Sunoco LP Return On Equity vs. Profit Margin
| SUN Stock | USD 54.02 0.59 1.10% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.31799591 | Current Value 0.3 | Quarterly Volatility 5.12959369 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.0417 | 0.0502 |
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| Return On Equity | 0.3 | 0.318 |
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For Sunoco LP profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sunoco LP to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sunoco LP utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sunoco LP's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sunoco LP over time as well as its relative position and ranking within its peers.
Sunoco |
Sunoco LP's Revenue Breakdown by Earning Segment
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Is Oil & Gas Storage & Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sunoco LP. If investors know Sunoco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sunoco LP listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 3.936 | Dividend Share 3.469 | Earnings Share 3.91 | Revenue Per Share 218.578 | Quarterly Revenue Growth (0.09) |
The market value of Sunoco LP is measured differently than its book value, which is the value of Sunoco that is recorded on the company's balance sheet. Investors also form their own opinion of Sunoco LP's value that differs from its market value or its book value, called intrinsic value, which is Sunoco LP's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sunoco LP's market value can be influenced by many factors that don't directly affect Sunoco LP's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sunoco LP's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sunoco LP is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sunoco LP's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Sunoco LP Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Sunoco LP's current stock value. Our valuation model uses many indicators to compare Sunoco LP value to that of its competitors to determine the firm's financial worth. Sunoco LP is rated fourth in return on equity category among its peers. It is rated below average in profit margin category among its peers fabricating about 0.11 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Sunoco LP is roughly 8.73 . At this time, Sunoco LP's Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Sunoco LP's earnings, one of the primary drivers of an investment's value.Sunoco Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Sunoco LP |
| = | 0.23 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Sunoco LP |
| = | 0.03 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Sunoco Profit Margin Comparison
Sunoco LP is currently under evaluation in profit margin category among its peers.
Sunoco LP Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Sunoco LP, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sunoco LP will eventually generate negative long term returns. The profitability progress is the general direction of Sunoco LP's change in net profit over the period of time. It can combine multiple indicators of Sunoco LP, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -622.8 M | -591.7 M | |
| Operating Income | 635 M | 666.8 M | |
| Income Before Tax | 430 M | 451.5 M | |
| Total Other Income Expense Net | -205 M | -194.8 M | |
| Net Income Applicable To Common Shares | 546.2 M | 573.6 M | |
| Net Income | 394 M | 413.7 M | |
| Income Tax Expense | 36 M | 37.8 M | |
| Net Income From Continuing Ops | 555 M | 582.8 M | |
| Interest Income | 3 M | 2.9 M | |
| Net Interest Income | -209 M | -219.4 M | |
| Non Operating Income Net Other | 4.5 M | 4.3 M | |
| Change To Netincome | 18 M | 14.4 M | |
| Net Income Per Share | 3.70 | 3.88 | |
| Income Quality | 1.52 | 1.83 | |
| Net Income Per E B T | 0.72 | 0.86 |
Sunoco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Sunoco LP. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Sunoco LP position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Sunoco LP's important profitability drivers and their relationship over time.
Use Sunoco LP in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Sunoco LP position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sunoco LP will appreciate offsetting losses from the drop in the long position's value.Sunoco LP Pair Trading
Sunoco LP Pair Trading Analysis
The ability to find closely correlated positions to Sunoco LP could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sunoco LP when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Sunoco LP - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Sunoco LP to buy it.
The correlation of Sunoco LP is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Sunoco LP moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sunoco LP moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Sunoco LP can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Sunoco LP position
In addition to having Sunoco LP in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out World Market Map. To learn how to invest in Sunoco Stock, please use our How to Invest in Sunoco LP guide.You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
To fully project Sunoco LP's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sunoco LP at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Sunoco LP's income statement, its balance sheet, and the statement of cash flows.