Suncor Energy Inc.
Suncor Energy Inc. Fundamental Analysis
Suncor Energy Inc. (SU) shows moderate financial fundamentals with a PE ratio of 15.45, profit margin of 11.92%, and ROE of 13.17%. The company generates $50.1B in annual revenue with moderate year-over-year growth of 3.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SU's fundamental strength across five key dimensions:
Efficiency Score
WeakSU struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSU trades at attractive valuation levels.
Growth Score
WeakSU faces weak or negative growth trends.
Financial Health Score
ExcellentSU maintains a strong and stable balance sheet.
Profitability Score
WeakSU struggles to sustain strong margins.
Key Financial Metrics
Is SU Expensive or Cheap?
P/E Ratio
SU trades at 15.45 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SU's PEG of 0.83 indicates potential undervaluation.
Price to Book
The market values Suncor Energy Inc. at 2.03 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.79 times EBITDA. This is generally considered low.
How Well Does SU Make Money?
Net Profit Margin
For every $100 in sales, Suncor Energy Inc. keeps $11.92 as profit after all expenses.
Operating Margin
Core operations generate 19.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.17 in profit for every $100 of shareholder equity.
ROA
Suncor Energy Inc. generates $6.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Suncor Energy Inc. generates strong operating cash flow of $12.88B, reflecting robust business health.
Free Cash Flow
Suncor Energy Inc. generates strong free cash flow of $6.98B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.77 in free cash annually.
FCF Yield
SU converts 7.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How SU Stacks Against Its Sector Peers
| Metric | SU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.45 | 20.19 | Better (Cheaper) |
| ROE | 13.17% | 1019.00% | Weak |
| Net Margin | 11.92% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.41 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.39 | 4.60 | Neutral |
| ROA | 6.59% | -11655350.00% (disorted) | Weak |
SU outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Suncor Energy Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
61.77%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
153.94%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
87.41%
Industry Style: Cyclical, Value, Commodity
High Growth