tiprankstipranks
Trending News
More News >
Sunoco LP (SUN)
NYSE:SUN
US Market
Advertisement

Sunoco (SUN) AI Stock Analysis

Compare
2,255 Followers

Top Page

SUN

Sunoco

(NYSE:SUN)

Select Model
Select Model
Select Model
Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
$54.00
▼(-3.49% Downside)
Sunoco's overall stock score reflects a balance of strengths and challenges. The positive impact of strategic acquisitions and strong dividend yield are significant strengths. However, mixed financial performance and bearish technical indicators present risks. The company's ability to manage leverage and improve operational efficiency will be crucial for future performance.
Positive Factors
Strategic Acquisition
The acquisition of Parkland Corporation positions Sunoco as a market leader, enhancing its competitive advantage and scale, which can drive long-term growth and operational synergies.
Cash Flow Generation
Strong free cash flow growth indicates Sunoco's robust cash generation ability, providing financial flexibility for strategic investments and debt management.
Increased Distribution
Consistent distribution increases reflect Sunoco's commitment to returning value to shareholders, supported by stable cash flows and operational performance.
Negative Factors
High Leverage
High leverage poses financial risk, potentially limiting Sunoco's ability to invest in growth opportunities and manage economic downturns effectively.
Decreasing Profit Margins
Declining profit margins indicate pressure on profitability, which could impact Sunoco's ability to sustain earnings growth and shareholder returns.
Decreased Fuel Distribution Margins
Decreasing fuel distribution margins suggest challenges in maintaining pricing power and profitability in a competitive market environment.

Sunoco (SUN) vs. SPDR S&P 500 ETF (SPY)

Sunoco Business Overview & Revenue Model

Company DescriptionSunoco LP (NYSE: SUN) is a leading fuel distributor and convenience store operator in the United States. The company primarily engages in the retail and wholesale distribution of petroleum products, operating a vast network of Sunoco-branded gas stations and convenience stores. Sunoco also provides fuel supply and logistics services, catering to various customer segments, including commercial fleets, industrial users, and retail consumers. Its core offerings include gasoline, diesel, and other petroleum products, alongside convenience store merchandise.
How the Company Makes MoneySunoco generates revenue through multiple streams, primarily from the sale of fuel at its retail locations and the wholesale distribution of petroleum products. The company operates a large network of convenience stores, which not only sell fuel but also offer a variety of food and beverage items, generating significant in-store sales. Additionally, Sunoco engages in fuel supply agreements with various commercial clients and partners, ensuring a steady stream of revenue from wholesale fuel sales. The company also benefits from strategic partnerships and brand recognition, which help to maintain customer loyalty and drive sales across its extensive network. Factors contributing to its earnings include fluctuations in fuel prices, operational efficiency, and the effectiveness of its marketing strategies.

Sunoco Earnings Call Summary

Earnings Call Date:Sep 30, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and strategic growth through acquisitions, with record third quarter results and increased distributions. However, challenges were noted in decreasing margins and throughput in certain segments. The company remains optimistic about future growth and integration of recent acquisitions.
Q3-2025 Updates
Positive Updates
Completion of Parkland Acquisition
Sunoco successfully completed the acquisition of Parkland Corporation, creating the largest independent fuel distributor in the Americas. The acquisition is valued at approximately $9 billion and is expected to be immediately accretive to distributable cash flow per common unit.
Record Third Quarter Financial Performance
Sunoco delivered a record third quarter with adjusted EBITDA of $496 million, up from $470 million a year ago, excluding onetime transaction-related expenses.
Increase in Fuel Distribution Volumes
Fuel distribution volumes increased to 2.3 billion gallons during the quarter, up 5% from last quarter and up 7% compared to the third quarter of last year.
Increase in Distribution
Sunoco declared a distribution for the third quarter of $0.9202 per common unit, representing an increase of 1.25% compared with the previous quarter.
Strong Pipeline Systems and Terminals Performance
Pipeline Systems segment adjusted EBITDA for the quarter was $182 million, and Terminals segment adjusted EBITDA was $76 million, both showing year-over-year growth.
Negative Updates
Decreased Margins in Fuel Distribution
Reported margin for the fuel distribution segment was $0.107 per gallon compared to $0.128 in the third quarter of 2024, indicating a decrease in margin.
Decline in Terminals Throughput
Terminals segment throughput was 656,000 barrels per day, down from 692,000 barrels per day in the second quarter and 694,000 barrels per day in the third quarter of last year.
Company Guidance
During Sunoco's third-quarter 2025 earnings call, the company highlighted several key financial metrics and strategic updates. Sunoco's recent $9 billion acquisition of Parkland Corporation has positioned it as the largest independent fuel distributor in the Americas. The acquisition is expected to yield over $250 million in synergies by 2028, resulting in more than 10% accretion in distributable cash flow per common unit. The company's adjusted EBITDA for the quarter was $496 million, up from $470 million the previous year, while distributable cash flow as adjusted was $326 million. Sunoco's growth capital expenditure for the quarter was $115 million, with an additional $42 million allocated for maintenance capital. The company's revolving credit facility was increased by $1 billion to $2.5 billion post-acquisition, providing enhanced liquidity. Additionally, Sunoco declared a third-quarter distribution increase of 1.25% to $0.9202 per common unit, marking the fourth consecutive quarterly increase and aligning with an annual distribution growth rate of at least 5%. As a strategic move, SUNCorp will begin trading on the New York Stock Exchange under the ticker SUNC, offering a new investment option taxed as a corporation. Sunoco plans to provide formal 2026 guidance for the combined company early next year.

Sunoco Financial Statement Overview

Summary
Sunoco's financial performance is mixed. Positive revenue growth and strong free cash flow generation are offset by declining profitability margins and return on equity. High leverage remains a financial risk, necessitating improved operational efficiency and debt management.
Income Statement
65
Positive
Sunoco's income statement shows a mixed performance. The TTM gross profit margin is relatively stable at 7.94%, but the net profit margin has decreased to 1.29% from 3.15% in the previous year, indicating pressure on profitability. The revenue growth rate is positive at 1.30% TTM, showing a recovery from the previous year's decline. However, EBIT and EBITDA margins have decreased, suggesting challenges in operational efficiency.
Balance Sheet
58
Neutral
The balance sheet reflects high leverage with a TTM debt-to-equity ratio of 2.04, which is an improvement from past years but still indicates significant financial risk. The return on equity has decreased to 10.10% TTM, down from 17.60% in the previous year, suggesting reduced profitability for shareholders. The equity ratio remains relatively low, indicating a heavy reliance on debt financing.
Cash Flow
72
Positive
Cash flow analysis shows strong free cash flow growth of 59.40% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.45, reflecting a moderate ability to convert net income into cash. The free cash flow to net income ratio is 0.32, which is lower than previous years, suggesting some challenges in maintaining cash flow relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue21.87B22.69B23.07B25.73B17.60B10.71B
Gross Profit2.01B1.73B1.18B1.19B1.17B867.00M
EBITDA1.69B1.03B829.00M870.00M887.00M595.00M
Net Income402.00M716.00M311.00M397.00M446.00M135.00M
Balance Sheet
Total Assets17.84B14.38B6.85B6.86B5.82B5.27B
Cash, Cash Equivalents and Short-Term Investments3.24B94.00M29.00M82.00M25.00M97.00M
Total Debt10.07B8.00B4.11B4.12B3.79B3.67B
Total Liabilities12.30B10.31B5.87B5.91B5.00B4.63B
Stockholders Equity5.54B4.07B978.00M942.00M811.00M632.00M
Cash Flow
Free Cash Flow373.00M205.00M385.00M375.00M369.00M378.00M
Operating Cash Flow923.00M549.00M600.00M561.00M543.00M502.00M
Investing Cash Flow-726.00M477.00M-288.00M-464.00M-387.00M-120.00M
Financing Cash Flow2.93B-961.00M-365.00M-40.00M-228.00M-306.00M

Sunoco Technical Analysis

Technical Analysis Sentiment
Positive
Last Price55.95
Price Trends
50DMA
51.44
Positive
100DMA
51.21
Positive
200DMA
52.38
Positive
Market Momentum
MACD
1.10
Negative
RSI
69.22
Neutral
STOCH
95.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUN, the sentiment is Positive. The current price of 55.95 is above the 20-day moving average (MA) of 53.01, above the 50-day MA of 51.44, and above the 200-day MA of 52.38, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 69.22 is Neutral, neither overbought nor oversold. The STOCH value of 95.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUN.

Sunoco Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$4.51B8.5518.26%3.24%-3.51%3.75%
68
Neutral
$9.61B25.144.07%3.83%-9.55%27.65%
67
Neutral
$8.56B19.078.27%6.46%-5.18%-33.14%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
65
Neutral
$3.46B20.9621.78%8.02%-7.21%135.72%
55
Neutral
$3.99B-9.47%3.26%-15.35%-81.94%
51
Neutral
$2.34B-115.95%2.62%-22.37%-27.22%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SUN
Sunoco
55.95
3.12
5.91%
CVI
CVR Energy
34.41
15.06
77.83%
DK
Delek US Holdings
38.89
20.79
114.86%
DINO
HF Sinclair Corporation
52.24
13.29
34.12%
UGP
Ultrapar Participacoes SA
4.12
1.28
45.07%
PBF
PBF Energy
33.76
3.63
12.05%

Sunoco Corporate Events

Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Sunoco Finalizes Parkland Notes Exchange Post-Acquisition
Positive
Nov 10, 2025

On November 7, 2025, Sunoco completed its private exchange offers and consent solicitations for outstanding notes issued by Parkland Corporation, following the acquisition of Parkland on October 31, 2025. The exchange involved Canadian and U.S. dollar-denominated notes, with over 92% of Canadian notes and 99% of U.S. notes tendered. The exchange resulted in the issuance of new notes by Sunoco, which have similar terms to the original notes, and the elimination of certain restrictive covenants and default events from the original indentures. This strategic move is expected to streamline Sunoco’s financial operations and enhance its market position.

The most recent analyst rating on (SUN) stock is a Buy with a $61.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Sunoco LP Reports Strong Q3 2025 Financial Results
Nov 6, 2025

Sunoco LP is a leading energy infrastructure and fuel distribution master limited partnership, operating across North America, the Greater Caribbean, and Europe, with a vast network of pipelines and terminals supporting its extensive fuel distribution operations.

Sunoco LP’s Earnings Call Highlights Strategic Growth and Record Performance
Nov 6, 2025

Sunoco LP’s recent earnings call painted a picture of robust financial performance and strategic growth, primarily driven by acquisitions. The company reported record third-quarter results and increased distributions, although it acknowledged challenges in decreasing margins and throughput in certain segments. Despite these hurdles, Sunoco remains optimistic about its future growth prospects and the integration of recent acquisitions.

Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Sunoco Reports Strong Q3 2025 Financial Results
Positive
Nov 5, 2025

On November 5, 2025, Sunoco LP announced its financial and operating results for the third quarter of 2025, reporting a net income of $137 million, a significant increase from $2 million in the same quarter of 2024. The company also reported an Adjusted EBITDA of $496 million and a Distributable Cash Flow of $326 million. Sunoco completed the acquisition of Parkland Corporation and is on track to finalize the acquisition of TanQuid by the end of the year. The company increased its quarterly distribution by 1.25% and maintains a strong leverage ratio of 3.9 times, with a distribution coverage ratio of 1.8 times. These developments underscore Sunoco’s strategic growth and commitment to returning capital to its unitholders.

The most recent analyst rating on (SUN) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Delistings and Listing ChangesM&A Transactions
Sunoco Finalizes Parkland Acquisition, NYSE Trading Soon
Neutral
Nov 3, 2025

On October 31, 2025, Sunoco completed the acquisition of Parkland Corporation, with Parkland shares expected to be delisted from the Toronto Stock Exchange by November 4, 2025. The acquisition led to the issuance of SunocoCorp Common Units, which will start trading on the New York Stock Exchange on November 6, 2025. Additionally, Sunoco entered into an Omnibus Agreement with SunocoCorp to indemnify certain liabilities and provide administrative services, ensuring economic alignment between the two entities. The agreement includes provisions for cash distribution alignment and potential renegotiation in case of triggering events, impacting the company’s operations and positioning in the market.

The most recent analyst rating on (SUN) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Delistings and Listing ChangesM&A Transactions
Sunoco Announces Acquisition of Parkland Corporation
Neutral
Oct 27, 2025

On October 27, 2025, Sunoco LP announced its anticipated acquisition of Parkland Corporation, expected to close on October 31, 2025, pending customary closing conditions. Following the acquisition, SunocoCorp LLC’s common units will begin trading on the New York Stock Exchange under the ticker symbol ‘SUNC’ on November 3, 2025. This strategic move is set to enhance Sunoco’s market position by integrating Parkland’s operations, although it carries potential risks such as integration challenges and business disruptions.

The most recent analyst rating on (SUN) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Sunoco Extends Deadline for Note Exchange Offers
Neutral
Oct 21, 2025

On October 21, 2025, Sunoco LP announced the results of early participation in its private exchange offers and consent solicitations for outstanding notes issued by Parkland Corporation. As of October 20, 2025, approximately 84.5% of the Canadian dollar denominated notes and 98.6% of the U.S. dollar denominated notes had been validly tendered and not withdrawn. The deadline for holders to tender their PKI Notes and receive new notes, including an early participation premium, has been extended to November 4, 2025. This move is part of Sunoco’s strategic financial operations and could impact its market positioning by potentially improving its debt structure and stakeholder relations.

The most recent analyst rating on (SUN) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Business Operations and StrategyDividends
Sunoco Increases Quarterly Cash Distribution by 1.25%
Positive
Oct 20, 2025

On October 20, 2025, Sunoco LP announced a 1.25% increase in its quarterly cash distribution to $0.9202 per common unit for the quarter ended September 30, 2025, marking the fourth consecutive quarterly increase. This decision aligns with Sunoco’s capital allocation strategy and its 2025 business outlook, which targets an annual distribution growth rate of at least 5%. The distribution will be paid on November 19, 2025, to unitholders of record as of October 30, 2025, reflecting the company’s ongoing commitment to returning capital to its unitholders.

The most recent analyst rating on (SUN) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Business Operations and StrategyM&A Transactions
Sunoco Gains Approval for Parkland Acquisition
Positive
Oct 14, 2025

On October 14, 2025, Sunoco LP and Parkland Corporation announced that the Government of Canada approved Sunoco’s acquisition of Parkland, in line with the Investment Canada Act. The acquisition, initially disclosed in May 2025, is expected to close in the fourth quarter of 2025, pending remaining regulatory approvals and customary closing conditions. This strategic move positions Sunoco to expand its market presence and leverage synergies with Parkland’s established network and capabilities, potentially enhancing value creation for stakeholders.

The most recent analyst rating on (SUN) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Sunoco Launches Private Exchange Offers for Notes
Neutral
Oct 6, 2025

On October 3, 2025, Sunoco entered into Amendment No. 4 to its Third Amended and Restated Credit Agreement, allowing for new notes issuance and excluding certain subsidiaries from guarantee obligations. On October 6, 2025, Sunoco commenced private exchange offers for Parkland’s outstanding notes, aiming to exchange them for new notes issued by Sunoco and cash. The exchange offers include consent solicitations to amend the indentures governing the notes, potentially impacting Sunoco’s financial strategy and stakeholder interests.

The most recent analyst rating on (SUN) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

M&A TransactionsRegulatory Filings and Compliance
Sunoco Advances in Acquisition of Parkland Corporation
Neutral
Sep 22, 2025

On September 22, 2025, Sunoco LP and Parkland Corporation announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, a key regulatory step in Sunoco’s acquisition of Parkland. This development is crucial for the completion of the acquisition, expected in the fourth quarter of 2025, pending further regulatory approvals and customary closing conditions. The acquisition is anticipated to impact Sunoco and Parkland’s business operations and industry positioning, with potential risks and uncertainties outlined in their respective filings.

The most recent analyst rating on (SUN) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

M&A TransactionsPrivate Placements and Financing
Sunoco Completes $1.9 Billion Senior Notes Offering
Positive
Sep 18, 2025

On September 18, 2025, Sunoco completed a private offering of senior notes totaling $1.9 billion to fund the Parkland Acquisition and reduce borrowings under its revolving credit facility. The notes, due in 2031 and 2034, are senior unsecured obligations and are subject to special mandatory redemption if the acquisition is not completed by May 5, 2026. Additionally, Sunoco closed a private offering of Series A Preferred Units, raising $1.476 billion to further support the acquisition and general corporate purposes. These financial maneuvers are aimed at strengthening Sunoco’s market position and operational capabilities.

The most recent analyst rating on (SUN) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Private Placements and Financing
Sunoco Enters $1.5 Billion Preferred Units Sale Agreement
Neutral
Sep 9, 2025

On September 4, 2025, Sunoco LP entered into a purchase agreement with RBC Capital Markets, LLC and Barclays Capital Inc. for the sale of 1,500,000 Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units, expected to generate $1.5 billion in gross proceeds. The offering is set to settle on September 18, 2025, and the units, which are not convertible or exchangeable, will not grant voting rights to holders except under specific conditions.

The most recent analyst rating on (SUN) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

M&A TransactionsPrivate Placements and Financing
Sunoco Announces $1.9 Billion Senior Notes Offering
Neutral
Sep 5, 2025

On September 4, 2025, Sunoco LP announced the pricing of its private offering of senior notes, totaling $1.9 billion, with the proceeds intended to fund the acquisition of Parkland Corporation and related costs. The offering is not contingent on the completion of the Parkland Acquisition, and if the acquisition is not completed by May 5, 2026, the notes will be subject to a special mandatory redemption.

The most recent analyst rating on (SUN) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

M&A TransactionsPrivate Placements and Financing
Sunoco Announces Private Offering for Parkland Acquisition
Neutral
Sep 4, 2025

On September 4, 2025, Sunoco LP announced the commencement of a private offering of senior notes and Series A Preferred Units to fund its acquisition of Parkland Corporation. The offerings, which are not contingent on each other or the Parkland Acquisition, aim to provide cash consideration for the acquisition and related costs. As of August 25, 2025, Sunoco had $72 million in cash and $250 million in outstanding borrowings, with plans to repay Parkland’s existing credit facilities and assume its debt. If the acquisition is not completed by May 5, 2026, the notes and preferred units will be subject to mandatory redemption. The financial implications of this transaction include maintaining approximately $3.8 billion of Parkland’s debt post-acquisition.

The most recent analyst rating on (SUN) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Nov 12, 2025