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Sunoco
(NYSE:SUN)
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Rating:69Neutral
Price Target:
$77.00
▲(2.38% Upside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by improved TTM earnings and sharply higher free cash flow, supported by a bullish earnings-call update with raised EBITDA guidance and strong distribution coverage. The main constraint is elevated leverage and debt coverage risk, while technicals are mixed with near-term softness despite a longer-term uptrend. Valuation is supportive, led by the 5.45% yield and a moderate P/E.
Positive Factors
Free Cash Flow Strength
Material improvement in free cash flow (TTM FCF ≈ $1.94B, +131.7%) provides durable internal financing for distributions, maintenance/growth capex and bolt-on M&A. Sustained FCF reduces reliance on external funding and supports multi-year distribution targets and deleveraging plans.
Negative Factors
Elevated Leverage
Balance sheet remains meaningfully leveraged despite improvement, leaving the partnership sensitive to interest-rate moves and refinancing risk. Elevated debt levels constrain financial flexibility for large-scale investments and amplify downside for distributions if commodity margins compress.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Material improvement in free cash flow (TTM FCF ≈ $1.94B, +131.7%) provides durable internal financing for distributions, maintenance/growth capex and bolt-on M&A. Sustained FCF reduces reliance on external funding and supports multi-year distribution targets and deleveraging plans.
Read all positive factors
Sunoco (SUN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.45B
Dividend Yield5.35%
Average Volume (3M)414.82K
Price to Earnings (P/E)14.0
Beta (1Y)0.30
Revenue GrowthN/A
EPS Growth123.75%
CountryUS
Employees8,910
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)5.13
Shares Outstanding136,894,760
10 Day Avg. Volume498,030
30 Day Avg. Volume414,825
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)0.89
Price to Sales (P/S)0.28
P/FCF Ratio11.63
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$81.33Price Target Upside8.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)9.41
Revenue Forecast (FY)$44.65B
Sunoco Business Overview & Revenue Model
Company Description
Sunoco LP, together with its subsidiaries, engages in the energy infrastructure and distribution of motor fuels in the United States. It operates in four segments: Fuel Distribution, Pipeline Systems, Refinery, and Terminals. The Fuel Distribution...
How the Company Makes Money
Sunoco makes money primarily by purchasing refined petroleum products (e.g., gasoline and diesel) and distributing them through its logistics and wholesale network to a broad customer base that includes convenience stores, independent dealers, and...
Sunoco Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed broadly positive operational and financial momentum: strong quarter-to-quarter and year-over-year EBITDA, raised full-year guidance, robust distributable cash flow, meaningful volume and throughput growth across segments, and improved liquidity and leverage metrics. The primary negatives are market-driven: commodity price volatility, forecasting sensitivity driven by refining crack spreads, higher near-term cash taxes from legacy refining operations, and some regional demand variability. Overall, management portrayed confidence in continued accretive M&A and organic growth while acknowledging macro-driven uncertainty that affects near-term predictability.Positive Updates
Strong Quarterly Adjusted EBITDA
Second quarter adjusted EBITDA of $996 million (excluding ~ $14 million of one-time transaction expenses).
Negative Updates
Market Volatility and Forecast Uncertainty
Significant market volatility during the quarter (sharp price increases followed by declines) increases forecasting uncertainty—management noted refining cracks are hard to project and are the primary driver of the guidance range.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Adjusted EBITDA
Second quarter adjusted EBITDA of $996 million (excluding ~ $14 million of one-time transaction expenses).
Read all positive updates
Company Guidance
Sunoco raised full‑year adjusted EBITDA guidance to $3.5–$3.7 billion (up $400 million from its original range) after a strong first half that included Q2 adjusted EBITDA of $996 million (ex. ~$14 million one‑time transaction costs) and first‑half momentum. Q2 distributable cash flow as adjusted was $608 million, and the partnership declared a distribution of just over $1.00 per common unit (up 1.25% QoQ and >10% YoY) with a trailing‑12‑month coverage ratio of 2.1x. Balance sheet and liquidity remain robust with $2.3 billion revolver availability and leverage ~3.7x (below a 4.0x target); capex in Q2 totaled $125 million growth and $77 million maintenance. The guidance upside is driven largely by the Refinery segment (Q2 adj. EBITDA $175 million vs. $43 million in Q1, throughput 57k bpd vs. 22k, >$40/ bbl crack and < $10/ bbl opex) and expected continued bolt‑on M&A (targeting at least $500 million/year, with plans to exceed that in 2026) alongside a multiyear distribution growth target of at least 5%.Sunoco Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
57
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.58B | 25.20B | 22.69B | 23.07B | 25.73B | 17.60B |
| Gross Profit | 4.25B | 2.10B | 1.73B | 1.18B | 1.19B | 1.17B |
| EBITDA | 2.98B | 1.82B | 1.03B | 829.00M | 870.00M | 887.00M |
| Net Income | 1.11B | 527.00M | 716.00M | 311.00M | 397.00M | 446.00M |
Balance Sheet | ||||||
| Total Assets | 29.93B | 28.36B | 14.38B | 6.85B | 6.86B | 5.82B |
| Cash, Cash Equivalents and Short-Term Investments | 773.00M | 891.00M | 94.00M | 29.00M | 82.00M | 25.00M |
| Total Debt | 14.84B | 16.11B | 8.00B | 4.11B | 4.12B | 3.79B |
| Total Liabilities | 21.58B | 20.35B | 10.31B | 5.87B | 5.91B | 5.00B |
| Stockholders Equity | 8.35B | 8.01B | 4.07B | 978.00M | 942.00M | 811.00M |
Cash Flow | ||||||
| Free Cash Flow | 1.66B | 615.00M | 205.00M | 385.00M | 375.00M | 369.00M |
| Operating Cash Flow | 2.35B | 1.19B | 549.00M | 600.00M | 561.00M | 543.00M |
| Investing Cash Flow | -3.15B | -2.81B | 477.00M | -288.00M | -464.00M | -387.00M |
| Financing Cash Flow | 1.46B | 2.41B | -961.00M | -365.00M | -40.00M | -228.00M |
Sunoco Technical Analysis
Neutral
75.21
Price Trends
68.52
Positive
66.91
Positive
60.60
Positive
Market Momentum
1.07
Positive
50.29
Neutral
3.10
Positive
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 75.21 is above the 20-day moving average (MA) of 73.40, above the 50-day MA of 68.52, and above the 200-day MA of 60.60, indicating a neutral trend. The MACD of 1.07 indicates Positive momentum. The RSI at 50.29 is Neutral, neither overbought nor oversold. The STOCH value of 3.10 is Positive, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $14.47B | 8.09 | 19.86% | 2.27% | 16.26% | ― | |
74 Outperform | $7.31B | 5.77 | 24.08% | 1.78% | 13.54% | ― | |
69 Neutral | $14.45B | 14.01 | 18.17% | 4.99% | ― | 123.75% | |
68 Neutral | $6.68B | 11.19 | 18.56% | 4.91% | 10.20% | 37.86% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $3.58B | 16.66 | 95.27% | 1.61% | 11.40% | ― | |
55 Neutral | $3.13B | 46.99 | 10.48% | 1.41% | 17.88% | ― |
* Energy Sector Average
SUN
Sunoco
71.86
23.52
48.65%
CVI
CVR Energy
32.42
6.54
25.28%
DK
Delek US Holdings
60.81
40.20
195.08%
DINO
HF Sinclair Corporation
85.22
42.49
99.43%
UGP
Ultrapar Participacoes SA
6.01
2.99
98.81%
PBF
PBF Energy
66.29
45.08
212.59%
Sunoco Corporate Events
Business Operations and Strategy
Sunoco Highlights Investor Outreach at Upcoming Conferences
Positive
Aug 10, 2026
On August 10, 2026, Sunoco LP announced that senior management would meet members of the investment community at the 2026 Citi Natural Resources Conference on August 11, 2026, and at the Barclay’s 40th Annual Energy-Power Conference on Septe...
Business Operations and StrategyDividendsFinancial Disclosures
Sunoco Reports Strong Q2 Results, Raises 2026 Guidance
Positive
Aug 4, 2026
Sunoco LP and SunocoCorp LLC reported strong second-quarter 2026 results on August 4, 2026, with Sunoco LP’s net income surging to $283 million from $86 million a year earlier and Adjusted EBITDA more than doubling to $982 million, despite o...
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.