Suncor Energy Inc. (SU:TSX) Fundamental Analysis is Bullish

STA Research
by: STA Research
Suncor Energy Inc.

Analysts rate SU stock forecast with a consensus Buy rating with an average SU stock price target of CAD 54.45per share over the next 12 months.

Credit Suisse rates SU stock forecast as to outperform at SU stock price of CAD 63.

Based on the Suncor Energy stock forecast from 11 analysts, the average analyst SU stock price target is CAD 54.45 over the next 12 months. Suncor Energy Inc’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Suncor Energy stock forecast is Bullish, which is based on 14 positive signals and 3 negative signals. At the last closing, Suncor Energy stock price was CAD 42.39Suncor Energy stock price has changed by +0.59% over the past week, +2.02% over the past month and +88.82% over the last year.

Suncor Energy Inc. operates as an integrated energy company. The company primarily focuses on developing petroleum resource basins in Canada’s Athabasca oil sands; explores, acquires, develops, produces, transports, refines, and markets crude oil in Canada and internationally; markets petroleum and petrochemical products under the Petro-Canada name primarily in Canada. It operates through Oil Sands; Exploration and Production; Refining and Marketing; and Corporate and Eliminations segments. The company also markets and trades in crude oil, natural gas, byproducts, refined products, and power. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada.

 

What we like:

(Bullish Signals)

High market capitalization:

SU stock TSX is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior total returns:

SU stock price has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings:

SU stock price is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value:

Suncor Energy stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis:

Suncor Energy stock price is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity:

The management of SU stock TSX has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization:

The management of SU stock TSX has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets:

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt:

Suncor Energy stock is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow:

SU stock forecast has shown that the company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

SU stock forecast has shown that the company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis:

Suncor Energy stock price is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth:

Suncor Energy stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio:

Suncor Energy stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

(Bearish Signals)

Poor risk adjusted returns:

SU stock TSX is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

Suncor Energy stock forecast has shown that the total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Low Revenue Growth:

SU stock dividend has shown below median revenue growth in the previous 5 years compared to its sector.

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.