SUNCOR ENERGY INC (SU.CA) Stock Fundamental Analysis
TSX:SU - Toronto Stock Exchange - CA8672241079 - Common Stock - Currency: CAD
SU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making SU a very profitable company, without any liquidiy or solvency issues. SU is valued correctly, but it does not seem to be growing. SU also has an excellent dividend rating. These ratings would make SU suitable 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.
SU had positive earnings in 4 of the past 5 years.
In the past 5 years SU always reported a positive cash flow from operatings.
1.2 Ratios
SU's Return On Assets of 6.70% is amongst the best of the industry. SU outperforms 86.73% of its industry peers.
SU has a Return On Equity of 13.51%. This is amongst the best in the industry. SU outperforms 83.89% of its industry peers.
The Return On Invested Capital of SU (8.68%) is better than 88.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SU is above the industry average of 7.38%.
| 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 has a better Profit Margin (11.87%) than 74.88% of its industry peers.
SU's Profit Margin has improved in the last couple of years.
SU has a Operating Margin (17.82%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SU has grown nicely.
SU has a Gross Margin of 62.29%. This is in the better half of the industry: SU outperforms 76.30% of its industry peers.
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.
Compared to 5 years ago, SU has less shares outstanding
The debt/assets ratio for SU has been reduced compared to a year ago.
2.2 Solvency
SU has an Altman-Z score of 2.09. 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.
The Altman-Z score of SU (2.09) is better than 72.04% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 1.55, SU belongs to the best of the industry, outperforming 90.05% of the companies in the same industry.
SU has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
SU has a Debt to Equity ratio (0.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.95
WACC9.13%
2.3 Liquidity
SU has a Current Ratio of 1.33. This is a normal value and indicates that SU is financially healthy and should not expect problems in meeting its short term obligations.
SU has a better Current ratio (1.33) than 69.67% of its industry peers.
SU has a Quick Ratio of 1.33. This is a bad value and indicates that SU is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.86, SU is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
SU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.08%.
The Earnings Per Share has been growing by 14.08% on average over the past years. This is quite good.
Looking at the last year, SU shows a small growth in Revenue. The Revenue has grown by 3.25% in the last year.
The Revenue has been growing slightly by 5.74% on average over the past years.
EPS 1Y (TTM)6.08%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-0.79%
Revenue 1Y (TTM)3.25%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-11.56%
3.2 Future
The Earnings Per Share is expected to grow by 13.38% on average over the next years. This is quite good.
The Revenue is expected to decrease by -2.01% on average over the next years.
EPS Next Y-14.27%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
EPS Next 5Y13.38%
Revenue Next Year-1.37%
Revenue Next 2Y-0.69%
Revenue Next 3Y-1.67%
Revenue Next 5Y-2.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 9.12, the valuation of SU can be described as reasonable.
Based on the Price/Earnings ratio, SU is valued a bit cheaper than 69.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.79. SU is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.63, which indicates a very decent valuation of SU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SU is on the same level as its industry peers.
SU is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.12 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
SU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SU is cheaper than 80.57% of the companies in the same industry.
SU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SU is cheaper than 85.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.44 | ||
| EV/EBITDA | 4.52 |
4.3 Compensation for Growth
SU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.65
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 4.77%, which is a nice return.
Compared to an average industry Dividend Yield of 6.57, 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 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
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
SU pays out 46.59% of its income as dividend. This is a bit on the high side, but may be sustainable.
SU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP46.59%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
TSX:SU (4/24/2025, 7:00:00 PM)
49.32
+0.61 (+1.25%)
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 Cap61.02B
Analysts78.57
Price Target64.26 (30.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
Yearly Dividend2.21
Dividend Growth(5Y)5.68%
DP46.59%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.03%
Min EPS beat(2)10.03%
Max EPS beat(2)32.04%
EPS beat(4)4
Avg EPS beat(4)15.72%
Min EPS beat(4)6.64%
Max EPS beat(4)32.04%
EPS beat(8)7
Avg EPS beat(8)12.3%
EPS beat(12)9
Avg EPS beat(12)10.13%
EPS beat(16)11
Avg EPS beat(16)9.91%
Revenue beat(2)0
Avg Revenue beat(2)-6.04%
Min Revenue beat(2)-9.66%
Max Revenue beat(2)-2.43%
Revenue beat(4)1
Avg Revenue beat(4)-3.21%
Min Revenue beat(4)-9.66%
Max Revenue beat(4)2.68%
Revenue beat(8)5
Avg Revenue beat(8)2.68%
Revenue beat(12)9
Avg Revenue beat(12)6.84%
Revenue beat(16)10
Avg Revenue beat(16)4.7%
PT rev (1m)0.71%
PT rev (3m)1.57%
EPS NQ rev (1m)-5.44%
EPS NQ rev (3m)24.73%
EPS NY rev (1m)-4.42%
EPS NY rev (3m)8.3%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.12 | ||
| Fwd PE | 10.63 | ||
| P/S | 1.2 | ||
| P/FCF | 6.44 | ||
| P/OCF | 3.82 | ||
| P/B | 1.37 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 4.52 |
EPS(TTM)5.41
EY10.97%
EPS(NY)4.64
Fwd EY9.4%
FCF(TTM)7.66
FCFY15.53%
OCF(TTM)12.9
OCFY26.16%
SpS40.97
BVpS35.98
TBVpS33.15
PEG (NY)N/A
PEG (5Y)0.65
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 | 2.09 |
F-Score6
WACC9.13%
ROIC/WACC0.95
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)6.08%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-0.79%
EPS Next Y-14.27%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
EPS Next 5Y13.38%
Revenue 1Y (TTM)3.25%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-11.56%
Revenue Next Year-1.37%
Revenue Next 2Y-0.69%
Revenue Next 3Y-1.67%
Revenue Next 5Y-2.01%
EBIT growth 1Y4.11%
EBIT growth 3Y13.82%
EBIT growth 5Y7.7%
EBIT Next Year68.51%
EBIT Next 3Y17.49%
EBIT Next 5Y8.71%
FCF growth 1Y47.89%
FCF growth 3Y9.55%
FCF growth 5Y14.28%
OCF growth 1Y29.29%
OCF growth 3Y10.7%
OCF growth 5Y8.9%