Sunoco LP
Sunoco LP Fundamental Analysis
Sunoco LP (SUN) shows moderate financial fundamentals with a PE ratio of 11.01, profit margin of 2.85%, and ROE of 17.28%. The company generates $30.7B in annual revenue with strong year-over-year growth of 11.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SUN's fundamental strength across five key dimensions:
Efficiency Score
WeakSUN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSUN trades at attractive valuation levels.
Growth Score
ModerateSUN shows steady but slowing expansion.
Financial Health Score
ExcellentSUN maintains a strong and stable balance sheet.
Profitability Score
ModerateSUN maintains healthy but balanced margins.
Key Financial Metrics
Is SUN Expensive or Cheap?
P/E Ratio
SUN trades at 11.01 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SUN's PEG of -0.37 indicates potential undervaluation.
Price to Book
The market values Sunoco LP at 3.72 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.48 times EBITDA. This is generally considered low.
How Well Does SUN Make Money?
Net Profit Margin
For every $100 in sales, Sunoco LP keeps $2.85 as profit after all expenses.
Operating Margin
Core operations generate 5.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.28 in profit for every $100 of shareholder equity.
ROA
Sunoco LP generates $2.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sunoco LP generates limited operating cash flow of $1.51B, signaling weaker underlying cash strength.
Free Cash Flow
Sunoco LP generates weak or negative free cash flow of $833.53M, restricting financial flexibility.
FCF Per Share
Each share generates $6.10 in free cash annually.
FCF Yield
SUN converts 8.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.01
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.37
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.40
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How SUN Stacks Against Its Sector Peers
| Metric | SUN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.01 | 21.49 | Better (Cheaper) |
| ROE | 17.28% | 996.00% | Weak |
| Net Margin | 2.85% | -59610.00% (disorted) | Weak |
| Debt/Equity | 0.58 | -0.48 (disorted) | Distorted |
| Current Ratio | 1.40 | 5.15 | Neutral |
| ROA | 2.89% | -2041.00% (disorted) | Weak |
SUN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sunoco LP's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.19%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
137.56%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
44.50%
Industry Style: Cyclical, Value, Commodity
High Growth