TSX:SU

Stock Analysis Report

Suncor Energy

Executive Summary

Suncor Energy Inc. operates as an integrated energy company.

Snowflake

Fundamentals

Established dividend payer with mediocre balance sheet.


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


Market Performance


7 Day Return

1.6%

SU

0.4%

CA Oil and Gas

0.2%

CA Market


1 Year Return

-7.6%

SU

-9.1%

CA Oil and Gas

3.5%

CA Market

Return vs Industry: SU exceeded the Canadian Oil and Gas industry which returned -9.1% over the past year.

Return vs Market: SU underperformed the Canadian Market which returned 3.5% over the past year.


Shareholder returns

SUIndustryMarket
7 Day1.6%0.4%0.2%
30 Day-4.7%-5.5%-3.3%
90 Day2.8%-2.0%-1.9%
1 Year-4.0%-7.6%-5.0%-9.1%7.3%3.5%
3 Year12.5%1.9%-15.3%-23.9%14.7%4.4%
5 Year21.6%3.3%-21.7%-33.6%26.2%7.7%

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?

11.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SU (CA$40.13) is trading above our estimate of fair value (CA$38.82)

Significantly Below Fair Value: SU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SU is poor value based on its PE Ratio (11.1x) compared to the Oil and Gas industry average (8.4x).

PE vs Market: SU is good value based on its PE Ratio (11.1x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: SU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SU is overvalued based on its PB Ratio (1.4x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

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

-3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SU's earnings are forecast to decline over the next 3 years (-3.2% per year).

Earnings vs Market: SU's earnings are forecast to decline over the next 3 years (-3.2% per year).

High Growth Earnings: SU's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SU's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: SU's revenue is forecast to decline over the next 3 years (-0.5% 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 (10.2%).


Next Steps

Past Performance

How has Suncor Energy performed over the past 5 years?

28.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SU's earnings have grown significantly by 28.2% per year over the past 5 years.

Accelerating Growth: SU's earnings growth over the past year (29.3%) exceeds its 5-year average (28.2% per year).

Earnings vs Industry: SU earnings growth over the past year (29.3%) underperformed the Oil and Gas industry 62.2%.


Return on Equity

High ROE: SU's Return on Equity (12.6%) is considered low.


Return on Assets

ROA vs Industry: SU has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: SU's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Suncor Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SU's short term assets (CA$10.3B) do not cover its short term liabilities (CA$10.5B)

Long Term Liabilities: SU's short term assets (10.3B) do not cover its long term liabilities (37.6B)


Debt to Equity History and Analysis

Debt Level: SU's debt to equity ratio (33.4%) is considered satisfactory

Reducing Debt: SU's debt to equity ratio has increased from 24.9% to 33.4% over the past 5 years.

Debt Coverage: SU's debt is well covered by operating cash flow (81.6%).

Interest Coverage: SU's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet

Inventory Level: SU has a high level of physical assets or inventory.

Debt Coverage by Assets: SU's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

4.19%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.0%markettop25%5.9%industryaverage4.8%forecastin3Years6.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SU's dividend (4.19%) is higher than the bottom 25% of dividend payers in the Canadian market (1.98%).

High Dividend: SU's dividend (4.19%) is low compared to the top 25% of dividend payers in the Canadian market (5.92%).

Stable Dividend: SU's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.3%), SU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SU's dividends in 3 years are forecast to be covered by earnings (50.9% payout ratio).


Next Steps

Management

What is the CEO of Suncor Energy's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Mark Little (56yo)

0.4yrs

Tenure

CA$10,521,463

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.3yrs

Average Tenure

Experienced Management: SU's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

65yo

Average Age

Experienced Board: SU's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$391,43220 Aug 19
Mark Little
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares10,290
Max PriceCA$38.07
BuyCA$188,71302 Aug 19
Brian MacDonald
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$37.99
BuyCA$125,60928 May 19
Brian MacDonald
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceCA$41.87
BuyCA$1,990,44022 Dec 18
Steven Williams
EntityIndividual
Shares54,000
Max PriceCA$36.86
BuyCA$1,501,38322 Dec 18
Alister Cowan
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares41,100
Max PriceCA$36.53
BuyCA$297,01022 Dec 18
Dennis Houston
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceCA$37.17

Ownership Breakdown


Management Team

  • Alister Cowan

    Executive VP & CFO

    • Tenure: 5.3yrs
    • Compensation: CA$4.68m
  • Steve Reynish

    Executive Vice President of Strategy & Operations Services

    • Tenure: 0yrs
    • Compensation: CA$4.95m
  • Mike MacSween

    Executive Vice President of Upstream

    • Tenure: 0yrs
    • Compensation: CA$4.48m
  • Mark Little (56yo)

    CEO, President & Director

    • Tenure: 0.4yrs
    • Compensation: CA$10.52m
  • Eric Axford

    Executive VP & Chief Sustainability Officer

    • Tenure: 7.8yrs
  • Arlene Strom

    Senior VP

    • Tenure: 0yrs
  • Paul Gardner

    Senior Vice President of Human Resources

    • Tenure: 7.8yrs
  • Kris Smith

    Executive Vice President of Downstream

    • Tenure: 0yrs
  • Trevor Bell

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Bruno Francoeur

    Chief Transformation Officer

    • Tenure: 0.4yrs

Board Members

  • Mike Wilson (67yo)

    Independent Chairman

    • Tenure: 2.5yrs
    • Compensation: CA$545.98k
  • Eira Thomas (50yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: CA$322.34k
  • Mel Benson (70yo)

    Independent Director

    • Tenure: 19.5yrs
    • Compensation: CA$311.34k
  • John Gass (67yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: CA$325.84k
  • Patty Bedient (65yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: CA$337.34k
  • Maureen McCaw (64yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: CA$319.84k
  • Brian MacDonald (53yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: CA$406.61k
  • Mark Little (56yo)

    CEO, President & Director

    • Tenure: 0.4yrs
    • Compensation: CA$10.52m
  • Denny Houston (68yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: CA$528.32k

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$62.427b
  • Shares outstanding: 1.56b
  • Website: https://www.suncor.com

Number of Employees


Location

  • Suncor Energy Inc.
  • 150 - 6th Avenue SW
  • 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, acquires, develops, produces, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:05
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.