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Sunoco
(NYSE:SUN)
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Rating:74Outperform
Price Target:
$78.00
▲(4.56% Upside)
Action:Upgraded
Date:09/11/26
The score is driven primarily by improving fundamentals (strong TTM revenue/earnings and sharply higher free cash flow) and a supportive earnings outlook (raised EBITDA guidance and strong distribution coverage). Technicals add support with an established uptrend. The main limiter is the still-leveraged balance sheet and cash-flow-to-debt coverage, which increases sensitivity to a downturn and to refining/commodity volatility.
Positive Factors
Revenue and cash-flow growth
TTM revenue reached $39.6B, up 28.9%, while net income more than doubled to $1.11B and free cash flow rose 131.7%. This combination indicates stronger operating earnings and cash generation, providing resources to fund investment, distributions, and debt management.
Negative Factors
Elevated leverage
Total debt of $14.8B versus $8.35B of equity leaves leverage at about 1.78x, while operating cash flow covers only 0.54x total debt. Although leverage improved, this debt-heavy structure limits flexibility and increases exposure to refinancing costs or downturns.
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Positive Factors
Negative Factors
Revenue and cash-flow growth
TTM revenue reached $39.6B, up 28.9%, while net income more than doubled to $1.11B and free cash flow rose 131.7%. This combination indicates stronger operating earnings and cash generation, providing resources to fund investment, distributions, and debt management.
Read all positive factors
Sunoco (SUN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.04B
Dividend Yield5.23%
Average Volume (3M)585.39K
Price to Earnings (P/E)14.7
Beta (1Y)0.22
Revenue Growth83.34%
EPS Growth123.75%
CountryUS
Employees8,910
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)5.13
Shares Outstanding136,896,650
10 Day Avg. Volume364,722
30 Day Avg. Volume585,391
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 Cap1.65
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit5.85
Enterprise Value/Ebitda8.35
Forecast
1Y Price Target
$83.20Price Target Upside11.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)9.52
Revenue Forecast (FY)$51.37B
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 primarily makes money by purchasing refined petroleum products (mainly gasoline, and also distillates/other fuels) and selling them at wholesale to a large network of customers. Its core revenue model is largely volume-driven: it earns a pe...
Sunoco Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 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.
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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
Positive
74.60
Price Trends
75.25
Negative
71.97
Positive
66.80
Positive
Market Momentum
-0.49
Positive
47.69
Neutral
31.36
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 74.6 is above the 20-day moving average (MA) of 73.78, below the 50-day MA of 75.25, and above the 200-day MA of 66.80, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 31.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUN.
Sunoco Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $22.28B | 11.92 | 19.86% | 1.61% | 16.26% | ― | |
74 Outperform | $15.04B | 14.72 | 18.17% | 5.23% | 83.34% | 123.75% | |
72 Outperform | $8.64B | 12.43 | 20.80% | 4.74% | 20.26% | 31.82% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
59 Neutral | $829.12M | 15.42 | -72.93% | 9.59% | 0.29% | 21.69% | |
58 Neutral | $757.08M | 20.08 | 8.43% | 4.98% | ― | ― | |
55 Neutral | $1.86B | -11.35 | -13.21% | 2.37% | 7.56% | 58.21% |
* Energy Sector Average
SUN
Sunoco
73.44
22.48
44.12%
DINO
HF Sinclair Corporation
125.57
72.45
136.40%
UGP
Ultrapar Participacoes SA
7.97
4.38
121.94%
WKC
World Kinect
36.31
11.32
45.29%
CAPL
Crossamerica Partners
21.90
3.04
16.14%
APC
ARKO Petroleum Corp. Class A
15.85
-1.01
-6.01%
Sunoco Corporate Events
Business Operations and StrategyDelistings and Listing Changes
Sunoco to Transfer Listings to Texas Stock Exchange
Positive
Sep 10, 2026
On September 3, 2026, Sunoco LP’s board approved the voluntary withdrawal of its common units from the New York Stock Exchange and the transfer of the listing to the Texas Stock Exchange. The partnership expects trading in its common units o...
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.