High-dividend stock yields 12% with strong cash flow growth and a cheap price – sunoco lp (nyse_sun) _ seeking alpha

Looking for values in the “fall buying season?” Some stocks are presenting good values, since Mr. Npower electricity supplier number Market has pushed them down over the past few weeks.

We’ve covered Sunoco LP (NYSE: SUN) in past articles – they just reported their Q3 earnings. Electricity cost per month This is a company which has expanded rapidly over the past two years, transforming itself into a C-store/gas station/taco-flippin’ juggernaut.

1. Electricity and magnetism Wholesale Fuel distribution, which distributes Sunoco-branded motor fuel to 6,800 convenience stores, independent dealers, commercial customers and distributors including approximately 1,340 C-stores and retail fuel sites operated by SUN.

2. What are the 4 gas giants in the solar system Convenience store/gas stations, within which it has ramped up its food offerings, via its Laredo Taco Company restaurants, which improve its margins and customer loyalty.

As of September 30, SUN operated approximately 1,345 convenience stores and retail fuel outlets along the East Coast in the Southwest and in Hawaii. Gas under 2 dollars Third-party operated sites totaled 5,600 locations. Table d gaskets (Source: SUN site)

In the first nine months of 2016, SUN’s two biggest sales segments, Retail and wholesale motor fuel, both saw revenue falling due to a decrease in the average selling price of fuel, but the wholesale division’s gross profit grew over 36%.

SUN’s Merchandise segment did very well – even though its sales only grew 4.46%, and were just 15% of total revenue, it chipped in nearly 33% of SUN’s total gross profit.

In Q3 2016, total gross profit was $577.4M, up 10% vs. Gaz 67 sprzedam $524.8M in Q3 2015. Tortugas ninjas “Key drivers of the increase were higher wholesale motor fuel and merchandise profits partly offset by a decrease in retail motor fuel gross profit. 4 gas giants Revenue fell 8% vs. Eur j gastroenterology hepatology impact factor Q3 2015 “the decline was the result of a 47.1 cent per gallon decrease in the average selling price of fuel partly offset by increased merchandise sales and additional gallons sold.” (Source: SUN site)

However, SUN did grow its EBITDA by 27%, its DCF by over 10%, and has achieved some very big TTM growth numbers – EBITDA is up 30%, and DCF is up 79%, thanks to the finalization of SUN’s huge acquisition from sponsor Energy Transfer Partners (NYSE: ETP) earlier in 2016.

Note: These are SUN’s as reported figures from these quarters and haven’t been adjusted retroactively, which show how the company has grown via its acquisitions.

SUN had a string of 13 straight distributions up until its most recent one – it left its distribution unchanged from Q2, at $.8255, which is a 10.7% increase vs. Gas you up Q3 2015. Electricity in india travel Its next payout should be around the beginning of February 2017.

Our Covered Calls Table, which tracks over 25 other income-producing trades now has this new trade for SUN. Electricity and magnetism worksheets high school The March $27.50 strike pays $.80, with an ask of $1.10, putting it in a range where you could double your next distribution.

The caveat here, though, is that the $27.50 strike is only $.38 above SUN’s $27.12 price/unit, so your shares may be assigned/called prior to the February ex-dividend date.

There’s also an attractive put-selling opportunity available for SUN if you want to go out around four months to March. Hp gas online booking mobile number There’s a wide bid/ask spread of $1.00/$1.70, and this put actually closed at $1.40 on 11/9/16, so you may be able to attain a better yield than what you see here:

Performance: SUN has lagged the market since receiving two analyst downgrades in the summer. Gas prices going up in nj However, coverage has been initiated or resumed by four different research firms since mid-August – Morgan Stanley, FBR, Citigroup and Mizuho.

Valuations: SUN is selling at a modest 1.08 book value multiple and a price/sales ratio of just .20, both of which are much lower than broad industry averages. Electricity for kids Its 7.61 price/DCF also looks cheap.

Given that SUN has earned $1.25/unit in the first nine months, and this with only one month of earnings from its acquisition of fuel services business from Emerge Energy Services LP (NYSE: EMES) and that it just closed its $54M acquisition of Denny Oil’s C-store/fuel distribution business on 10/12/16, SUN’s Q4 2016, and 2017 sales and earnings should expand.

Another supporting factor for growth is that SUN has been building 35 new “Stripes” retail fuel/C-Store locations in 2016 which will feature its higher margin food outlets.

Major Holders: SUN has gotten support from the Street as several large players own shares. 4 gas laws But the total institutional holdings only make up around 44% of the current float, so it’s certainly not saturated yet.

Financials: SUN’s management efficiency ratios and operating margin do need improving – we’d like to see some improvement in these figures in the coming quarters.

Debt: SUN has a 55%/45% mix of fixed/floating rate debt and its nearest debt maturity isn’t until 2019. Gas zone edenvale Its current debt/EBITDA ratio is at 5.97x. Gas 76 Their term loan and revolving credit agreement leverage ratio covenants allow them to temporarily raise the ratio to 6.25x through the first quarter of 2017 before it decreases to 5.5x.

EBITDA and DCF Calculations: These figures are from the new Q3 2016 earnings release. Electricity quizlet They seem straightforward – management adds back the usual items to obtain EBITDA and then adjusts it for non-cash expenses and one-time asset disposals.

Management then deducts interest expenses, maintenance capex, and transaction expenses, and adjusts for income tax expenses/benefits to derive its distributable cash flow figure.

Disclaimer: This article was written for informational purposes only, and isn’t intended as personal investment advice. 1 electricity unit is equal to how many kwh Please practice due diligence before investing in any investment vehicle mentioned in this article.