SUNCOR ENERGY INC (SU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SU - CA8672241079 - Common Stock
45.59 USD
+1.23 (+2.77%)
45.59 USD
0 (0%)
SU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 209 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 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. With these ratings, SU could be worth investigating further 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 Return On Assets of 5.88%. This is in the better half of the industry: SU outperforms 71.29% of its industry peers.
With a decent Return On Equity value of 11.65%, SU is doing good in the industry, outperforming 69.38% of the companies in the same industry.
SU has a better Return On Invested Capital (7.63%) than 70.81% of its industry peers.
SU had an Average Return On Invested Capital over the past 3 years of 10.38%. This is significantly below the industry average of 21.27%.
| 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
With a Profit Margin value of 10.65%, SU perfoms like the industry average, outperforming 59.81% of the companies in the same industry.
SU's Profit Margin has improved in the last couple of years.
SU has a Operating Margin (16.10%) which is comparable to the rest of the industry.
SU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 62.21%, SU is in the better half of the industry, outperforming 71.29% of the companies in the same industry.
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.
SU has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SU has been reduced compared to 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.
Looking at the Altman-Z score, with a value of 2.24, SU is in the better half of the industry, outperforming 71.77% 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.
SU has a Debt to FCF ratio of 1.80. This is amongst the best in the industry. SU outperforms 84.21% of its industry peers.
SU has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
SU's Debt to Equity ratio of 0.27 is fine compared to the rest of the industry. SU outperforms 64.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 2.24 |
ROIC/WACC1.02
WACC7.48%
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.
The Current ratio of SU (1.35) is better than 60.77% of its industry peers.
A Quick Ratio of 0.85 indicates that SU may have some problems paying its short term obligations.
SU has a Quick ratio (0.85) which is in line with its industry peers.
| 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.
SU shows a decrease in Revenue. In the last year, the revenue decreased by -3.08%.
SU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.74% yearly.
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.
SU is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.12% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 13.14.
SU's Price/Earnings ratio is a bit cheaper when compared to the industry. SU is cheaper than 63.16% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. SU is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 16.23, SU is valued correctly.
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 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 16.23 |
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 70.81% of the companies listed in the same industry.
79.43% 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 | 9.33 | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
The decent profitability rating of SU 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)0.93
EPS Next 2Y-15.68%
EPS Next 3Y-2.74%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 4.06%, which is a nice return.
Compared to an average industry Dividend Yield of 3.93, 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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-15.68%
EPS Next 3Y-2.74%
45.59
+1.23 (+2.77%)
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 Cap54.77B
Revenue(TTM)49.40B
Net Income(TTM)5.26B
Analysts76.55
Price Target50.03 (9.74%)
Short Float %0.68%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Yearly Dividend1.62
Dividend Growth(5Y)5.68%
DP53.29%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)6.07%
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 | 13.14 | ||
| Fwd PE | 16.23 | ||
| P/S | 1.52 | ||
| P/FCF | 9.33 | ||
| P/OCF | 5.38 | ||
| P/B | 1.66 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 5.67 |
EPS(TTM)3.47
EY7.61%
EPS(NY)2.81
Fwd EY6.16%
FCF(TTM)4.89
FCFY10.72%
OCF(TTM)8.48
OCFY18.59%
SpS30.03
BVpS27.46
TBVpS25.35
PEG (NY)N/A
PEG (5Y)0.93
Graham Number46.3
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 | 2.24 |
F-Score6
WACC7.48%
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 Year66.36%
EBIT Next 3Y16.81%
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.
Can you provide the valuation status for SUNCOR ENERGY INC?
ChartMill assigns a valuation rating of 5 / 10 to SUNCOR ENERGY INC (SU). This can be considered as Fairly Valued.
How profitable is SUNCOR ENERGY INC (SU) stock?
SUNCOR ENERGY INC (SU) has a profitability rating of 6 / 10.
What is the financial health of SUNCOR ENERGY INC (SU) stock?
The financial health rating of SUNCOR ENERGY INC (SU) is 7 / 10.
Can you provide the expected EPS growth for SU stock?
The Earnings per Share (EPS) of SUNCOR ENERGY INC (SU) is expected to decline by -13.47% in the next year.