SUN Stock Risk & Deep Value Analysis

Sunoco LP

DVR Score

0.5

out of 10

Distressed

The Bottom Line on SUN

We analyzed Sunoco LP using our deep value framework. Sign in to see our full verdict and DVR Score.

We ran SUN through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Here's what we found.

Updated Apr 19, 2026•Run Fresh Analysis →

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Weekly adjusted close · Quarterly revenue & EPS · DVR score history

SUN Stock Risk Analysis

Overall Risk

Moderate

Financial Risk

Medium

Market Risk

High

SUN Deep Value Analysis

Sunoco LP continues to operate in a mature, consolidating fuel distribution market facing long-term structural headwinds from EV adoption. Its business model prioritizes operational efficiency and maintaining distributions (a nearly 6% yield) rather than disruptive innovation or exponential growth required for a 10x return. While recent revenue growth has been high (+63.2% YoY in a recent quarter), profitability is weak with a significant EPS miss ($0.09 vs. $1.64 estimate) in the most recent reported quarter. Despite high FY2026 consensus estimates, the underlying industry dynamics and capital allocation strategy for an MLP fundamentally limit its potential for transformative 10x growth. It remains a stable income vehicle rather than a high-growth opportunity.

SUN Red Flags & Warning Signs

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Faster-than-expected EV adoption impacting fuel demand
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Significant volatility in crude oil prices affecting margins and consumer demand
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Failure to meet consensus FY2026 EPS of $7.96

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SUN Financial Health Metrics

Market Cap

$12.91B

P/E Ratio

24.50

Profit Margin

2.09%

Debt-to-Equity

1.67

Dividend Yield

5.77%

Beta (Volatility)

0.40

Earnings Per Share

$3.84

SUN Competitive Moat Analysis

Moat Rating

Narrow

Moat Trend

Eroding

Moat Sources

2 Identified

Cost Advantages (through scale and logistics efficiency)Efficient Scale (high fixed costs of infrastructure for distribution)

Sunoco's moat stems from its vast physical distribution network and established customer relationships. However, this moat is eroding due to the secular decline in demand for internal combustion engine fuels, driven by the shift to electric vehicles. Its assets are largely tied to a declining industry.

SUN Competitive Moat Analysis

SUN Catalysts & Growth Drivers

Near-Term (0-6 months)

•Q1 2026 Earnings Release on 2026-05-05
•Updates on operational efficiency initiatives

Medium-Term (6-18 months)

•Accretive bolt-on acquisitions in core fuel distribution or adjacent convenience store segments
•Potential debt refinancing to optimize capital structure

Long-Term (18+ months)

•Continued market consolidation benefiting scale and pricing power for remaining distributors
•Strategic diversification into non-fuel revenue streams (e.g., EV charging, renewables infrastructure) - currently not a stated focus

Catalysts & Growth Drivers

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SUN Bull Case: What Could Go Right

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Consistency in meeting or exceeding distribution coverage ratios.
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Progress in debt reduction or maintaining target leverage levels.
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Any strategic announcements regarding diversification into new, higher-growth energy segments.

Bull Case Analysis

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FAQ

What is the DVR Score for Sunoco LP (SUN)?

As of April 19, 2026, Sunoco LP has a DVR Score of 0.5 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.

What is the market capitalization of Sunoco LP?

Sunoco LP's market capitalization is approximately $12.9B..

What is the risk level for SUN stock?

Our analysis rates Sunoco LP's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.

What is the P/E ratio of SUN?

Sunoco LP currently has a price-to-earnings (P/E) ratio of 24.5. This is in line with broader market averages.

Does Sunoco LP pay a dividend?

Yes, Sunoco LP pays a dividend with a current yield of approximately 5.77%.

Is Sunoco LP's revenue growing?

Sunoco LP has reported revenue growth of 11.1%. The company is showing strong top-line momentum.

Is SUN stock profitable?

Sunoco LP has a profit margin of 2.1%. The company is profitable but margins are modest.

How often is the SUN DVR analysis updated?

Our AI-powered analysis of Sunoco LP is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 19, 2026.

Important Disclaimer – Not Financial Advice

Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.

All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research and consult with a qualified financial advisor.