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 5 out of 10. We evaluated SU against 211 industry peers in the Oil, Gas & Consumable Fuels industry. SU has an average financial health and profitability rating. SU has a correct valuation and a medium growth rate. 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.
In the past year SU had a positive cash flow from operations.
SU had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SU had a positive operating cash flow.
1.2 Ratios
SU has a better Return On Assets (8.84%) than 71.57% of its industry peers.
The Return On Equity of SU (17.79%) is better than 68.14% of its industry peers.
With a Return On Invested Capital value of 8.70%, SU perfoms like the industry average, outperforming 59.80% of the companies in the same 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 28.75%.
| 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
SU has a Profit Margin of 15.73%. This is comparable to the rest of the industry: SU outperforms 56.37% of its industry peers.
In the last couple of years the Profit Margin of SU has grown nicely.
SU's Operating Margin of 18.25% is in line compared to the rest of the industry. SU outperforms 47.06% of its industry peers.
SU's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 61.96%, SU is in the better half of the industry, outperforming 68.14% of the companies in the same industry.
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
SU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SU has been reduced compared to 1 year ago.
The number of shares outstanding for SU has been reduced compared to 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 2.25. 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 2.25. This is in the better half of the industry: SU outperforms 66.67% 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.
SU has a Debt to FCF ratio of 1.72. This is in the better half of the industry: SU outperforms 79.41% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that SU is not too dependend on debt financing.
The Debt to Equity ratio of SU (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 2.25 |
ROIC/WACC1.18
WACC7.36%
2.3 Liquidity
A Current Ratio of 1.59 indicates that SU should not have too much problems paying its short term obligations.
SU's Current ratio of 1.59 is fine compared to the rest of the industry. SU outperforms 64.71% 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.
The Quick ratio of SU (1.04) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for SU have decreased by -4.07% in the last year.
SU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.99% yearly.
SU shows a small growth in Revenue. In the last year, the Revenue has grown by 1.53%.
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)-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
SU is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.98% yearly.
EPS Next Y6.45%
EPS Next 2Y-7.28%
EPS Next 3Y1.38%
EPS Next 5Y21.25%
Revenue Next Year1.19%
Revenue Next 2Y-1.33%
Revenue Next 3Y-1.53%
Revenue Next 5Y-0.98%
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
A Price/Earnings ratio of 10.36 indicates a reasonable valuation of SU.
Compared to the rest of the industry, the Price/Earnings ratio of SU indicates a somewhat cheap valuation: SU is cheaper than 63.73% of the companies listed in the same industry.
SU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 12.80, which indicates a correct valuation of SU.
The rest of the industry has a similar Price/Forward Earnings ratio as SU.
SU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 12.8 |
4.2 Price Multiples
SU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SU is cheaper than 68.14% 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 75.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.98 | ||
| EV/EBITDA | 5.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.61
PEG (5Y)0.74
EPS Next 2Y-7.28%
EPS Next 3Y1.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.02%, SU is a good candidate for dividend investing.
SU's Dividend Yield is comparable with the industry average which is at 6.75.
Compared to an average S&P500 Dividend Yield of 2.29, SU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
5.2 History
The dividend of SU is nicely growing with an annual growth rate of 7.66%!
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
SU pays out 34.85% of its income as dividend. This is a sustainable payout ratio.
SU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.85%
EPS Next 2Y-7.28%
EPS Next 3Y1.38%
39.49
-0.68 (-1.69%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners73.24%
Inst Owner Change-1.6%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap49.00B
Analysts76.43
Price Target43.8 (10.91%)
Short Float %0.83%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Yearly Dividend2.09
Dividend Growth(5Y)7.66%
DP34.85%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)-0.47%
PT rev (3m)-1.12%
EPS NQ rev (1m)10.02%
EPS NQ rev (3m)-13.44%
EPS NY rev (1m)4.96%
EPS NY rev (3m)11.31%
Revenue NQ rev (1m)2.56%
Revenue NQ rev (3m)5.95%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.36 | ||
| Fwd PE | 12.8 | ||
| P/S | 1.37 | ||
| P/FCF | 7.98 | ||
| P/OCF | 4.58 | ||
| P/B | 1.54 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 5.18 |
EPS(TTM)3.81
EY9.65%
EPS(NY)3.08
Fwd EY7.81%
FCF(TTM)4.95
FCFY12.54%
OCF(TTM)8.62
OCFY21.82%
SpS28.9
BVpS25.56
TBVpS23.59
PEG (NY)1.61
PEG (5Y)0.74
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 | 2.25 |
F-Score5
WACC7.36%
ROIC/WACC1.18
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 Y6.45%
EPS Next 2Y-7.28%
EPS Next 3Y1.38%
EPS Next 5Y21.25%
Revenue 1Y (TTM)1.53%
Revenue growth 3Y25.79%
Revenue growth 5Y4.96%
Sales Q2Q%3.37%
Revenue Next Year1.19%
Revenue Next 2Y-1.33%
Revenue Next 3Y-1.53%
Revenue Next 5Y-0.98%
EBIT growth 1Y-9.95%
EBIT growth 3YN/A
EBIT growth 5Y6.31%
EBIT Next Year85.24%
EBIT Next 3Y21.25%
EBIT Next 5Y10.6%
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%