SUNCOR ENERGY INC (SU) Stock Fundamental Analysis
NYSE:SU - CA8672241079 - Common Stock
39.97 USD
-0.18 (-0.45%)
39.97 USD
0 (0%)
SU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 209 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 has a valuation in line with the averages, but it does not seem to be growing.
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
The Return On Assets of SU (6.39%) is better than 68.42% of its industry peers.
With a decent Return On Equity value of 12.70%, SU is doing good in the industry, outperforming 67.94% of the companies in the same industry.
SU's Return On Invested Capital of 7.92% is fine compared to the rest of the industry. SU outperforms 69.86% 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 21.91%.
| 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
SU has a Profit Margin of 11.38%. This is comparable to the rest of the industry: SU outperforms 59.33% 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 47.85% of its industry peers.
SU's Operating Margin has improved in the last couple of years.
SU has a Gross Margin of 61.80%. This is in the better half of the industry: SU outperforms 69.86% of its industry peers.
In the last couple of years the Gross Margin of SU has declined.
| 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
SU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SU has been reduced compared to 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 2.17 indicates that SU is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.17, SU is in the better half of the industry, outperforming 71.29% of the companies in the same industry.
SU has a debt to FCF ratio of 1.69. This is a very positive value and a sign of high solvency as it would only need 1.69 years to pay back of all of its debts.
The Debt to FCF ratio of SU (1.69) is better than 84.69% of its industry peers.
SU has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.28, SU is doing good in the industry, outperforming 64.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.97
WACC8.2%
2.3 Liquidity
SU has a Current Ratio of 1.26. 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 1.26. This is comparable to the rest of the industry: SU outperforms 58.37% of its industry peers.
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.
The Quick ratio of SU (0.77) is worse than 61.72% 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%.
The Earnings Per Share has been growing by 14.08% on average over the past years. This is quite good.
SU shows a decrease in Revenue. In the last year, the revenue decreased by -1.96%.
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)-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.
SU is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.49% yearly.
EPS Next Y-24.86%
EPS Next 2Y-17.56%
EPS Next 3Y5.62%
EPS Next 5Y9.98%
Revenue Next Year-3.11%
Revenue Next 2Y-3.7%
Revenue Next 3Y-3.43%
Revenue Next 5Y-0.49%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.62, the valuation of SU can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SU indicates a somewhat cheap valuation: SU is cheaper than 68.90% of the companies listed in the same industry.
SU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.06.
Based on the Price/Forward Earnings ratio of 15.02, the valuation of SU can be described as correct.
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 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 15.02 |
4.2 Price Multiples
SU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SU is cheaper than 74.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SU is valued cheaper than 83.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.94 | ||
| EV/EBITDA | 5.24 |
4.3 Compensation for Growth
The decent profitability rating of SU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y-17.56%
EPS Next 3Y5.62%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 3.98%.
SU's Dividend Yield is a higher than the industry average which is at 6.06.
Compared to an average S&P500 Dividend Yield of 2.32, SU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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.
The dividend of SU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.55%
EPS Next 2Y-17.56%
EPS Next 3Y5.62%
39.97
-0.18 (-0.45%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners73.17%
Inst Owner Change-2.27%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap48.49B
Analysts78.57
Price Target45.54 (13.94%)
Short Float %2.12%
Short Ratio6.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Yearly Dividend1.61
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)0.56%
PT rev (3m)3.81%
EPS NQ rev (1m)-7.79%
EPS NQ rev (3m)-4.43%
EPS NY rev (1m)-12.35%
EPS NY rev (3m)-12.35%
Revenue NQ rev (1m)1.69%
Revenue NQ rev (3m)-7.54%
Revenue NY rev (1m)1.34%
Revenue NY rev (3m)-3.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 15.02 | ||
| P/S | 1.35 | ||
| P/FCF | 7.94 | ||
| P/OCF | 4.65 | ||
| P/B | 1.5 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 5.24 |
EPS(TTM)3.44
EY8.61%
EPS(NY)2.66
Fwd EY6.66%
FCF(TTM)5.03
FCFY12.6%
OCF(TTM)8.6
OCFY21.52%
SpS29.67
BVpS26.59
TBVpS24.52
PEG (NY)N/A
PEG (5Y)0.83
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 | 2.17 |
F-Score5
WACC8.2%
ROIC/WACC0.97
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-3.11%
Revenue Next 2Y-3.7%
Revenue Next 3Y-3.43%
Revenue Next 5Y-0.49%
EBIT growth 1Y-11.79%
EBIT growth 3Y13.82%
EBIT growth 5Y7.7%
EBIT Next Year59.57%
EBIT Next 3Y17.11%
EBIT Next 5Y10.47%
FCF growth 1Y26.95%
FCF growth 3Y9.55%
FCF growth 5Y14.28%
OCF growth 1Y18.04%
OCF growth 3Y10.7%
OCF growth 5Y8.9%