SUNCOR ENERGY INC (SU)

CA8672241079 - Common Stock

36.91  +0.43 (+1.18%)

After market: 36.96 +0.05 (+0.14%)

Fundamental Rating

4

Taking everything into account, SU scores 4 out of 10 in our fundamental rating. SU was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. SU has only an average score on both its financial health and profitability. SU is valued correctly, but it does not seem to be growing. SU also has an excellent dividend rating.



5

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.
In multiple years SU reported negative net income over the last 5 years.
Of the past 5 years SU 4 years had a positive operating cash flow.

1.2 Ratios

The Return On Assets of SU (9.62%) is better than 61.50% of its industry peers.
The Return On Equity of SU (19.67%) is comparable to the rest of the industry.
SU has a Return On Invested Capital (10.09%) which is comparable to the rest of the industry.
Industry RankSector Rank
ROA 9.62%
ROE 19.67%
ROIC 10.09%
ROA(3y)3.51%
ROA(5y)3.49%
ROE(3y)7.41%
ROE(5y)7.32%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

SU's Profit Margin of 16.37% is in line compared to the rest of the industry. SU outperforms 50.70% of its industry peers.
In the last couple of years the Profit Margin of SU has grown nicely.
SU has a Operating Margin of 20.57%. This is comparable to the rest of the industry: SU outperforms 43.66% of its industry peers.
SU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 64.55%, SU is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SU's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 20.57%
PM (TTM) 16.37%
GM 64.55%
OM growth 3Y13.65%
OM growth 5Y10.19%
PM growth 3Y27.2%
PM growth 5Y2.21%
GM growth 3Y-1.43%
GM growth 5Y-0.25%

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SU is still creating some value.
There is no outstanding debt for SU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

SU has an Altman-Z score of 2.22. 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 (2.22) is better than 61.50% of its industry peers.
The Debt to FCF ratio of SU is 2.48, which is a good value as it means it would take SU, 2.48 years of fcf income to pay off all of its debts.
SU's Debt to FCF ratio of 2.48 is fine compared to the rest of the industry. SU outperforms 71.83% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that SU is not too dependend on debt financing.
SU has a Debt to Equity ratio of 0.36. This is comparable to the rest of the industry: SU outperforms 58.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 2.48
Altman-Z 2.22
ROIC/WACC1.42
WACC7.11%

2.3 Liquidity

A Current Ratio of 1.24 indicates that SU should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, SU is in line with its industry, outperforming 53.99% of the companies in the same industry.
A Quick Ratio of 0.82 indicates that SU may have some problems paying its short term obligations.
SU has a worse Quick ratio (0.82) than 62.91% of its industry peers.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 0.82

3

3. Growth

3.1 Past

SU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.65%.
SU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.08% yearly.
SU shows a decrease in Revenue. In the last year, the revenue decreased by -9.65%.
Measured over the past years, SU shows a quite strong growth in Revenue. The Revenue has been growing by 12.79% on average per year.
EPS 1Y (TTM)-23.65%
EPS 3Y43.77%
EPS 5Y34.08%
EPS growth Q2Q-19.15%
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y15.01%
Revenue growth 5Y12.79%
Revenue growth Q2Q-15.36%

3.2 Future

Based on estimates for the next years, SU will show a decrease in Earnings Per Share. The EPS will decrease by -2.48% on average per year.
Based on estimates for the next years, SU will show a decrease in Revenue. The Revenue will decrease by -7.92% on average per year.
EPS Next Y-34.75%
EPS Next 2Y-22.63%
EPS Next 3Y-13.98%
EPS Next 5Y-2.48%
Revenue Next Year-17.46%
Revenue Next 2Y-7.88%
Revenue Next 3Y-6.61%
Revenue Next 5Y-7.92%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 8.87 indicates a reasonable valuation of SU.
65.73% of the companies in the same industry are more expensive than SU, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.48. SU is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.06, the valuation of SU can be described as reasonable.
Based on the Price/Forward Earnings ratio, SU is valued a bit cheaper than 66.67% of the companies in the same industry.
SU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.79.
Industry RankSector Rank
PE 8.87
Fwd PE 10.06

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SU is valued a bit cheaper than 67.61% of the companies 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 63.85% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 10.36
EV/EBITDA 4.51

4.3 Compensation for Growth

A cheap valuation may be justified as SU's earnings are expected to decrease with -13.98% in the coming years.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-22.63%
EPS Next 3Y-13.98%

7

5. Dividend

5.1 Amount

SU has a Yearly Dividend Yield of 4.45%, which is a nice return.
Compared to an average industry Dividend Yield of 5.82, SU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, SU pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.45%

5.2 History

The dividend of SU is nicely growing with an annual growth rate of 7.80%!
SU has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SU decreased in the last 3 years.
Dividend Growth(5Y)7.8%
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

33.41% of the earnings are spent on dividend by SU. This is a low number and sustainable payout ratio.
DP33.41%
EPS Next 2Y-22.63%
EPS Next 3Y-13.98%

SUNCOR ENERGY INC

NYSE:SU (3/28/2024, 8:04:00 PM)

After market: 36.96 +0.05 (+0.14%)

36.91

+0.43 (+1.18%)

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 Cap47.52B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.45%
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)
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Revenue beat(2)
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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 RankSector Rank
PE 8.87
Fwd PE 10.06
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)N/A
PEG (5Y)0.26
Profitability
Industry RankSector Rank
ROA 9.62%
ROE 19.67%
ROCE
ROIC
ROICexc
ROICexgc
OM 20.57%
PM (TTM) 16.37%
GM 64.55%
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 Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.24
Quick Ratio 0.82
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)
Growth
EPS 1Y (TTM)-23.65%
EPS 3Y43.77%
EPS 5Y
EPS growth Q2Q
EPS Next Y-34.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.65%
Revenue growth 3Y15.01%
Revenue growth 5Y
Revenue growth 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