Education
About Us
Working with TipRanks
Follow Us
Sunoco LP (SUN)
NYSE:SUN
Top Page
Sunoco
(NYSE:SUN)77Outperform
Positive Factors
Earnings and Financial Performance
SUN's 2025 EBITDA guidance and distribution growth target were above consensus, leading to expectations of a positive stock reaction.
Mergers and Acquisitions
SUN management is optimistic about merger and acquisition opportunities and its interest in expanding in Europe and the Caribbean.
Negative Factors
Operational Costs
Management expects operating expenses to be significantly higher than consensus estimates.
Sunoco (SUN) vs. S&P 500 (SPY)
Market Cap
$8.69B
Dividend Yield6.18%
Average Volume (3M)594.60K
Price to Earnings (P/E)9.5
Beta (1Y)0.81
Revenue Growth-1.63%
EPS Growth80.11%
CountryUS
Employees3,298
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)6.61
Shares Outstanding136,235,890
10 Day Avg. Volume418,907
30 Day Avg. Volume594,598
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)N/A
Price to Sales (P/S)0.38
Price to Cash Flow (P/CF)17.70
P/FCF Ratio9.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$62.00Price Target Upside9.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Sunoco Business Overview & Revenue Model
Company DescriptionSunoco LP (SUN) is a leading transportation fuel provider in the United States, primarily engaged in the distribution of motor fuels to convenience stores, independent dealers, commercial customers, and distributors. Operating within the energy sector, Sunoco LP has a vast network of fuel distribution terminals and storage facilities that enable efficient fuel supply. The company is known for its Sunoco-branded retail outlets and is involved in the wholesale distribution of gasoline and diesel fuel.
How the Company Makes MoneySunoco LP generates revenue primarily through the wholesale distribution of motor fuels, including gasoline and diesel, to a wide range of customers such as convenience stores, independent retailers, and commercial clients. The company benefits from its extensive distribution network, which allows efficient fuel supply to various regions. Key revenue streams include fuel sales to both branded Sunoco outlets and unbranded customers, leveraging its logistics capabilities. Sunoco LP also earns from rental income through leasing real estate properties and storage facilities. Strategic partnerships with major oil companies and long-term supply agreements contribute significantly to its earnings, ensuring a stable and diversified revenue base.
Sunoco Financial Statement Overview
Summary
Sunoco demonstrates robust profitability with strong margins and a healthy equity position. Despite revenue volatility, the company's strategic debt management and efficient cash flow are commendable, though free cash flow growth has declined.Income Statement
Sunoco's income statement reveals a strong gross profit margin of 9.2% and a net profit margin of 3.9%, indicating good profitability. The EBIT margin is 3.5% and the EBITDA margin is 4.5%, which are respectable for the industry. Revenue growth has been volatile, with a decline of 1.6% in the last year, but this follows a significant increase in previous years, suggesting potential for recovery.76
Positive
Balance Sheet
The balance sheet shows a strong equity position with an equity ratio of 28.3%, which demonstrates a solid foundation. However, the debt-to-equity ratio of 0.13 is low, indicating a conservative use of debt. Return on equity is healthy at 21.5%, reflecting efficient use of shareholder funds. The company's balance sheet stability is generally favorable with some room for leveraging.68
Positive
Cash Flow
Sunoco demonstrates robust cash flow management with an operating cash flow to net income ratio of 0.63 and a free cash flow to net income ratio of 0.23. Despite a decrease in free cash flow growth by 46.8% over the past year, the company has maintained positive free cash flow, which is crucial for operations and growth.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 22.69B | 23.07B | 25.73B | 17.60B | 10.71B | Gross Profit |
| 2.10B | 1.18B | 1.19B | 1.17B | 867.00M | EBIT |
| 791.00M | 635.00M | 477.00M | 562.00M | 237.00M | EBITDA |
| 1.03B | 825.00M | 877.00M | 894.00M | 602.00M | Net Income Common Stockholders |
| 874.00M | 311.00M | 397.00M | 446.00M | 212.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 94.00M | 29.00M | 82.00M | 25.00M | 97.00M | Total Assets |
| 14.38B | 6.83B | 6.83B | 5.82B | 5.27B | Total Debt |
| 515.00M | 4.11B | 4.12B | 3.79B | 3.67B | Net Debt |
| 421.00M | 4.08B | 4.04B | 3.77B | 3.57B | Total Liabilities |
| 10.31B | 5.85B | 5.89B | 5.00B | 4.63B | Stockholders Equity |
| 4.07B | 978.00M | 942.00M | 811.00M | 632.00M |
| Cash Flow | Free Cash Flow | |||
| 205.00M | 385.00M | 375.00M | 369.00M | 378.00M | Operating Cash Flow |
| 549.00M | 600.00M | 561.00M | 543.00M | 502.00M | Investing Cash Flow |
| 477.00M | -288.00M | -464.00M | -387.00M | -120.00M | Financing Cash Flow |
| -961.00M | -365.00M | -40.00M | -228.00M | -306.00M |
Sunoco Technical Analysis
Neutral
56.81
Price Trends
55.03
Positive
53.42
Positive
52.54
Positive
Market Momentum
0.56
Positive
49.04
Neutral
40.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUN, the sentiment is Neutral. The current price of 56.81 is below the 20-day moving average (MA) of 57.55, above the 50-day MA of 55.03, and above the 200-day MA of 52.54, indicating a neutral trend. The MACD of 0.56 indicates Positive momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 40.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SUN.
Sunoco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.69B | 9.48 | 28.38% | 6.18% | -1.63% | 80.11% | |
71 Outperform | $50.06B | 24.59 | 7.27% | 3.75% | -2.81% | -68.00% | |
67 Neutral | $43.00B | 13.63 | 16.33% | 2.52% | -6.70% | -57.84% | |
63 Neutral | $38.35B | 14.19 | 10.86% | 3.44% | -10.35% | -65.68% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% | |
55 Neutral | $1.84B | 263.65 | 0.90% | 11.07% | -17.69% | -99.09% | |
47 Neutral | $923.95M | ― | -108.21% | 6.80% | -28.68% | -4373.94% |
* Energy Sector Average
Performance Comparison
SUN
Sunoco
56.81
-2.38
-4.02%
CVI
CVR Energy
18.06
-13.66
-43.06%
DK
Delek US Holdings
14.26
-11.00
-43.55%
MPC
Marathon Petroleum
137.55
-40.08
-22.56%
PSX
Phillips 66
126.18
-18.31
-12.67%
VLO
Valero Energy
126.85
-19.35
-13.24%
Sunoco Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: 0.26% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, highlighting a record year for Sunoco with strong financial performance, successful acquisition integration, and positive outlook for 2025. However, there were some challenges in the fourth quarter, particularly in the fuel distribution and terminal segments.Highlights
Record Annual Results
Sunoco reported a record year with adjusted EBITDA of $1.56 billion, representing a 62% increase compared to 2023.
Successful NuStar Acquisition
The NuStar acquisition closed in May 2024, contributing to a revised adjusted EBITDA guidance range of $1.51 billion to $1.57 billion, with $50 million in synergies.
Strong Liquidity Position
Sunoco ended 2024 with $1.3 billion of liquidity on its revolving credit facility and achieved a leverage target of 4.1 times within five months post-NuStar acquisition.
Growth in Distribution
Declared a $0.8865 per unit distribution, a 1.25% increase over last quarter, with a target of at least 5% distribution growth this year.
Positive Outlook for 2025
Confidence in meeting 2025 adjusted EBITDA guidance range of $1.9 to $1.95 billion, expecting continued distribution increases.
Lowlights
Fourth Quarter Fuel Distribution Decline
Fuel distribution segment adjusted EBITDA was $192 million, down from $253 million last quarter and $209 million in Q4 2023.
Decreased Margin in Fuel Distribution
Reported margin was 10.6 cents per gallon in Q4 2024, down from 12.8 cents per gallon last quarter and 11.8 cents per gallon in Q4 2023.
Terminal Segment Decline
Terminal segment adjusted EBITDA was $61 million, down from $70 million in the third quarter.
Company Guidance
During Sunoco LP's fourth quarter 2024 earnings call, the company highlighted a record year with a significant increase in financial metrics. The fourth quarter adjusted EBITDA was reported at $446 million, excluding $7 million in one-time transaction expenses. The partnership spent $74 million on growth capital and $58 million on maintenance capital, resulting in distributable cash flow adjusted of $261 million. The trailing twelve-month coverage ratio ended at 1.9 times. For the full year, Sunoco achieved an adjusted EBITDA of $1.56 billion, a 62% increase from 2023. The integration of NuStar assets contributed to raising the 2024 adjusted EBITDA guidance to a range of $1.51 billion to $1.57 billion, with $50 million in synergies. The company declared a distribution increase of 1.25% to $0.8865 per unit and aims for at least 5% growth in distributions this year. Sunoco is confident in meeting its 2025 adjusted EBITDA guidance of $1.9 to $1.95 billion, supported by a strong liquidity position, with $1.3 billion remaining on the revolving credit facility, and a leverage ratio of 4.1 times.Sunoco Corporate Events
Dividends
Sunoco Announces Increased Quarterly Cash Distribution
Positive
Jan 27, 2025
On January 27, 2025, Sunoco LP announced that its Board of Directors approved a quarterly cash distribution of $0.8865 per common unit for the quarter ended December 31, 2024, reflecting a 1.25% increase over the previous quarter. This marks the third consecutive annual increase in distribution, underscoring a strong long-term financial outlook and a path for continued multi-year distribution growth. The distribution will be paid on February 19, 2025, to unitholders of record as of February 7, 2025.
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Sunoco Reveals 2025 Financial Guidance at Conference
Neutral
Dec 9, 2024
Sunoco LP has unveiled its operational and financial guidance for 2025, available on their website, as part of an investor presentation. The announcement coincides with their participation in the Mizuho Power, Energy & Infrastructure Conference. Investors should note that while the guidance includes forward-looking statements, these are subject to numerous uncertainties and risks detailed in their SEC filings.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.