SUNCOR ENERGY INC (SU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SU - CA8672241079 - Common Stock
69.61 CAD
+0.89 (+1.3%)
SU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 206 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year SU was profitable.
- In the past year SU had a positive cash flow from operations.
- Of the past 5 years SU 4 years were profitable.
- In the past 5 years SU always reported a positive cash flow from operatings.
1.2 Ratios
- SU has a Return On Assets of 5.88%. This is amongst the best in the industry. SU outperforms 87.85% of its industry peers.
- With an excellent Return On Equity value of 11.65%, SU belongs to the best of the industry, outperforming 83.18% of the companies in the same industry.
- SU has a Return On Invested Capital of 7.63%. This is amongst the best in the industry. SU outperforms 90.65% 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 74.30% of its industry peers.
- In the last couple of years the Profit Margin of SU has grown nicely.
- The Operating Margin of SU (16.10%) is better than 64.02% 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 62.21%, SU is doing good in the industry, outperforming 79.91% of the companies in the same industry.
- In the last couple of years the Gross Margin of SU has declined.
| 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.
- The number of shares outstanding for SU has been reduced compared to 1 year ago.
- The number of shares outstanding for SU has been reduced compared to 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 2.39 indicates that SU is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SU has a Altman-Z score of 2.39. This is in the better half of the industry: SU outperforms 72.43% 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 88.32% of the companies in the same industry.
- SU has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
- SU has a Debt to Equity ratio of 0.27. This is in the better half of the industry: SU outperforms 62.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.01
WACC7.56%
2.3 Liquidity
- SU has a Current Ratio of 1.35. 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 (1.35) than 70.56% of its industry peers.
- A Quick Ratio of 0.85 indicates that SU may have some problems paying its short term obligations.
- SU has a better Quick ratio (0.85) than 60.75% of its industry peers.
| 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.
- Looking at the last year, SU shows a decrease in Revenue. The Revenue has decreased by -3.08% 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)-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
- SU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.16% yearly.
- 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.
- 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
- With a Price/Earnings ratio of 14.65, SU is valued correctly.
- Based on the Price/Earnings ratio, SU is valued a bit cheaper than the industry average as 68.69% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of SU to the average of the S&P500 Index (27.21), we can say SU is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 17.94, SU is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, SU is valued a bit cheaper than the industry average as 63.08% of the companies are valued more expensively.
- SU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.65 | ||
| Fwd PE | 17.94 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SU is valued cheaper than 85.05% of the companies 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 85.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.41 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
- The decent profitability rating of SU may justify a higher PE ratio.
- A cheap valuation may be justified as SU's earnings are expected to decrease with -8.00% in the coming years.
PEG (NY)N/A
PEG (5Y)1.04
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.
- SU's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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 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
- 53.29% of the earnings are spent on dividend by SU. 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.
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.