Sunoco (SUN) AI Stock Analysis

• Market Cap: $8.81B
• Dividend Yield: 6.88%
• Average Volume (3M): 382.90K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.60
• Revenue Growth: -5.18%
• EPS Growth: -33.14%
• Country: US
• Employees: 3,298
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 0.64
• Shares Outstanding: 136,613,040
• 10 Day Avg. Volume: 506,598
• 30 Day Avg. Volume: 382,897
• PEG Ratio: 0.13
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 29.74
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 7.54
• Enterprise Value/Ebitda: 8.99
• 1Y Price Target: $63.40
• Price Target Upside: 9.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 7.05
• Revenue Forecast (FY): $36.46B

• Rating: 71 Outperform
• Price Target: $64.00 ▲(11.00% Upside)

The score is driven primarily by a positive earnings outlook tied to the Parkland acquisition synergies, stronger EBITDA/DCF, and ongoing distribution growth. This is balanced by mixed financial statement quality (margin pressure and high leverage) and technical conditions that are bullish but somewhat overextended. Valuation is supported by the high yield but moderated by a mid-range P/E.

Positive Factors

Scale from Parkland acquisition

Closing Parkland materially increases network scale and geographic reach, strengthening distribution density and supplier leverage. Greater scale supports more stable wholesale supply, higher bargaining power with suppliers, and long-term competitive positioning in fuel distribution and convenience retailing.

Projected synergies and DCF accretion

Quantified multi-year synergies imply structural improvements to margins and cash generation. Realizing $250M+ of synergies and >10% DCF accretion enhances long-term distributable cash flow, funding distributions, capex and debt paydown while improving unit economics post-integration.

Strong free cash flow growth

Substantial FCF growth demonstrates improved cash conversion and operational cash generation. Durable cash flow expansion underpins the partnership's ability to sustain distributions, fund growth capex and M&A, and provides flexibility to manage leverage over multiple market cycles.

Negative Factors

High leverage

Elevated leverage increases interest and refinancing risk, limiting balance-sheet flexibility for additional bolt-on deals or adverse cycles. Even with post-acquisition financing actions, high debt levels constrain capital allocation and magnify earnings volatility from margin or volume shocks.

Eroding profitability

Marked margin compression reduces the buffer that protects distributions and investment plans from cyclical fuel price swings. Sustained lower net margins imply weaker earnings leverage and less capacity to absorb rising costs or fund debt servicing without curbing distributions or growth initiatives.

Heavy capex and acquisition demands

Large ongoing growth and maintenance capex plus a multiyear acquisition pipeline materially raise funding needs. This increases execution and integration risk and could slow deleveraging or strain FCF if synergies and margin improvements are delayed or underdeliver against expectations.

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 independent refiners and oil companies and supplies it to independently operated dealer stations, distributors and other consumer of motor fuel, and partnership operated stations, as well as to commission agent locations. The All Other segment operates retail stores that offer motor fuel, merchandise, foodservice, and other services that include credit card processing, car washes, lottery, automated teller machines, money orders, prepaid phone cards, and wireless services. It also leases and subleases real estate properties; and operates terminal facilities on the Hawaiian Islands. As of December 31, 2021, the company operated 78 retail stores in Hawaii and New Jersey. Sunoco GP LLC serves as the general partner of the company. The company was formerly known as Susser Petroleum Partners LP and changed its name to Sunoco LP in October 2014. Sunoco LP was founded in 1886 and is headquartered in Dallas, Texas.

How the Company Makes Money

Sunoco generates revenue primarily through the sale of motor fuels and convenience store merchandise. The company's revenue model includes wholesale fuel distribution to a large network of branded and unbranded retail outlets, which comprise a significant portion of its business. Additionally, Sunoco operates company-owned and franchise convenience stores that provide a diverse range of products, including food, beverages, and automotive supplies. Key revenue streams include: 1) Fuel sales to retail and commercial customers, both through company-operated stations and dealer-operated locations; 2) Merchandise sales from convenience stores; 3) Fuel supply agreements with third-party retailers; and 4) Transportation and logistics services related to fuel distribution. Strategic partnerships with various suppliers and retailers bolster its market presence and enhance revenue opportunities.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.87B	22.69B	23.07B	25.73B	17.60B	10.71B
Gross Profit	2.01B	1.73B	1.18B	1.19B	1.17B	867.00M
EBITDA	1.69B	1.03B	829.00M	870.00M	887.00M	595.00M
Net Income	402.00M	716.00M	311.00M	397.00M	446.00M	135.00M
Balance Sheet
Total Assets	17.84B	14.38B	6.85B	6.86B	5.82B	5.27B
Cash, Cash Equivalents and Short-Term Investments	3.24B	94.00M	29.00M	82.00M	25.00M	97.00M
Total Debt	10.07B	8.00B	4.11B	4.12B	3.79B	3.67B
Total Liabilities	12.30B	10.31B	5.87B	5.91B	5.00B	4.63B
Stockholders Equity	5.54B	4.07B	978.00M	942.00M	811.00M	632.00M
Cash Flow
Free Cash Flow	373.00M	205.00M	385.00M	375.00M	369.00M	378.00M
Operating Cash Flow	923.00M	549.00M	600.00M	561.00M	543.00M	502.00M
Investing Cash Flow	-726.00M	477.00M	-288.00M	-464.00M	-387.00M	-120.00M
Financing Cash Flow	2.93B	-961.00M	-365.00M	-40.00M	-228.00M	-306.00M

Sunoco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 57.66 is above the 20-day moving average (MA) of 54.24, above the 50-day MA of 53.85, and above the 200-day MA of 52.24, indicating a bullish trend. The MACD of 1.17 indicates Negative momentum. The RSI at 70.73 is Negative, neither overbought nor oversold. The STOCH value of 86.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUN.

Sunoco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UGP	80 Outperform	$4.52B	8.55	18.26%	8.03%	-3.51%	3.75%
SUN	71 Outperform	$8.81B	19.63	8.27%	6.88%	-5.18%	-33.14%
DINO	68 Neutral	$9.16B	23.97	4.07%	4.26%	-9.55%	27.65%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CVI	56 Neutral	$2.34B	14.19	21.78%	10.50%	-7.21%	135.72%
PBF	49 Neutral	$3.61B	―	-9.47%	4.14%	-15.35%	-81.94%
DK	45 Neutral	$1.66B	-3.38	-115.95%	3.42%	-22.37%	-27.22%

Sunoco Corporate Events

Sunoco Finalizes Parkland Acquisition, Expands North American Footprint

On October 31, 2025, Sunoco LP, via SunocoCorp LLC, completed a previously announced strategic transaction to acquire all issued and outstanding common shares of Canada’s Parkland Corporation under a court-approved plan of arrangement, making Parkland an indirect wholly owned subsidiary and expanding Sunoco’s footprint in North American fuel distribution and retail. Following the closing, Sunoco filed an amended Current Report that supplements Parkland’s unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2025, and updated unaudited pro forma combined financial information, providing investors and other stakeholders with more detailed visibility into Parkland’s standalone performance and the combined entity’s capital structure, leverage and earnings profile after the acquisition.

The most recent analyst rating on (SUN) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Sunoco Issues 2026 Guidance and Capital Allocation Outlook

On January 6, 2026, Sunoco LP issued its 2026 guidance, projecting full-year adjusted EBITDA between $3.1 billion and $3.3 billion, underpinned by an expected $125 million in synergies from the Parkland acquisition, a planned 50-day maintenance turnaround at the Burnaby Refinery starting at the end of January, the anticipated closing of the TanQuid acquisition in the first quarter, and at least $600 million in growth capital expenditures alongside $400 million to $450 million of maintenance capex. The partnership outlined a capital allocation strategy that includes a multi-year pipeline of bolt-on acquisitions of at least $500 million annually, a return to its long-term leverage target of four times in 2026, a targeted distribution growth rate of at least 5% with quarterly increase announcements, equal dividend equivalents for SunocoCorp investors, and an expected rise in distributable cash flow per common unit for the ninth consecutive year, signaling continued balance-sheet discipline and income growth for unitholders.

The most recent analyst rating on (SUN) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Sunoco Finalizes Parkland Notes Exchange Post-Acquisition

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 Reports Strong Q3 2025 Financial Results

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.

Sunoco Finalizes Parkland Acquisition, NYSE Trading Soon

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.

Sunoco Announces Acquisition of Parkland Corporation

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.

Sunoco Extends Deadline for Note Exchange Offers

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.

Sunoco Increases Quarterly Cash Distribution by 1.25%

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.