SUNCOR ENERGY INC (SU) Stock Fundamental Analysis
USA - NYSE:SU - CA8672241079 - Common Stock
42.62 USD
-0.08 (-0.19%)
42.9 USD
+0.28 (+0.66%)
SU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 on the other hand it scores bad on growth.
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.
SU had positive earnings in 4 of the past 5 years.
SU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.39%, SU is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
SU's Return On Equity of 12.70% is fine compared to the rest of the industry. SU outperforms 68.10% of its industry peers.
With a decent Return On Invested Capital value of 7.92%, SU is doing good in the industry, outperforming 70.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SU is significantly below the industry average of 21.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.39% | ||
| ROE | 12.7% | ||
| ROIC | 7.92% |
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 has a Profit Margin (11.38%) 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 (16.36%) which is comparable to the rest of the industry.
SU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 61.80%, SU is in the better half of the industry, outperforming 70.00% 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 | 16.36% | ||
| PM (TTM) | 11.38% | ||
| GM | 61.8% |
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
SU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.23 indicates that SU is not a great score, but indicates only limited risk for bankruptcy at the moment.
SU has a Altman-Z score of 2.23. This is in the better half of the industry: SU outperforms 70.95% of its industry peers.
The Debt to FCF ratio of SU is 1.69, which is an excellent value as it means it would take SU, only 1.69 years of fcf income to pay off all of its debts.
SU has a better Debt to FCF ratio (1.69) than 84.76% of its industry peers.
SU has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.28, SU is in the better half of the industry, outperforming 64.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 2.23 |
ROIC/WACC1
WACC7.93%
2.3 Liquidity
SU has a Current Ratio of 1.26. This is a normal value and indicates that SU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.26, SU is in line with its industry, outperforming 58.57% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that SU may have some problems paying its short term obligations.
The Quick ratio of SU (0.77) is worse than 60.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
SU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.00%.
SU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.08% yearly.
SU shows a decrease in Revenue. In the last year, the revenue decreased by -1.96%.
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)-13%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-44.09%
Revenue 1Y (TTM)-1.96%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-8.04%
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 9.98% on average per year.
Based on estimates for the next years, SU will show a decrease in Revenue. The Revenue will decrease by -0.49% on average per year.
EPS Next Y-24.86%
EPS Next 2Y-17.56%
EPS Next 3Y5.62%
EPS Next 5Y9.98%
Revenue Next Year-3.11%
Revenue Next 2Y-3.7%
Revenue Next 3Y-3.43%
Revenue Next 5Y-0.49%
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 decreasing.
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
SU is valuated correctly with a Price/Earnings ratio of 12.46.
64.76% 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 27.32, SU is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 16.10, the valuation of SU can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as SU.
When comparing the Price/Forward Earnings ratio of SU to the average of the S&P500 Index (22.89), we can say SU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 16.1 |
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 70.95% of the companies listed in the same industry.
SU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SU is cheaper than 82.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.51 | ||
| EV/EBITDA | 5.54 |
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)0.89
EPS Next 2Y-17.56%
EPS Next 3Y5.62%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 3.87%. Purely for dividend investing, there may be better candidates out there.
SU's Dividend Yield is comparable with the industry average which is at 6.00.
SU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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
SU pays out 49.55% of its income as dividend. 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.
DP49.55%
EPS Next 2Y-17.56%
EPS Next 3Y5.62%
42.62
-0.08 (-0.19%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners72.88%
Inst Owner Change-2.27%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap51.71B
Analysts76.43
Price Target45.98 (7.88%)
Short Float %2.26%
Short Ratio7.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Yearly Dividend1.6
Dividend Growth(5Y)5.68%
DP49.55%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.72%
Min EPS beat(2)0.63%
Max EPS beat(2)4.81%
EPS beat(4)4
Avg EPS beat(4)11.88%
Min EPS beat(4)0.63%
Max EPS beat(4)32.04%
EPS beat(8)8
Avg EPS beat(8)11.35%
EPS beat(12)9
Avg EPS beat(12)8.62%
EPS beat(16)12
Avg EPS beat(16)7.45%
Revenue beat(2)1
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-9.75%
Max Revenue beat(2)7.14%
Revenue beat(4)1
Avg Revenue beat(4)-3.67%
Min Revenue beat(4)-9.75%
Max Revenue beat(4)7.14%
Revenue beat(8)4
Avg Revenue beat(8)1.33%
Revenue beat(12)8
Avg Revenue beat(12)3.71%
Revenue beat(16)10
Avg Revenue beat(16)4.47%
PT rev (1m)1.54%
PT rev (3m)3.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 16.1 | ||
| P/S | 1.44 | ||
| P/FCF | 8.51 | ||
| P/OCF | 4.98 | ||
| P/B | 1.61 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 5.54 |
EPS(TTM)3.42
EY8.02%
EPS(NY)2.65
Fwd EY6.21%
FCF(TTM)5.01
FCFY11.75%
OCF(TTM)8.55
OCFY20.07%
SpS29.5
BVpS26.45
TBVpS24.38
PEG (NY)N/A
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.39% | ||
| ROE | 12.7% | ||
| ROCE | 10.43% | ||
| ROIC | 7.92% | ||
| ROICexc | 8.16% | ||
| ROICexgc | 8.55% | ||
| OM | 16.36% | ||
| PM (TTM) | 11.38% | ||
| GM | 61.8% | ||
| FCFM | 16.97% |
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-Score5
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.69 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 85.23% | ||
| Cap/Sales | 12.02% | ||
| Interest Coverage | 9.01 | ||
| Cash Conversion | 95.17% | ||
| Profit Quality | 149.11% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.23 |
F-Score5
WACC7.93%
ROIC/WACC1
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)-13%
EPS 3Y28.33%
EPS 5Y14.08%
EPS Q2Q%-44.09%
EPS Next Y-24.86%
EPS Next 2Y-17.56%
EPS Next 3Y5.62%
EPS Next 5Y9.98%
Revenue 1Y (TTM)-1.96%
Revenue growth 3Y9.01%
Revenue growth 5Y5.74%
Sales Q2Q%-8.04%
Revenue Next Year-3.11%
Revenue Next 2Y-3.7%
Revenue Next 3Y-3.43%
Revenue Next 5Y-0.49%
EBIT growth 1Y-11.79%
EBIT growth 3Y13.82%
EBIT growth 5Y7.7%
EBIT Next Year57.21%
EBIT Next 3Y15.71%
EBIT Next 5Y10.47%
FCF growth 1Y26.95%
FCF growth 3Y9.55%
FCF growth 5Y14.28%
OCF growth 1Y18.04%
OCF growth 3Y10.7%
OCF growth 5Y8.9%