SUNCOR ENERGY INC (SU.CA)
CA8672241079 - Common Stock
SU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 222 industry peers in the Oil, Gas & Consumable Fuels industry. SU has an excellent profitability rating, but there are some minor concerns on its financial health. SU has a valuation in line with the averages, but it does not seem to be growing. Finally SU also has an excellent dividend rating. This makes SU very considerable 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.
Of the past 5 years SU 4 years were profitable.
In the past 5 years SU always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.37%, SU belongs to the top of the industry, outperforming 88.26% of the companies in the same industry.
SU has a Return On Equity of 19.17%. This is amongst the best in the industry. SU outperforms 89.67% of its industry peers.
The Return On Invested Capital of SU (8.30%) is better than 81.69% of its industry peers.
SU had an Average Return On Invested Capital over the past 3 years of 9.58%. This is in line with the industry average of 8.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.37% | ||
| ROE | 19.17% | ||
| ROIC | 8.3% |
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
The Profit Margin of SU (16.90%) is better than 71.36% of its industry peers.
In the last couple of years the Profit Margin of SU has grown nicely.
With a Operating Margin value of 17.68%, SU perfoms like the industry average, outperforming 58.22% of the companies in the same industry.
In the last couple of years the Operating Margin of SU has remained more or less at the same level.
SU has a Gross Margin of 62.90%. This is in the better half of the industry: SU outperforms 74.65% of its industry peers.
SU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.68% | ||
| PM (TTM) | 16.9% | ||
| GM | 62.9% |
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.
Compared to 1 year ago, SU has less shares outstanding
SU has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SU has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.13 indicates that SU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SU (2.13) is better than 67.14% of its industry peers.
SU has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as SU would need 2.40 years to pay back of all of its debts.
The Debt to FCF ratio of SU (2.40) is better than 84.04% of its industry peers.
SU has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.35, SU is in line with its industry, outperforming 42.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 2.13 |
ROIC/WACC1.13
WACC7.38%
2.3 Liquidity
SU has a Current Ratio of 1.44. This is a normal value and indicates that SU is financially healthy and should not expect problems in meeting its short term obligations.
SU has a Current ratio of 1.44. This is in the better half of the industry: SU outperforms 66.67% of its industry peers.
A Quick Ratio of 0.88 indicates that SU may have some problems paying its short term obligations.
SU has a Quick ratio (0.88) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for SU have decreased strongly by -38.70% in the last year.
The Earnings Per Share has been growing by 13.99% on average over the past years. This is quite good.
The Revenue for SU has decreased by -15.85% in the past year. This is quite bad
SU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.96% yearly.
EPS 1Y (TTM)-38.7%
EPS 3YN/A
EPS 5Y13.99%
EPS growth Q2Q-30.39%
Revenue 1Y (TTM)-15.85%
Revenue growth 3Y25.79%
Revenue growth 5Y4.96%
Revenue growth Q2Q-7.97%
3.2 Future
The Earnings Per Share is expected to grow by 9.52% 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 -2.58% on average per year.
EPS Next Y0.56%
EPS Next 2Y2.94%
EPS Next 3Y3.65%
EPS Next 5Y9.52%
Revenue Next Year3.18%
Revenue Next 2Y-0.3%
Revenue Next 3Y-2.58%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 10.15.
Based on the Price/Earnings ratio, SU is valued a bit cheaper than 62.44% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.55, SU is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.10, the valuation of SU can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as SU.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, SU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SU is valued a bit cheaper than the industry average as 75.59% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SU is valued a bit cheaper than 73.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.4 | ||
| EV/EBITDA | 5.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SU may justify a higher PE ratio.
PEG (NY)17.97
PEG (5Y)0.73
EPS Next 2Y2.94%
EPS Next 3Y3.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.05%, SU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.84, SU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, SU pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
SU has decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.66%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SU pays out 33.14% of its income as dividend. This is a sustainable payout ratio.
The dividend of SU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.14%
EPS Next 2Y2.94%
EPS Next 3Y3.65%
SUNCOR ENERGY INC
TSX:SU (5/1/2024, 6:00:00 PM)
51.79
-0.74 (-1.41%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap66.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 10.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)17.97
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.37% | ||
| ROE | 19.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.68% | ||
| PM (TTM) | 16.9% | ||
| GM | 62.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-38.7%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y0.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.85%
Revenue growth 3Y25.79%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y