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.

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NuVista Energy Ltd.

Baytex Energy Corp.

Paramount Resources 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%

With ROE of 13.63%, it has a attractive valuation with a 2.01 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 59.60%, its profits have risen by 3.3% ; the PEG ratio of the company is 1.6

High Institutional Holdings at 72.13%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.12% over the previous quarter.

Market Beating Performance

The stock has generated a return of 59.60% in the last 1 year, much higher than market (S&P/TSX 60) returns of 28.13%

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.

59.6%

6.59

27.09%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.50%

EBIT Growth (5y)

73.54%

EBIT to Interest (avg)

12.18

Debt to EBITDA (avg)

0.61

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.89

Tax Ratio

25.40%

Dividend Payout Ratio

47.58%

Pledged Shares

Institutional Holding

72.13%

ROCE (avg)

18.01%

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

2.01

EV to EBIT

11.65

EV to EBITDA

6.18

EV to Capital Employed

1.87

EV to Sales

1.95

PEG Ratio

1.62

Dividend Yield

ROCE (Latest)

16.05%

ROE (Latest)

13.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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

29What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 15,796 MM

ROCE(HY)

Highest at 19.25%

DIVIDEND PER SHARE(HY)

Highest at CAD 8.9

INTEREST COVERAGE RATIO(Q)

Highest at 3,557

RAW MATERIAL COST(Y)

Fallen by -31.52% (YoY

CASH AND EQV(HY)

Highest at CAD 8,643 MM

DEBT-EQUITY RATIO (HY)

Lowest at 19.33 %

DEBTORS TURNOVER RATIO(HY)

Highest at 8.9 times

NET SALES(Q)

Highest at CAD 17,496 MM

OPERATING PROFIT(Q)

Highest at CAD 7,114 MM

OPERATING PROFIT MARGIN(Q)

Highest at 40.66 %

PRE-TAX PROFIT(Q)

Highest at CAD 5,054 MM

NET PROFIT(Q)

Highest at CAD 3,788.22 MM

EPS(Q)

Highest at CAD 3.17

-5What is not working for the Company

INTEREST(HY)

At CAD 398 MM has Grown at 16.03%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.17 times

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

Interest Coverage Ratio

Highest at 3,557

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At CAD 5,054 MM has Grown at 141.9%

over average net sales of the previous four periods of CAD 2,089.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 3,788.22 MM has Grown at 142.95%

over average net sales of the previous four periods of CAD 1,559.28 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Dividend per share

Highest at CAD 8.9 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Operating Cash Flow

Highest at CAD 15,796 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 17,496 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Sales

At CAD 17,496 MM has Grown at 37.05%

over average net sales of the previous four periods of CAD 12,766.5 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 7,114 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 40.66 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 5,054 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 3,788.22 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 3.17

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Cash and Eqv

Highest at CAD 8,643 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 19.33 %

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 8.9 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 -31.52% (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

At CAD 398 MM has Grown at 16.03%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Inventory Turnover Ratio

Lowest at 5.17 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio