Investment Thesis
SunocoCorp exhibits revenue growth of 11.1% YoY, but net income is completely flat, indicating significant margin compression and operational deterioration. Thin net margins of 1.0%, elevated leverage (~1.65x debt-to-equity), and a quick ratio below 1.0 signal financial stress and limited liquidity, making the company unsuitable for risk-conscious investors.
Strengths
- Solid top-line growth of 11.1% YoY demonstrates market demand
- Adequate interest coverage ratio of 4.3x indicates debt can be serviced
- Positive operating cash flow of $454M provides some financial flexibility
Risks
- Net income completely flat (0% growth) despite 11% revenue growth signals severe margin compression
- Extremely thin net margin of 1.0% leaves no buffer for operational challenges or sector downturns
- Quick ratio of 0.92x falls below 1.0, indicating potential liquidity strain and weak short-term financial position
- Elevated leverage with estimated debt-to-equity of ~1.65x and $13.9B long-term debt on $30.3B asset base
- Exceptionally low ROA of 0.4% indicates poor asset utilization efficiency
- Missing capital expenditure data suggests potential underinvestment in refining infrastructure
Key Metrics to Watch
- Net profit margin trends—any further compression is unsustainable
- Operating cash flow stability as a proxy for underlying business health
- Debt reduction or refinancing activity given leverage levels
- Quick ratio and cash position for immediate liquidity stress signs
Financial Metrics
Revenue
10.7B
Net Income
110.0M
EPS (Diluted)
$2.13
Free Cash Flow
454.0M
Total Assets
30.3B
Cash
891.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
8.1%
Net Margin
1.0%
ROE
N/A
ROA
0.4%
FCF Margin
4.2%
Balance Sheet & Liquidity
Current Ratio
1.40x
Quick Ratio
0.92x
Debt/Equity
N/A
Debt/Assets
72.5%
Interest Coverage
4.31x
Long-term Debt
13.9B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-08T08:41:01.743906 |
Data as of: 2026-03-31 |
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