Sunoco (SUN) AI Stock Analysis

• Market Cap: $8.00B
• Dividend Yield: 6.81%
• Average Volume (3M): 362.78K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 0.69
• Revenue Growth: -8.65%
• EPS Growth: -73.25%
• Country: US
• Employees: 3,298
• Sector: Energy
• Sector Strength: 41
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 0.43
• Shares Outstanding: 136,604,570
• 10 Day Avg. Volume: 409,675
• 30 Day Avg. Volume: 362,778
• 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: 1.95
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 8.75
• Enterprise Value/Ebitda: 13.37
• 1Y Price Target: $62.80
• Price Target Upside: 19.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: $57.00 ▲(8.72% Upside)

Sunoco's overall stock score is driven by strong earnings performance and strategic corporate actions. While financial performance and valuation present some concerns, the company's robust dividend yield and positive corporate events support a favorable outlook.

Positive Factors

Distribution Growth

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

Merger and Acquisition Opportunities

SUN management is optimistic about merger and acquisition opportunities and its interest in expanding in Europe and the Caribbean.

Negative Factors

Lack of AI Exposure

SUN's underperformance is attributed to its lack of exposure to the AI/data center narrative, which has buoyed valuations across much of analyst coverage.

Seasonal Underperformance

Seasonal underperformance in 'Fuel Distribution' appears explainable as SUN typically experiences a step-down in the fourth quarter following the summer driving season.

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 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 Financial Statement Overview

Summary

Sunoco's financial performance is robust with strong profitability metrics, including a solid net profit margin and return on equity. However, challenges include a slight revenue decline and significant drop in free cash flow growth, which need addressing to sustain long-term growth.

Income Statement

Sunoco's income statement shows a solid performance with a strong gross profit margin of 7.97% and a net profit margin of 3.25% for TTM. The company has demonstrated resilience with a positive EBIT margin of 3.74% and EBITDA margin of 7.62%. However, revenue has slightly declined by 1.41% compared to the previous year, indicating a need for growth focus.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.97, indicating moderate leverage. The equity ratio stands at 28.98%, showing a healthy proportion of equity financing. Return on equity is robust at 17.47%, but the high debt level poses potential risks if not managed carefully.

Cash Flow

Cash flow analysis reveals a mixed picture with a free cash flow growth rate of -93.17%, indicating a significant decline. However, the operating cash flow to net income ratio of 0.58 and free cash flow to net income ratio of 0.02 suggest that the company is generating cash, albeit at a reduced rate.

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	1.73B	1.18B	1.19B	1.17B	867.00M
EBITDA	1.17B	1.03B	825.00M	877.00M	894.00M	602.00M
Net Income	689.00M	716.00M	311.00M	397.00M	446.00M	212.00M
Balance Sheet
Total Assets	14.34B	14.38B	6.83B	6.83B	5.82B	5.27B
Cash, Cash Equivalents and Short-Term Investments	172.00M	94.00M	29.00M	82.00M	25.00M	97.00M
Total Debt	8.20B	8.00B	4.11B	4.12B	3.79B	3.67B
Total Liabilities	10.19B	10.31B	5.85B	5.89B	5.00B	4.63B
Stockholders Equity	4.16B	4.07B	978.00M	942.00M	811.00M	632.00M
Cash Flow
Free Cash Flow	11.00M	205.00M	385.00M	375.00M	369.00M	378.00M
Operating Cash Flow	415.00M	549.00M	600.00M	561.00M	543.00M	502.00M
Investing Cash Flow	603.00M	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: Positive
• Last Price: 52.43
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 52.43 is above the 20-day moving average (MA) of 52.41, above the 50-day MA of 52.35, and below the 200-day MA of 52.96, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 43.41 is Neutral, 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	77 Outperform	$3.55B	8.89	14.87%	3.72%	-4.58%	-23.80%
DINO	70 Outperform	$8.33B	35.13	-0.93%	4.46%	-14.58%	-107.50%
SUN	68 Neutral	$8.00B	25.68	6.62%	6.81%	-8.65%	-73.25%
PBF	50 Neutral	$2.63B	―	-17.30%	4.72%	-18.73%	-236.79%
CVI	48 Neutral	$2.71B	268.82	-50.65%	10.20%	-15.98%	-160.88%
Sector *	45 Neutral	AU$1.35B	-9.97	-2.14%	8.50%	2.33%	-32.99%
DK	41 Neutral	$1.26B	―	-200.75%	4.69%	-29.94%	-723.41%

Sunoco Corporate Events

Sunoco Amends Credit Agreement for Parkland Acquisition

On August 8, 2025, Sunoco LP amended its credit agreement to allow for up to $2 billion in cash to be reserved for the Parkland Acquisition, impacting the calculation of the Net Leverage Ratio for financial covenants. This strategic financial move is expected to enhance Sunoco’s operational flexibility and strengthen its market position, potentially benefiting stakeholders by supporting the company’s growth objectives.

The most recent analyst rating on (SUN) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

Sunoco Announces Q2 2025 Financial Results and Merger Approval

On August 6, 2025, Sunoco LP announced its second quarter 2025 financial results, reporting a net income of $86 million and an Adjusted EBITDA of $464 million. The company increased its quarterly distribution by 1.25% and reaffirmed its full-year 2025 Adjusted EBITDA guidance. Despite a decrease in net income compared to the previous year, Sunoco’s segments showed varied performance, with the Fuel Distribution segment experiencing a drop in Adjusted EBITDA, while the Pipeline Systems and Terminals segments saw significant increases. The announcement also highlighted the approval of the merger with Parkland, expected to close in the fourth quarter of 2025, and emphasized Sunoco’s ongoing commitment to returning capital to unitholders through distribution growth.

The most recent analyst rating on (SUN) stock is a Buy with a $66.00 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 July 24, 2025, Sunoco LP announced a 1.25% increase in its quarterly cash distribution to $0.9088 per common unit for the quarter ending June 30, 2025. This marks the third consecutive quarterly increase, aligning with the company’s strategy to achieve a distribution growth rate of at least 5% in 2025. The distribution will be paid on August 19, 2025, to unitholders of record as of August 8, 2025, reflecting Sunoco’s commitment to returning capital to its investors.

The most recent analyst rating on (SUN) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Sunoco stock, see the SUN Stock Forecast page.

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.