SUNCOR ENERGY INC (SU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SU - CA8672241079 - Common Stock
61.19 CAD
-1.28 (-2.05%)
We assign a fundamental rating of 6 out of 10 to SU. SU was compared to 215 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
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
The Return On Assets of SU (5.88%) is better than 89.30% of its industry peers.
SU has a Return On Equity of 11.65%. This is amongst the best in the industry. SU outperforms 83.72% of its industry peers.
SU's Return On Invested Capital of 7.63% is amongst the best of the industry. SU outperforms 89.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SU is above the industry average of 6.53%.
| 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
With a decent Profit Margin value of 10.65%, SU is doing good in the industry, outperforming 73.02% of the companies in the same industry.
SU's Profit Margin has improved in the last couple of years.
SU has a Operating Margin of 16.10%. This is in the better half of the industry: SU outperforms 61.86% of its industry peers.
In the last couple of years the Operating Margin of SU has grown nicely.
The Gross Margin of SU (62.21%) is better than 78.60% 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
Compared to 5 years ago, SU has less shares outstanding
Compared to 1 year ago, SU has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.27 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 2.27. This is in the better half of the industry: SU outperforms 72.56% of its industry peers.
The Debt to FCF ratio of SU is 1.80, which is an excellent value as it means it would take SU, only 1.80 years of fcf income to pay off all of its debts.
SU has a Debt to FCF ratio of 1.80. This is amongst the best in the industry. SU outperforms 89.30% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that SU is not too dependend on debt financing.
SU has a better Debt to Equity ratio (0.27) than 63.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 2.27 |
ROIC/WACC1.01
WACC7.55%
2.3 Liquidity
A Current Ratio of 1.35 indicates that SU should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.35, SU is in the better half of the industry, outperforming 70.23% of the companies in the same industry.
SU has a Quick Ratio of 1.35. 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 0.85, SU is in the better half of the industry, outperforming 60.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
SU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.36%.
The Earnings Per Share has been growing by 14.08% on average over the past years. This is quite good.
The Revenue has decreased by -3.08% in the past year.
The Revenue has been growing slightly by 5.74% on average over the past years.
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
The Earnings Per Share is expected to grow by 11.16% on average over the next years. This is quite good.
SU is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.12% yearly.
EPS Next Y-25.3%
EPS Next 2Y-19.5%
EPS Next 3Y1.71%
EPS Next 5Y11.16%
Revenue Next Year-2.42%
Revenue Next 2Y-3.03%
Revenue Next 3Y-1.56%
Revenue Next 5Y-0.12%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
SU is valuated correctly with a Price/Earnings ratio of 12.88.
Compared to the rest of the industry, the Price/Earnings ratio of SU indicates a somewhat cheap valuation: SU is cheaper than 68.84% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, SU is valued rather cheaply.
A Price/Forward Earnings ratio of 17.45 indicates a rather expensive valuation of SU.
The rest of the industry has a similar Price/Forward Earnings ratio as SU.
The average S&P500 Price/Forward Earnings ratio is at 36.10. SU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 17.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SU is valued cheaply inside the industry as 86.98% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SU is valued cheaply inside the industry as 86.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.15 | ||
| EV/EBITDA | 5.81 |
4.3 Compensation for Growth
The decent profitability rating of SU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.91
EPS Next 2Y-19.5%
EPS Next 3Y1.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.84%, SU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.88, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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-19.5%
EPS Next 3Y1.71%
TSX:SU (12/5/2025, 7:00:00 PM)
61.19
-1.28 (-2.05%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners72.88%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap73.51B
Revenue(TTM)49.40B
Net Income(TTM)5.26B
Analysts76.55
Price Target68.09 (11.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
Yearly Dividend2.21
Dividend Growth(5Y)5.68%
DP53.29%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.75%
Min EPS beat(2)0.63%
Max EPS beat(2)32.87%
EPS beat(4)4
Avg EPS beat(4)12.09%
Min EPS beat(4)0.63%
Max EPS beat(4)32.87%
EPS beat(8)8
Avg EPS beat(8)14.41%
EPS beat(12)10
Avg EPS beat(12)11.38%
EPS beat(16)12
Avg EPS beat(16)9.5%
Revenue beat(2)1
Avg Revenue beat(2)1.32%
Min Revenue beat(2)-4.49%
Max Revenue beat(2)7.14%
Revenue beat(4)1
Avg Revenue beat(4)-4.19%
Min Revenue beat(4)-9.75%
Max Revenue beat(4)7.14%
Revenue beat(8)3
Avg Revenue beat(8)0.01%
Revenue beat(12)7
Avg Revenue beat(12)1.72%
Revenue beat(16)10
Avg Revenue beat(16)4.3%
PT rev (1m)3.98%
PT rev (3m)4.64%
EPS NQ rev (1m)15.87%
EPS NQ rev (3m)8.36%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)-6.63%
Revenue NQ rev (3m)-4.47%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 17.45 | ||
| P/S | 1.49 | ||
| P/FCF | 9.15 | ||
| P/OCF | 5.27 | ||
| P/B | 1.63 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 5.81 |
EPS(TTM)4.75
EY7.76%
EPS(NY)3.51
Fwd EY5.73%
FCF(TTM)6.69
FCFY10.93%
OCF(TTM)11.61
OCFY18.97%
SpS41.12
BVpS37.6
TBVpS34.71
PEG (NY)N/A
PEG (5Y)0.91
Graham Number63.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 11.65% | ||
| ROCE | 10.05% | ||
| ROIC | 7.63% | ||
| ROICexc | 7.92% | ||
| ROICexgc | 8.3% | ||
| OM | 16.1% | ||
| PM (TTM) | 10.65% | ||
| GM | 62.21% | ||
| FCFM | 16.27% |
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
ROICexgc growth 3Y12.14%
ROICexgc 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.8 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 84.94% | ||
| Cap/Sales | 11.96% | ||
| Interest Coverage | 8.57 | ||
| Cash Conversion | 93.54% | ||
| Profit Quality | 152.78% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.27 |
F-Score6
WACC7.55%
ROIC/WACC1.01
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)-12.36%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%0%
EPS Next Y-25.3%
EPS Next 2Y-19.5%
EPS Next 3Y1.71%
EPS Next 5Y11.16%
Revenue 1Y (TTM)-3.08%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-3.9%
Revenue Next Year-2.42%
Revenue Next 2Y-3.03%
Revenue Next 3Y-1.56%
Revenue Next 5Y-0.12%
EBIT growth 1Y-14.49%
EBIT growth 3Y13.82%
EBIT growth 5Y7.7%
EBIT Next Year57.21%
EBIT Next 3Y15.71%
EBIT Next 5Y11.46%
FCF growth 1Y29.11%
FCF growth 3Y9.55%
FCF growth 5Y14.28%
OCF growth 1Y16.68%
OCF growth 3Y10.7%
OCF growth 5Y8.9%
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 6 / 10 to SU.CA.
What is the valuation status for SU stock?
ChartMill assigns a valuation rating of 6 / 10 to SUNCOR ENERGY INC (SU.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for SUNCOR ENERGY INC?
SUNCOR ENERGY INC (SU.CA) has a profitability rating of 7 / 10.
How financially healthy is SUNCOR ENERGY INC?
The financial health rating of SUNCOR ENERGY INC (SU.CA) is 7 / 10.
What is the expected EPS growth for SUNCOR ENERGY INC (SU.CA) stock?
The Earnings per Share (EPS) of SUNCOR ENERGY INC (SU.CA) is expected to decline by -25.3% in the next year.