(SUN) Sunoco - Ratings and Ratios

Sunoco LP is a leading distributor and retailer of motor fuels across the United States, operating through two distinct segments: Fuel Distribution and Marketing, and All Other. The Fuel Distribution and Marketing segment is the core of its business, sourcing motor fuels, propane, and lubricants from refiners and suppliers. These products are then distributed to a diverse network of customers, including company-owned retail stores, independent commission agents, unbranded retail outlets, and various commercial clients like school districts and municipalities. This segment ensures Sunoco LP maintains its position as a critical link between fuel producers and end-users.

Under its retail operations, Sunoco LP runs convenience stores primarily under the APlus and Aloha Island Mart brands. These locations offer a range of products and services, including food, beverages, snacks, groceries, and non-food items, in addition to motor fuels. This diversification allows the company to capture additional revenue streams beyond fuel sales, aligning with the broader convenience store industry trend of offering one-stop shopping solutions for customers. The integration of food and retail services enhances customer retention and cross-selling opportunities.

The All Other segment encompasses a mix of auxiliary businesses, including partnership credit card services, franchise royalties, and other retail operations. This segment also includes offerings like credit card processing, car washes, lottery tickets, ATMs, money orders, prepaid phone cards, and wireless services. These ancillary revenue streams contribute to Sunoco LPs overall profitability and demonstrate its ability to leverage its existing infrastructure to diversify its income sources.

Originally founded in 1886 as Susser Petroleum Partners LP, the company rebranded as Sunoco LP in 2014, signaling its strategic alignment with the Sunoco brand. Headquartered in Dallas, Texas, Sunoco LP operates with a legacy of over 135 years, underscoring its resilience and adaptability in the energy retail sector. Its extensive history provides a foundation of operational expertise and market knowledge, which are critical in navigating the competitive landscape of fuel distribution and convenience retailing.

From a financial perspective, Sunoco LP presents an intriguing profile for investors. With a market capitalization of $7.8 billion, it is a mid-sized company within the energy sector. The trailing P/E ratio of 9.56 and forward P/E of 7.67 suggest that the market is pricing in modest growth expectations, potentially offering value for investors seeking exposure to the energy distribution space. The price-to-book ratio of 1.92 indicates that the market values the company slightly above its book value, reflecting investor sentiment about its future prospects. The price-to-sales ratio of 0.34 highlights the companys ability to generate revenue relative to its market valuation, which may appeal to investors focused on turnover and market share.