SUNCOR ENERGY INC (SU) Stock Fundamental Analysis
NYSE:SU - New York Stock Exchange, Inc. - CA8672241079 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SU. SU was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. SU has an excellent financial health rating, but there are some minor concerns on its profitability. SU is valued correctly, but it does not seem to be growing. SU also has an excellent dividend rating. With these ratings, SU could be worth investigating further 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.
In the past 5 years SU always reported a positive cash flow from operatings.
1.2 Ratios
SU has a better Return On Assets (6.80%) than 70.42% of its industry peers.
SU's Return On Equity of 13.59% is fine compared to the rest of the industry. SU outperforms 68.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.65%, SU is in the better half of the industry, outperforming 69.48% 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 23.55%.
| 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
SU's Profit Margin of 12.04% is fine compared to the rest of the industry. SU outperforms 60.56% of its industry peers.
In the last couple of years the Profit Margin of SU has grown nicely.
The Operating Margin of SU (17.86%) is comparable to the rest of the industry.
SU's Operating Margin has improved in the last couple of years.
The Gross Margin of SU (62.36%) is better than 70.42% of its industry peers.
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.
The number of shares outstanding for SU has been reduced compared to 1 year ago.
Compared to 5 years ago, SU has less shares outstanding
Compared to 1 year ago, SU has an improved debt to assets ratio.
2.2 Solvency
SU has an Altman-Z score of 2.13. 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 better Altman-Z score (2.13) than 70.42% of its industry peers.
The Debt to FCF ratio of SU is 1.64, which is an excellent value as it means it would take SU, only 1.64 years of fcf income to pay off all of its debts.
SU has a Debt to FCF ratio of 1.64. This is amongst the best in the industry. SU outperforms 84.98% 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 of 0.29. This is in the better half of the industry: SU outperforms 64.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 2.13 |
ROIC/WACC1.07
WACC8.05%
2.3 Liquidity
A Current Ratio of 1.39 indicates that SU should not have too much problems paying its short term obligations.
SU's Current ratio of 1.39 is fine compared to the rest of the industry. SU outperforms 63.85% of its industry peers.
SU has a Quick Ratio of 1.39. 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 0.84 is in line compared to the rest of the industry. SU outperforms 40.38% 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 3.11%.
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.
SU shows a small growth in Revenue. In the last year, the Revenue has grown by 2.16%.
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)3.11%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-7.09%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-0.61%
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 11.58% on average per year.
The Revenue is expected to decrease by -0.95% on average over the next years.
EPS Next Y-14.27%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
EPS Next 5Y11.58%
Revenue Next Year0.13%
Revenue Next 2Y-0.43%
Revenue Next 3Y-0.07%
Revenue Next 5Y-0.95%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
SU is valuated reasonably with a Price/Earnings ratio of 9.48.
Compared to the rest of the industry, the Price/Earnings ratio of SU indicates a somewhat cheap valuation: SU is cheaper than 74.18% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.55. SU is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.30, which indicates a very decent valuation of SU.
Based on the Price/Forward Earnings ratio, SU is valued a bit cheaper than the industry average as 64.79% 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 22.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
SU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SU is cheaper than 73.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SU is valued cheaply inside the industry as 82.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.89 | ||
| EV/EBITDA | 4.62 |
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)0.67
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.55%, SU is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.74, SU has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, SU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
5.2 History
The dividend of SU has a limited annual growth rate of 5.68%.
SU has paid a dividend for at least 10 years, which is 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
46.04% of the earnings are spent on dividend by SU. 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%
36.78
+0.18 (+0.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.46%
Inst Owner Change-0.5%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap45.35B
Analysts78.57
Price Target44.36 (20.61%)
Short Float %2.7%
Short Ratio6.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
Yearly Dividend1.61
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)7.42%
Min EPS beat(2)4.81%
Max EPS beat(2)10.03%
EPS beat(4)4
Avg EPS beat(4)15.26%
Min EPS beat(4)4.81%
Max EPS beat(4)32.04%
EPS beat(8)8
Avg EPS beat(8)12.91%
EPS beat(12)9
Avg EPS beat(12)8.82%
EPS beat(16)11
Avg EPS beat(16)7.27%
Revenue beat(2)0
Avg Revenue beat(2)-9.7%
Min Revenue beat(2)-9.75%
Max Revenue beat(2)-9.66%
Revenue beat(4)1
Avg Revenue beat(4)-4.79%
Min Revenue beat(4)-9.75%
Max Revenue beat(4)2.68%
Revenue beat(8)4
Avg Revenue beat(8)0.8%
Revenue beat(12)8
Avg Revenue beat(12)5.12%
Revenue beat(16)10
Avg Revenue beat(16)4.33%
PT rev (1m)1.11%
PT rev (3m)1.27%
EPS NQ rev (1m)-12.27%
EPS NQ rev (3m)-10.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.42%
Revenue NQ rev (1m)6.17%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 10.3 | ||
| P/S | 1.23 | ||
| P/FCF | 6.89 | ||
| P/OCF | 4.05 | ||
| P/B | 1.39 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 4.62 |
EPS(TTM)3.88
EY10.55%
EPS(NY)3.57
Fwd EY9.71%
FCF(TTM)5.34
FCFY14.51%
OCF(TTM)9.08
OCFY24.68%
SpS29.98
BVpS26.55
TBVpS24.48
PEG (NY)N/A
PEG (5Y)0.67
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 | 2.13 |
F-Score6
WACC8.05%
ROIC/WACC1.07
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)3.11%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-7.09%
EPS Next Y-14.27%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
EPS Next 5Y11.58%
Revenue 1Y (TTM)2.16%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-0.61%
Revenue Next Year0.13%
Revenue Next 2Y-0.43%
Revenue Next 3Y-0.07%
Revenue Next 5Y-0.95%
EBIT growth 1Y4.19%
EBIT growth 3Y13.82%
EBIT growth 5Y7.7%
EBIT Next Year59.57%
EBIT Next 3Y17.11%
EBIT Next 5Y9.93%
FCF growth 1Y6.92%
FCF growth 3Y9.55%
FCF growth 5Y14.28%
OCF growth 1Y12.33%
OCF growth 3Y10.7%
OCF growth 5Y8.9%