners44.93%
Inst Owner Change4.67%
Ins Owners0.49%
Ins Owner Change0.46%
Market Cap7.89B
Analysts81.67
Price Target64.84 (11.89%)
Short Float %2.47%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.12% |
Yearly Dividend4.47
Dividend Growth(5Y)0.95%
DP103.9%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)65.28%
Min EPS beat(2)-79.43%
Max EPS beat(2)209.98%
EPS beat(4)2
Avg EPS beat(4)-7.38%
Min EPS beat(4)-231.6%
Max EPS beat(4)209.98%
EPS beat(8)4
Avg EPS beat(8)3.38%
EPS beat(12)6
Avg EPS beat(12)12.48%
EPS beat(16)8
Avg EPS beat(16)23.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-5.33%
Max Revenue beat(2)4.98%
Revenue beat(4)3
Avg Revenue beat(4)3.1%
Min Revenue beat(4)-5.33%
Max Revenue beat(4)8.65%
Revenue beat(8)6
Avg Revenue beat(8)6.26%
Revenue beat(12)10
Avg Revenue beat(12)9.72%
Revenue beat(16)12
Avg Revenue beat(16)6.27%
PT rev (1m)-0.9%
PT rev (3m)0%
EPS NQ rev (1m)12.77%
EPS NQ rev (3m)4.25%
EPS NY rev (1m)26.28%
EPS NY rev (3m)13.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)1.32%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 7.49 | ||
| P/S | 0.34 | ||
| P/FCF | 25.06 | ||
| P/OCF | 12.94 | ||
| P/B | 1.89 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 18.29 |
EPS(TTM)7.49
EY12.92%
EPS(NY)7.74
Fwd EY13.35%
FCF(TTM)2.31
FCFY3.99%
OCF(TTM)4.48
OCFY7.73%
SpS169.31
BVpS30.68
TBVpS15.73
PEG (NY)2.36
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 11.65% | ||
| ROCE | 4.57% | ||
| ROIC | 3.61% | ||
| ROICexc | 3.64% | ||
| ROICexgc | 4.37% | ||
| OM | 2.45% | ||
| PM (TTM) | 2.11% | ||
| GM | 7.03% | ||
| FCFM | 1.37% |
ROA(3y)6.01%
ROA(5y)4.98%
ROE(3y)42.98%
ROE(5y)36.26%
ROIC(3y)10.19%
ROIC(5y)9.34%
ROICexc(3y)10.28%
ROICexc(5y)9.43%
ROICexgc(3y)17.53%
ROICexgc(5y)16.72%
ROCE(3y)12.9%
ROCE(5y)11.82%
ROICexcg growth 3Y2.61%
ROICexcg growth 5Y-2.32%
ROICexc growth 3Y7.67%
ROICexc growth 5Y4.71%
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%
F-Score5
Asset Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 23.29 | ||
| Debt/EBITDA | 8.79 | ||
| Cap/Depr | 112.6% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.85% | ||
| Profit Quality | 64.68% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | N/A |
F-Score5
WACC8.33%
ROIC/WACC0.43
Cap/Depr(3y)103.22%
Cap/Depr(5y)91.23%
Cap/Sales(3y)0.88%
Cap/Sales(5y)0.94%
Profit Quality(3y)100.33%
Profit Quality(5y)140.62%
High Growth Momentum
Growth
EPS 1Y (TTM)105.77%
EPS 3Y12.36%
EPS 5Y26.97%
EPS Q2Q%174.67%
EPS Next Y3.27%
EPS Next 2Y5.53%
EPS Next 3Y2.04%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-6.59%
Revenue Next Year2.27%
Revenue Next 2Y2.45%
Revenue Next 3Y-3.21%
Revenue Next 5YN/A
EBIT growth 1Y-25.89%
EBIT growth 3Y14.44%
EBIT growth 5Y11.52%
EBIT Next Year86.75%
EBIT Next 3Y35.47%
EBIT Next 5Y21.59%
FCF growth 1Y-35.98%
FCF growth 3Y0.61%
FCF growth 5YN/A
OCF growth 1Y-9.09%
OCF growth 3Y6.12%
OCF growth 5YN/A