SUNCOR ENERGY INC (SU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SU - CA8672241079 - Common Stock
44.28 USD
-0.04 (-0.09%)
44.23 USD
-0.05 (-0.11%)
Overall SU gets a fundamental rating of 6 out of 10. We evaluated SU against 210 industry peers in the Oil, Gas & Consumable Fuels industry. SU is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SU has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
SU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.88%, SU is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
SU's Return On Equity of 11.65% is fine compared to the rest of the industry. SU outperforms 67.14% of its industry peers.
With a decent Return On Invested Capital value of 7.63%, SU is doing good in the industry, outperforming 69.05% of the companies in the same industry.
SU had an Average Return On Invested Capital over the past 3 years of 10.38%. This is significantly below the industry average of 21.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 11.65% | ||
| ROIC | 7.63% |
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 (10.65%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SU has grown nicely.
SU has a Operating Margin (16.10%) which is comparable to the rest of the industry.
SU's Operating Margin has improved in the last couple of years.
SU's Gross Margin of 62.21% is fine compared to the rest of the industry. SU outperforms 71.43% of its industry peers.
In the last couple of years the Gross Margin of SU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.1% | ||
| PM (TTM) | 10.65% | ||
| GM | 62.21% |
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.
The number of shares outstanding for SU has been reduced compared to 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 2.27 indicates that SU is not a great score, but indicates only limited risk for bankruptcy at the moment.
SU has a Altman-Z score of 2.27. This is in the better half of the industry: SU outperforms 71.90% of its industry peers.
SU has a debt to FCF ratio of 1.80. This is a very positive value and a sign of high solvency as it would only need 1.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.80, SU belongs to the top of the industry, outperforming 84.76% of the companies in the same industry.
SU has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
SU's Debt to Equity ratio of 0.27 is fine compared to the rest of the industry. SU outperforms 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 2.27 |
ROIC/WACC1.01
WACC7.55%
2.3 Liquidity
A Current Ratio of 1.35 indicates that SU should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.35, SU is doing good in the industry, outperforming 60.48% of the companies in the same industry.
SU has a Quick Ratio of 1.35. This is a bad value and indicates that SU is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SU (0.85) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
SU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.36%.
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 decrease in Revenue. The Revenue has decreased by -3.08% 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)-12.36%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%0%
Revenue 1Y (TTM)-3.08%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-3.9%
3.2 Future
The Earnings Per Share is expected to grow by 11.16% 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 -0.12% on average per year.
EPS Next Y-25.3%
EPS Next 2Y-19.5%
EPS Next 3Y1.71%
EPS Next 5Y11.16%
Revenue Next Year-2.42%
Revenue Next 2Y-3.03%
Revenue Next 3Y-1.56%
Revenue Next 5Y-0.12%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 13.14 indicates a correct valuation of SU.
Based on the Price/Earnings ratio, SU is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.65. SU is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.79, the valuation of SU can be described as rather expensive.
SU's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.45. SU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 17.79 |
4.2 Price Multiples
SU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SU is cheaper than 69.05% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SU indicates a rather cheap valuation: SU is cheaper than 80.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.32 | ||
| EV/EBITDA | 5.8 |
4.3 Compensation for Growth
The decent profitability rating of SU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y-19.5%
EPS Next 3Y1.71%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 3.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.88, SU has a dividend in line with its industry peers.
SU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
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 53.29% 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.
DP53.29%
EPS Next 2Y-19.5%
EPS Next 3Y1.71%
44.28
-0.04 (-0.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners72.88%
Inst Owner Change0.08%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap53.19B
Revenue(TTM)49.40B
Net Income(TTM)5.26B
Analysts75.86
Price Target47.16 (6.5%)
Short Float %1.12%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Yearly Dividend1.57
Dividend Growth(5Y)5.68%
DP53.29%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.75%
Min EPS beat(2)0.63%
Max EPS beat(2)32.87%
EPS beat(4)4
Avg EPS beat(4)12.09%
Min EPS beat(4)0.63%
Max EPS beat(4)32.87%
EPS beat(8)8
Avg EPS beat(8)14.41%
EPS beat(12)10
Avg EPS beat(12)11.38%
EPS beat(16)12
Avg EPS beat(16)9.5%
Revenue beat(2)1
Avg Revenue beat(2)1.32%
Min Revenue beat(2)-4.49%
Max Revenue beat(2)7.14%
Revenue beat(4)1
Avg Revenue beat(4)-4.19%
Min Revenue beat(4)-9.75%
Max Revenue beat(4)7.14%
Revenue beat(8)3
Avg Revenue beat(8)0.01%
Revenue beat(12)7
Avg Revenue beat(12)1.98%
Revenue beat(16)10
Avg Revenue beat(16)4.49%
PT rev (1m)3.39%
PT rev (3m)4.16%
EPS NQ rev (1m)8.36%
EPS NQ rev (3m)7.86%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-12.86%
Revenue NQ rev (1m)-4.47%
Revenue NQ rev (3m)-4.66%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 17.79 | ||
| P/S | 1.52 | ||
| P/FCF | 9.32 | ||
| P/OCF | 5.37 | ||
| P/B | 1.66 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 5.8 |
EPS(TTM)3.37
EY7.61%
EPS(NY)2.49
Fwd EY5.62%
FCF(TTM)4.75
FCFY10.73%
OCF(TTM)8.24
OCFY18.61%
SpS29.19
BVpS26.69
TBVpS24.64
PEG (NY)N/A
PEG (5Y)0.93
Graham Number44.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 11.65% | ||
| ROCE | 10.05% | ||
| ROIC | 7.63% | ||
| ROICexc | 7.92% | ||
| ROICexgc | 8.3% | ||
| OM | 16.1% | ||
| PM (TTM) | 10.65% | ||
| GM | 62.21% | ||
| FCFM | 16.27% |
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
ROICexgc growth 3Y12.14%
ROICexgc 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.8 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 84.94% | ||
| Cap/Sales | 11.96% | ||
| Interest Coverage | 8.57 | ||
| Cash Conversion | 93.54% | ||
| Profit Quality | 152.78% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.27 |
F-Score6
WACC7.55%
ROIC/WACC1.01
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)-12.36%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%0%
EPS Next Y-25.3%
EPS Next 2Y-19.5%
EPS Next 3Y1.71%
EPS Next 5Y11.16%
Revenue 1Y (TTM)-3.08%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-3.9%
Revenue Next Year-2.42%
Revenue Next 2Y-3.03%
Revenue Next 3Y-1.56%
Revenue Next 5Y-0.12%
EBIT growth 1Y-14.49%
EBIT growth 3Y13.82%
EBIT growth 5Y7.7%
EBIT Next Year57.21%
EBIT Next 3Y15.71%
EBIT Next 5Y11.46%
FCF growth 1Y29.11%
FCF growth 3Y9.55%
FCF growth 5Y14.28%
OCF growth 1Y16.68%
OCF growth 3Y10.7%
OCF growth 5Y8.9%
SUNCOR ENERGY INC / SU FAQ
What is the ChartMill fundamental rating of SUNCOR ENERGY INC (SU) stock?
ChartMill assigns a fundamental rating of 6 / 10 to SU.
What is the valuation status for SU stock?
ChartMill assigns a valuation rating of 5 / 10 to SUNCOR ENERGY INC (SU). This can be considered as Fairly Valued.
Can you provide the profitability details for SUNCOR ENERGY INC?
SUNCOR ENERGY INC (SU) has a profitability rating of 6 / 10.
How financially healthy is SUNCOR ENERGY INC?
The financial health rating of SUNCOR ENERGY INC (SU) is 7 / 10.
What is the expected EPS growth for SUNCOR ENERGY INC (SU) stock?
The Earnings per Share (EPS) of SUNCOR ENERGY INC (SU) is expected to decline by -25.3% in the next year.