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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Suncor Energy, Inc.

Whitecap Resources, Inc.

Peyto Exploration & Development Corp.

Athabasca Oil Corp.

Baytex Energy Corp.

Crescent Point Energy Corp.

NuVista Energy Ltd.

Cenovus 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 buy?

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.

15.43%

3.52

26.36%

S&P/TSX 60

19.1%

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)

9.98%

EBIT Growth (5y)

36.97%

EBIT to Interest (avg)

9.82

Debt to EBITDA (avg)

1.05

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.92

Tax Ratio

26.18%

Dividend Payout Ratio

46.70%

Pledged Shares

Institutional Holding

70.93%

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

1.55

EV to EBIT

9.51

EV to EBITDA

4.92

EV to Capital Employed

1.46

EV to Sales

1.56

PEG Ratio

Dividend Yield

ROCE (Latest)

15.38%

ROE (Latest)

12.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

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

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 7.46

DIVIDEND PAYOUT RATIO(Y)

Highest at 61.58%

CASH AND EQV(HY)

Highest at CAD 5,042 MM

-12What is not working for the Company

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

INTEREST COVERAGE RATIO(Q)

Lowest at 1,925

RAW MATERIAL COST(Y)

Grown by 10.46% (YoY

OPERATING PROFIT(Q)

Lowest at CAD 3,234 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 26.97 %

PRE-TAX PROFIT(Q)

At CAD 1,476 MM has Fallen at -27.81%

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

Dividend per share

Highest at CAD 7.46 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Cash and Eqv

Highest at CAD 5,042 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 61.58%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Net Sales

Lowest at CAD 11,991 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Interest Coverage Ratio

Lowest at 1,925

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CAD 3,709.62 MM has Grown at -35.98%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Operating Profit

Lowest at CAD 3,234 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 26.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CAD 1,476 MM has Fallen at -27.81%

over average net sales of the previous four periods of CAD 2,044.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Raw Material Cost

Grown by 10.46% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales