Don't Take a Position in Suncor Energy Stocks Without Knowing Its Fundamentals!

Suncor Energy logged a -2.3% change during today's evening session, and is now trading at a price of $29.59 per share.

Over the last year, Suncor Energy logged a -2.7% change, with its stock price reaching a high of $35.51 and a low of $27.59. Over the same period, the stock underperformed the S&P 500 index by -17.7%. As of April 2023, the company's 50-day average price was $32.93. Suncor Energy Inc. operates as an integrated energy company in Canada and internationally. Based in Calgary, Canada, the large-cap Energy company has 16,558 full time employees. Suncor Energy has offered a 6.9% dividend yield over the last 12 months.

Healthy Debt Levels but a Negative Expected EPS Growth Rate:

2018 2019 2020 2021 2022 2023
Revenue (MM) $38,986 $38,989 $25,052 $39,101 $58,467 $58,467
Revenue Growth n/a 0.01% -35.75% 56.08% 49.53% 0.0%
Net Margins 11% 7% -17% 13% 17% 17%
Net Income (MM) $4,458 $2,899 -$4,319 $4,912 $10,075 $10,075
Net Interest Expense (MM) $741 $875 $930 $851 $814 $814
Depreciation & Amort. (MM) $5,738 $10,572 $9,526 $5,850 $8,786 $8,786
Free Cash Flow (MM) $10,580 $10,421 $2,675 $11,764 $15,680 $15,680
Current Ratio 0.84 0.94 0.89 1.06 1.13 1.13
Total Debt (MM) $24,199 $23,421 $24,361 $24,388 $22,669 $22,669

Suncor Energy has growing revenues and no capital expenditures, healthy debt levels, and irregular cash flows. However, the firm suffers from weak net margins with a positive growth rate and negative expected EPS Growth.

Suncor Energy's Earnings and Assets May Be Undervalued:

Suncor Energy has a trailing twelve month P/E ratio of 7.2, compared to an average of 8.53 for the Energy sector. Based on its EPS guidance of $4.53, the company has a forward P/E ratio of 7.3. In contrast, the market is likely undervaluing Suncor Energy in terms of its equity because its P/B ratio is 0.92 while the sector average is 1.78.

Suncor Energy Has an Average Rating of Buy:

The 9 analysts following Suncor Energy have set target prices ranging from $36.81 to $54.48 per share, for an average of $41.97 with a buy rating. As of April 2023, the company is trading -21.5% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

The largest shareholder is Royal Bank of Canada, whose 5% stake in the company is worth $1,931,245,272.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.