SUNCOR ENERGY INC (SU)

CA8672241079 - Common Stock

36.37  -0.21 (-0.57%)

After market: 36.3 -0.07 (-0.19%)

Fundamental Rating

5

Overall SU gets a fundamental rating of 5 out of 10. We evaluated SU against 212 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of SU get a neutral evaluation. Nothing too spectacular is happening here. SU is valued correctly, but it does not seem to be growing. Finally SU also has an excellent dividend rating. These ratings could make SU a good candidate for dividend investing.



5

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's Return On Assets of 8.80% is fine compared to the rest of the industry. SU outperforms 65.40% of its industry peers.
SU has a Return On Equity (17.72%) which is comparable to the rest of the industry.
The Return On Invested Capital of SU (8.23%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SU is significantly below the industry average of 30.73%.
Industry RankSector Rank
ROA 8.8%
ROE 17.72%
ROIC 8.23%
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

SU has a Profit Margin (15.85%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SU has grown nicely.
With a Operating Margin value of 17.51%, SU perfoms like the industry average, outperforming 44.08% of the companies in the same industry.
SU's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 62.66%, SU is in the better half of the industry, outperforming 66.82% of the companies in the same industry.
SU's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 17.51%
PM (TTM) 15.85%
GM 62.66%
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%

6

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
Compared to 5 years ago, SU has less shares outstanding
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.
SU has a Altman-Z score of 2.13. This is in the better half of the industry: SU outperforms 60.66% of its industry peers.
The Debt to FCF ratio of SU is 2.00, which is a good value as it means it would take SU, 2.00 years of fcf income to pay off all of its debts.
SU has a Debt to FCF ratio of 2.00. This is in the better half of the industry: SU outperforms 75.36% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that SU is not too dependend on debt financing.
SU has a Debt to Equity ratio (0.35) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 2
Altman-Z 2.13
ROIC/WACC1.09
WACC7.56%

2.3 Liquidity

SU has a Current Ratio of 1.51. 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 (1.51) is better than 63.98% of its industry peers.
SU has a Quick Ratio of 1.51. 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 has a Quick ratio (0.97) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.51
Quick Ratio 0.97

2

3. Growth

3.1 Past

SU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.63%.
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 -12.92% in the past year. This is quite bad
Measured over the past years, SU shows a small growth in Revenue. The Revenue has been growing by 4.96% on average per year.
EPS 1Y (TTM)-33.63%
EPS 3YN/A
EPS 5Y13.99%
EPS Q2Q%3.68%
Revenue 1Y (TTM)-12.92%
Revenue growth 3Y25.79%
Revenue growth 5Y4.96%
Sales Q2Q%2.23%

3.2 Future

SU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.52% yearly.
SU is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.21% yearly.
EPS Next Y11.72%
EPS Next 2Y6.03%
EPS Next 3Y8.5%
EPS Next 5Y9.52%
Revenue Next Year-0.61%
Revenue Next 2Y0.6%
Revenue Next 3Y-3.21%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 9.70, the valuation of SU can be described as very reasonable.
64.93% of the companies in the same industry are more expensive than SU, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.66. SU is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.72, the valuation of SU can be described as reasonable.
64.93% of the companies in the same industry are more expensive than SU, based on the Price/Forward Earnings ratio.
SU is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.7
Fwd PE 8.72

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 64.45% of the companies listed in the same industry.
SU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SU is cheaper than 72.51% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.06
EV/EBITDA 5.06

4.3 Compensation for Growth

SU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.83
PEG (5Y)0.69
EPS Next 2Y6.03%
EPS Next 3Y8.5%

8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.30%, SU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.19, 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 2.39.
Industry RankSector Rank
Dividend Yield 4.3%

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 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 35.16% of its income as dividend. This is a sustainable payout ratio.
SU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.16%
EPS Next 2Y6.03%
EPS Next 3Y8.5%

SUNCOR ENERGY INC

NYSE:SU (6/17/2024, 7:12:28 PM)

After market: 36.3 -0.07 (-0.19%)

36.37

-0.21 (-0.57%)

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 Cap46.73B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.3%
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)
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Revenue beat(2)
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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 RankSector Rank
PE 9.7
Fwd PE 8.72
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)0.83
PEG (5Y)0.69
Profitability
Industry RankSector Rank
ROA 8.8%
ROE 17.72%
ROCE
ROIC
ROICexc
ROICexgc
OM 17.51%
PM (TTM) 15.85%
GM 62.66%
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 Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.51
Quick Ratio 0.97
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)
High Growth Momentum
Growth
EPS 1Y (TTM)-33.63%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y11.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.92%
Revenue growth 3Y25.79%
Revenue growth 5Y
Sales 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