SUNCOR ENERGY INC (SU) Stock Fundamental Analysis
USA - NYSE:SU - CA8672241079 - Common Stock
38.59 USD
+0.01 (+0.03%)
38.55 USD
-0.04 (-0.1%)
Taking everything into account, SU scores 5 out of 10 in our fundamental rating. SU was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. SU has only an average score on both its financial health and profitability. 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.
Each year in the past 5 years SU had a positive operating cash flow.
1.2 Ratios
SU has a better Return On Assets (6.39%) than 70.14% of its industry peers.
SU has a Return On Equity of 12.70%. This is in the better half of the industry: SU outperforms 69.19% of its industry peers.
SU has a better Return On Invested Capital (7.92%) than 70.62% of its industry peers.
SU had an Average Return On Invested Capital over the past 3 years of 10.38%. This is significantly below the industry average of 21.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.39% | ||
| ROE | 12.7% | ||
| ROIC | 7.92% |
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 (11.38%) is better than 60.66% of its industry peers.
In the last couple of years the Profit Margin of SU has grown nicely.
SU's Operating Margin of 16.36% is in line compared to the rest of the industry. SU outperforms 48.34% of its industry peers.
In the last couple of years the Operating Margin of SU has grown nicely.
With a decent Gross Margin value of 61.80%, SU is doing good in the industry, outperforming 69.67% of the companies in the same industry.
SU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.36% | ||
| PM (TTM) | 11.38% | ||
| GM | 61.8% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SU is creating some value.
The number of shares outstanding for SU has been reduced compared to 1 year ago.
SU has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SU has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.15 indicates that SU is not a great score, but indicates only limited risk for bankruptcy at the moment.
SU has a better Altman-Z score (2.15) than 69.67% of its industry peers.
The Debt to FCF ratio of SU is 1.69, which is an excellent value as it means it would take SU, only 1.69 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SU (1.69) is better than 84.36% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that SU is not too dependend on debt financing.
SU's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. SU outperforms 63.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.02
WACC7.78%
2.3 Liquidity
A Current Ratio of 1.26 indicates that SU should not have too much problems paying its short term obligations.
SU has a Current ratio (1.26) which is comparable to the rest of the industry.
SU has a Quick Ratio of 1.26. 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's Quick ratio of 0.77 is on the low side compared to the rest of the industry. SU is outperformed by 61.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
SU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.00%.
SU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.08% yearly.
SU shows a decrease in Revenue. In the last year, the revenue decreased by -1.96%.
The Revenue has been growing slightly by 5.74% on average over the past years.
EPS 1Y (TTM)-13%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-44.09%
Revenue 1Y (TTM)-1.96%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-8.04%
3.2 Future
The Earnings Per Share is expected to grow by 9.98% on average over the next years. This is quite good.
The Revenue is expected to decrease by -0.17% on average over the next years.
EPS Next Y-24.86%
EPS Next 2Y-17.56%
EPS Next 3Y5.62%
EPS Next 5Y9.98%
Revenue Next Year-3.12%
Revenue Next 2Y-3.69%
Revenue Next 3Y-3.43%
Revenue Next 5Y-0.17%
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 decreasing.
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
The Price/Earnings ratio is 11.42, which indicates a very decent 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 65.88% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, SU is valued rather cheaply.
The Price/Forward Earnings ratio is 14.73, which indicates a correct valuation of SU.
SU's Price/Forward Earnings is on the same level as the industry average.
SU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 14.73 |
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 74.41% of the companies listed in the same industry.
83.41% of the companies in the same industry are more expensive than SU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.78 | ||
| EV/EBITDA | 5.13 |
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)0.81
EPS Next 2Y-17.56%
EPS Next 3Y5.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.21%, SU is a good candidate for dividend investing.
SU's Dividend Yield is a higher than the industry average which is at 6.28.
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 | 4.21% |
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 49.55% of its income as dividend. This is a bit on the high side, but may be sustainable.
SU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.55%
EPS Next 2Y-17.56%
EPS Next 3Y5.62%
38.59
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners72.88%
Inst Owner Change0.12%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap46.82B
Analysts76.43
Price Target45.62 (18.22%)
Short Float %0.88%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend1.58
Dividend Growth(5Y)5.68%
DP49.55%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.72%
Min EPS beat(2)0.63%
Max EPS beat(2)4.81%
EPS beat(4)4
Avg EPS beat(4)11.88%
Min EPS beat(4)0.63%
Max EPS beat(4)32.04%
EPS beat(8)8
Avg EPS beat(8)11.35%
EPS beat(12)9
Avg EPS beat(12)8.62%
EPS beat(16)12
Avg EPS beat(16)7.45%
Revenue beat(2)1
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-9.75%
Max Revenue beat(2)7.14%
Revenue beat(4)1
Avg Revenue beat(4)-3.67%
Min Revenue beat(4)-9.75%
Max Revenue beat(4)7.14%
Revenue beat(8)4
Avg Revenue beat(8)1.33%
Revenue beat(12)8
Avg Revenue beat(12)3.71%
Revenue beat(16)10
Avg Revenue beat(16)4.47%
PT rev (1m)-0.78%
PT rev (3m)3.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)21.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 14.73 | ||
| P/S | 1.32 | ||
| P/FCF | 7.78 | ||
| P/OCF | 4.56 | ||
| P/B | 1.47 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 5.13 |
EPS(TTM)3.38
EY8.76%
EPS(NY)2.62
Fwd EY6.79%
FCF(TTM)4.96
FCFY12.85%
OCF(TTM)8.47
OCFY21.94%
SpS29.21
BVpS26.18
TBVpS24.14
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.39% | ||
| ROE | 12.7% | ||
| ROCE | 10.43% | ||
| ROIC | 7.92% | ||
| ROICexc | 8.16% | ||
| ROICexgc | 8.55% | ||
| OM | 16.36% | ||
| PM (TTM) | 11.38% | ||
| GM | 61.8% | ||
| FCFM | 16.97% |
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-Score5
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.69 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 85.23% | ||
| Cap/Sales | 12.02% | ||
| Interest Coverage | 9.01 | ||
| Cash Conversion | 95.17% | ||
| Profit Quality | 149.11% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.15 |
F-Score5
WACC7.78%
ROIC/WACC1.02
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)-13%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-44.09%
EPS Next Y-24.86%
EPS Next 2Y-17.56%
EPS Next 3Y5.62%
EPS Next 5Y9.98%
Revenue 1Y (TTM)-1.96%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-8.04%
Revenue Next Year-3.12%
Revenue Next 2Y-3.69%
Revenue Next 3Y-3.43%
Revenue Next 5Y-0.17%
EBIT growth 1Y-11.79%
EBIT growth 3Y13.82%
EBIT growth 5Y7.7%
EBIT Next Year57.21%
EBIT Next 3Y15.71%
EBIT Next 5Y10.82%
FCF growth 1Y26.95%
FCF growth 3Y9.55%
FCF growth 5Y14.28%
OCF growth 1Y18.04%
OCF growth 3Y10.7%
OCF growth 5Y8.9%