SUNCOR ENERGY INC (SU.CA) Stock Fundamental Analysis
TSX:SU - Toronto Stock Exchange - CA8672241079 - Common Stock - Currency: CAD
Overall SU gets a fundamental rating of 6 out of 10. We evaluated SU against 219 industry peers in the Oil, Gas & Consumable Fuels industry. SU gets an excellent profitability rating and is at the same time showing great financial health properties. SU has a valuation in line with the averages, but it does not seem to be growing. SU also has an excellent dividend rating. With these ratings, SU could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
SU had positive earnings in the past year.
In the past year SU had a positive cash flow from operations.
Of the past 5 years SU 4 years were profitable.
SU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.70%, SU belongs to the best of the industry, outperforming 87.78% of the companies in the same industry.
With an excellent Return On Equity value of 13.51%, SU belongs to the best of the industry, outperforming 85.52% of the companies in the same industry.
SU's Return On Invested Capital of 8.68% is amongst the best of the industry. SU outperforms 87.78% of its industry peers.
SU had an Average Return On Invested Capital over the past 3 years of 10.38%. This is above the industry average of 7.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.7% | ||
| ROE | 13.51% | ||
| ROIC | 8.68% |
ROA(3y)8.93%
ROA(5y)5.32%
ROE(3y)18.58%
ROE(5y)10.98%
ROIC(3y)10.38%
ROIC(5y)N/A
1.3 Margins
SU's Profit Margin of 11.87% is fine compared to the rest of the industry. SU outperforms 74.21% of its industry peers.
In the last couple of years the Profit Margin of SU has grown nicely.
The Operating Margin of SU (17.82%) is better than 61.09% of its industry peers.
In the last couple of years the Operating Margin of SU has grown nicely.
With a decent Gross Margin value of 62.29%, SU is doing good in the industry, outperforming 75.57% of the companies in the same industry.
SU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.82% | ||
| PM (TTM) | 11.87% | ||
| GM | 62.29% |
OM growth 3Y4.42%
OM growth 5Y1.85%
PM growth 3Y4.08%
PM growth 5Y9.44%
GM growth 3Y-1.29%
GM growth 5Y-1.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SU is creating some value.
SU has less shares outstanding than it did 1 year ago.
SU has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SU has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.12 indicates that SU is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.12, SU is in the better half of the industry, outperforming 72.40% of the companies in the same industry.
The Debt to FCF ratio of SU is 1.55, which is an excellent value as it means it would take SU, only 1.55 years of fcf income to pay off all of its debts.
SU has a Debt to FCF ratio of 1.55. This is amongst the best in the industry. SU outperforms 89.14% of its industry peers.
SU has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.29, SU is in line with its industry, outperforming 56.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 2.12 |
ROIC/WACC1.19
WACC7.29%
2.3 Liquidity
A Current Ratio of 1.33 indicates that SU should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.33, SU is doing good in the industry, outperforming 69.23% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that SU may have some problems paying its short term obligations.
SU has a Quick ratio of 0.86. This is in the better half of the industry: SU outperforms 63.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
SU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.72%.
The Earnings Per Share has been growing by 20.44% on average over the past years. This is a very strong growth
Looking at the last year, SU shows a small growth in Revenue. The Revenue has grown by 3.25% in the last year.
SU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.74% yearly.
EPS 1Y (TTM)-25.72%
EPS 3Y19.4%
EPS 5Y20.44%
EPS Q2Q%-70.14%
Revenue 1Y (TTM)3.25%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-11.37%
3.2 Future
Based on estimates for the next years, SU will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.93% on average per year.
The Revenue is expected to decrease by -1.52% on average over the next years.
EPS Next Y-10.62%
EPS Next 2Y-1.66%
EPS Next 3Y5.48%
EPS Next 5Y17.93%
Revenue Next Year-1.37%
Revenue Next 2Y-0.69%
Revenue Next 3Y-1.67%
Revenue Next 5Y-1.52%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.91, the valuation of SU can be described as reasonable.
68.33% of the companies in the same industry are more expensive than SU, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.35. SU is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.59, the valuation of SU can be described as reasonable.
SU's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. SU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 10.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SU indicates a rather cheap valuation: SU is cheaper than 82.35% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SU indicates a rather cheap valuation: SU is cheaper than 87.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.71 | ||
| EV/EBITDA | 4.68 |
4.3 Compensation for Growth
The decent profitability rating of SU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-1.66%
EPS Next 3Y5.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.58%, SU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.94, SU pays a bit more dividend than its industry peers.
SU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
5.2 History
The dividend of SU has a limited annual growth rate of 5.68%.
SU has paid a dividend for at least 10 years, which is a reliable track record.
SU has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.68%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
46.59% of the earnings are spent on dividend by SU. This is a bit on the high side, but may be sustainable.
The dividend of SU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP46.59%
EPS Next 2Y-1.66%
EPS Next 3Y5.48%
TSX:SU (3/7/2025, 7:00:00 PM)
51.39
+1.65 (+3.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.46%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap63.58B
Analysts78.57
Price Target63.81 (24.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
Yearly Dividend2.21
Dividend Growth(5Y)5.68%
DP46.59%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.94%
Min Revenue beat(2)-9.46%
Max Revenue beat(2)-2.43%
Revenue beat(4)1
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-9.46%
Max Revenue beat(4)2.68%
Revenue beat(8)5
Avg Revenue beat(8)2.71%
Revenue beat(12)9
Avg Revenue beat(12)6.86%
Revenue beat(16)10
Avg Revenue beat(16)4.71%
PT rev (1m)1.34%
PT rev (3m)0.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.44%
EPS NY rev (1m)10.68%
EPS NY rev (3m)13.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.73%
Revenue NY rev (1m)2.53%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 10.59 | ||
| P/S | 1.25 | ||
| P/FCF | 6.71 | ||
| P/OCF | 3.98 | ||
| P/B | 1.43 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 4.68 |
EPS(TTM)4.71
EY9.17%
EPS(NY)4.85
Fwd EY9.44%
FCF(TTM)7.66
FCFY14.91%
OCF(TTM)12.9
OCFY25.1%
SpS40.97
BVpS35.98
TBVpS33.15
PEG (NY)N/A
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.7% | ||
| ROE | 13.51% | ||
| ROCE | 11.43% | ||
| ROIC | 8.68% | ||
| ROICexc | 9.08% | ||
| ROICexgc | 9.52% | ||
| OM | 17.82% | ||
| PM (TTM) | 11.87% | ||
| GM | 62.29% | ||
| FCFM | 18.7% |
ROA(3y)8.93%
ROA(5y)5.32%
ROE(3y)18.58%
ROE(5y)10.98%
ROIC(3y)10.38%
ROIC(5y)N/A
ROICexc(3y)10.71%
ROICexc(5y)N/A
ROICexgc(3y)11.24%
ROICexgc(5y)N/A
ROCE(3y)13.94%
ROCE(5y)N/A
ROICexcg growth 3Y12.14%
ROICexcg growth 5Y8.87%
ROICexc growth 3Y12.23%
ROICexc growth 5Y8.69%
OM growth 3Y4.42%
OM growth 5Y1.85%
PM growth 3Y4.08%
PM growth 5Y9.44%
GM growth 3Y-1.29%
GM growth 5Y-1.52%
F-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.55 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 93.23% | ||
| Cap/Sales | 12.79% | ||
| Interest Coverage | 9.89 | ||
| Cash Conversion | 99.82% | ||
| Profit Quality | 157.53% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.12 |
F-Score6
WACC7.29%
ROIC/WACC1.19
Cap/Depr(3y)81.25%
Cap/Depr(5y)72.56%
Cap/Sales(3y)11.22%
Cap/Sales(5y)12.24%
Profit Quality(3y)117.04%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.72%
EPS 3Y19.4%
EPS 5Y20.44%
EPS Q2Q%-70.14%
EPS Next Y-10.62%
EPS Next 2Y-1.66%
EPS Next 3Y5.48%
EPS Next 5Y17.93%
Revenue 1Y (TTM)3.25%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-11.37%
Revenue Next Year-1.37%
Revenue Next 2Y-0.69%
Revenue Next 3Y-1.67%
Revenue Next 5Y-1.52%
EBIT growth 1Y4.11%
EBIT growth 3Y13.82%
EBIT growth 5Y7.7%
EBIT Next Year61.43%
EBIT Next 3Y16.92%
EBIT Next 5Y12.23%
FCF growth 1Y47.89%
FCF growth 3Y9.55%
FCF growth 5Y14.28%
OCF growth 1Y29.29%
OCF growth 3Y10.7%
OCF growth 5Y8.9%