SUNCOR ENERGY INC (SU.CA) Stock Fundamental Analysis
TSX:SU - Toronto Stock Exchange - CA8672241079 - Common Stock - Currency: CAD
Overall SU gets a fundamental rating of 6 out of 10. We evaluated SU against 214 industry peers in the Oil, Gas & Consumable Fuels industry. SU scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SU has a valuation in line with the averages, but it does not seem to be growing. 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.
SU had a positive operating cash flow in the past year.
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 (6.80%) is better than 87.44% of its industry peers.
With an excellent Return On Equity value of 13.59%, SU belongs to the best of the industry, outperforming 84.06% of the companies in the same industry.
SU has a better Return On Invested Capital (8.65%) than 87.44% of its industry peers.
SU had an Average Return On Invested Capital over the past 3 years of 10.38%. This is above the industry average of 7.31%.
| 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
The Profit Margin of SU (12.04%) is better than 74.40% 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.
The Gross Margin of SU (62.36%) is better than 78.26% of its industry peers.
In the last couple of years the Gross Margin of SU has declined.
| 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.
Compared to 5 years ago, SU has less shares outstanding
Compared to 1 year ago, SU has an improved debt to assets ratio.
2.2 Solvency
SU has an Altman-Z score of 2.19. 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.
With a decent Altman-Z score value of 2.19, SU is doing good in the industry, outperforming 71.01% of the companies in the same industry.
SU has a debt to FCF ratio of 1.64. This is a very positive value and a sign of high solvency as it would only need 1.64 years to pay back of all of its debts.
The Debt to FCF ratio of SU (1.64) is better than 85.99% of its industry peers.
SU has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
SU has a Debt to Equity ratio of 0.29. This is comparable to the rest of the industry: SU outperforms 58.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 2.19 |
ROIC/WACC1.06
WACC8.16%
2.3 Liquidity
SU has a Current Ratio of 1.39. 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 1.39, SU is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that SU may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.84, SU is doing good in the industry, outperforming 61.35% of the companies in the same industry.
| 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.
Measured over the past years, SU shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.08% on average per year.
Looking at the last year, SU shows a small growth in Revenue. The Revenue has grown by 2.16% in the last year.
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)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
Based on estimates for the next years, SU will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.58% on average per year.
SU is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.96% yearly.
EPS Next Y-14.27%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
EPS Next 5Y11.58%
Revenue Next Year0.13%
Revenue Next 2Y-0.43%
Revenue Next 3Y-0.07%
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.
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 10.33 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 70.05% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. SU is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.21, the valuation of SU can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as SU.
SU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 11.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SU is valued cheaper than 83.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SU is valued cheaply inside the industry as 87.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.44 | ||
| EV/EBITDA | 4.93 |
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)0.73
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 4.23%, which is a nice return.
SU's Dividend Yield is a higher than the industry average which is at 6.24.
SU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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
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 (7/11/2025, 7:00:00 PM)
54.87
+1.03 (+1.91%)
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 Cap67.09B
Analysts78.57
Price Target60.66 (10.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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)-0.35%
PT rev (3m)-5.6%
EPS NQ rev (1m)-18.06%
EPS NQ rev (3m)-28.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.6%
Revenue NQ rev (1m)-6.88%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 11.21 | ||
| P/S | 1.32 | ||
| P/FCF | 7.44 | ||
| P/OCF | 4.38 | ||
| P/B | 1.5 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 4.93 |
EPS(TTM)5.31
EY9.68%
EPS(NY)4.89
Fwd EY8.92%
FCF(TTM)7.37
FCFY13.43%
OCF(TTM)12.54
OCFY22.85%
SpS41.41
BVpS36.67
TBVpS33.82
PEG (NY)N/A
PEG (5Y)0.73
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 | 2.19 |
F-Score6
WACC8.16%
ROIC/WACC1.06
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 Year0.13%
Revenue Next 2Y-0.43%
Revenue Next 3Y-0.07%
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%