SUNCOR ENERGY INC (SU) Stock Fundamental Analysis
NYSE:SU - New York Stock Exchange, Inc. - CA8672241079 - Common Stock - Currency: USD
SU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 has a valuation in line with the averages, but it does not seem to be growing. Finally SU also has an excellent dividend rating. These ratings would make SU suitable 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.
The Return On Equity of SU (13.59%) is better than 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.
Measured over the past 3 years, the Average Return On Invested Capital for SU 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
Looking at the Profit Margin, with a value of 12.04%, SU is in the better half of the industry, outperforming 60.56% of the companies in the same industry.
SU's Profit Margin has improved in the last couple of years.
SU has a Operating Margin (17.86%) which is in line with its industry peers.
SU's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 62.36%, SU is doing good in the industry, outperforming 70.42% of the companies in the same industry.
In the last couple of years the Gross Margin of SU has declined.
| 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's Altman-Z score of 2.13 is fine compared to the rest of the industry. SU outperforms 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.
A Debt/Equity ratio of 0.29 indicates that SU is not too dependend on debt financing.
The Debt to Equity ratio of SU (0.29) is better than 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
WACC8.06%
2.3 Liquidity
A Current Ratio of 1.39 indicates that SU should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.39, SU is doing good in the industry, outperforming 63.85% of the companies in the same industry.
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.
Looking at the last year, SU shows a small growth in Revenue. The Revenue has grown by 2.16% 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)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
SU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.58% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
Based on the Price/Earnings ratio, SU is valued a bit cheaper than the industry average as 74.18% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.59. SU is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.52 indicates a reasonable valuation of SU.
Based on the Price/Forward Earnings ratio, SU is valued a bit cheaper than 65.26% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SU to the average of the S&P500 Index (22.39), we can say SU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 10.52 |
4.2 Price Multiples
73.71% of the companies in the same industry are more expensive than SU, based on the Enterprise Value to EBITDA ratio.
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 | 7.04 | ||
| EV/EBITDA | 4.64 |
4.3 Compensation for Growth
The decent profitability rating of SU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 4.55%, which is a nice return.
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 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
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%
37.62
+0.64 (+1.73%)
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 Cap46.39B
Analysts78.57
Price Target44.36 (17.92%)
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 | 9.7 | ||
| Fwd PE | 10.52 | ||
| P/S | 1.25 | ||
| P/FCF | 7.04 | ||
| P/OCF | 4.14 | ||
| P/B | 1.42 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 4.64 |
EPS(TTM)3.88
EY10.31%
EPS(NY)3.58
Fwd EY9.5%
FCF(TTM)5.34
FCFY14.2%
OCF(TTM)9.08
OCFY24.15%
SpS30
BVpS26.57
TBVpS24.5
PEG (NY)N/A
PEG (5Y)0.69
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
WACC8.06%
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%