Sunoco (SUN) AI Stock Analysis

• Market Cap: $8.14B
• Dividend Yield: 6.74%
• Average Volume (3M): 436.90K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.73
• Revenue Growth: -3.59%
• EPS Growth: 22.77%
• Country: US
• Employees: 3,298
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 1.32
• Shares Outstanding: 136,332,200
• 10 Day Avg. Volume: 418,312
• 30 Day Avg. Volume: 436,899
• PEG Ratio: -0.74
• Price to Book (P/B): 5.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.09
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 5.11
• Enterprise Value/Ebitda: 1.41
• 1Y Price Target: $64.71
• Price Target Upside: 21.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: $58.00 ▲(8.88%Upside)

Sunoco's overall score reflects a strong earnings call and corporate strategy, offset by technical weaknesses. Financial leverage and cash flow concerns are risks, but attractive valuation and dividend yield provide support.

Positive Factors

Distribution Growth

The company signaled that distribution growth could be 'at least 5%' for the fiscal year and potentially beyond.

Earnings and Guidance

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

Capital Expenditures

Capex for 2025 is expected to be much higher than both the consensus and previous forecasts.

MLP Structure Concerns

Investor concerns include SUN's MLP structure and whether ET wields greater influence over SUN than previously appreciated.

Operating Expenses

Management expects operating expenses to be significantly higher than consensus estimates.

Sunoco Business Overview & Revenue Model

Company Description

Sunoco LP (SUN) is a master limited partnership engaged in the distribution and retailing of motor fuels in the United States. The company operates through various fuel distribution channels, serving independent dealers, commercial customers, and distributors with a network of convenience stores and retail fuel sites under recognized brands. Sunoco is known for its quality fuel products and services, catering to a broad customer base across the country.

How the Company Makes Money

Sunoco LP generates revenue primarily through the distribution and sale of motor fuels. The company supplies fuel to a wide range of customers, including independent dealers, commercial accounts, and distributors. It also operates retail fuel sites and convenience stores, where it sells fuel and other convenience products. Sunoco's revenue streams are bolstered by its strategic partnerships and long-term fuel supply agreements. Additionally, Sunoco benefits from its extensive network of retail and wholesale fuel distribution channels, which enhance its market reach and profitability.

Sunoco Financial Statement Overview

Summary

Sunoco presents a stable financial position with operational efficiency and a solid return on equity. However, high leverage and a declining free cash flow growth rate could present risks.

Income Statement

Sunoco shows a mixed performance with a strong gross profit margin and a declining net profit margin in TTM (Trailing-Twelve-Months). The revenue has slightly decreased compared to the previous year, indicating a challenge in maintaining growth. However, EBIT and EBITDA margins demonstrate operational efficiency in the TTM.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which could be a risk if earnings do not cover interest payments. However, the equity ratio shows a moderate level of leverage. Return on equity is solid, indicating effective use of equity to generate profits.

Cash Flow

The cash flow statement indicates a stable operating cash flow, but free cash flow has decreased significantly in the TTM, suggesting potential challenges in liquidity. The operating cash flow to net income ratio is healthy, but the decrease in free cash flow growth rate may pose future concerns.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.37B	22.69B	23.07B	25.73B	17.60B	10.71B
	Gross Profit
1.78B	2.10B	1.18B	1.19B	1.17B	867.00M
	EBIT
836.00M	791.00M	635.00M	477.00M	562.00M	237.00M
	EBITDA
1.71B	1.03B	825.00M	877.00M	894.00M	602.00M
	Net Income Common Stockholders
726.00M	874.00M	311.00M	397.00M	446.00M	212.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
189.00M	94.00M	29.00M	82.00M	25.00M	97.00M
	Total Assets
6.55B	14.38B	6.83B	6.83B	5.82B	5.27B
	Total Debt
4.02B	8.00B	4.11B	4.12B	3.79B	3.67B
	Net Debt
3.83B	7.91B	4.08B	4.04B	3.77B	3.57B
	Total Liabilities
5.55B	10.31B	5.85B	5.89B	5.00B	4.63B
	Stockholders Equity
0.00	4.07B	978.00M	942.00M	811.00M	632.00M
Cash Flow		Free Cash Flow
14.00M	205.00M	385.00M	375.00M	369.00M	378.00M
	Operating Cash Flow
418.00M	549.00M	600.00M	561.00M	543.00M	502.00M
	Investing Cash Flow
600.00M	477.00M	-288.00M	-464.00M	-387.00M	-120.00M
	Financing Cash Flow
-1.06B	-961.00M	-365.00M	-40.00M	-228.00M	-306.00M

Sunoco Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUN, the sentiment is Negative. The current price of 53.27 is below the 20-day moving average (MA) of 55.09, below the 50-day MA of 55.29, and below the 200-day MA of 53.29, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 17.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SUN.

Sunoco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DINO	71 Outperform	$7.03B	35.13	-1.49%	5.45%	-11.17%	-109.60%
UGP	71 Outperform	$3.18B	7.96	14.87%	3.70%	-4.58%	-23.80%
SUN	68 Neutral	$8.14B	9.58	26.11%	6.74%	-3.59%	22.77%
Sector *	58 Neutral	$7.35B	3.36	-4.49%	5.60%	0.82%	-49.15%
CVI	53 Neutral	$2.36B	268.82	-27.14%	8.40%	-16.21%	-130.18%
DK	51 Neutral	$1.16B	―	-151.69%	5.33%	-29.23%	-931.43%
PBF	48 Neutral	$2.12B	―	-18.01%	5.66%	-16.30%	-160.78%

Sunoco Corporate Events

Sunoco Amends Acquisition Agreement with Parkland

On May 26, 2025, Sunoco LP amended its arrangement agreement with Parkland Corporation to adjust the funding mechanics and proration formula for their acquisition plan, while maintaining other key terms. This amendment is part of Sunoco’s strategic acquisition of Parkland, valued at approximately $9.1 billion, expected to close in the second half of 2025, pending shareholder and regulatory approvals. The acquisition is part of Sunoco’s broader strategy, which included the completed acquisition of NuStar Energy in May 2024 and the sale of convenience stores to 7-Eleven in April 2024, reflecting a significant shift in its operational focus and market positioning.

The most recent analyst rating on (SUN) stock is a Buy with a $59.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Sunoco’s Acquisition of Parkland and Indenture Amendments

On May 4, 2025, Sunoco entered into an Arrangement Agreement to acquire all outstanding common shares of Parkland Corporation. In connection with this transaction, Parkland announced a private consent solicitation on May 27, 2025, to amend the indentures governing its outstanding senior notes. This amendment aims to eliminate the obligation for a Change of Control Offer and redefine ‘Change of Control’ to recognize Sunoco and its affiliates as ‘Qualified Owners.’ Sunoco has agreed to reimburse Parkland for any consent fees and related costs incurred during this process.

The most recent analyst rating on (SUN) stock is a Buy with a $59.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Sunoco Amends Credit Agreement with Bank of America

On May 16, 2025, Sunoco LP amended its Third Amended and Restated Credit Agreement with Bank of America and other lenders. The amendment increased the letter of credit sublimit to $250 million, excluded Parkland and its subsidiaries from certain guarantee requirements, and allowed the partnership to incur specific types of bridge debt. Additionally, $1.50 billion of previously disclosed debt financing commitments were terminated.

The most recent analyst rating on (SUN) stock is a Buy with a $59.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Sunoco Announces Q1 2025 Results and Acquisitions

On May 6, 2025, Sunoco LP announced its first quarter 2025 financial results, reporting a net income of $207 million and an adjusted EBITDA of $458 million. The company declared a 1.25% increase in its quarterly distribution, aligning with its strategy to achieve a 5% annual distribution growth. Sunoco also revealed plans to acquire Parkland Corporation for $9.1 billion and TanQuid, a terminal operator in Germany and Poland, for approximately €500 million. These acquisitions are expected to enhance Sunoco’s market position and diversify its cash flows, with both transactions anticipated to close in the second half of 2025.

Sunoco Board Member Christopher Curia Announces Retirement

On April 22, 2025, Christopher R. Curia announced his retirement from the board of directors of Sunoco GP LLC, effective May 1, 2025. His departure is not due to any disagreements with the company, and he has been a director since August 2014.

Sunoco Announces Increased Cash Distribution for Q1 2025

On April 23, 2025, Sunoco LP announced that its Board of Directors approved a cash distribution of $0.8976 per common unit for the quarter ended March 31, 2025, marking a 1.25% increase from the previous quarter. This increase 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 May 20, 2025, to unitholders of record as of May 9, 2025, reflecting the company’s ongoing commitment to returning capital to its unitholders.

Sunoco Upsizes Private Offering to $1 Billion

On March 20, 2025, Sunoco LP announced the pricing of an upsized private offering of $1 billion in 6.250% senior notes due 2033, increased from an initial $750 million. The proceeds will be used to repay existing debt, including the full redemption of NuStar Logistics’ 5.750% senior notes due 2025 and a portion of Sunoco’s revolving credit facility, potentially strengthening its financial position and market operations.

Sunoco Announces $750M Senior Notes Offering

On March 20, 2025, Sunoco LP announced a private offering of senior notes amounting to $750 million, intended to repay existing debts, including the full redemption of NuStar Logistics’ 5.750% senior notes due 2025. Concurrently, Sunoco entered into an agreement to acquire two Bermuda entities managing fuel terminals in Germany and Poland for under €500 million, expected to close in the second quarter of 2025. This strategic acquisition and the notes offering are independent of each other, with the acquisition aimed at expanding Sunoco’s operational footprint in Europe.