📊 SUN Key Takeaways
Is Sunoco LP (SUN) a Good Investment?
Sunoco exhibits strong recent revenue growth (+11.1% YoY) and exceptional earnings acceleration (+68.4% YoY) with positive free cash flow generation of $774M. However, dangerously low interest coverage of 1.7x combined with razor-thin margins (1.7% gross margin) and high leverage ($13.4B debt) create significant financial vulnerability in this commodity-exposed refining business.
Why Buy Sunoco LP Stock? SUN Key Strengths
- Strong YoY revenue growth of 11.1% demonstrating market demand
- Exceptional net income growth of 68.4% indicating improved operational efficiency
- Positive free cash flow generation of $774M providing debt service capability
- Adequate operating cash flow of $1.2B supporting capital and debt obligations
SUN Stock Risks: Sunoco LP Investment Risks
- Critical interest coverage ratio of 1.7x indicates minimal debt service flexibility and high default risk
- Extremely thin gross margins of 1.7% expose company to commodity price volatility and operational disruptions
- High leverage with $13.4B long-term debt relative to $891M cash creates refinancing and liquidity pressure
- Quick ratio of 0.78x below 1.0 signals potential short-term liquidity constraints
- Low ROA of 1.9% indicates inefficient asset utilization in capital-intensive operations
Key Metrics to Watch
- Interest coverage ratio trend - critical threshold is maintaining above 2.5x
- Debt-to-EBITDA ratio to assess deleveraging progress
- Gross refining margins and commodity price environment sustainability
- Operating cash flow consistency and ability to service debt obligations
- Free cash flow conversion and capital allocation decisions
Sunoco LP (SUN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.1% 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $5.7B | $87.0M | 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 rating of HOLD with 58% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SUN's key strengths?
Claude: Strong YoY revenue growth of 11.1% demonstrating market demand. Exceptional net income growth of 68.4% indicating improved operational efficiency.
What are the risks of investing in SUN?
Claude: Critical interest coverage ratio of 1.7x indicates minimal debt service flexibility and high default risk. Extremely thin gross margins of 1.7% expose company to commodity price volatility and operational disruptions.
What is SUN's revenue and growth?
Sunoco LP reported revenue of $25.2B.
Does SUN pay dividends?
Sunoco LP does not currently pay dividends.
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 rating reflects both perspectives for balanced insights.
Is SUN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Sunoco LP has a HOLD rating with 58% confidence. Review the strengths and risks sections above before making a decision. 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 2.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy SUN stock in 2026?
Our dual AI analysis gives Sunoco LP a combined HOLD rating 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 $1.2B, with capital expenditures of $418.0M. FCF margin is 3.1%.
How does SUN compare to other Energy stocks?
Vs Energy sector averages: Net margin 2.1% (avg: 12%), ROE N/A (avg: 14%), current ratio 1.38 (avg: 1.3).