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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sunoco LP's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 13.42%.
As of today (2026-08-05), Sunoco LP's WACC % is 5.55%. Sunoco LP's ROIC % is 7.72% (calculated using TTM income statement data).
Sunoco LP generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Sunoco LP's WACC % is 5.55%. Sunoco LP's ROIC % is 7.72% (calculated using TTM income statement data).
Sunoco LP generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Sunoco LP ROIC % Related Terms
Sunoco LP ROIC % Historical Data
* Premium members only.
The historical data trend for Sunoco LP's ROIC % 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.
For the Oil & Gas Refining & Marketing subindustry, Sunoco LP's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Sunoco LP's ROIC % distribution charts can be found below:
* The bar in red indicates where Sunoco LP's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Sunoco LP (SUN) has a ROIC % of 13.42% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Sunoco LP and its competitors.
Is Sunoco LP's ROIC % too high?
Sunoco LP's current ROIC % is 13.42%. The Oil & Gas industry median ROIC % is 3.80. Sunoco LP's value of 13.42% is 253.2% above this industry median. 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 ROIC % compare to DINO and PBF?
Sunoco LP's ROIC % of 13.42% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.80. Sunoco LP's value of 13.42% is 253.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.80, based on 998 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sunoco LP's current ROIC % of 13.42% is 253.2% above 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Sunoco LP and its competitors. For the Oil & Gas industry, the median ROIC % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunoco LP's current ROIC % is 13.42%. 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 ROIC % is 13.42% and 253.2% above the Oil & Gas industry median of 3.80. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Sunoco LP (SUN), the current ROIC % is 13.42% 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:
ROIC %: 13.42%
GF Value™: $52.39 vs. price of $73.82 (40.9% above fair value)
Industry Position: 253.2% above the Oil & Gas median
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 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
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