SUNCOR ENERGY INC (SU.CA) Stock Fundamental Analysis
TSX:SU - Toronto Stock Exchange - CA8672241079 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to SU. SU was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. SU has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SU is valued correctly, but it does not seem to be growing. SU also has an excellent dividend rating. These ratings would make SU suitable for dividend investing!
1. Profitability
1.1 Basic Checks
SU had positive earnings in the past year.
SU had a positive operating cash flow in the past year.
SU had positive earnings in 4 of the past 5 years.
SU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SU has a Return On Assets of 6.80%. This is amongst the best in the industry. SU outperforms 87.38% of its industry peers.
Looking at the Return On Equity, with a value of 13.59%, SU belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
SU has a better Return On Invested Capital (8.65%) than 86.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SU is above the industry average of 7.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 13.59% | ||
| ROIC | 8.65% |
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's Profit Margin of 12.04% is fine compared to the rest of the industry. SU outperforms 73.83% of its industry peers.
SU's Profit Margin has improved in the last couple of years.
SU's Operating Margin of 17.86% is fine compared to the rest of the industry. SU outperforms 71.50% of its industry peers.
In the last couple of years the Operating Margin of SU has grown nicely.
SU's Gross Margin of 62.36% is fine compared to the rest of the industry. SU outperforms 78.04% of its industry peers.
SU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.86% | ||
| PM (TTM) | 12.04% | ||
| GM | 62.36% |
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
SU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SU has less shares outstanding than it did 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
An Altman-Z score of 2.18 indicates that SU is not a great score, but indicates only limited risk for bankruptcy at the moment.
SU's Altman-Z score of 2.18 is fine compared to the rest of the industry. SU outperforms 69.16% of its industry peers.
The Debt to FCF ratio of SU is 1.64, which is an excellent value as it means it would take SU, only 1.64 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.64, SU belongs to the best of the industry, outperforming 86.45% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that SU is not too dependend on debt financing.
SU's Debt to Equity ratio of 0.29 is in line compared to the rest of the industry. SU outperforms 59.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.08
WACC8.02%
2.3 Liquidity
A Current Ratio of 1.39 indicates that SU should not have too much problems paying its short term obligations.
SU's Current ratio of 1.39 is fine compared to the rest of the industry. SU outperforms 69.63% of its industry peers.
SU has a Quick Ratio of 1.39. 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 better Quick ratio (0.84) than 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.11% over the past year.
The Earnings Per Share has been growing by 14.08% on average over the past years. This is quite good.
Looking at the last year, SU shows a small growth in Revenue. The Revenue has grown by 2.16% in the last year.
The Revenue has been growing slightly by 5.74% on average over the past years.
EPS 1Y (TTM)3.11%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-7.09%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-0.61%
3.2 Future
The Earnings Per Share is expected to grow by 11.58% 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 -0.96% on average per year.
EPS Next Y-14.27%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
EPS Next 5Y11.58%
Revenue Next Year-4.39%
Revenue Next 2Y-3.44%
Revenue Next 3Y-2.91%
Revenue Next 5Y-0.96%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 10.18 indicates a reasonable valuation of SU.
69.16% of the companies in the same industry are more expensive than SU, based on the Price/Earnings ratio.
SU is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.05, the valuation of SU can be described as reasonable.
SU's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.28. SU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SU indicates a rather cheap valuation: SU is cheaper than 84.58% of the companies listed in the same industry.
SU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SU is cheaper than 88.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.33 | ||
| EV/EBITDA | 4.87 |
4.3 Compensation for Growth
SU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.72
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 4.17%, which is a nice return.
SU's Dividend Yield is a higher than the industry average which is at 5.75.
SU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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
46.04% 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.
DP46.04%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
TSX:SU (8/5/2025, 7:00:00 PM)
54.05
+0.19 (+0.35%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners73.17%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap66.08B
Analysts78.57
Price Target62.16 (15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend2.21
Dividend Growth(5Y)5.68%
DP46.04%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.42%
Min EPS beat(2)4.81%
Max EPS beat(2)10.03%
EPS beat(4)4
Avg EPS beat(4)15.26%
Min EPS beat(4)4.81%
Max EPS beat(4)32.04%
EPS beat(8)8
Avg EPS beat(8)12.91%
EPS beat(12)9
Avg EPS beat(12)8.82%
EPS beat(16)11
Avg EPS beat(16)7.27%
Revenue beat(2)0
Avg Revenue beat(2)-9.7%
Min Revenue beat(2)-9.75%
Max Revenue beat(2)-9.66%
Revenue beat(4)1
Avg Revenue beat(4)-4.79%
Min Revenue beat(4)-9.75%
Max Revenue beat(4)2.68%
Revenue beat(8)4
Avg Revenue beat(8)0.8%
Revenue beat(12)8
Avg Revenue beat(12)4.86%
Revenue beat(16)10
Avg Revenue beat(16)4.15%
PT rev (1m)2.46%
PT rev (3m)0.59%
EPS NQ rev (1m)16.75%
EPS NQ rev (3m)-16.07%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-8.19%
Revenue NQ rev (3m)-9.23%
Revenue NY rev (1m)-4.52%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 11.05 | ||
| P/S | 1.31 | ||
| P/FCF | 7.33 | ||
| P/OCF | 4.31 | ||
| P/B | 1.47 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 4.87 |
EPS(TTM)5.31
EY9.82%
EPS(NY)4.89
Fwd EY9.05%
FCF(TTM)7.37
FCFY13.64%
OCF(TTM)12.54
OCFY23.2%
SpS41.41
BVpS36.67
TBVpS33.82
PEG (NY)N/A
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 13.59% | ||
| ROCE | 11.4% | ||
| ROIC | 8.65% | ||
| ROICexc | 8.97% | ||
| ROICexgc | 9.39% | ||
| OM | 17.86% | ||
| PM (TTM) | 12.04% | ||
| GM | 62.36% | ||
| FCFM | 17.8% |
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
ROICexcg growth 3Y12.14%
ROICexcg 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 Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.64 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 90.38% | ||
| Cap/Sales | 12.48% | ||
| Interest Coverage | 9.77 | ||
| Cash Conversion | 95.61% | ||
| Profit Quality | 147.86% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.18 |
F-Score6
WACC8.02%
ROIC/WACC1.08
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)3.11%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-7.09%
EPS Next Y-14.27%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
EPS Next 5Y11.58%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-0.61%
Revenue Next Year-4.39%
Revenue Next 2Y-3.44%
Revenue Next 3Y-2.91%
Revenue Next 5Y-0.96%
EBIT growth 1Y4.19%
EBIT growth 3Y13.82%
EBIT growth 5Y7.7%
EBIT Next Year59.57%
EBIT Next 3Y17.11%
EBIT Next 5Y9.93%
FCF growth 1Y6.92%
FCF growth 3Y9.55%
FCF growth 5Y14.28%
OCF growth 1Y12.33%
OCF growth 3Y10.7%
OCF growth 5Y8.9%