Sunoco LP [NYSE:SUN]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Sunoco LP [SUN] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in December. On average, stock market experts give SUN an Hold rating. The average 12-month price forecast for this stock is $30.77, with the high estimate being $35.00, the low estimate being $27.00 and the median estimate amounting to $31.00. This is compared to its latest closing price of $28.05.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Sunoco LP [SUN] is sitting at 2.69. This is compared to 1 month ago, when its average rating was 2.69.
For the quarter ending in Sep-18 Sunoco LP [SUN] generated $4.76 billion in sales. That’s 2.18% higher than the average estimate of $4.66 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Wed 20 Feb (In 43 Days).
Fundamental Analysis of Sunoco LP [SUN]
Now let’s turn to look at profitability: with a current Operating Margin for Sunoco LP [SUN] sitting at +3.80 and its Gross Margin at +8.01, this company’s Net Margin is now 0.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 6.72, and its Return on Invested Capital has reached 4.70%. its Return on Equity is 9.54, and its Return on Assets is 2.43. These metrics suggest that this Sunoco LP does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Sunoco LP [SUN] has generated a Total Debt to Total Equity ratio of 190.92. Similarly, its Total Debt to Total Capital is 65.63, while its Total Debt to Total Assets stands at 50.35. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 220.03, and its Long-Term Debt to Total Capital is 65.53. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 10.48 and its Total Debt to EBITDA Value is 6.99. The Enterprise Value to Sales for this firm is now 0.37, and its Total Debt to Enterprise Value stands at 0.58. Sunoco LP [SUN] has a Price to Book Ratio of 1.45, a Price to Cash Flow Ratio of 9.35. These metrics all suggest that Sunoco LP is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Sunoco LP [SUN] earns $1,799,939 for each employee under its payroll. Income works out to $32,550 per employee. Similarly, this company’s Receivables Turnover is 18.94 and its Total Asset Turnover is 1.35. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 3.39 and its Current Ratio is 3.74. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Sunoco LP [SUN] has 81.20M shares outstanding, amounting to a total market cap of $2.30B. Its stock price has been found in the range of 23.80 to 33.11. At its current price, it has moved by -14.50% from its 52-week high, and it has moved 18.95% from its 52-week low.
This stock’s Beta value is currently 0.75, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 61.79. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Sunoco LP [SUN] a Reliable Buy?
Sunoco LP [SUN] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.