Suncor Energy, Inc. (SU) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Suncor Energy, Inc.

Paramount Resources Ltd.

Imperial Oil Ltd.

Enerplus Corp.

Why is Suncor Energy, Inc. ?

High Management Efficiency with a high ROCE of 14.80%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.82

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 14.80%

The company has declared negative results in Dec'2024 after 3 consecutive positive quarters

NET PROFIT(9M) At CAD 3,709.62 MM has Grown at -35.98%
ROCE(HY) Lowest at 12.71%
NET SALES(Q) Lowest at CAD 11,991 MM

With ROE of 12.78%, it has a very attractive valuation with a 1.67 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 18.03%, its profits have fallen by -23%

High Institutional Holdings at 70.93%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.68% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Suncor Energy, Inc. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Suncor Energy, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Suncor Energy, Inc.

-100.0%

3.52

26.36%

S&P/TSX 60

21.87%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.68%

EBIT Growth (5y)

28.36%

EBIT to Interest (avg)

9.82

Debt to EBITDA (avg)

1.05

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.90

Tax Ratio

26.18%

Dividend Payout Ratio

47.58%

Pledged Shares

Institutional Holding

70.01%

ROCE (avg)

14.80%

ROE (avg)

13.87%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.21

EV to EBIT

13.36

EV to EBITDA

6.90

EV to Capital Employed

2.05

EV to Sales

2.18

PEG Ratio

6.35

Dividend Yield

ROCE (Latest)

15.35%

ROE (Latest)

12.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 8.72

RAW MATERIAL COST(Y)

Fallen by -91.73% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 24.05 %

DEBTORS TURNOVER RATIO(HY)

Highest at 8.72 times

-8What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,856.1

INTEREST(Q)

Highest at CAD 205 MM

Here's what is working for Suncor Energy, Inc.

Dividend per share

Highest at CAD 8.72 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Debt-Equity Ratio

Lowest at 24.05 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 8.72 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -91.73% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Suncor Energy, Inc.

Interest Coverage Ratio

Lowest at 1,856.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CAD 205 MM

in the last five periods and Increased by 5.13% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)