Suncor Energy Inc

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SU : NYSE : Basic Materials
$26.91 | %
Today's Range: 26.44 - 26.98
Avg. Daily Volume: 4,458,600
07/29/16 - 4:03 PM ET

Financial Analysis


SUNCOR ENERGY INC's gross profit margin for the first quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Even though sales decreased, the net income has increased. SUNCOR ENERGY INC has weak liquidity. Currently, the Quick Ratio is 0.90 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.02% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)5644.07129.0
EBITDA ($mil)912.71665.0
EBIT ($mil)-623.3280.0
Net Income ($mil)246.0-341.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)3134.04825.0
Total Assets ($mil)86572.079993.0
Total Debt ($mil)18014.014347.0
Equity ($mil)42935.041272.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin16.1723.36
EBITDA Margin16.1723.35
Operating Margin-11.043.93
Sales Turnover0.320.46
Return on Assets-1.621.09
Return on Equity-3.272.11
Debt Q1 FY16 Q1 FY15
Current Ratio1.31.67
Debt/Capital0.30.26
Interest Expense254.0210.0
Interest Coverage-2.451.33


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)1582.011445.27
Div / share0.220.22
EPS0.16-0.24
Book value / share27.1428.56
Institutional Own % n/a n/a
Avg Daily Volume4485248.04682006.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.01 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 11.73. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing these and other key valuation criteria, SUNCOR ENERGY INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SU NM Peers 70.76   SU 6.57 Peers 306.30

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

SU's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SU is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SU NA Peers 39.26   SU NA Peers 2.07

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SU 1.01 Peers 11.73   SU -268.96 Peers -202.73

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SU is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SU is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SU 1.57 Peers 2.43   SU -24.36 Peers -25.78

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SU is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SU significantly trails its peers on the basis of sales growth

 

 

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