SUN Investment Analysis Report & Stock Research, Sunoco, Inc.

Sunoco, Inc. (SUN)

SUN Stock Report

2-Year Price History

View Larger SUN Chart
NYSE:SUN
$25.84
(2/9 1:10PM)
+2.5%
Open$25.41 Mkt Cap$2.9 Billion
High$25.95 52Wk High$34.49
Low$25.28 52Wk Low$21.45
Volume1.2 Million Avg Vol 10D3.1 Million

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SUN Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at SUN through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 0.22x and 0.12x respectively.

Utilizing this range we can see that SUN’s current Price to Sales per share ratio of 0.09x is significantly below its average levels historically. In fact, with a current price of $25.64, SUN is a full 45% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for SUN.

SUN Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. SUN is above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for SUN to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 8.17 and a 4.13 low over the same period.

Given this range of ratios per share, SUN at its current price of $25.64 and a Price to Cash Earnings ratio of 6.32 is 2% above its average historical Price to Cash Earnings ratio. Obviously this makes us more hesitant about SUN because cash earnings would need to rise to improve the valuation. Likewise, a decline in Price to Cash Earnings to below the average of 6.15 would significantly improve our outlook for SUN given the current profit levels.

SUN Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

In SUN’s case, the estimated annual dividend is $0.60 resulting in a current dividend yield of 2.34%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from SUN against the historic high and low levels over the past 10 years. The highest dividend yield from SUN over this period was 5.56% while the lowest dividend yield was 0.88% It is never a good sign for a company to pay significantly lower dividends, in this case 27.33% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.

Peer Comparison

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Sunoco, Inc. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including SUN) 10.70 3.11 » 18.60 2.02 0.49 » 4.23 44.17% 17.27%
*10 year range does not include current year values
Baytex Energy Trust BTE $3.0 Billion $28.25 10.00 2.38 » 10.29 4.77 0.99 » 4.90 n/a 21.26%
Sunoco, Inc. SUN $2.9 Billion $25.20 6.32 1.92 » 11.67 0.09 0.05 » 0.36 27.78% 38.96%
Acergy SA ACGY $2.9 Billion $15.02 9.51 1.53 » 23.57 1.44 0.08 » 2.18 11.22% 25.08%
NuStar Energy LP- Partnership Units NS $2.9 Billion $53.71 8.87 4.16 » 16.86 0.74 0.30 » 6.44 92.76% 10.14%
Oceaneering International, Inc. OII $2.9 Billion $52.12 9.19 3.11 » 17.24 1.53 0.49 » 2.71 25.34% 15.76%
Buckeye Partners, L.P. BPL $2.8 Billion $55.27 15.93 4.39 » 25.04 1.60 0.56 » 4.91 47.36% 14.10%
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7:18A, Feb. 05,2010 SUN $25.67 Sunoco, Inc.
Seeking Alpha Wall St Breakfast

Sunoco, Inc. (SUN) Discussed on Seeking Alpha's Seeking Alpha Wall St Breakfast

Sunoco, Inc. is in the news. Find out how this impacts SUN trading on Ockham Research.

transcript) Pitney Bowes (PBI): Q4 EPS of $0.64 beats by $0.03. Revenue of $1.45B (-6%) in-line. Shares +0.7% AH. (PR, earnings call transcript) SUNOCO (SUN): Q4 EPS of -$0.27 misses by $0.01. Revenue of $9B (+4%) vs. $8.3B. Sees fiscal 2010 Capex of about $840M. Expects a Q1 pretax charge of $185M-195M on loss related to sale of polypropylene unit. Shares -2% AH. (PR, earnings call transcript) Vertex Pharmaceuticals (VRTX): Q4 EPS of

“… (PR, earnings call transcript) SUNOCO (SUN): Q4 EPS of -$0. 27 misses by $0. 01. Revenue of $9B (+4%) vs. $8. 3B. Sees fiscal 2010 Capex of about $840M. …”

12:04P, Jan. 05,2010 SUN $28.20 Sunoco, Inc.
Power Lunch

Sunoco, Inc. News is Being Covered Right Now on Power Lunch

The latest news on Power Lunch in regards to SUN came through on RazorWire recently.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Sunoco, Inc. has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on SUN because it trades within the price range that we would expect given current market conditions and fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards SUN and think that it will generally perform in-line with the S&P 500.

“… You do have the SUNOCO facility in philadelphia that's been off line for a couple of days and that may be leading to some of the heating oil futures are being closely watched as ... …”

5:53P, Dec. 30,2009 SUN $26.07 Sunoco, Inc.
Fast Money

Fast Money Brings News Related to Sunoco, Inc.

The latest news from Fast Money on SUN is available through Ockham's news analytics platform RazorWire.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SUN has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Sunoco, Inc. will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on SUN.

“… refiners have had a tough year but SUNOCO up 2%. > > in any trade you need a point of reference. > > dell pop tleeg%, brian. > > …”

12:53P, Dec. 23,2009 SUN $25.62 Sunoco, Inc.
Power Lunch

The Latest News for SUN Was Just on Power Lunch

As always, the latest news on SUN is available to Ockham clients through RazorWire, and it was mentioned recently on Power Lunch.

The Ockham valuation currently has a Fairly Valued stance on SUN because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Sunoco, Inc. has actually sunk a bit in comparison to the others. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards SUN and think that it will generally perform in-line with the S&P 500.

“… I would think the tradeoff might be to look at SUNOCO, frontier, holly corp, three good famous right now. > > do you like nat gas better? That's also tradesing higher > > …”

8:16A, Dec. 14,2009 SUN $26.25 Sunoco, Inc.
Imus In The Morning

News on SUN From the Pundits on Imus In The Morning

As always, the latest news on SUN is available to Ockham clients through RazorWire, and it was mentioned recently on Imus In The Morning.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, SUN has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Sunoco, Inc. will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on SUN.

“… Imus: I usually buy SUNOCO. Dagen: there you go. Which is the sponsor of nascar, the official fuel of nascar. Dagen: well, you all were talking about just to pick up on what ... …”

9:42A, Dec. 04,2009 SUN $25.95 Sunoco, Inc.
The Opening Bell on Fox Business

Holding SUN Stock? See What Is Being Discussed on The Opening Bell on Fox Business

As always, the latest news on SUN is available to Ockham clients through RazorWire, and it was mentioned recently on The Opening Bell on Fox Business.

When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Sunoco, Inc. has been talked about more than normal recently. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Sunoco, Inc. will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on SUN.

“… The stock up almost 5% on the news and SUNOCO products getting a boost after the packaging company raised its product target for the fourth quarter. The stock is up 3. …”

12:08P, Nov. 13,2009 SUN $26.71 Sunoco, Inc.
Fox Business

Fox Business discussing annual events surrounding SUN

Recently there was a news on Fox Business discussing annual events surrounding SUN and we believe investors should take notice.

Leader on the s & p 500 while pressure coming on to wells fargo and gem design. That's receiving a report from the fda. That name in negative territory there. Looking at SUNOCO. This one interesting because they put on the conviction sell list over at goldman sachs. They've been under pressure. Watching the other movers as mentioned disney at a 52-week reach their target as well. Yesterday beat the street with their quarterly numbers as well. Traders still feeling pretty positive on wall street. Near those highs and across the

“… dman sachs. They've been under pressure. Watching the other movers as mentioned disney at a 52-week reach their target as well. Yesterday beat the street with their quarterly numbers as well. Traders still feeling pretty positive on wall street. Near those highs and across the …”

9:45A, Nov. 13,2009 SUN $26.46 Sunoco, Inc.
The Opening Bell on Fox Business

RazorWire has Detected News About SUN on The Opening Bell on Fox Business

As always, the latest news on SUN is available to Ockham clients through RazorWire, and it was mentioned recently on The Opening Bell on Fox Business.

The chip maker, microsemi are rallying, able to beat fourth quarter adjusted targets beating by a penny and fourth quarter estimates, let's go to SUNOCO now, under pressure. Goldman sachs, adding to conviction sell list saying it sees more down side to the stock, down almost 3% today. And shares of nordstrom as we shift to retail are falling. Missed by a penny and forecast a drop in full year same-store sales, sales of the stores that

“… e stock, down almost 3% today. And shares of nordstrom as we shift to retail are falling. Missed by a penny and forecast a drop in full year same-store sales, sales of the stores that …”

9:32A, Nov. 13,2009 SUN $26.75 Sunoco, Inc.
The Opening Bell on Fox Business

See More News on SUN from The Opening Bell on Fox Business

Sunoco, Inc. is one of the thousands of companies that use news analytics on, and it was recently discussed on The Opening Bell on Fox Business.

Meeting expectations they've been charging higher fees from those, the pay tv operators, espn programming and unchanged, SUNOCO added to the conviction sell list and also, keep an eye on both mcdonald's and burger king. Mcdonald's is expanding and opening new stores, about a thousand new stores, remodeling and while burger king franchisees complaining that the dollar burger costs them $1.10.

“… new stores, about a thousand new stores, remodeling and while burger king franchisees complaining that the dollar burger costs them $1.10. …”

8:52A, Nov. 13,2009 SUN $26.69 Sunoco, Inc.
Imus In The Morning

RazorWire has Detected News About SUN on Imus In The Morning

News has broken via the television and viral blogs regarding SUN, so investors should take an interest in learning what was said.

Motors vice-president of sales, and new cars coming out from general motors and the plans that the company has going from and now, your fox business the oil company SUNOCO added to goldman sachs conviction sell goldman sees more down side for the company and the stock is down 2% on the news this morning and how they're going to effect shares of SUNOCO. Blockbuster posting a wider than expected loss in the third quarter. Exitems, they lost 25 cents a share more than double the average forecast of loss of 11 cents a share. The store closing 115 stores.

“… and the stock is down 2% on the news this morning and how they're going to effect shares of SUNOCO. Blockbuster posting a wider than expected loss in the third quarter. Exitems, they lost 25 cents a share more than double the average forecast of loss of 11 cents a share. The store closing 115 stores. …”

View All Sunoco, Inc. Stock News

Key Fundamentals

SUN - Sunoco, Inc. Fundamentals
Price (2/9 1:10PM) $25.84
Volume (2/9 1:10PM) 1.2 Million
Last Close Price $25.20
10 Day Average Volume 3.1 Million
13 Week Price Range $24.25 - $29.28
52 Week Price Range $21.45 - $34.49
LTM Revenue $31.2 Billion
 
Shares Outstanding (12/2009) 116.9 Million
Market Capitalization $2.9 Billion
Shares Held By Institutions 99.1 Million
Institutional Holders 479
% Shares Held By Institutions 84.80%
Earnings Per Share (EPS) ($0.22)
P/E Ratio n/a
Book Value Per Share $20.90
 
Gross Margin 14.40%
Annual Dividend 0.60
Dividend Yield 2.40%
Beta 0.64
Fiscal Year Ends December

About Sunoco, Inc.

Sunoco, Inc. is considered to operate in the Basic Materials sector. They specifically operate in the Oil & Gas Refining/Marketing business segment contained within the Energy industry.

The Company, through its subsidiaries, is a petroleum refiner and marketer and chemicals manufacturer with interests in logistics and cokemaking.