SUNCOR ENERGY INC (SU) Stock Fundamental Analysis
NYSE:SU - New York Stock Exchange, Inc. - CA8672241079 - Common Stock - Currency: USD
Overall SU gets a fundamental rating of 6 out of 10. We evaluated SU against 211 industry peers in the Oil, Gas & Consumable Fuels industry. While SU has a great health rating, its profitability is only average at the moment. SU is valued correctly, but it does not seem to be growing. Finally SU also has an excellent dividend rating. With these ratings, SU could be worth investigating further 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.
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
Looking at the Return On Assets, with a value of 6.80%, SU is in the better half of the industry, outperforming 70.14% of the companies in the same industry.
With a decent Return On Equity value of 13.59%, SU is doing good in the industry, outperforming 67.77% of the companies in the same industry.
The Return On Invested Capital of SU (8.65%) is better than 69.67% of its industry peers.
SU had an Average Return On Invested Capital over the past 3 years of 10.38%. This is significantly below the industry average of 23.70%.
| 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
SU's Profit Margin of 12.04% is fine compared to the rest of the industry. SU outperforms 61.14% of its industry peers.
SU's Profit Margin has improved in the last couple of years.
The Operating Margin of SU (17.86%) 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 62.36%. This is in the better half of the industry: SU outperforms 70.62% of its industry peers.
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.
SU has less shares outstanding than it did 1 year ago.
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
SU has an Altman-Z score of 2.16. 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.
Looking at the Altman-Z score, with a value of 2.16, SU is in the better half of the industry, outperforming 70.14% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.64, SU belongs to the best of the industry, outperforming 85.31% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that SU is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, SU is in the better half of the industry, outperforming 64.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 2.16 |
ROIC/WACC1.06
WACC8.13%
2.3 Liquidity
SU has a Current Ratio of 1.39. This is a normal value and indicates that SU is financially healthy and should not expect problems in meeting its short term obligations.
SU's Current ratio of 1.39 is fine compared to the rest of the industry. SU outperforms 63.98% of its industry peers.
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.
The Quick ratio of SU (0.84) is comparable to the rest of the 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.
SU shows a small growth in Revenue. In the last year, the Revenue has grown by 2.16%.
The Revenue has been growing slightly by 5.74% on average over the past years.
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.
SU is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.96% yearly.
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.
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
A Price/Earnings ratio of 9.81 indicates a reasonable valuation of SU.
SU's Price/Earnings ratio is a bit cheaper when compared to the industry. SU is cheaper than 73.93% of the companies in the same industry.
SU is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.65 indicates a reasonable valuation of SU.
Based on the Price/Forward Earnings ratio, SU is valued a bit cheaper than 63.98% of the companies in the same industry.
SU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SU is valued a bit cheaper than the industry average as 73.46% of the companies are valued more expensively.
83.41% 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 | 7.13 | ||
| EV/EBITDA | 4.76 |
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)0.7
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 4.40%, which is a nice return.
SU's Dividend Yield is a higher than the industry average which is at 6.51.
Compared to an average S&P500 Dividend Yield of 2.38, SU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
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
46.04% 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.
DP46.04%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
38.35
+0.05 (+0.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners73.17%
Inst Owner Change-0.5%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap47.29B
Analysts78.57
Price Target44.29 (15.49%)
Short Float %1.8%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
Yearly Dividend1.62
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)5.12%
Revenue beat(16)10
Avg Revenue beat(16)4.33%
PT rev (1m)0.94%
PT rev (3m)0.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 10.65 | ||
| P/S | 1.27 | ||
| P/FCF | 7.13 | ||
| P/OCF | 4.19 | ||
| P/B | 1.43 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)3.91
EY10.2%
EPS(NY)3.6
Fwd EY9.39%
FCF(TTM)5.38
FCFY14.02%
OCF(TTM)9.15
OCFY23.86%
SpS30.22
BVpS26.76
TBVpS24.68
PEG (NY)N/A
PEG (5Y)0.7
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 | 2.16 |
F-Score6
WACC8.13%
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%