Sunoco LP (SUN)
NYSE:SUN
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Sunoco
(NYSE:SUN)
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Rating:65Neutral
Price Target:
$68.00
â–²(7.85% Upside)
Action:ReiteratedDate:04/22/26
The score is driven primarily by improved 2025 scale and cash generation but constrained by thin margins and elevated leverage. The latest earnings call was a meaningful positive (record results and stronger 2026 outlook), while technical signals are neutral and valuation is reasonable with a moderate dividend yield.
Positive Factors
Scale & geographic reach
The Parkland and Tancwood deals materially expand Sunoco’s distribution footprint and scale, diversifying revenue across geographies and channels. Larger scale increases bargaining power with suppliers, improves route/terminal economics, and creates a deeper platform for accretive bolt-on M&A over the medium term.
Negative Factors
Elevated leverage
Despite recent improvement, elevated leverage constrains balance sheet flexibility and increases sensitivity to margin or volume swings. Higher debt limits capacity for discretionary investments, raises refinancing risk if earnings slip, and leaves less cushion for cyclical downturns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & geographic reach
The Parkland and Tancwood deals materially expand Sunoco’s distribution footprint and scale, diversifying revenue across geographies and channels. Larger scale increases bargaining power with suppliers, improves route/terminal economics, and creates a deeper platform for accretive bolt-on M&A over the medium term.
Read all positive factors
Sunoco (SUN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.24B
Dividend Yield6.88%
Average Volume (3M)458.96K
Price to Earnings (P/E)13.6
Beta (1Y)0.47
Revenue Growth-5.18%
EPS Growth-33.14%
CountryUS
Employees3,298
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)-0.24
Shares Outstanding136,894,760
10 Day Avg. Volume273,947
30 Day Avg. Volume458,964
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 Cap1.83
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit10.80
Enterprise Value/Ebitda13.37
Forecast
1Y Price Target
$67.00Price Target Upside6.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)7.28
Revenue Forecast (FY)$40.70B
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:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call emphasized multiple material achievements: record quarterly and annual adjusted EBITDA, significant pro forma volume and margin gains in fuel distribution driven by the Parkland acquisition, strong Q4 distributable cash flow, robust liquidity ($2.5B revolver availability) and a clear 2026 growth plan (guidance $3.1B–$3.3B, $125M synergy capture, at least $500M/year bolt-on M&A). Lowlights were present but mostly execution- and integration-related (one-time transaction costs, a planned refinery turnaround raising near-term maintenance capex and temporary disruption risk, margin variability, and dependence on synergy delivery). Overall, positives — including record results, clear capital allocation, and solid liquidity — materially outweigh the risks identified on the call.Positive Updates
Record Fourth Quarter Adjusted EBITDA
Reported record adjusted EBITDA of $706,000,000 in Q4 2025 (excluding ~ $60,000,000 of one-time transaction expenses).
Negative Updates
One-Time Transaction Expenses Impact
Approximately $60,000,000 of one-time transaction-related expenses in the quarter were excluded from adjusted EBITDA, reducing reported GAAP results and indicating notable transaction costs.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Fourth Quarter Adjusted EBITDA
Reported record adjusted EBITDA of $706,000,000 in Q4 2025 (excluding ~ $60,000,000 of one-time transaction expenses).
Read all positive updates
Company Guidance
Sunoco’s 2026 guidance targets adjusted EBITDA of $3.1–$3.3 billion, assumes realization of ~$125 million of a $250 million annual Parkland synergy target in 2026, and contemplates a planned 50‑day refinery turnaround; maintenance capital is forecast at $400–$450 million, the company has at least $600 million of quick‑spend/quick‑return growth projects in the pipeline and a $500 million‑per‑year floor for bolt‑on M&A. Management reiterated a minimum 5% annual distribution growth goal (most recent distribution $0.9317/unit, up 1.25% quarter over quarter) with a trailing‑12‑month coverage ratio of 1.9x, target leverage around ~4x (current ~4x) and $2.5 billion revolver availability at year‑end; the guide is supported by 2025 results including Q4 adjusted EBITDA of $706 million (ex ~ $60 million transaction expenses), Q4 distributable cash flow as adjusted of $442 million, and full‑year adjusted EBITDA of $2.12 billion (up 36% y/y).Sunoco Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
55
Neutral
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 25.20B | 22.69B | 23.07B | 25.73B | 17.60B |
| Gross Profit | 2.10B | 1.73B | 1.18B | 1.19B | 1.17B |
| EBITDA | 1.82B | 1.03B | 829.00M | 870.00M | 887.00M |
| Net Income | 527.00M | 716.00M | 311.00M | 397.00M | 446.00M |
Balance Sheet | |||||
| Total Assets | 28.36B | 14.38B | 6.85B | 6.86B | 5.82B |
| Cash, Cash Equivalents and Short-Term Investments | 891.00M | 94.00M | 29.00M | 82.00M | 25.00M |
| Total Debt | 16.11B | 8.00B | 4.11B | 4.12B | 3.79B |
| Total Liabilities | 20.35B | 10.31B | 5.87B | 5.91B | 5.00B |
| Stockholders Equity | 8.01B | 4.07B | 978.00M | 942.00M | 811.00M |
Cash Flow | |||||
| Free Cash Flow | 615.00M | 205.00M | 385.00M | 375.00M | 369.00M |
| Operating Cash Flow | 1.19B | 549.00M | 600.00M | 561.00M | 543.00M |
| Investing Cash Flow | -2.81B | 477.00M | -288.00M | -464.00M | -387.00M |
| Financing Cash Flow | 2.41B | -961.00M | -365.00M | -40.00M | -228.00M |
Sunoco Technical Analysis
Neutral
63.05
Price Trends
63.42
Negative
58.84
Positive
54.54
Positive
Market Momentum
0.14
Positive
44.32
Neutral
20.56
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 63.05 is below the 20-day moving average (MA) of 65.12, below the 50-day MA of 63.42, and above the 200-day MA of 54.54, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 20.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SUN.
Sunoco Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $13.24B | 13.57 | 7.27% | 6.88% | -5.18% | -33.14% | |
64 Neutral | $6.54B | 9.20 | 15.50% | 8.03% | -3.51% | 3.75% | |
62 Neutral | $10.74B | 14.84 | 6.25% | 4.26% | -9.55% | 27.65% | |
57 Neutral | $4.78B | -19.51 | -3.05% | 4.14% | -15.35% | -81.94% | |
53 Neutral | $2.33B | 5.68 | -14.06% | 3.42% | -22.37% | -27.22% | |
47 Neutral | $3.14B | 94.69 | 4.13% | 10.50% | -7.21% | 135.72% |
* Energy Sector Average
SUN
Sunoco
66.10
10.77
19.46%
CVI
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31.30
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DK
Delek US Holdings
39.43
26.84
213.21%
DINO
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59.46
30.70
106.77%
UGP
Ultrapar Participacoes SA
5.83
2.93
100.97%
PBF
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40.46
25.17
164.69%
Sunoco Corporate Events
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.