SUNCOR ENERGY INC (SU.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:SU • CA8672241079
72.29 CAD
+0.49 (+0.68%)
Last: Jan 29, 2026, 07:00 PM
SU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 206 industry peers in the Oil, Gas & Consumable Fuels industry. SU has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SU is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year SU was profitable.
- SU had a positive operating cash flow in the past year.
- SU had positive earnings in 4 of the past 5 years.
- 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 5.88%, SU belongs to the best of the industry, outperforming 87.86% of the companies in the same industry.
- SU has a Return On Equity of 11.65%. This is amongst the best in the industry. SU outperforms 83.50% of its industry peers.
- SU has a better Return On Invested Capital (7.63%) than 90.78% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SU is above the industry average of 6.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 11.65% | ||
| ROIC | 7.63% |
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 has a better Profit Margin (10.65%) than 74.27% of its industry peers.
- SU's Profit Margin has improved in the last couple of years.
- SU's Operating Margin of 16.10% is fine compared to the rest of the industry. SU outperforms 64.08% of its industry peers.
- SU's Operating Margin has improved in the last couple of years.
- SU has a better Gross Margin (62.21%) than 80.58% of its industry peers.
- SU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.1% | ||
| PM (TTM) | 10.65% | ||
| GM | 62.21% |
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.
- Compared to 1 year ago, SU has less shares outstanding
- The number of shares outstanding for SU has been reduced compared to 5 years ago.
- SU has a better debt/assets ratio than last year.
2.2 Solvency
- SU has an Altman-Z score of 2.43. This is not the best score and indicates that SU is in the grey zone with still only limited risk for bankruptcy at the moment.
- SU has a better Altman-Z score (2.43) than 72.82% of its industry peers.
- SU has a debt to FCF ratio of 1.80. This is a very positive value and a sign of high solvency as it would only need 1.80 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.80, SU belongs to the top of the industry, outperforming 88.35% of the companies in the same industry.
- A Debt/Equity ratio of 0.27 indicates that SU is not too dependend on debt financing.
- SU's Debt to Equity ratio of 0.27 is fine compared to the rest of the industry. SU outperforms 62.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.99
WACC7.74%
2.3 Liquidity
- A Current Ratio of 1.35 indicates that SU should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.35, SU is doing good in the industry, outperforming 70.39% of the companies in the same industry.
- A Quick Ratio of 0.85 indicates that SU may have some problems paying its short term obligations.
- SU's Quick ratio of 0.85 is fine compared to the rest of the industry. SU outperforms 60.19% of its industry peers.
- The current and quick ratio evaluation for SU is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- The earnings per share for SU have decreased strongly by -12.36% in the last year.
- Measured over the past years, SU shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.08% on average per year.
- The Revenue has decreased by -3.08% in the past 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)-12.36%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%0%
Revenue 1Y (TTM)-3.08%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-3.9%
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 11.16% on average per year.
- SU is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.17% yearly.
EPS Next Y-13.47%
EPS Next 2Y-15.31%
EPS Next 3Y-8%
EPS Next 5Y11.16%
Revenue Next Year-0.3%
Revenue Next 2Y-3%
Revenue Next 3Y-1.99%
Revenue Next 5Y-0.17%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.22, which indicates a correct valuation of SU.
- Compared to the rest of the industry, the Price/Earnings ratio of SU indicates a somewhat cheap valuation: SU is cheaper than 68.45% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. SU is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 18.63, which indicates a rather expensive current valuation of SU.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SU indicates a somewhat cheap valuation: SU is cheaper than 62.14% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, SU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 18.63 |
4.2 Price Multiples
- 84.95% of the companies in the same industry are more expensive than SU, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SU indicates a rather cheap valuation: SU is cheaper than 84.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.81 | ||
| EV/EBITDA | 6.6 |
4.3 Compensation for Growth
- SU has an outstanding profitability rating, which may justify a higher PE ratio.
- SU's earnings are expected to decrease with -8.00% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.08
EPS Next 2Y-15.31%
EPS Next 3Y-8%
5. Dividend
5.1 Amount
- SU has a Yearly Dividend Yield of 3.49%.
- SU's Dividend Yield is a higher than the industry average which is at 3.29.
- Compared to an average S&P500 Dividend Yield of 1.82, SU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
- The dividend of SU has a limited annual growth rate of 5.68%.
- SU has been paying a dividend for at least 10 years, so it has 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
- SU pays out 53.29% of its income as dividend. 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.
DP53.29%
EPS Next 2Y-15.31%
EPS Next 3Y-8%
SUNCOR ENERGY INC / SU.CA FAQ
What is the ChartMill fundamental rating of SUNCOR ENERGY INC (SU.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to SU.CA.
Can you provide the valuation status for SUNCOR ENERGY INC?
ChartMill assigns a valuation rating of 6 / 10 to SUNCOR ENERGY INC (SU.CA). This can be considered as Fairly Valued.
How profitable is SUNCOR ENERGY INC (SU.CA) stock?
SUNCOR ENERGY INC (SU.CA) has a profitability rating of 8 / 10.
What is the financial health of SUNCOR ENERGY INC (SU.CA) stock?
The financial health rating of SUNCOR ENERGY INC (SU.CA) is 8 / 10.
Can you provide the expected EPS growth for SU stock?
The Earnings per Share (EPS) of SUNCOR ENERGY INC (SU.CA) is expected to decline by -13.47% in the next year.