SUNCOR ENERGY INC (SU) Stock Fundamental Analysis
NYSE:SU - New York Stock Exchange, Inc. - CA8672241079 - Common Stock - Currency: USD
Taking everything into account, SU scores 6 out of 10 in our fundamental rating. SU was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. While SU has a great health rating, its profitability is only average at the moment. 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
In the past year SU was profitable.
SU had a positive operating cash flow in the past year.
Of the past 5 years SU 4 years were profitable.
Each year in the past 5 years SU had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.80%, SU is doing good in the industry, outperforming 70.42% of the companies in the same industry.
With a decent Return On Equity value of 13.59%, SU is doing good in the industry, outperforming 68.08% of the companies in the same industry.
SU has a better Return On Invested Capital (8.65%) than 69.48% 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 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
With a decent Profit Margin value of 12.04%, SU is doing good in the industry, outperforming 60.56% of the companies in the same industry.
In the last couple of years the Profit Margin of SU has grown nicely.
The Operating Margin of SU (17.86%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SU has grown nicely.
Looking at the Gross Margin, with a value of 62.36%, SU is in the better half of the industry, outperforming 70.42% of the companies in the same industry.
SU's Gross Margin has declined in the last couple of years.
| 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
The debt/assets ratio for SU has been reduced compared to a year ago.
2.2 Solvency
SU has an Altman-Z score of 2.22. 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.
SU has a better Altman-Z score (2.22) than 70.89% 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.
SU has a Debt to Equity ratio of 0.29. This is in the better half of the industry: SU outperforms 64.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 2.22 |
ROIC/WACC1.23
WACC7.03%
2.3 Liquidity
SU has a Current Ratio of 1.39. 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 1.39 is fine compared to the rest of the industry. SU outperforms 63.85% of its industry peers.
A Quick Ratio of 0.84 indicates that SU may have some problems paying 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.
The Revenue has been growing slightly by 2.16% 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)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
Based on estimates for the next years, SU will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.58% on average per year.
SU is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.95% yearly.
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.
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
Based on the Price/Earnings ratio of 10.50, the valuation of SU can be described as reasonable.
73.24% 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 26.32. SU is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.41 indicates a reasonable valuation of SU.
61.03% of the companies in the same industry are more expensive than SU, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.13. SU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SU is valued a bit cheaper than the industry average as 72.30% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SU indicates a rather cheap valuation: SU is cheaper than 81.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.64 | ||
| EV/EBITDA | 5.04 |
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)0.75
EPS Next 2Y-4.9%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
SU has a Yearly Dividend Yield of 4.29%, which is a nice return.
Compared to an average industry Dividend Yield of 6.56, SU pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, SU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
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%
40.96
+1.87 (+4.78%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners73.17%
Inst Owner Change-0.5%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap50.51B
Analysts78.57
Price Target44.36 (8.3%)
Short Float %2.7%
Short Ratio6.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
Yearly Dividend1.62
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)0.54%
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)1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 11.41 | ||
| P/S | 1.36 | ||
| P/FCF | 7.64 | ||
| P/OCF | 4.49 | ||
| P/B | 1.54 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 5.04 |
EPS(TTM)3.9
EY9.52%
EPS(NY)3.59
Fwd EY8.76%
FCF(TTM)5.36
FCFY13.09%
OCF(TTM)9.12
OCFY22.27%
SpS30.13
BVpS26.68
TBVpS24.6
PEG (NY)N/A
PEG (5Y)0.75
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 | 2.22 |
F-Score6
WACC7.03%
ROIC/WACC1.23
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%