Sunoco LP (SUN)
NYSE:SUN
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Sunoco
(NYSE:SUN)
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Rating:74Outperform
Price Target:
$75.00
▲(18.95% Upside)
Action:Upgraded
Date:05/10/26
The score is driven primarily by improving financial performance (strong TTM growth and better cash generation) tempered by balance-sheet stability concerns from historical leverage swings. Valuation is a major positive given the very low P/E and high dividend yield. Technicals are supportive with price above key moving averages and positive momentum, while the earnings call reinforced guidance confidence and distribution growth despite some nonrecurring and volatility-related headwinds.
Positive Factors
Top-line momentum & improving profitability
Sustained revenue growth and a meaningful rise in net income indicate expanding scale and stronger operating leverage within distribution, terminals and pipelines. Over 2–6 months this supports steadier cash generation, better funding for growth capex and distributions, and greater resilience to cyclical dips.
Negative Factors
Historical leverage volatility
Year‑to‑year swings in capital structure reduce confidence in balance‑sheet stability and raise refinancing and covenant risk. Even with current TTM improvement, volatility complicates long‑term planning, constrains downside protection during commodity shocks and may limit flexibility for opportunistic M&A.
Read all positive and negative factors
Positive Factors
Negative Factors
Top-line momentum & improving profitability
Sustained revenue growth and a meaningful rise in net income indicate expanding scale and stronger operating leverage within distribution, terminals and pipelines. Over 2–6 months this supports steadier cash generation, better funding for growth capex and distributions, and greater resilience to cyclical dips.
Read all positive factors
Sunoco (SUN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.74B
Dividend Yield6.88%
Average Volume (3M)512.81K
Price to Earnings (P/E)3.5
Beta (1Y)0.47
Revenue Growth37.27%
EPS Growth-29.09%
CountryUS
Employees3,298
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)3.96
Shares Outstanding136,894,760
10 Day Avg. Volume818,401
30 Day Avg. Volume512,811
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)0.89
Price to Sales (P/S)0.28
P/FCF Ratio11.63
Enterprise Value/Market Cap0.72
Enterprise Value/Revenue0.35
Enterprise Value/Gross Profit3.31
Enterprise Value/Ebitda4.18
Forecast
1Y Price Target
$74.13Price Target Upside17.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)7.54
Revenue Forecast (FY)$43.68B
Sunoco Business Overview & Revenue Model
Company Description
Sunoco LP, together with its subsidiaries, distributes and retails motor fuels in the United States. It operates in two segments, Fuel Distribution and Marketing, and All Other. The Fuel Distribution and Marketing segment purchases motor fuel from...
How the Company Makes Money
Sunoco primarily makes money by distributing and marketing motor fuels. Its core revenue model is based on earning margins on fuel it purchases (from refiners, wholesalers, and on spot markets) and then sells to customers through two main channels...
Sunoco Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlighted strong operational and financial momentum driven by acquisitions (Parkland, Tankwood), significant volume growth in fuel distribution, robust adjusted EBITDA ($867M) and distributable cash flow ($535M), and a meaningful distribution increase with a healthy coverage ratio and liquidity position. Offsetting items include a sizable one-time inventory gain (~$102M) that materially aided the quarter, commodity-driven margin compression and temporary refinery throughput reduction from a planned turnaround, and modest sequential softness in pipeline EBITDA. Management emphasized confidence in delivering full-year guidance even excluding the one-time inventory benefit and noted on-track synergy capture and accretive M&A, supporting a constructive outlook.Positive Updates
Strong Consolidated Adjusted EBITDA
Reported adjusted EBITDA of $867 million for Q1 2026 (excluding approximately $9 million of one-time transaction expenses), driven by operational performance and inventory optimization.
Negative Updates
Market Volatility from Middle East Conflict
Geopolitical events drove significant commodity price volatility (RBOB futures rose >$1.60/gal; diesel futures rose >$2/gal), creating margin compression pressures in fuel distribution despite overall favorable longer-term margin dynamics.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Consolidated Adjusted EBITDA
Reported adjusted EBITDA of $867 million for Q1 2026 (excluding approximately $9 million of one-time transaction expenses), driven by operational performance and inventory optimization.
Read all positive updates
Company Guidance
The company reiterated confidence in delivering its full‑year 2026 EBITDA guidance (noting it expects to do so even without the one‑time inventory benefit), while reporting Q1 adjusted EBITDA of $867 million (excluding ~ $9 million of transaction expenses) that included a ~$102 million inventory sale benefit (roughly $92 million in fuel distribution and ~$10 million in refining); Q1 distributable cash flow as adjusted was $535 million; growth CapEx was $106 million and maintenance CapEx $93 million; declared a $0.9899 per common unit distribution (a 6.25% increase composed of a 5% one‑time step‑up plus a 1.25% quarterly raise, >10% higher vs Q1 2025) with a trailing 12‑month coverage ratio of 1.9x and a target multiyear distribution growth rate of at least 5%; leverage was ~4x with $2.2 billion revolver availability; M&A and integration targets remain intact (Tankwood closed Jan 16 and is immediately accretive to DCF/unit, Parkland on track for 10%+ accretion pre‑year 3 with $125 million in‑year synergies and a $250M+ run‑rate target, and the company is on track for >$500 million of bolt‑on acquisitions in 2026 with ~ $200 million already closed/signed); operational metrics included 3.8 billion gallons distributed (up 15% vs last quarter, up 82% YoY) at $0.17/gal reported margin, pipeline throughput ~1.3 million bpd (adj. EBITDA $179M), terminals throughput ~1.0 million bpd (adj. EBITDA $107M), and refinery throughput 22,000 bpd (adj. EBITDA $43M) following a planned 50‑day turnaround.Sunoco Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.71B | 25.20B | 22.69B | 23.07B | 25.73B | 17.60B |
| Gross Profit | 3.21B | 2.10B | 1.73B | 1.18B | 1.19B | 1.17B |
| EBITDA | 2.54B | 1.82B | 1.03B | 829.00M | 870.00M | 887.00M |
| Net Income | 835.00M | 527.00M | 716.00M | 311.00M | 397.00M | 446.00M |
Balance Sheet | ||||||
| Total Assets | 30.26B | 28.36B | 14.38B | 6.85B | 6.86B | 5.82B |
| Cash, Cash Equivalents and Short-Term Investments | 718.00M | 891.00M | 94.00M | 29.00M | 82.00M | 25.00M |
| Total Debt | 1.50B | 16.11B | 8.00B | 4.11B | 4.12B | 3.79B |
| Total Liabilities | 21.95B | 20.35B | 10.31B | 5.87B | 5.91B | 5.00B |
| Stockholders Equity | 2.59B | 8.01B | 4.07B | 978.00M | 942.00M | 811.00M |
Cash Flow | ||||||
| Free Cash Flow | 835.00M | 615.00M | 205.00M | 385.00M | 375.00M | 369.00M |
| Operating Cash Flow | 1.51B | 1.19B | 549.00M | 600.00M | 561.00M | 543.00M |
| Investing Cash Flow | -3.16B | -2.81B | 477.00M | -288.00M | -464.00M | -387.00M |
| Financing Cash Flow | 2.19B | 2.41B | -961.00M | -365.00M | -40.00M | -228.00M |
Sunoco Technical Analysis
Positive
63.05
Price Trends
65.69
Positive
61.48
Positive
55.76
Positive
Market Momentum
1.84
Negative
68.22
Neutral
87.74
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 63.05 is below the 20-day moving average (MA) of 68.11, below the 50-day MA of 65.69, and above the 200-day MA of 55.76, indicating a bullish trend. The MACD of 1.84 indicates Negative momentum. The RSI at 68.22 is Neutral, neither overbought nor oversold. The STOCH value of 87.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUN.
Sunoco Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $14.74B | 3.45 | 17.28% | 6.88% | 37.27% | -29.09% | |
74 Outperform | $12.82B | 4.35 | 13.11% | 4.26% | -1.08% | ― | |
69 Neutral | $6.32B | 9.39 | 18.56% | 8.03% | 10.20% | 37.86% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
57 Neutral | $4.94B | 7.04 | 8.35% | 4.14% | -4.33% | ― | |
55 Neutral | $2.73B | -3.37 | -37.66% | 3.42% | -6.49% | 93.38% | |
52 Neutral | $3.37B | -4.40 | -6.53% | 10.50% | 1.38% | 78.79% |
* Energy Sector Average
SUN
Sunoco
71.98
20.30
39.28%
CVI
CVR Energy
33.48
11.29
50.86%
DK
Delek US Holdings
44.59
27.22
156.77%
DINO
HF Sinclair Corporation
71.12
37.39
110.86%
UGP
Ultrapar Participacoes SA
5.79
2.98
106.34%
PBF
PBF Energy
41.75
22.29
114.58%
Sunoco Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Sunoco Reports Strong Q1 Results and Distribution Increase
Positive
May 5, 2026
Sunoco LP and SunocoCorp LLC reported a strong first quarter of 2026 on May 5, 2026, with net income surging to $644 million from $207 million a year earlier and Adjusted EBITDA rising to $867 million, excluding one-time transaction expenses. Dist...
Business Operations and StrategyDividends
Sunoco Announces Increased Quarterly Distribution and Growth Outlook
Positive
Apr 21, 2026
On April 21, 2026, Sunoco LP and SunocoCorp LLC announced that the board of the partnership’s general partner approved a quarterly cash distribution of $0.9899 per common unit, or $3.9596 on an annualized basis, for the quarter ended March 3...
Business Operations and StrategyPrivate Placements and Financing
Sunoco Completes $1.2 Billion Senior Notes Offering
Positive
Mar 9, 2026
On March 9, 2026, Sunoco LP completed a $1.2 billion private offering of senior unsecured notes, issuing $600 million of 5.375% notes due 2031 and $600 million of 5.625% notes due 2034, guaranteed by certain subsidiaries. The notes, sold under Rul...
Business Operations and StrategyPrivate Placements and Financing
Sunoco Upsizes Private Senior Notes Offering for Refinancing
Positive
Feb 27, 2026
On February 26, 2026, Sunoco LP announced it had priced an upsized private offering of $1.2 billion in senior notes, split between $600 million of 5.375% notes due 2031 and $600 million of 5.625% notes due 2034, both priced at par. The deal, incre...
Financial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Sunoco Announces $1 Billion Senior Notes Offering
Positive
Feb 26, 2026
On February 26, 2026, Sunoco LP announced a $1 billion private offering of senior notes, split between 2031 and 2034 maturities, aimed at refinancing higher-cost debt. The partnership plans to use proceeds, together with borrowings under its revol...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Sunoco Posts Strong Q4 2025 Results, Lifts Distribution
Positive
Feb 17, 2026
On February 17, 2026, Sunoco LP and SunocoCorp LLC reported solid fourth-quarter and full-year 2025 results, highlighted by fourth-quarter net income of $97 million, Adjusted EBITDA of $706 million excluding one-time transaction expenses and Distr...
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.