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Sunoco
(NYSE:SUN)
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Rating:74Outperform
Price Target:
$83.00
▲(31.64% Upside)
Action:Upgraded
Date:05/10/26
The score is driven primarily by improving financial performance (strong TTM growth and better cash generation) tempered by balance-sheet stability concerns from historical leverage swings. Valuation is a major positive given the very low P/E and high dividend yield. Technicals are supportive with price above key moving averages and positive momentum, while the earnings call reinforced guidance confidence and distribution growth despite some nonrecurring and volatility-related headwinds.
Positive Factors
Cash generation
Consistent, improving cash generation (TTM OCF ~$1.5B; FCF ~$828M, +31.8%) supports durable funding for distributions, bolt‑on M&A and maintenance/growth capex. Strong FCF coverage (≈55% of net income) underpins recurring capital allocation ability across cycles.
Negative Factors
Balance-sheet volatility
Even with an improved TTM leverage snapshot, historical swings in reported debt/equity reduce confidence in balance‑sheet stability and raise refinancing and covenant risk during downturns. Variable capital structure makes long‑term planning and stress resilience less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent, improving cash generation (TTM OCF ~$1.5B; FCF ~$828M, +31.8%) supports durable funding for distributions, bolt‑on M&A and maintenance/growth capex. Strong FCF coverage (≈55% of net income) underpins recurring capital allocation ability across cycles.
Read all positive factors
Sunoco (SUN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.16B
Dividend Yield5.07%
Average Volume (3M)399.94K
Price to Earnings (P/E)18.7
Beta (1Y)0.38
Revenue Growth37.27%
EPS Growth-29.09%
CountryUS
Employees8,910
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)3.96
Shares Outstanding136,894,760
10 Day Avg. Volume454,967
30 Day Avg. Volume399,943
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
$76.83Price Target Upside21.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)9
Revenue Forecast (FY)$43.67B
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:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call highlighted strong operational and financial momentum driven by acquisitions (Parkland, Tankwood), significant volume growth in fuel distribution, robust adjusted EBITDA ($867M) and distributable cash flow ($535M), and a meaningful distribution increase with a healthy coverage ratio and liquidity position. Offsetting items include a sizable one-time inventory gain (~$102M) that materially aided the quarter, commodity-driven margin compression and temporary refinery throughput reduction from a planned turnaround, and modest sequential softness in pipeline EBITDA. Management emphasized confidence in delivering full-year guidance even excluding the one-time inventory benefit and noted on-track synergy capture and accretive M&A, supporting a constructive outlook.Positive Updates
Strong Consolidated Adjusted EBITDA
Reported adjusted EBITDA of $867 million for Q1 2026 (excluding approximately $9 million of one-time transaction expenses), driven by operational performance and inventory optimization.
Negative Updates
Market Volatility from Middle East Conflict
Geopolitical events drove significant commodity price volatility (RBOB futures rose >$1.60/gal; diesel futures rose >$2/gal), creating margin compression pressures in fuel distribution despite overall favorable longer-term margin dynamics.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Consolidated Adjusted EBITDA
Reported adjusted EBITDA of $867 million for Q1 2026 (excluding approximately $9 million of one-time transaction expenses), driven by operational performance and inventory optimization.
Read all positive updates
Company Guidance
The company reiterated confidence in delivering its full‑year 2026 EBITDA guidance (noting it expects to do so even without the one‑time inventory benefit), while reporting Q1 adjusted EBITDA of $867 million (excluding ~ $9 million of transaction expenses) that included a ~$102 million inventory sale benefit (roughly $92 million in fuel distribution and ~$10 million in refining); Q1 distributable cash flow as adjusted was $535 million; growth CapEx was $106 million and maintenance CapEx $93 million; declared a $0.9899 per common unit distribution (a 6.25% increase composed of a 5% one‑time step‑up plus a 1.25% quarterly raise, >10% higher vs Q1 2025) with a trailing 12‑month coverage ratio of 1.9x and a target multiyear distribution growth rate of at least 5%; leverage was ~4x with $2.2 billion revolver availability; M&A and integration targets remain intact (Tankwood closed Jan 16 and is immediately accretive to DCF/unit, Parkland on track for 10%+ accretion pre‑year 3 with $125 million in‑year synergies and a $250M+ run‑rate target, and the company is on track for >$500 million of bolt‑on acquisitions in 2026 with ~ $200 million already closed/signed); operational metrics included 3.8 billion gallons distributed (up 15% vs last quarter, up 82% YoY) at $0.17/gal reported margin, pipeline throughput ~1.3 million bpd (adj. EBITDA $179M), terminals throughput ~1.0 million bpd (adj. EBITDA $107M), and refinery throughput 22,000 bpd (adj. EBITDA $43M) following a planned 50‑day turnaround.Sunoco Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.71B | 25.20B | 22.69B | 23.07B | 25.73B | 17.60B |
| Gross Profit | 3.21B | 2.10B | 1.73B | 1.18B | 1.19B | 1.17B |
| EBITDA | 2.50B | 1.82B | 1.03B | 829.00M | 870.00M | 887.00M |
| Net Income | 874.00M | 527.00M | 716.00M | 311.00M | 397.00M | 446.00M |
Balance Sheet | ||||||
| Total Assets | 30.26B | 28.36B | 14.38B | 6.85B | 6.86B | 5.82B |
| Cash, Cash Equivalents and Short-Term Investments | 718.00M | 891.00M | 94.00M | 29.00M | 82.00M | 25.00M |
| Total Debt | 1.50B | 16.11B | 8.00B | 4.11B | 4.12B | 3.79B |
| Total Liabilities | 21.95B | 20.35B | 10.31B | 5.87B | 5.91B | 5.00B |
| Stockholders Equity | 2.59B | 8.01B | 4.07B | 978.00M | 942.00M | 811.00M |
Cash Flow | ||||||
| Free Cash Flow | 835.00M | 615.00M | 205.00M | 385.00M | 375.00M | 369.00M |
| Operating Cash Flow | 1.51B | 1.19B | 549.00M | 600.00M | 561.00M | 543.00M |
| Investing Cash Flow | -3.16B | -2.81B | 477.00M | -288.00M | -464.00M | -387.00M |
| Financing Cash Flow | 2.19B | 2.41B | -961.00M | -365.00M | -40.00M | -228.00M |
Sunoco Technical Analysis
Positive
63.05
Price Trends
67.73
Positive
66.00
Positive
59.48
Positive
Market Momentum
1.93
Negative
68.59
Neutral
87.76
Negative
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 63.05 is below the 20-day moving average (MA) of 68.59, below the 50-day MA of 67.73, and above the 200-day MA of 59.48, indicating a bullish trend. The MACD of 1.93 indicates Negative momentum. The RSI at 68.59 is Neutral, neither overbought nor oversold. The STOCH value of 87.76 is Negative, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $15.16B | 18.69 | 17.28% | 6.88% | 37.27% | -29.09% | |
72 Outperform | $15.97B | 13.30 | 13.11% | 4.26% | -1.08% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $6.82B | 11.58 | 18.56% | 8.03% | 10.20% | 37.86% | |
61 Neutral | $3.88B | -72.70 | -37.66% | 3.42% | -6.49% | 93.38% | |
56 Neutral | $7.42B | 16.58 | 8.35% | 4.14% | -4.33% | ― | |
50 Neutral | $3.53B | -85.68 | -6.53% | 10.50% | 1.38% | 78.79% |
* Energy Sector Average
SUN
Sunoco
74.88
25.74
52.37%
CVI
CVR Energy
34.66
6.34
22.41%
DK
Delek US Holdings
64.64
40.63
169.24%
DINO
HF Sinclair Corporation
90.41
47.61
111.24%
UGP
Ultrapar Participacoes SA
6.23
3.55
132.20%
PBF
PBF Energy
63.85
40.11
168.97%
Sunoco Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Sunoco Reports Strong Q1 Results and Distribution Increase
Positive
May 5, 2026
Sunoco LP and SunocoCorp LLC reported a strong first quarter of 2026 on May 5, 2026, with net income surging to $644 million from $207 million a year earlier and Adjusted EBITDA rising to $867 million, excluding one-time transaction expenses. Dist...
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...
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.