SUNCOR ENERGY INC (SU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SU - CA8672241079 - Common Stock
42.95 USD
+0.2 (+0.47%)
42.95 USD
0 (0%)
SU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 210 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 has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally SU also has an excellent dividend rating. These ratings would make SU suitable 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
With a decent Return On Assets value of 5.88%, SU is doing good in the industry, outperforming 70.95% of the companies in the same industry.
SU has a Return On Equity of 11.65%. This is in the better half of the industry: SU outperforms 69.52% of its industry peers.
SU's Return On Invested Capital of 7.63% is fine compared to the rest of the industry. SU outperforms 70.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SU is significantly below the industry average of 21.09%.
| 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 Profit Margin (10.65%) 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 of 16.10%. This is comparable to the rest of the industry: SU outperforms 49.05% of its industry peers.
SU's Operating Margin has improved in the last couple of years.
SU's Gross Margin of 62.21% is fine compared to the rest of the industry. SU outperforms 71.43% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SU is still creating some value.
The number of shares outstanding for SU has been reduced compared to 1 year ago.
SU has less shares outstanding than it did 5 years ago.
SU has a better debt/assets ratio than last year.
2.2 Solvency
SU has an Altman-Z score of 2.22. 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.
With a decent Altman-Z score value of 2.22, SU is doing good in the industry, outperforming 71.90% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.80, SU belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that SU is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, SU is in the better half of the industry, outperforming 63.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 2.22 |
ROIC/WACC1.02
WACC7.51%
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's Current ratio of 1.35 is fine compared to the rest of the industry. SU outperforms 60.48% of its industry peers.
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 line with its industry, outperforming 44.29% 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%.
SU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.08% yearly.
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.
Based on estimates for the next years, SU will show a decrease in Revenue. The Revenue will decrease by -0.12% on average per year.
EPS Next Y-13.47%
EPS Next 2Y-15.68%
EPS Next 3Y-2.74%
EPS Next 5Y11.16%
Revenue Next Year-0.3%
Revenue Next 2Y-3%
Revenue Next 3Y-1.99%
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 12.45.
Based on the Price/Earnings ratio, SU is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.61. SU is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 15.37, which indicates a correct valuation of SU.
SU's Price/Forward Earnings is on the same level as the industry average.
SU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.45 | ||
| Fwd PE | 15.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SU indicates a somewhat cheap valuation: SU is cheaper than 71.43% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SU is valued cheaply inside the industry as 80.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.84 | ||
| EV/EBITDA | 5.54 |
4.3 Compensation for Growth
SU has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SU's earnings are expected to decrease with -2.74% in the coming years.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y-15.68%
EPS Next 3Y-2.74%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 4.11%, which is a nice return.
Compared to an average industry Dividend Yield of 3.95, SU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, SU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
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-15.68%
EPS Next 3Y-2.74%
42.95
+0.2 (+0.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners72.88%
Inst Owner Change0.11%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap51.59B
Revenue(TTM)49.40B
Net Income(TTM)5.26B
Analysts76.55
Price Target50.03 (16.48%)
Short Float %2.6%
Short Ratio7.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
Yearly Dividend1.6
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)1.98%
Revenue beat(16)10
Avg Revenue beat(16)4.49%
PT rev (1m)8.14%
PT rev (3m)8.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.36%
EPS NY rev (1m)15.83%
EPS NY rev (3m)15.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.47%
Revenue NY rev (1m)2.17%
Revenue NY rev (3m)2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.45 | ||
| Fwd PE | 15.37 | ||
| P/S | 1.44 | ||
| P/FCF | 8.84 | ||
| P/OCF | 5.09 | ||
| P/B | 1.57 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 5.54 |
EPS(TTM)3.45
EY8.03%
EPS(NY)2.79
Fwd EY6.51%
FCF(TTM)4.86
FCFY11.31%
OCF(TTM)8.43
OCFY19.63%
SpS29.87
BVpS27.31
TBVpS25.21
PEG (NY)N/A
PEG (5Y)0.88
Graham Number46.04
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 | 2.22 |
F-Score6
WACC7.51%
ROIC/WACC1.02
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-13.47%
EPS Next 2Y-15.68%
EPS Next 3Y-2.74%
EPS Next 5Y11.16%
Revenue 1Y (TTM)-3.08%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-3.9%
Revenue Next Year-0.3%
Revenue Next 2Y-3%
Revenue Next 3Y-1.99%
Revenue Next 5Y-0.12%
EBIT growth 1Y-14.49%
EBIT growth 3Y13.82%
EBIT growth 5Y7.7%
EBIT Next Year66.28%
EBIT Next 3Y16.5%
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 FAQ
What is the ChartMill fundamental rating of SUNCOR ENERGY INC (SU) stock?
ChartMill assigns a fundamental rating of 6 / 10 to SU.
What is the valuation status for SU stock?
ChartMill assigns a valuation rating of 5 / 10 to SUNCOR ENERGY INC (SU). This can be considered as Fairly Valued.
Can you provide the profitability details for SUNCOR ENERGY INC?
SUNCOR ENERGY INC (SU) has a profitability rating of 6 / 10.
How financially healthy is SUNCOR ENERGY INC?
The financial health rating of SUNCOR ENERGY INC (SU) is 7 / 10.
What is the expected EPS growth for SUNCOR ENERGY INC (SU) stock?
The Earnings per Share (EPS) of SUNCOR ENERGY INC (SU) is expected to decline by -13.47% in the next year.