SUNCOR ENERGY INC (SU)
CA8672241079 - Common Stock
We assign a fundamental rating of 5 out of 10 to SU. SU was compared to 204 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of SU get a neutral evaluation. Nothing too spectacular is happening here. SU has a valuation in line with the averages, but it does not seem to be growing.
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.
SU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SU's Return On Assets of 8.34% is fine compared to the rest of the industry. SU outperforms 69.46% of its industry peers.
The Return On Equity of SU (16.95%) is better than 65.52% of its industry peers.
SU's Return On Invested Capital of 8.78% is in line compared to the rest of the industry. SU outperforms 59.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SU is significantly below the industry average of 22.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.34% | ||
| ROE | 16.95% | ||
| ROIC | 8.78% |
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's Profit Margin of 14.87% is in line compared to the rest of the industry. SU outperforms 53.20% of its industry peers.
SU's Profit Margin has improved in the last couple of years.
SU has a Operating Margin (18.18%) which is comparable to the rest of the industry.
SU's Operating Margin has been stable in the last couple of years.
SU has a better Gross Margin (61.98%) than 67.98% of its industry peers.
SU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.18% | ||
| PM (TTM) | 14.87% | ||
| GM | 61.98% |
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.
SU has less shares outstanding than it did 1 year ago.
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 2.24 indicates that SU is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.24, SU is doing good in the industry, outperforming 64.04% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 1.80, SU is doing good in the industry, outperforming 79.31% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that SU is not too dependend on debt financing.
The Debt to Equity ratio of SU (0.34) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 2.24 |
ROIC/WACC1.22
WACC7.21%
2.3 Liquidity
A Current Ratio of 1.46 indicates that SU should not have too much problems paying its short term obligations.
SU has a Current ratio of 1.46. This is in the better half of the industry: SU outperforms 60.10% of its industry peers.
A Quick Ratio of 0.93 indicates that SU may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.93, SU is in line with its industry, outperforming 43.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
SU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.15%.
SU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.99% yearly.
The Revenue has decreased by -3.37% in the past year.
Measured over the past years, SU shows a small growth in Revenue. The Revenue has been growing by 4.96% on average per year.
EPS 1Y (TTM)-9.15%
EPS 3YN/A
EPS 5Y13.99%
EPS Q2Q%32.29%
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y25.79%
Revenue growth 5Y4.96%
Sales Q2Q%11.3%
3.2 Future
Based on estimates for the next years, SU will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.53% on average per year.
The Revenue is expected to decrease by -2.82% on average over the next years.
EPS Next Y-4.36%
EPS Next 2Y-9.35%
EPS Next 3Y1.88%
EPS Next 5Y18.53%
Revenue Next Year-0.36%
Revenue Next 2Y-0.95%
Revenue Next 3Y-1.24%
Revenue Next 5Y-2.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 10.51, the valuation of SU can be described as reasonable.
SU's Price/Earnings ratio is a bit cheaper when compared to the industry. SU is cheaper than 64.53% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.65, SU is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.71, SU is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as SU.
The average S&P500 Price/Forward Earnings ratio is at 23.56. SU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 13.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SU is valued a bit cheaper than 63.55% of the companies in the same industry.
72.41% 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 | 8.46 | ||
| EV/EBITDA | 5.39 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y-9.35%
EPS Next 3Y1.88%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 3.99%.
SU's Dividend Yield is comparable with the industry average which is at 6.45.
Compared to an average S&P500 Dividend Yield of 2.23, SU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
5.2 History
On average, the dividend of SU grows each year by 7.66%, which is quite nice.
SU has paid a dividend for at least 10 years, which is a reliable track record.
SU has decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.66%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SU pays out 36.86% of its income as dividend. This is a sustainable payout ratio.
The dividend of SU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.86%
EPS Next 2Y-9.35%
EPS Next 3Y1.88%
SUNCOR ENERGY INC
NYSE:SU (11/21/2024, 1:45:00 PM)
41.105
+0.27 (+0.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap52.20B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 13.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.34% | ||
| ROE | 16.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.18% | ||
| PM (TTM) | 14.87% | ||
| GM | 61.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-9.15%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-4.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y25.79%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y