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 207 industry peers in the Oil, Gas & Consumable Fuels industry. SU scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SU has a valuation in line with the averages, but it does not seem to be growing. SU also has an excellent dividend rating. This makes SU very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
SU had positive earnings in the past year.
SU had a positive operating cash flow in the past year.
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
SU has a Return On Assets of 6.80%. This is amongst the best in the industry. SU outperforms 87.44% of its industry peers.
SU's Return On Equity of 13.59% is amongst the best of the industry. SU outperforms 84.06% of its industry peers.
SU has a Return On Invested Capital of 8.65%. This is amongst the best in the industry. SU outperforms 87.44% 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 7.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 13.59% | ||
| ROIC | 8.65% |
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
The Profit Margin of SU (12.04%) is better than 74.40% of its industry peers.
In the last couple of years the Profit Margin of SU has grown nicely.
With a decent Operating Margin value of 17.86%, SU is doing good in the industry, outperforming 71.50% of the companies in the same industry.
SU's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 62.36%, SU is doing good in the industry, outperforming 78.26% of the companies in the same industry.
SU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.86% | ||
| PM (TTM) | 12.04% | ||
| GM | 62.36% |
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
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 2.15 indicates that SU is not a great score, but indicates only limited risk for bankruptcy at the moment.
SU's Altman-Z score of 2.15 is fine compared to the rest of the industry. SU outperforms 71.98% of its industry peers.
The Debt to FCF ratio of SU is 1.64, which is an excellent value as it means it would take SU, only 1.64 years of fcf income to pay off all of its debts.
SU has a better Debt to FCF ratio (1.64) than 85.99% 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.
The Debt to Equity ratio of SU (0.29) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.06
WACC8.15%
2.3 Liquidity
A Current Ratio of 1.39 indicates that SU should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.39, SU is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
SU has a Quick Ratio of 1.39. 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 0.84, SU is in the better half of the industry, outperforming 61.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.11% over the past year.
The Earnings Per Share has been growing by 14.08% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.16% in the past year.
Measured over the past years, SU shows a small growth in Revenue. The Revenue has been growing by 5.74% on average per year.
EPS 1Y (TTM)3.11%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-7.09%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-0.61%
3.2 Future
SU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.58% yearly.
The Revenue is expected to decrease by -0.96% on average over the next years.
EPS Next Y-14.27%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
EPS Next 5Y11.58%
Revenue Next Year0.13%
Revenue Next 2Y-0.43%
Revenue Next 3Y-0.07%
Revenue Next 5Y-0.96%
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.
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
SU is valuated reasonably with a Price/Earnings ratio of 9.73.
Based on the Price/Earnings ratio, SU is valued a bit cheaper than the industry average as 70.05% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.29. SU is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.56, which indicates a very decent valuation of SU.
SU's Price/Forward Earnings is on the same level as the industry average.
SU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SU is valued cheaply inside the industry as 83.57% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SU is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.07 | ||
| EV/EBITDA | 4.72 |
4.3 Compensation for Growth
The decent profitability rating of SU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.37%, SU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.35, SU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, SU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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 46.04% 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.
DP46.04%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
TSX:SU (7/7/2025, 7:00:00 PM)
51.68
-0.09 (-0.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners73.17%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap63.72B
Analysts78.57
Price Target60.66 (17.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
Yearly Dividend2.21
Dividend Growth(5Y)5.68%
DP46.04%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.42%
Min EPS beat(2)4.81%
Max EPS beat(2)10.03%
EPS beat(4)4
Avg EPS beat(4)15.26%
Min EPS beat(4)4.81%
Max EPS beat(4)32.04%
EPS beat(8)8
Avg EPS beat(8)12.91%
EPS beat(12)9
Avg EPS beat(12)8.82%
EPS beat(16)11
Avg EPS beat(16)7.27%
Revenue beat(2)0
Avg Revenue beat(2)-9.7%
Min Revenue beat(2)-9.75%
Max Revenue beat(2)-9.66%
Revenue beat(4)1
Avg Revenue beat(4)-4.79%
Min Revenue beat(4)-9.75%
Max Revenue beat(4)2.68%
Revenue beat(8)4
Avg Revenue beat(8)0.8%
Revenue beat(12)8
Avg Revenue beat(12)4.86%
Revenue beat(16)10
Avg Revenue beat(16)4.15%
PT rev (1m)0.09%
PT rev (3m)-5.6%
EPS NQ rev (1m)-18.06%
EPS NQ rev (3m)-31.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.6%
Revenue NQ rev (1m)-6.88%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 10.56 | ||
| P/S | 1.26 | ||
| P/FCF | 7.07 | ||
| P/OCF | 4.16 | ||
| P/B | 1.42 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 4.72 |
EPS(TTM)5.31
EY10.27%
EPS(NY)4.89
Fwd EY9.47%
FCF(TTM)7.31
FCFY14.14%
OCF(TTM)12.43
OCFY24.06%
SpS41.06
BVpS36.36
TBVpS33.53
PEG (NY)N/A
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 13.59% | ||
| ROCE | 11.4% | ||
| ROIC | 8.65% | ||
| ROICexc | 8.97% | ||
| ROICexgc | 9.39% | ||
| OM | 17.86% | ||
| PM (TTM) | 12.04% | ||
| GM | 62.36% | ||
| FCFM | 17.8% |
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 | 1.64 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 90.38% | ||
| Cap/Sales | 12.48% | ||
| Interest Coverage | 9.77 | ||
| Cash Conversion | 95.61% | ||
| Profit Quality | 147.86% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.15 |
F-Score6
WACC8.15%
ROIC/WACC1.06
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)3.11%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-7.09%
EPS Next Y-14.27%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
EPS Next 5Y11.58%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-0.61%
Revenue Next Year0.13%
Revenue Next 2Y-0.43%
Revenue Next 3Y-0.07%
Revenue Next 5Y-0.96%
EBIT growth 1Y4.19%
EBIT growth 3Y13.82%
EBIT growth 5Y7.7%
EBIT Next Year59.57%
EBIT Next 3Y17.11%
EBIT Next 5Y9.93%
FCF growth 1Y6.92%
FCF growth 3Y9.55%
FCF growth 5Y14.28%
OCF growth 1Y12.33%
OCF growth 3Y10.7%
OCF growth 5Y8.9%