SUNOCO LP (SUN)
US86765K1097
We assign a fundamental rating of 4 out of 10 to SUN. SUN was compared to 205 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.
SUN had positive earnings in each of the past 5 years.
SUN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.45%, SUN is not doing good in the industry: 62.75% of the companies in the same industry are doing better.
With a Return On Equity value of 11.65%, SUN perfoms like the industry average, outperforming 52.45% of the companies in the same industry.
With a Return On Invested Capital value of 3.61%, SUN is not doing good in the industry: 70.10% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for SUN is significantly below the industry average of 29.02%.
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
SUN has a worse Profit Margin (2.11%) than 70.59% of its industry peers.
SUN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 2.45%, SUN is not doing good in the industry: 77.94% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of SUN has grown nicely.
SUN's Gross Margin of 7.03% is on the low side compared to the rest of the industry. SUN is outperformed by 77.45% 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
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.
Compared to 1 year ago, SUN has a worse debt to assets ratio.
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.
The Debt to FCF ratio of SUN (23.29) is worse than 61.76% 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.
With a Debt to Equity ratio value of 1.74, SUN is not doing good in the industry: 82.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 23.29 | ||
| Altman-Z | N/A |
ROIC/WACC0.45
WACC7.99%
2.3 Liquidity
SUN has a Current Ratio of 1.16. This is a normal value and indicates that SUN is financially healthy and should not expect problems in meeting its short term obligations.
SUN has a Current ratio (1.16) which is comparable to the rest of the industry.
A Quick Ratio of 0.66 indicates that SUN may have some problems paying its short term obligations.
SUN has a Quick ratio of 0.66. This is in the lower half of the industry: SUN underperforms 74.51% 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 negative growth in Earnings Per Share. In the last year the EPS decreased by -12.41%.
Measured over the past years, SUN shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.80% on average per year.
SUN shows a decrease in Revenue. In the last year, the revenue decreased by -1.20%.
The Revenue has been growing slightly by 6.30% on average over the past years.
EPS 1Y (TTM)-12.41%
EPS 3Y31.8%
EPS 5YN/A
EPS Q2Q%-91.19%
Revenue 1Y (TTM)-1.2%
Revenue growth 3Y29.14%
Revenue growth 5Y6.3%
Sales Q2Q%-9%
3.2 Future
Based on estimates for the next years, SUN will show a very strong growth in Earnings Per Share. The EPS will grow by 20.02% on average per year.
SUN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y118%
EPS Next 2Y29.38%
EPS Next 3Y20.02%
EPS Next 5YN/A
Revenue Next Year2.56%
Revenue Next 2Y3%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
The Price/Earnings ratio is 10.49, which indicates a very decent valuation of SUN.
SUN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SUN to the average of the S&P500 Index (27.73), we can say SUN is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.38, the valuation of SUN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SUN indicates a somewhat cheap valuation: SUN is cheaper than 67.65% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SUN to the average of the S&P500 Index (22.83), we can say SUN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SUN is valued a bit more expensive than 75.49% 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 | 22.05 | ||
| EV/EBITDA | 17.15 |
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 20.02% in the coming years.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y29.38%
EPS Next 3Y20.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.52%, SUN is a good candidate for dividend investing.
SUN's Dividend Yield is a higher than the industry average which is at 6.85.
Compared to an average S&P500 Dividend Yield of 2.24, SUN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.52% |
5.2 History
The dividend of SUN decreases each year by -2.58%.
SUN has paid a dividend for at least 10 years, which is a reliable track record.
SUN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-2.58%
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.
DP103.9%
EPS Next 2Y29.38%
EPS Next 3Y20.02%
SUNOCO LP
NYSE:SUN (12/20/2024, 8:04:00 PM)
After market: 51.05 -0.03 (-0.06%)51.08
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners42.42%
Inst Owner Change-0.7%
Ins Owners10.04%
Ins Owner Change0.46%
Market Cap6.95B
Analysts81.67
Price Target64.11 (25.51%)
Short Float %1.41%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.52% |
Dividend Growth(5Y)-2.58%
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%
PT rev (3m)0.69%
EPS NQ rev (1m)-7.55%
EPS NQ rev (3m)-7.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.93%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 8.38 | ||
| P/S | 0.3 | ||
| P/FCF | 22.05 | ||
| P/OCF | 11.39 | ||
| P/B | 1.66 | ||
| P/tB | 3.24 | ||
| EV/EBITDA | 17.15 |
EPS(TTM)4.87
EY9.53%
EPS(NY)6.09
Fwd EY11.93%
FCF(TTM)2.32
FCFY4.53%
OCF(TTM)4.49
OCFY8.78%
SpS169.6
BVpS30.74
TBVpS15.76
PEG (NY)0.09
PEG (5Y)N/A
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
WACC7.99%
ROIC/WACC0.45
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)-12.41%
EPS 3Y31.8%
EPS 5YN/A
EPS Q2Q%-91.19%
EPS Next Y118%
EPS Next 2Y29.38%
EPS Next 3Y20.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.2%
Revenue growth 3Y29.14%
Revenue growth 5Y6.3%
Sales Q2Q%-9%
Revenue Next Year2.56%
Revenue Next 2Y3%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
EBIT growth 1Y-25.89%
EBIT growth 3Y14.44%
EBIT growth 5Y11.52%
EBIT Next Year86.38%
EBIT Next 3Y34.06%
EBIT Next 5Y20.73%
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