SUNCOR ENERGY INC (SU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SU - CA8672241079 - Common Stock
44.45 USD
+0.14 (+0.32%)
44.58 USD
+0.13 (+0.29%)
We assign a fundamental rating of 6 out of 10 to SU. SU was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. SU has an excellent financial health rating, but there are some minor concerns on its profitability. SU is valued correctly, 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.
In the past 5 years SU always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SU (5.88%) is better than 69.05% of its industry peers.
SU has a better Return On Equity (11.65%) than 67.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.63%, SU is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SU is significantly below the industry average of 21.41%.
| 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.
In the last couple of years the Profit Margin of SU has grown nicely.
SU's Operating Margin of 16.10% is in line compared to the rest of the industry. SU outperforms 48.10% of its industry peers.
In the last couple of years the Operating Margin of SU has grown nicely.
SU has a Gross Margin of 62.21%. This is in the better half 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SU is 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.
The debt/assets ratio for SU has been reduced compared to a year ago.
2.2 Solvency
SU has an Altman-Z score of 2.27. 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.
SU has a Altman-Z score of 2.27. This is in the better half of the industry: SU outperforms 71.43% 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 better Debt to FCF ratio (1.80) than 84.76% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that SU is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.27, SU is doing good in the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 2.27 |
ROIC/WACC1.01
WACC7.56%
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.
Looking at the Current ratio, with a value of 1.35, SU is in the better half of the industry, outperforming 60.48% 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.
SU has a Quick ratio (0.85) which is comparable to the rest of the 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.
SU shows a decrease in Revenue. In the last year, the revenue decreased by -3.08%.
Measured over the past years, SU shows a small growth in Revenue. The Revenue has been growing by 5.74% on average per year.
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
SU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.16% yearly.
The Revenue is expected to decrease by -0.12% on average over the next years.
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
A Price/Earnings ratio of 13.19 indicates a correct valuation of SU.
60.48% of the companies in the same industry are more expensive than SU, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SU to the average of the S&P500 Index (26.15), we can say SU is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.86, which indicates a rather expensive current 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 36.12. SU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 17.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SU is valued a bit cheaper than 69.05% of the companies in the same industry.
SU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SU is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.36 | ||
| EV/EBITDA | 5.82 |
4.3 Compensation for Growth
The decent profitability rating of SU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y-19.5%
EPS Next 3Y1.71%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 3.81%.
Compared to an average industry Dividend Yield of 5.90, SU has a dividend in line with its industry peers.
SU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
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
53.29% of the earnings are spent on dividend by SU. 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%
44.45
+0.14 (+0.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners72.88%
Inst Owner Change0.08%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap53.40B
Revenue(TTM)49.40B
Net Income(TTM)5.26B
Analysts75.86
Price Target47.16 (6.1%)
Short Float %1.12%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Yearly Dividend1.57
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)3.39%
PT rev (3m)4.16%
EPS NQ rev (1m)8.36%
EPS NQ rev (3m)7.86%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-12.86%
Revenue NQ rev (1m)-4.47%
Revenue NQ rev (3m)-4.66%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 17.86 | ||
| P/S | 1.52 | ||
| P/FCF | 9.36 | ||
| P/OCF | 5.39 | ||
| P/B | 1.67 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 5.82 |
EPS(TTM)3.37
EY7.58%
EPS(NY)2.49
Fwd EY5.6%
FCF(TTM)4.75
FCFY10.68%
OCF(TTM)8.24
OCFY18.54%
SpS29.19
BVpS26.69
TBVpS24.64
PEG (NY)N/A
PEG (5Y)0.94
Graham Number44.98
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
WACC7.56%
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 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 -25.3% in the next year.