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Understanding Suncor Energy Stocks – Essential Fundamentals for Investors

Now trading at a price of $42.56, Suncor Energy has moved 1.4% so far today.

Suncor Energy returned gains of 7.2% last year, with its stock price reaching a high of $43.48 and a low of $30.79. Over the same period, the stock underperformed the S&P 500 index by -4.9%. The company's 50-day average price was $40.79. Suncor Energy Inc. operates as an integrated energy company in Canada, the United States, and internationally. Based in Calgary, Canada, the Large-Cap Energy company has 15,010 full time employees. Suncor Energy has offered a 5.4% dividend yield over the last 12 months.

Generally Positive Cash Flows but an Average Current Ratio:

2019 2020 2021 2022 2023 2024
Revenue (M) $38,989 $25,052 $39,101 $62,907 $52,206 $54,881
Net Margins 7% -17% 11% 14% 16% 11%
Net Income (M) $2,899 -$4,319 $4,119 $9,077 $8,295 $6,016
Net Interest Expense (M) $875 $930 $851 $814 $726 $623
Depreciation & Amort. (M) $10,572 $9,526 $5,850 $8,786 $6,435 $6,954
Earnings Per Share $1.86 -$2.83 $2.77 $6.53 $6.33 $4.72
EPS Growth n/a -252.1505376344086% 197.8798586572438% 135.74007220216606% -3.06278713629403% -25.43443917851501%
Avg. Price $26.58 $16.14 $19.89 $31.21 $32.04 $41.99
P/E Ratio 14.29 -5.7 7.18 4.77 5.05 8.9
Free Cash Flow (M) $10,421 $2,675 $11,764 $15,680 $12,344 $15,960
Total Debt (M) $12,884 $13,812 $13,989 $9,800 $11,087 $9,348
Current Ratio 0.94 0.89 1.06 1.13 1.44 1.33

The Market May Be Undervaluing Suncor Energy's Earnings and Assets:

Suncor Energy has a trailing twelve month P/E ratio of 13.4, compared to an average of 18.35 for the Energy sector. Based on its EPS guidance of $3.16, the company has a forward P/E ratio of 12.9. The 7.9% compound average growth rate of Suncor Energy's historical and projected earnings per share yields a PEG ratio of 1.71. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Suncor Energy in terms of its equity because its P/B ratio is 1.14 while the sector average is 1.6.

Analysts Give Suncor Energy an Average Rating of Buy:

The 3 analysts following Suncor Energy have set target prices ranging from $36.96434 to $46.210754 per share, for an average of $42.0 with a buy rating. The company is trading 1.3% away from its average target price, indicating that there is an analyst consensus of little upside potential.

The largest shareholder is Royal Bank of Canada, whose 5% stake in the company is worth $2,611,506,137.

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.

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