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SUNCOR ENERGY INC (SU.CA) Stock Fundamental Analysis

TSX:SU - Toronto Stock Exchange - CA8672241079 - Common Stock - Currency: CAD

55.34  +0.35 (+0.64%)

Fundamental Rating

6

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 gets an excellent profitability rating and is at the same time showing great financial health properties. SU has a decent growth rate and is not valued too expensively. SU also has an excellent dividend rating. These ratings would make SU suitable for dividend investing!


Dividend Valuation Growth Profitability Health

7

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.
SU.CA Yearly Net Income VS EBIT VS OCF VS FCFSU.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

1.2 Ratios

Looking at the Return On Assets, with a value of 8.84%, SU belongs to the top of the industry, outperforming 88.06% of the companies in the same industry.
SU has a better Return On Equity (17.79%) than 92.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.70%, SU belongs to the top of the industry, outperforming 86.07% 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 in line with the industry average of 7.73%.
Industry RankSector 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
SU.CA Yearly ROA, ROE, ROICSU.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

1.3 Margins

SU has a better Profit Margin (15.73%) than 71.64% of its industry peers.
In the last couple of years the Profit Margin of SU has grown nicely.
SU has a Operating Margin (18.25%) which is in line with its industry peers.
SU's Operating Margin has been stable in the last couple of years.
SU's Gross Margin of 61.96% is fine compared to the rest of the industry. SU outperforms 73.13% of its industry peers.
SU's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
SU.CA Yearly Profit, Operating, Gross MarginsSU.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

7

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.
The number of shares outstanding for SU has been reduced compared to 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.
SU.CA Yearly Shares OutstandingSU.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B
SU.CA Yearly Total Debt VS Total AssetsSU.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B 80B

2.2 Solvency

SU has an Altman-Z score of 2.24. 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 2.24. This is in the better half of the industry: SU outperforms 69.15% 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 amongst the best in the industry. SU outperforms 87.56% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that SU is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, SU is in line with its industry, outperforming 47.26% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.72
Altman-Z 2.24
ROIC/WACC1.21
WACC7.18%
SU.CA Yearly LT Debt VS Equity VS FCFSU.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10B 20B 30B 40B

2.3 Liquidity

SU has a Current Ratio of 1.59. 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 (1.59) is better than 71.14% of its industry peers.
A Quick Ratio of 1.04 indicates that SU should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, SU is in the better half of the industry, outperforming 60.70% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.59
Quick Ratio 1.04
SU.CA Yearly Current Assets VS Current LiabilitesSU.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B

4

3. Growth

3.1 Past

SU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.07%.
Measured over the past years, SU shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.99% on average per year.
The Revenue has been growing slightly by 1.53% in the past year.
SU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.96% yearly.
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
Based on estimates for the next years, SU will show a decrease in Revenue. The Revenue will decrease by -0.98% on average per year.
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.
SU.CA Yearly Revenue VS EstimatesSU.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B
SU.CA Yearly EPS VS EstimatesSU.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 5 10

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.21, the valuation of SU can be described as reasonable.
Based on the Price/Earnings ratio, SU is valued a bit cheaper than 66.17% of the companies in the same industry.
SU is valuated cheaply when we compare the Price/Earnings ratio to 28.12, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.62, the valuation of SU can be described as correct.
SU's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 94.77. SU is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.21
Fwd PE 12.62
SU.CA Price Earnings VS Forward Price EarningsSU.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 76.12% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SU is valued a bit cheaper than the industry average as 73.13% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 8.05
EV/EBITDA 5.12
SU.CA Per share dataSU.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.58
PEG (5Y)0.73
EPS Next 2Y-7.28%
EPS Next 3Y1.38%

8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.15%, SU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.59, 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 2.29.
Industry RankSector Rank
Dividend Yield 4.15%

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
SU.CA Yearly Dividends per shareSU.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5 2

5.3 Sustainability

34.85% of the earnings are spent on dividend by SU. This is a low number and 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%
SU.CA Yearly Income VS Free CF VS DividendSU.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B
SU.CA Dividend Payout.SU.CA Dividend Payout, showing the Payout Ratio.SU.CA Dividend Payout.PayoutRetained Earnings

SUNCOR ENERGY INC

TSX:SU (2/7/2025, 7:00:00 PM)

55.34

+0.35 (+0.64%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-06 2025-02-06/amc
Earnings (Next)N/A N/A
Inst Owners73.24%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap70.31B
Analysts76.43
Price Target62.96 (13.77%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.15%
Yearly Dividend2.09
Dividend Growth(5Y)7.66%
DP34.85%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)4.68%
Revenue beat(12)9
Avg Revenue beat(12)7.13%
Revenue beat(16)10
Avg Revenue beat(16)4.36%
PT rev (1m)-0.48%
PT rev (3m)2.92%
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)1.67%
Revenue NY rev (3m)1.56%
Valuation
Industry RankSector Rank
PE 10.21
Fwd PE 12.62
P/S 1.38
P/FCF 8.05
P/OCF 4.63
P/B 1.56
P/tB 1.69
EV/EBITDA 5.12
EPS(TTM)5.42
EY9.79%
EPS(NY)4.38
Fwd EY7.92%
FCF(TTM)6.87
FCFY12.42%
OCF(TTM)11.96
OCFY21.61%
SpS40.12
BVpS35.48
TBVpS32.74
PEG (NY)1.58
PEG (5Y)0.73
Profitability
Industry RankSector 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 RankSector 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 2.24
F-Score5
WACC7.18%
ROIC/WACC1.21
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%