Analyzing NYSE:SU's Dividend Potential.

SUNCOR ENERGY INC (NYSE:SU) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:SU demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

What does the Dividend looks like for NYSE:SU

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:SU earns a 8 out of 10:

• SU has a Yearly Dividend Yield of 4.58%, which is a nice return.
• SU's Dividend Yield is a higher than the industry average which is at 7.14.
• SU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
• The dividend of SU is nicely growing with an annual growth rate of 7.66%!
• SU has been paying a dividend for at least 10 years, so it has a reliable track record.
• 34.85% of the earnings are spent on dividend by SU. This is a low number and sustainable payout ratio.
• The dividend of SU is growing, but earnings are growing more, so the dividend growth is sustainable.

Unpacking NYSE:SU's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:SU has achieved a 7 out of 10:

• SU's Altman-Z score of 2.15 is fine compared to the rest of the industry. SU outperforms 64.71% of its industry peers.
• SU has a debt to FCF ratio of 1.72. This is a very positive value and a sign of high solvency as it would only need 1.72 years to pay back of all of its debts.
• SU's Debt to FCF ratio of 1.72 is amongst the best of the industry. SU outperforms 80.39% of its industry peers.
• A Debt/Equity ratio of 0.32 indicates that SU is not too dependend on debt financing.
• Looking at the Current ratio, with a value of 1.59, SU is in the better half of the industry, outperforming 66.18% of the companies in the same industry.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:SU scores a 6 out of 10:

• SU has a better Return On Assets (8.84%) than 72.55% of its industry peers.
• With a decent Return On Equity value of 17.79%, SU is doing good in the industry, outperforming 67.65% of the companies in the same industry.
• SU has a Return On Invested Capital of 8.70%. This is in the better half of the industry: SU outperforms 60.29% of its industry peers.
• In the last couple of years the Profit Margin of SU has grown nicely.
• SU has a better Gross Margin (61.96%) than 68.63% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of SU

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.