SUNCOR ENERGY INC (SU) Stock Fundamental Analysis
NYSE:SU - New York Stock Exchange, Inc. - CA8672241079 - Common Stock
Taking everything into account, SU scores 6 out of 10 in our fundamental rating. SU was compared to 210 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. 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.
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
SU has a better Return On Assets (8.84%) than 72.33% of its industry peers.
The Return On Equity of SU (17.79%) is better than 68.45% of its industry peers.
The Return On Invested Capital of SU (8.70%) is comparable to the rest of the industry.
SU had an Average Return On Invested Capital over the past 3 years of 9.58%. This is significantly below the industry average of 28.71%.
| 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
Looking at the Profit Margin, with a value of 15.73%, SU is in line with its industry, outperforming 56.31% of the companies in the same industry.
In the last couple of years the Profit Margin of SU has grown nicely.
SU has a Operating Margin of 18.25%. This is comparable to the rest of the industry: SU outperforms 47.57% of its industry peers.
SU's Operating Margin has been stable in the last couple of years.
SU has a Gross Margin of 61.96%. This is in the better half of the industry: SU outperforms 68.45% of its industry peers.
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.
SU has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SU has less shares outstanding
SU has a better debt/assets ratio than last year.
2.2 Solvency
SU has an Altman-Z score of 2.26. 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 better Altman-Z score (2.26) than 64.08% 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.
With an excellent Debt to FCF ratio value of 1.72, SU belongs to the best of the industry, outperforming 80.58% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that SU is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.32, SU perfoms like the industry average, outperforming 57.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.21
WACC7.2%
2.3 Liquidity
A Current Ratio of 1.59 indicates that SU should not have too much problems paying its short term obligations.
SU has a better Current ratio (1.59) than 64.56% 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.
Looking at the Quick ratio, with a value of 1.04, SU is in line with its industry, outperforming 48.54% of the companies in the same 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%.
SU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.99% yearly.
Looking at the last year, SU shows a small growth in Revenue. The Revenue has grown by 1.53% in the last year.
SU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.96% yearly.
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 -0.91% on average per year.
EPS Next Y1.42%
EPS Next 2Y-8.37%
EPS Next 3Y2.64%
EPS Next 5Y21.25%
Revenue Next Year0.74%
Revenue Next 2Y-1.36%
Revenue Next 3Y-1.55%
Revenue Next 5Y-0.91%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SU is valuated reasonably with a Price/Earnings ratio of 10.61.
66.99% of the companies in the same industry are more expensive than SU, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.29. SU is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 13.45, the valuation of SU can be described as correct.
SU's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SU to the average of the S&P500 Index (24.44), we can say SU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 13.45 |
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 66.50% of the companies listed in the same industry.
SU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SU is cheaper than 74.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.38 | ||
| EV/EBITDA | 5.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)7.45
PEG (5Y)0.76
EPS Next 2Y-8.37%
EPS Next 3Y2.64%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 4.05%, which is a nice return.
Compared to an average industry Dividend Yield of 6.39, SU pays a bit more dividend than its industry peers.
SU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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 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.
The dividend of SU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP34.85%
EPS Next 2Y-8.37%
EPS Next 3Y2.64%
SUNCOR ENERGY INC
NYSE:SU (1/21/2025, 7:24:28 PM)
After market: 39.8 0 (0%)39.8
+0.77 (+1.97%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners73.24%
Inst Owner Change0.34%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap50.56B
Analysts76
Price Target44.01 (10.58%)
Short Float %0.94%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Yearly Dividend2.09
Dividend Growth(5Y)7.66%
DP34.85%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)-1.92%
PT rev (3m)-4.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.3%
Revenue NY rev (1m)1.21%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.61 | ||
| Fwd PE | 13.45 | ||
| P/S | 1.44 | ||
| P/FCF | 8.38 | ||
| P/OCF | 4.81 | ||
| P/B | 1.62 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 5.24 |
EPS(TTM)3.75
EY9.42%
EPS(NY)2.96
Fwd EY7.44%
FCF(TTM)4.75
FCFY11.93%
OCF(TTM)8.27
OCFY20.77%
SpS27.73
BVpS24.53
TBVpS22.63
PEG (NY)7.45
PEG (5Y)0.76
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 | 2.26 |
F-Score5
WACC7.2%
ROIC/WACC1.21
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 Year0.74%
Revenue Next 2Y-1.36%
Revenue Next 3Y-1.55%
Revenue Next 5Y-0.91%
EBIT growth 1Y-9.95%
EBIT growth 3YN/A
EBIT growth 5Y6.31%
EBIT Next Year85.24%
EBIT Next 3Y21.25%
EBIT Next 5Y10.68%
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%