SUNCOR ENERGY INC (SU)
CA8672241079 - Common Stock
We assign a fundamental rating of 5 out of 10 to SU. SU was compared to 210 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. 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
In the past year SU was profitable.
In the past year SU had a positive cash flow from operations.
Of the past 5 years SU 4 years were profitable.
SU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SU's Return On Assets of 8.80% is fine compared to the rest of the industry. SU outperforms 66.19% of its industry peers.
SU's Return On Equity of 17.72% is in line compared to the rest of the industry. SU outperforms 60.00% of its industry peers.
SU has a Return On Invested Capital (8.23%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SU is significantly below the industry average of 30.77%.
| Industry Rank | Sector 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.
SU has a Operating Margin (17.51%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SU has remained more or less at the same level.
SU's Gross Margin of 62.66% is fine compared to the rest of the industry. SU outperforms 66.67% of its industry peers.
SU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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
SU has a better debt/assets ratio than last year.
2.2 Solvency
SU has an Altman-Z score of 2.19. 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.
The Altman-Z score of SU (2.19) is comparable to the rest of the industry.
SU has a debt to FCF ratio of 2.00. This is a good value and a sign of high solvency as SU would need 2.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.00, SU is in the better half of the industry, outperforming 75.24% of the companies in the same industry.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2 | ||
| Altman-Z | 2.19 |
ROIC/WACC1.12
WACC7.35%
2.3 Liquidity
A Current Ratio of 1.51 indicates that SU should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.51, SU is in the better half of the industry, outperforming 63.81% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that SU may have some problems paying its short term obligations.
SU has a Quick ratio (0.97) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for SU have decreased strongly by -33.63% in the last year.
Measured over the past years, SU shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.99% on average per year.
SU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.92%.
The Revenue has been growing slightly by 4.96% on average over the past years.
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
The Earnings Per Share is expected to grow by 18.53% 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 -2.82% yearly.
EPS Next Y11.72%
EPS Next 2Y6.03%
EPS Next 3Y8.5%
EPS Next 5Y18.53%
Revenue Next Year-0.61%
Revenue Next 2Y0.6%
Revenue Next 3Y-3.21%
Revenue Next 5Y-2.82%
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 accelerating.
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
With a Price/Earnings ratio of 10.35, the valuation of SU can be described as very reasonable.
64.29% of the companies in the same industry are more expensive than SU, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.41, SU is valued rather cheaply.
SU is valuated reasonably with a Price/Forward Earnings ratio of 9.30.
SU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SU is cheaper than 63.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.59. SU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 9.3 |
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 64.29% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SU indicates a somewhat cheap valuation: SU is cheaper than 71.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.59 | ||
| EV/EBITDA | 5.33 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.88
PEG (5Y)0.74
EPS Next 2Y6.03%
EPS Next 3Y8.5%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 4.15%, which is a nice return.
SU's Dividend Yield is a higher than the industry average which is at 5.93.
SU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
5.2 History
On average, the dividend of SU grows each year by 7.66%, which is quite nice.
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.
The dividend of SU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.16%
EPS Next 2Y6.03%
EPS Next 3Y8.5%
SUNCOR ENERGY INC
NYSE:SU (7/26/2024, 7:04:00 PM)
After market: 39 +0.5 (+1.3%)38.5
+0.02 (+0.05%)
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 Cap49.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 9.3 | ||
| 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)0.88
PEG (5Y)0.74
Profitability
| Industry Rank | Sector 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 Rank | Sector 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