TSX:SU

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Suncor Energy

Executive Summary

Suncor Energy Inc. operates as an integrated energy company.


Snowflake Analysis

Reasonable growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has Suncor Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.7%

SU

1.6%

CA Oil and Gas

2.1%

CA Market


1 Year Return

-37.5%

SU

-25.2%

CA Oil and Gas

-10.3%

CA Market

Return vs Industry: SU underperformed the Canadian Oil and Gas industry which returned -25.2% over the past year.

Return vs Market: SU underperformed the Canadian Market which returned -10.3% over the past year.


Shareholder returns

SUIndustryMarket
7 Day5.7%1.6%2.1%
30 Day9.0%5.4%5.8%
90 Day-24.3%-18.2%-6.4%
1 Year-34.8%-37.5%-21.3%-25.2%-7.3%-10.3%
3 Year-30.8%-37.9%-25.8%-34.5%1.9%-7.6%
5 Year-15.2%-28.5%-30.2%-41.6%18.4%1.0%

Price Volatility Vs. Market

How volatile is Suncor Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Suncor Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SU (CA$25.38) is trading below our estimate of fair value (CA$55.91)

Significantly Below Fair Value: SU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SU is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: SU is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SU is overvalued based on its PB Ratio (1x) compared to the CA Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Suncor Energy forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

124.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: SU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SU's is expected to become profitable in the next 3 years.

Revenue vs Market: SU's revenue (7.3% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: SU's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SU's Return on Equity is forecast to be low in 3 years time (0.8%).


Next Steps

Past Performance

How has Suncor Energy performed over the past 5 years?

34.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SU is currently unprofitable.

Growing Profit Margin: SU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SU is unprofitable, but has reduced losses over the past 5 years at a rate of 34.1% per year.

Accelerating Growth: Unable to compare SU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SU is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16.2%).


Return on Equity

High ROE: SU has a negative Return on Equity (-5.52%), as it is currently unprofitable.


Next Steps

Financial Health

How is Suncor Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SU's short term assets (CA$8.3B) do not cover its short term liabilities (CA$10.2B).

Long Term Liabilities: SU's short term assets (CA$8.3B) do not cover its long term liabilities (CA$37.1B).


Debt to Equity History and Analysis

Debt Level: SU's debt to equity ratio (46.2%) is considered high.

Reducing Debt: SU's debt to equity ratio has increased from 32.1% to 46.2% over the past 5 years.

Debt Coverage: SU's debt is well covered by operating cash flow (58.5%).

Interest Coverage: Insufficient data to determine if SU's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Suncor Energy's current dividend yield, its reliability and sustainability?

3.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SU's dividend (3.31%) is higher than the bottom 25% of dividend payers in the Canadian market (1.96%).

High Dividend: SU's dividend (3.31%) is low compared to the top 25% of dividend payers in the Canadian market (6.25%).


Stability and Growth of Payments

Stable Dividend: SU's dividend payments have been volatile in the past 10 years.

Growing Dividend: SU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: SU is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SU's dividends in 3 years are forecast to be covered by earnings (53.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Mark Little (56yo)

1.08yrs

Tenure

CA$11,718,684

Compensation

Mr. Mark S. Little has been President of Suncor Energy Inc. since November 14, 2018 and its Chief Executive Officer and Director since May 5, 2019. Mr. Little is responsible for all of the operations and m ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD8.69M) is about average for companies of similar size in the Canadian market ($USD6.88M).

Compensation vs Earnings: Mark's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Little
CEO, President & Director1.08yrsCA$11.72m0.0049% CA$1.9m
Alister Cowan
Chief Financial Officer5.92yrsCA$4.92m0.0038% CA$1.5m
Michael MacSween
Executive Vice President of Upstreamno dataCA$3.94m0.0026% CA$998.7k
Kris Smith
Executive Vice President of Downstreamno dataCA$4.50m0.0026% CA$990.9k
Stephen David Reynish
Executive Vice President of Strategy & Operations Servicesno dataCA$4.71m0.0011% CA$425.8k
Trevor Bell
Vice President of Investor Relationsno datano datano data
Arlene Strom
Chief Legal Officerno datano data0.0011% CA$414.2k
Paul Gardner
Chief People Officer8.42yrsno data0.0014% CA$541.9k
Bruno Francoeur
Chief Transformation Officer1.08yrsno data0.000070% CA$27.1k
Martha Findlay
Chief Sustainability Officer0.42yrno datano data

1.1yrs

Average Tenure

Experienced Management: SU's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mark Little
CEO, President & Director1.08yrsCA$11.72m0.0049% CA$1.9m
Michael Wilson
Independent Chairman3.17yrsCA$529.42k0.00066% CA$255.5k
Eira Thomas
Independent Director14.17yrsCA$310.68k0.00026% CA$100.6k
Melvin Benson
Independent Director20.17yrsCA$299.68k0.0011% CA$445.1k
John Gass
Independent Director6.33yrsCA$312.68k0.00044% CA$170.3k
Patricia Bedient
Independent Director4.33yrsCA$322.68kno data
Maureen McCaw
Independent Director16.17yrsCA$309.18k0.00042% CA$162.6k
Brian MacDonald
Independent Director1.92yrsCA$306.68k0.00085% CA$329.0k
Lorraine Mitchelmore
Independent Director0.58yrCA$263.38k0.000090% CA$34.8k
Dennis Houston
Independent Director2.42yrsCA$302.68k0.0012% CA$472.2k

3.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: SU's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Suncor Energy Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Suncor Energy Inc.
  • Ticker: SU
  • Exchange: TSX
  • Founded: 1953
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: CA$38.708b
  • Shares outstanding: 1.53b
  • Website: https://www.suncor.com

Number of Employees


Location

  • Suncor Energy Inc.
  • 150 - 6 Avenue S.W.
  • PO Box 2844
  • Calgary
  • Alberta
  • T2P 3E3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUNYSE (New York Stock Exchange)YesNew Common SharesUSUSDMar 1993
SM3DB (Deutsche Boerse AG)YesNew Common SharesDEEURMar 1993
SUTSX (The Toronto Stock Exchange)YesNew Common SharesCACADMar 1993
SUSWX (SIX Swiss Exchange)YesNew Common SharesCHCHFMar 1993
SUU NBMV (Bolsa Mexicana de Valores)YesNew Common SharesMXMXNMar 1993

Biography

Suncor Energy Inc. operates as an integrated energy company. The company primarily focuses on developing petroleum resource basins in Canada's Athabasca oil sands; explores for, acquires, develops, produces, refines, transports, and markets crude oil in Canada and internationally; markets petroleum and petrochemical products under the Petro-Canada brand primarily in Canada. It operates in Oil Sands; Exploration and Production; Refining and Marketing; and Corporate and Eliminations segments. The Oil Sands segment recovers bitumen from mining and in situ operations, and upgrades it into refinery feedstock and diesel fuel, or blends with diluent for direct sale to market. The Exploration and Production segment is involved in the offshore operations of the east coast of Canada and in the North Sea; and operating onshore assets in Libya and Syria. The Refining and Marketing segment refines crude oil and intermediate feedstock into various petroleum and petrochemical products; and markets refined petroleum products to retail, commercial, and industrial customers through its dealers, sales channel, other retail stations, and commercial road transportation networks. The Corporate and Eliminations segment operates four wind power facilities located in Alberta, Saskatchewan, and Ontario with a gross installed capacity of 111 MW. The company also engages in the marketing, supply, and trading of crude oil, natural gas, byproducts, refined products, and power. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1953 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 13:48
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.