Sunoco LP Common Units representing limited partner interests (SUN)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Sunoco LP as a partnership that distributes motor fuels and owns pipelines, terminals, and a refinery. The filed numbers show real scale: in the quarter ended 2026-06-30, revenue was $14.3B and net income was $283.0M, up sharply from the quarter ended 2025-06-30, when revenue was $5.4B and net income was $86.0M. For the fiscal year ended 2025-12-31, revenue was $25.2B and net income was $527.0M, down from $866.0M in the fiscal year ended 2024-12-31, so profits are cyclical and uneven. The moat is modest: fuel distribution is a low-margin, capital-intensive business, and FairStock's ROCE of 5.50% tells me returns on capital are not exceptional. Still, trailing free cash flow is $1.7B, a FairStock FCF yield of 13.4%, and the 5.15% distribution yield is supported by that cash generation. Financial health gives me pause: debt-to-equity is 1.78, FairStock's Altman Z-score is 0.95, and its Piotroski F-Score is 5/9—fair signs of leverage and only average accounting quality. Valuation is not screaming value. At the 2026-10-09 close of $75.60, FairStock's P/E is 16.69 and P/B is 1.51; its Graham Number is $67.20, so the price carries a negative 12.50% margin of safety. FairStock's PEG of 0.12 and Lynch STALWART label suggest growth has been steady, but the FairStock Score is 41/100, and I would want a wider discount and clearer deleveraging before calling this a classic Graham bargain. It is a cash-generative but leveraged operator priced for continued execution.

In plain English: Sunoco LP sells motor fuel and runs energy infrastructure like pipelines, terminals, and a refinery. The business generates a lot of cash and pays a 5.15% distribution, but margins are thin, debt is high, and profits have been uneven. At the 2026-10-09 close of $75.60, the price looks a little rich against a simple asset-value check, even though cash flow looks attractive.

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Data as of 2026-10-09 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer