SUNCOR ENERGY INC (SU)
CA8672241079 - Common Stock
We assign a fundamental rating of 6 out of 10 to SU. SU was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. SU is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SU has a correct valuation and a medium growth rate. SU also has an excellent dividend rating. This makes SU very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year SU was profitable.
SU had a positive operating cash flow in the past year.
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's Return On Assets of 8.84% is fine compared to the rest of the industry. SU outperforms 72.55% of its industry peers.
SU's Return On Equity of 17.79% is fine compared to the rest of the industry. SU outperforms 67.65% of its industry peers.
SU has a better Return On Invested Capital (8.70%) than 60.29% of its industry peers.
SU had an Average Return On Invested Capital over the past 3 years of 9.58%. This is significantly below the industry average of 29.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 17.79% | ||
| ROIC | 8.7% |
ROA(3y)8.34%
ROA(5y)4.63%
ROE(3y)17.82%
ROE(5y)9.66%
ROIC(3y)9.58%
ROIC(5y)N/A
1.3 Margins
SU has a Profit Margin (15.73%) which is comparable to the rest of the industry.
SU's Profit Margin has improved in the last couple of years.
SU has a Operating Margin (18.25%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SU has remained more or less at the same level.
Looking at the Gross Margin, with a value of 61.96%, SU is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
In the last couple of years the Gross Margin of SU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.25% | ||
| PM (TTM) | 15.73% | ||
| GM | 61.96% |
OM growth 3YN/A
OM growth 5Y1.29%
PM growth 3YN/A
PM growth 5Y14.61%
GM growth 3Y-0.08%
GM growth 5Y-0.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SU is still creating some value.
Compared to 1 year ago, SU has less shares outstanding
SU has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SU has an improved debt to assets ratio.
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.
The Altman-Z score of SU (2.15) is better than 64.71% of its industry peers.
The Debt to FCF ratio of SU is 1.72, which is an excellent value as it means it would take SU, only 1.72 years of fcf income to pay off all of its debts.
SU's Debt to FCF ratio of 1.72 is amongst the best of the industry. SU outperforms 80.39% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that SU is not too dependend on debt financing.
SU has a Debt to Equity ratio (0.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.22
WACC7.14%
2.3 Liquidity
SU has a Current Ratio of 1.59. 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 (1.59) than 66.18% of its industry peers.
SU has a Quick Ratio of 1.04. 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 Quick ratio (1.04) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
SU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.07%.
Measured over the past years, SU shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.99% on average per year.
The Revenue has been growing slightly by 1.53% in the past year.
The Revenue has been growing slightly by 4.96% on average over the past years.
EPS 1Y (TTM)-4.07%
EPS 3YN/A
EPS 5Y13.99%
EPS Q2Q%-2.63%
Revenue 1Y (TTM)1.53%
Revenue growth 3Y25.79%
Revenue growth 5Y4.96%
Sales Q2Q%3.37%
3.2 Future
The Earnings Per Share is expected to grow by 21.25% on average over the next years. This is a very strong growth
Based on estimates for the next years, SU will show a decrease in Revenue. The Revenue will decrease by -1.05% on average per year.
EPS Next Y1.42%
EPS Next 2Y-8.37%
EPS Next 3Y2.64%
EPS Next 5Y21.25%
Revenue Next Year-0.47%
Revenue Next 2Y-0.31%
Revenue Next 3Y-0.66%
Revenue Next 5Y-1.05%
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 accelerating.
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 reasonably with a Price/Earnings ratio of 9.15.
Based on the Price/Earnings ratio, SU is valued a bit cheaper than 65.69% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, SU is valued rather cheaply.
The Price/Forward Earnings ratio is 11.59, 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.
The average S&P500 Price/Forward Earnings ratio is at 22.83. SU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.15 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
SU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SU is cheaper than 66.18% of the companies in the same industry.
75.98% of the companies in the same industry are more expensive than SU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.22 | ||
| EV/EBITDA | 4.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SU does not grow enough to justify the current Price/Earnings ratio.
SU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.42
PEG (5Y)0.65
EPS Next 2Y-8.37%
EPS Next 3Y2.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.58%, SU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.08, SU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, SU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
5.2 History
The dividend of SU is nicely growing with an annual growth rate of 7.66%!
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)7.66%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
34.85% of the earnings are spent on dividend by SU. This is a low number and sustainable payout ratio.
SU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.85%
EPS Next 2Y-8.37%
EPS Next 3Y2.64%
SUNCOR ENERGY INC
NYSE:SU (12/20/2024, 8:04:00 PM)
After market: 34.5102 +0.01 (+0.03%)34.5
-0.11 (-0.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners73.24%
Inst Owner Change4.32%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap43.83B
Analysts76.67
Price Target44.87 (30.06%)
Short Float %3.61%
Short Ratio11.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
Dividend Growth(5Y)7.66%
DP34.85%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.1%
Min EPS beat(2)14.17%
Max EPS beat(2)32.04%
EPS beat(4)4
Avg EPS beat(4)16.73%
Min EPS beat(4)6.64%
Max EPS beat(4)32.04%
EPS beat(8)6
Avg EPS beat(8)11.02%
EPS beat(12)8
Avg EPS beat(12)8.63%
EPS beat(16)11
Avg EPS beat(16)12.16%
Revenue beat(2)1
Avg Revenue beat(2)0.12%
Min Revenue beat(2)-2.43%
Max Revenue beat(2)2.68%
Revenue beat(4)2
Avg Revenue beat(4)4.22%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)20.03%
Revenue beat(8)6
Avg Revenue beat(8)5.06%
Revenue beat(12)9
Avg Revenue beat(12)7.38%
Revenue beat(16)10
Avg Revenue beat(16)4.55%
PT rev (1m)-0.38%
PT rev (3m)-2.45%
EPS NQ rev (1m)2.56%
EPS NQ rev (3m)-21.32%
EPS NY rev (1m)6.05%
EPS NY rev (3m)-7.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.3%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.15 | ||
| Fwd PE | 11.59 | ||
| P/S | 1.24 | ||
| P/FCF | 7.22 | ||
| P/OCF | 4.15 | ||
| P/B | 1.4 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 4.69 |
EPS(TTM)3.77
EY10.93%
EPS(NY)2.98
Fwd EY8.63%
FCF(TTM)4.78
FCFY13.85%
OCF(TTM)8.31
OCFY24.1%
SpS27.89
BVpS24.67
TBVpS22.76
PEG (NY)6.42
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 17.79% | ||
| ROCE | 11.44% | ||
| ROIC | 8.7% | ||
| ROICexc | 9.03% | ||
| ROICexgc | 9.46% | ||
| OM | 18.25% | ||
| PM (TTM) | 15.73% | ||
| GM | 61.96% | ||
| FCFM | 17.13% |
ROA(3y)8.34%
ROA(5y)4.63%
ROE(3y)17.82%
ROE(5y)9.66%
ROIC(3y)9.58%
ROIC(5y)N/A
ROICexc(3y)9.84%
ROICexc(5y)N/A
ROICexgc(3y)10.33%
ROICexgc(5y)N/A
ROCE(3y)12.92%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y7.17%
ROICexc growth 3YN/A
ROICexc growth 5Y7%
OM growth 3YN/A
OM growth 5Y1.29%
PM growth 3YN/A
PM growth 5Y14.61%
GM growth 3Y-0.08%
GM growth 5Y-0.14%
F-Score5
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.72 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 96.48% | ||
| Cap/Sales | 12.68% | ||
| Interest Coverage | 10.97 | ||
| Cash Conversion | 94.96% | ||
| Profit Quality | 108.88% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 2.15 |
F-Score5
WACC7.14%
ROIC/WACC1.22
Cap/Depr(3y)76.13%
Cap/Depr(5y)64.43%
Cap/Sales(3y)10.84%
Cap/Sales(5y)12.58%
Profit Quality(3y)122.87%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.07%
EPS 3YN/A
EPS 5Y13.99%
EPS Q2Q%-2.63%
EPS Next Y1.42%
EPS Next 2Y-8.37%
EPS Next 3Y2.64%
EPS Next 5Y21.25%
Revenue 1Y (TTM)1.53%
Revenue growth 3Y25.79%
Revenue growth 5Y4.96%
Sales Q2Q%3.37%
Revenue Next Year-0.47%
Revenue Next 2Y-0.31%
Revenue Next 3Y-0.66%
Revenue Next 5Y-1.05%
EBIT growth 1Y-9.95%
EBIT growth 3YN/A
EBIT growth 5Y6.31%
EBIT Next Year85.24%
EBIT Next 3Y21.25%
EBIT Next 5Y10.54%
FCF growth 1Y-7.22%
FCF growth 3YN/A
FCF growth 5Y4.37%
OCF growth 1Y5.73%
OCF growth 3Y66.49%
OCF growth 5Y3.13%