SUNCOR ENERGY INC (SU) Stock Fundamental Analysis
NYSE:SU - New York Stock Exchange, Inc. - CA8672241079 - Common Stock - Currency: USD
Overall SU gets a fundamental rating of 6 out of 10. We evaluated SU against 213 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 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.
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 Return On Assets of 6.70%. This is in the better half of the industry: SU outperforms 67.14% of its industry peers.
The Return On Equity of SU (13.51%) is better than 65.26% of its industry peers.
SU has a Return On Invested Capital of 8.68%. This is in the better half of the industry: SU outperforms 67.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SU is significantly below the industry average of 25.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.7% | ||
| ROE | 13.51% | ||
| ROIC | 8.68% |
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 11.87%, SU is in line with its industry, outperforming 58.22% of the companies in the same industry.
SU's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.82%, SU is in line with its industry, outperforming 49.30% of the companies in the same industry.
SU's Operating Margin has improved in the last couple of years.
SU's Gross Margin of 62.29% is fine compared to the rest of the industry. SU outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of SU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.82% | ||
| PM (TTM) | 11.87% | ||
| GM | 62.29% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SU 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
The debt/assets ratio for SU has been reduced compared to a year ago.
2.2 Solvency
SU has an Altman-Z score of 2.10. 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 2.10 is fine compared to the rest of the industry. SU outperforms 70.89% of its industry peers.
The Debt to FCF ratio of SU is 1.55, which is an excellent value as it means it would take SU, only 1.55 years of fcf income to pay off all of its debts.
SU has a better Debt to FCF ratio (1.55) than 86.85% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that SU is not too dependend on debt financing.
SU has a Debt to Equity ratio of 0.29. This is in the better half of the industry: SU outperforms 63.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.95
WACC9.18%
2.3 Liquidity
SU has a Current Ratio of 1.33. This is a normal value and indicates that SU is financially healthy and should not expect problems in meeting its short term obligations.
SU's Current ratio of 1.33 is fine compared to the rest of the industry. SU outperforms 61.03% of its industry peers.
A Quick Ratio of 0.86 indicates that SU may have some problems paying its short term obligations.
With a Quick ratio value of 0.86, SU perfoms like the industry average, outperforming 41.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
SU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.08%.
SU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.08% yearly.
The Revenue has been growing slightly by 3.25% in the past year.
SU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.74% yearly.
EPS 1Y (TTM)6.08%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-0.79%
Revenue 1Y (TTM)3.25%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-11.56%
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 13.38% yearly.
The Revenue is expected to decrease by -2.01% on average over the next years.
EPS Next Y-14.27%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
EPS Next 5Y13.38%
Revenue Next Year-2.76%
Revenue Next 2Y-1.84%
Revenue Next 3Y-2.4%
Revenue Next 5Y-2.01%
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.
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
Based on the Price/Earnings ratio of 9.22, the valuation of SU can be described as reasonable.
SU's Price/Earnings ratio is a bit cheaper when compared to the industry. SU is cheaper than 69.95% of the companies in the same industry.
SU is valuated cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
SU is valuated reasonably with a Price/Forward Earnings ratio of 10.74.
Based on the Price/Forward Earnings ratio, SU is valued a bit cheaper than 60.56% of the companies in the same industry.
SU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 10.74 |
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 70.89% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SU is valued cheaply inside the industry as 84.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.5 | ||
| EV/EBITDA | 4.56 |
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)0.65
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 4.61%, which is a nice return.
SU's Dividend Yield is comparable with the industry average which is at 7.29.
SU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
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
46.59% 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.
DP46.59%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
36.05
+0.35 (+0.98%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.46%
Inst Owner Change-0.27%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap44.60B
Analysts78.57
Price Target44.7 (23.99%)
Short Float %0.94%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
Yearly Dividend1.6
Dividend Growth(5Y)5.68%
DP46.59%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.03%
Min EPS beat(2)10.03%
Max EPS beat(2)32.04%
EPS beat(4)4
Avg EPS beat(4)15.72%
Min EPS beat(4)6.64%
Max EPS beat(4)32.04%
EPS beat(8)7
Avg EPS beat(8)12.3%
EPS beat(12)9
Avg EPS beat(12)10.13%
EPS beat(16)11
Avg EPS beat(16)9.91%
Revenue beat(2)0
Avg Revenue beat(2)-6.04%
Min Revenue beat(2)-9.66%
Max Revenue beat(2)-2.43%
Revenue beat(4)1
Avg Revenue beat(4)-3.21%
Min Revenue beat(4)-9.66%
Max Revenue beat(4)2.68%
Revenue beat(8)5
Avg Revenue beat(8)3.06%
Revenue beat(12)9
Avg Revenue beat(12)7.1%
Revenue beat(16)10
Avg Revenue beat(16)4.89%
PT rev (1m)-0.79%
PT rev (3m)2.05%
EPS NQ rev (1m)-2.46%
EPS NQ rev (3m)23.19%
EPS NY rev (1m)-2.6%
EPS NY rev (3m)5.79%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)5.63%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 10.74 | ||
| P/S | 1.22 | ||
| P/FCF | 6.5 | ||
| P/OCF | 3.86 | ||
| P/B | 1.38 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 4.56 |
EPS(TTM)3.91
EY10.85%
EPS(NY)3.36
Fwd EY9.31%
FCF(TTM)5.54
FCFY15.38%
OCF(TTM)9.34
OCFY25.9%
SpS29.65
BVpS26.04
TBVpS23.99
PEG (NY)N/A
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.7% | ||
| ROE | 13.51% | ||
| ROCE | 11.43% | ||
| ROIC | 8.68% | ||
| ROICexc | 9.08% | ||
| ROICexgc | 9.52% | ||
| OM | 17.82% | ||
| PM (TTM) | 11.87% | ||
| GM | 62.29% | ||
| FCFM | 18.7% |
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 | 1.55 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 93.23% | ||
| Cap/Sales | 12.79% | ||
| Interest Coverage | 9.89 | ||
| Cash Conversion | 99.82% | ||
| Profit Quality | 157.53% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.1 |
F-Score6
WACC9.18%
ROIC/WACC0.95
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)6.08%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-0.79%
EPS Next Y-14.27%
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
EPS Next 5Y13.38%
Revenue 1Y (TTM)3.25%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-11.56%
Revenue Next Year-2.76%
Revenue Next 2Y-1.84%
Revenue Next 3Y-2.4%
Revenue Next 5Y-2.01%
EBIT growth 1Y4.11%
EBIT growth 3Y13.82%
EBIT growth 5Y7.7%
EBIT Next Year68.51%
EBIT Next 3Y17.49%
EBIT Next 5Y8.71%
FCF growth 1Y47.89%
FCF growth 3Y9.55%
FCF growth 5Y14.28%
OCF growth 1Y29.29%
OCF growth 3Y10.7%
OCF growth 5Y8.9%