SUN (Sunoco LP) Interest Coverage: 4.30 (As of Mar. 2026) — 71% Above Median

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SUN Sunoco LP SUN
80 GF Score
Price $73.82
GF Value $52.39
Valuation Significantly Overvalued
! 12 Warning Signs
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What is Sunoco LP Interest Coverage?

Sunoco LP SUN -0.69% 80 Interest Coverage is 4.30 as of Mar. 2026, which is 71% above its 10-year median of 2.52. GuruFocus rates SUN with a GF Score™ of 80/100 and a GF Value™ of $52.39 (Significantly Overvalued). The stock has 12 warning signs investors should review. Among 730 Oil & Gas companies, Sunoco LP ranks worse than 73.97% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Sunoco LP's Operating Income for the three months ended in Mar. 2026 was $865 Mil. Sunoco LP's Interest Expense for the three months ended in Mar. 2026 was $-201 Mil. Sunoco LP's interest coverage for the quarter that ended in Mar. 2026 was 4.30. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Sunoco LP's Interest Coverage or its related term are showing as below:

SUN' s Interest Coverage Range Over the Past 10 Years
Min: 1.74   Med: 2.52   Max: 4.71
Current: 2.43


SUN's Interest Coverage is ranked worse than
73.97% of 730 companies
in the Oil & Gas industry
Industry Median: 6.09 vs SUN: 2.43

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Sunoco LP  (NYSE:SUN) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Sunoco LP Interest Coverage Related Terms


Sunoco LP Interest Coverage Historical Data

* Premium members only.

The historical data trend for Sunoco LP's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Sunoco LP Interest Coverage Chart

Sunoco LP Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.71 3.78 2.96 2.20 1.74

Sunoco LP Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.63 1.95 1.09 4.30 2.87

SUN vs DINO, PBF, IEP: Interest Coverage Comparison

For the Oil & Gas Refining & Marketing subindustry, Sunoco LP's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sunoco LP Interest Coverage vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Sunoco LP's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sunoco LP's Interest Coverage falls into.


SUN
80GF Score
Sunoco LP SUN
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sunoco LP Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sunoco LP's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Sunoco LP's Interest Expense was $-535 Mil. Its Operating Income was $929 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,627 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*929/-535
=1.74

Sunoco LP's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Sunoco LP's Interest Expense was $-201 Mil. Its Operating Income was $865 Mil. And its Long-Term Debt & Capital Lease Obligation was $15,231 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*865/-201
=4.30

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 4.30 mean?
Sunoco LP (SUN) has a Interest Coverage of 4.30 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sunoco LP and its competitors. This is 71% above median its historical median of 2.52. Over the past decade, Sunoco LP's Interest Coverage has ranged from 1.74 to 4.71. According to the industry distribution chart, Sunoco LP ranks #540 out of 730 companies in the Oil & Gas industry, placing it in the top 74%.
Is Sunoco LP's Interest Coverage too high?
Sunoco LP's current Interest Coverage of 4.30 is 71% above median its 10-year median of 2.52. Over the past 10 years, this metric has ranged from a low of 1.74 to a high of 4.71. The Oil & Gas industry median Interest Coverage is 6.09. Sunoco LP's value of 4.30 is 29.4% below this industry median. Based on the distribution chart, Sunoco LP ranks #540 out of 730 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Sunoco LP has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sunoco LP's Interest Coverage compare to DINO and PBF?
According to the Oil & Gas industry distribution chart, Sunoco LP ranks #540 out of 730 companies for Interest Coverage. This places Sunoco LP in the lower half of its industry. The industry median Interest Coverage is 6.09. Sunoco LP's value of 4.30 is 29.4% below this benchmark. Historically, Sunoco LP's own Interest Coverage has ranged from 1.74 to 4.71 over the past decade. While the company's 10-year median is 2.52 vs. the industry median of 6.09, Sunoco LP has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 6.09, based on 730 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sunoco LP's current Interest Coverage of 4.30 is 29.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sunoco LP and its competitors. For the Oil & Gas industry, the median Interest Coverage is 6.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunoco LP's current Interest Coverage is 4.30, which is 71% above median its own 10-year median of 2.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunoco LP stock overvalued right now?
Based on GuruFocus' analysis, Sunoco LP (SUN) is currently considered Significantly Overvalued. The stock's GF Value™ is $52.39, compared to a current price of $73.82 — trading 40.9% above its estimated fair value. The current Interest Coverage is 4.30, which is 71% above median its 10-year median of 2.52 and 29.4% below the Oil & Gas industry median of 6.09. Sunoco LP's overall GF Score™ is 80/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Sunoco LP (SUN), the current Interest Coverage is 4.30 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Sunoco LP (SUN) Overvalued in 2026?

Based on GuruFocus' analysis, Sunoco LP stock appears to be overvalued. The current stock price of $73.82 is trading 40.9% above its estimated GF Value™ of $52.39. GuruFocus considers Sunoco LP to be Significantly Overvalued.

Key valuation signals for SUN:

  • Interest Coverage: 4.30 (71% above median its 10-year median of 2.52)
  • GF Value™: $52.39 vs. price of $73.82 (40.9% above fair value)
  • GF Score™: 80/100 with 12 warning signs
  • Industry Position: 29.4% below the Oil & Gas median (#540 of 730)

No single metric tells the full story. See the SUN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sunoco LP Business Description

Industry EnergyOil & Gas
Address 8111 Westchester Drive, Suite 400, Dallas, TX, USA, 75225
Sunoco LP is a Delaware limited partnership formed in June 2012 by Susser Holdings Corporation or SUSS. In September 2012, the Company completed its initial public offering. The Company, along with its wholly owned subsidiary, is an independent motor fuel distributor by gallons in Texas, and among the distributors of Valero and Chevron branded motor fuel in the United States. The Company also receives rental income from real estate that it leases or subleases. SUSS operated approximately 580 retail convenience stores under its proprietary Stripes convenience store brand at year-end, mainly in growing Texas markets. Stripes is an independent chain of convenience stores in Texas based on store count and retail motor fuel volumes sold. Its business is integral to the success of SUSS' retail operations, and SUSS purchases substantially all of its motor fuel from the Company. In addition to distributing motor fuel, it also distributes other petroleum products such as propane and lube oil, and receives rental income from real estate that it leases or subleases. The Company purchases motor fuel mainly from independent refiners and oil companies and distributes it throughout Texas and in Louisiana, New Mexico and Oklahoma. The Company competes mainly with other independent motor fuel distributors. The Company is subject to various federal, state and local environmental laws and regulations, including those relating to underground storage tanks; the release or discharge of hazardous materials into the air, water and soil; the generation, storage, handling, use, transportation and disposal of regulated materials; the exposure of persons to regulated materials; and the remediation of contaminated soil and groundwater.
80GF Score

Get the complete analysis for SUN

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$73.82
Price
$52.39
GF Value