📊 SUN Key Takeaways
Is Sunoco LP (SUN) a Good Investment?
While Sunoco demonstrates strong cyclical earnings growth (68.4% YoY) on revenue gains, the business faces structural headwinds including razor-thin margins (4-6%), substantial debt leverage ($13.9B), and quick ratio below 1.0 indicating liquidity stress. The refining cycle appears favorable currently, but cyclical upturns mask limited downside protection and vulnerability to commodity volatility.
Sunoco LP Key Strengths (SUN)
- Exceptional earnings growth of 68.4% YoY driven by operational leverage in refining margins
- Solid revenue growth of 11.1% YoY in commodity-exposed sector
- Positive free cash flow generation of $255M with adequate interest coverage of 4.3x
SUN Stock Risks: Sunoco LP Investment Risks
- Critically thin gross margin (4.0%) and net margin (6.0%) provide minimal buffer against operational disruptions or margin compression
- High debt burden of $13.9B relative to thin equity base; quick ratio of 0.92x signals potential short-term liquidity stress
- Capital-intensive business model with CapEx consuming 78% of free cash flow limits financial flexibility and growth reinvestment capacity
- Earnings growth likely cyclical (refining margins high currently); vulnerable to crude/product price swings and refining margin normalization
- Critical data gaps: missing stockholders' equity, ROE, and EPS limit comprehensive risk assessment
Key Metrics to Watch
- Gross and operating margins trend - early warning of refining cycle deterioration
- Quick ratio and cash position - indicators of liquidity stress in downturns
- Free cash flow and capital expenditure ratio - assessing sustainability of debt servicing
- Interest coverage ratio - critical as leverage is high relative to reported equity
Sunoco LP (SUN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.4% FCF margin may limit capital allocation flexibility.
SUN Profit Margin, ROE & Profitability Analysis
SUN vs Energy Sector: How Sunoco LP Compares
How Sunoco LP compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sunoco LP Stock Overvalued? SUN Valuation Analysis 2026
Based on fundamental analysis, Sunoco LP has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sunoco LP Balance Sheet: SUN Debt, Cash & Liquidity
SUN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sunoco LP's revenue has grown significantly by 43% over the 5-year period, indicating strong business expansion.
SUN Revenue Growth, EPS Growth & YoY Performance
SUN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $5.2B | N/A | N/A |
| Q3 2025 | $5.8B | $2.0M | N/A |
| Q2 2025 | $5.4B | $86.0M | N/A |
| Q1 2025 | $5.2B | $207.0M | N/A |
| Q3 2024 | $5.8B | $2.0M | N/A |
| Q2 2024 | $5.7B | $87.0M | N/A |
| Q1 2024 | $5.4B | $141.0M | N/A |
| Q3 2023 | $6.3B | $83.0M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sunoco LP Dividends, Buybacks & Capital Allocation
SUN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sunoco LP (CIK: 0001552275)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SUN
What is the AI rating for SUN?
Sunoco LP (SUN) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SUN's key strengths?
Claude: Exceptional earnings growth of 68.4% YoY driven by operational leverage in refining margins. Solid revenue growth of 11.1% YoY in commodity-exposed sector.
What are the risks of investing in SUN?
Claude: Critically thin gross margin (4.0%) and net margin (6.0%) provide minimal buffer against operational disruptions or margin compression. High debt burden of $13.9B relative to thin equity base; quick ratio of 0.92x signals potential short-term liquidity stress.
What is SUN's revenue and growth?
Sunoco LP reported revenue of $10.7B.
Does SUN pay dividends?
Sunoco LP pays dividends, with $48.0M distributed to shareholders in the trailing twelve months.
Where can I find SUN SEC filings?
Official SEC filings for Sunoco LP (CIK: 0001552275) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SUN's EPS?
Sunoco LP has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SUN's fundamental grade?
Based on our AI fundamental analysis in May 2026, Sunoco LP has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SUN stock overvalued or undervalued?
Valuation metrics for SUN: ROE of N/A (sector avg: 14%), net margin of 6.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is SUN's AI grade for 2026?
Our dual AI analysis gives Sunoco LP a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SUN's free cash flow?
Sunoco LP's operating cash flow is $454.0M, with capital expenditures of $199.0M. FCF margin is 2.4%.
How does SUN compare to other Energy stocks?
Vs Energy sector averages: Net margin 6.0% (avg: 12%), ROE N/A (avg: 14%), current ratio 1.40 (avg: 1.3).