SUNCOR ENERGY INC (SU.CA) Stock Fundamental Analysis
TSX:SU - Toronto Stock Exchange - CA8672241079 - Common Stock - Currency: CAD
SU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. While SU belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SU is valued quite cheap, but it does not seem to be growing. Finally SU also has an excellent dividend rating. This makes SU very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
SU had positive earnings in the past year.
In the past year SU had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 6.80%, SU belongs to the top of the industry, outperforming 86.47% of the companies in the same industry.
SU has a Return On Equity of 13.59%. This is amongst the best in the industry. SU outperforms 84.06% of its industry peers.
SU has a Return On Invested Capital of 8.65%. This is amongst the best in the industry. SU outperforms 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 7.37%.
| 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
With a decent Profit Margin value of 12.04%, SU is doing good in the industry, outperforming 73.43% of the companies in the same industry.
SU's Profit Margin has improved in the last couple of years.
The Operating Margin of SU (17.86%) is better than 68.12% of its industry peers.
SU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 62.36%, SU is in the better half of the industry, outperforming 76.33% of the companies in the same industry.
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.
Compared to 1 year ago, SU has less shares outstanding
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
SU has an Altman-Z score of 2.11. 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 2.11. This is in the better half of the industry: SU outperforms 72.46% of its industry peers.
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.
SU has a better Debt to FCF ratio (1.64) than 88.89% 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 (0.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.96
WACC8.98%
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.
SU has a Current ratio of 1.39. This is in the better half of the industry: SU outperforms 66.67% of its industry peers.
A Quick Ratio of 0.84 indicates that SU may have some problems paying its short term obligations.
SU's Quick ratio of 0.84 is in line compared to the rest of the industry. SU outperforms 58.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
SU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.00%.
SU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.08% yearly.
The Revenue has been growing slightly by 2.16% in the past 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)2%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-11.14%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-4.67%
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 13.38% on average per year.
SU is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.01% yearly.
EPS Next Y-14.27%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
EPS Next 5Y13.38%
Revenue Next Year0.13%
Revenue Next 2Y-0.43%
Revenue Next 3Y-0.07%
Revenue Next 5Y-2.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 9.34, the valuation of SU can be described as reasonable.
67.63% of the companies in the same industry are more expensive than SU, based on the Price/Earnings ratio.
SU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.91.
A Price/Forward Earnings ratio of 10.03 indicates a reasonable valuation of SU.
Based on the Price/Forward Earnings ratio, SU is valued a bit cheaper than the industry average as 60.39% of the companies are valued more expensively.
SU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 10.03 |
4.2 Price Multiples
SU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SU is cheaper than 82.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SU is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.73 | ||
| EV/EBITDA | 4.53 |
4.3 Compensation for Growth
The decent profitability rating of SU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.66
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.54%, SU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.56, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.54% |
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
SU pays out 46.04% of its income as dividend. 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 (5/22/2025, 7:00:00 PM)
49.05
+0.31 (+0.64%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.46%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap60.68B
Analysts78.57
Price Target60.61 (23.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.54% |
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)5.14%
Min EPS beat(2)0.25%
Max EPS beat(2)10.03%
EPS beat(4)4
Avg EPS beat(4)14.12%
Min EPS beat(4)0.25%
Max EPS beat(4)32.04%
EPS beat(8)8
Avg EPS beat(8)12.34%
EPS beat(12)9
Avg EPS beat(12)8.44%
EPS beat(16)11
Avg EPS beat(16)6.98%
Revenue beat(2)0
Avg Revenue beat(2)-11.55%
Min Revenue beat(2)-13.44%
Max Revenue beat(2)-9.66%
Revenue beat(4)1
Avg Revenue beat(4)-5.71%
Min Revenue beat(4)-13.44%
Max Revenue beat(4)2.68%
Revenue beat(8)4
Avg Revenue beat(8)0.34%
Revenue beat(12)8
Avg Revenue beat(12)4.56%
Revenue beat(16)10
Avg Revenue beat(16)3.91%
PT rev (1m)-5.68%
PT rev (3m)-3.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.78%
EPS NY rev (1m)0%
EPS NY rev (3m)5.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.8%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)4.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 10.03 | ||
| P/S | 1.2 | ||
| P/FCF | 6.73 | ||
| P/OCF | 3.96 | ||
| P/B | 1.35 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 4.53 |
EPS(TTM)5.25
EY10.7%
EPS(NY)4.89
Fwd EY9.97%
FCF(TTM)7.28
FCFY14.85%
OCF(TTM)12.39
OCFY25.26%
SpS40.93
BVpS36.24
TBVpS33.42
PEG (NY)N/A
PEG (5Y)0.66
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 | 2.11 |
F-Score6
WACC8.98%
ROIC/WACC0.96
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)2%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-11.14%
EPS Next Y-14.27%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
EPS Next 5Y13.38%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-4.67%
Revenue Next Year0.13%
Revenue Next 2Y-0.43%
Revenue Next 3Y-0.07%
Revenue Next 5Y-2.01%
EBIT growth 1Y4.19%
EBIT growth 3Y13.82%
EBIT growth 5Y7.7%
EBIT Next Year68.51%
EBIT Next 3Y17.49%
EBIT Next 5Y8.71%
FCF growth 1Y6.92%
FCF growth 3Y9.55%
FCF growth 5Y14.28%
OCF growth 1Y12.33%
OCF growth 3Y10.7%
OCF growth 5Y8.9%