Suncor Energy (SU) AI Stock Analysis

• Market Cap: C$67.41B
• Dividend Yield: 4.1%
• Average Volume (3M): 5.13M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.07
• Revenue Growth: -1.96%
• EPS Growth: -22.38%
• Country: CA
• Employees: 15,010
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.71
• Shares Outstanding: 1,213,246,600
• 10 Day Avg. Volume: 4,674,546
• 30 Day Avg. Volume: 5,130,987
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$62.56
• Price Target Upside: 12.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: C$62.00 ▲(11.59% Upside)

Suncor Energy's overall score is driven by strong earnings call performance and attractive valuation, offset by weaker technical indicators. The company's operational excellence and strategic focus on shareholder returns are significant strengths, while market momentum remains a concern.

Positive Factors

Operational Efficiency

Suncor's ability to reduce operating costs while increasing production highlights its operational efficiency, which can lead to sustained profitability and competitive advantage in the long term.

Record Production Levels

Achieving record production levels indicates strong operational capabilities and market demand, supporting long-term revenue growth and market position.

Capital Efficiency

Reducing capital expenditure while maintaining operational goals demonstrates financial prudence, allowing Suncor to allocate resources efficiently and enhance shareholder value.

Negative Factors

Declining Revenue Growth

A decline in revenue growth suggests potential challenges in market expansion or product demand, which could impact long-term financial performance if not addressed.

Commodity Price Volatility

Fluctuating commodity prices can create uncertainty in earnings, affecting Suncor's ability to plan and invest for the future, potentially impacting long-term stability.

Free Cash Flow Decline

A decline in free cash flow growth may limit Suncor's ability to invest in new projects or return capital to shareholders, affecting future growth and financial flexibility.

Suncor Energy Business Overview & Revenue Model

Company Description

Suncor Energy Inc. is a Canadian integrated energy company based in Calgary, Alberta, primarily focused on the development of the oil sands in Canada. The company operates through three main segments: Oil Sands, Exploration and Production, and Refining and Marketing. Suncor's core products include crude oil, natural gas, and petroleum products, which it sells to various markets. Additionally, Suncor is involved in renewable energy projects, underlining its commitment to sustainability.

How the Company Makes Money

Suncor Energy generates revenue primarily through the production and sale of crude oil and natural gas. The Oil Sands segment is a significant contributor, leveraging its large reserves and production facilities in Alberta. Revenue is also derived from the Exploration and Production segment, which involves extracting oil and gas from traditional sources. The Refining and Marketing segment adds further income by processing crude oil into refined products and selling them through retail outlets and other distribution channels. Key revenue streams include the sale of refined petroleum products, synthetic crude oil, and natural gas, with fluctuations in oil prices significantly impacting earnings. Additionally, Suncor has formed strategic partnerships and joint ventures that enhance its operational efficiency and market reach, contributing to its overall profitability.

Suncor Energy Financial Statement Overview

Summary

Suncor Energy's financial performance is strong, with robust profitability and cash flow metrics. The company maintains a solid balance sheet with moderate leverage and efficient equity use. However, a slight revenue decline poses a challenge to top-line growth.

Income Statement

Suncor Energy's income statement shows strong profitability with a TTM gross profit margin of 39.44% and net profit margin of 11.33%. However, revenue has seen a decline of 2% from the previous year, indicating a potential challenge in top-line growth. Despite this, the company maintains robust EBIT and EBITDA margins of 16.82% and 30.15% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.33, suggesting moderate leverage. Suncor's ROE stands at 13.6%, indicating efficient use of equity to generate profits. The equity ratio is 49.98%, showing a balanced asset structure. The company's financial stability is noteworthy, though maintaining this balance while addressing revenue growth will be crucial.

Cash Flow

Suncor Energy demonstrates strong cash flow management with a free cash flow of $9.01 billion TTM. The operating cash flow to net income ratio is 2.52, indicating effective conversion of earnings to cash. While free cash flow growth has slowed, the company still shows a solid free cash flow to net income ratio of 1.48, highlighting its ability to generate cash after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.63B	50.69B	49.09B	58.34B	39.13B	24.66B
Gross Profit	19.72B	19.85B	19.54B	24.83B	15.28B	4.30B
EBITDA	16.51B	16.40B	18.33B	22.28B	12.63B	2.55B
Net Income	6.09B	6.02B	8.29B	9.08B	4.12B	-4.32B
Balance Sheet
Total Assets	89.70B	89.78B	88.54B	84.62B	83.74B	84.62B
Cash, Cash Equivalents and Short-Term Investments	2.77B	3.48B	1.73B	1.98B	2.21B	1.89B
Total Debt	14.79B	14.69B	15.80B	16.03B	18.78B	22.14B
Total Liabilities	44.86B	45.27B	45.26B	45.25B	47.13B	48.86B
Stockholders Equity	44.83B	44.51B	43.28B	39.37B	36.61B	35.76B
Cash Flow
Free Cash Flow	9.01B	9.48B	6.52B	10.56B	7.21B	-1.25B
Operating Cash Flow	15.33B	15.96B	12.34B	15.68B	11.76B	2.67B
Investing Cash Flow	-6.39B	-6.47B	-6.51B	-4.79B	-3.98B	-4.52B
Financing Cash Flow	-8.75B	-7.88B	-5.99B	-11.23B	-7.46B	1.79B

Suncor Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.56
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SU, the sentiment is Positive. The current price of 55.56 is below the 20-day moving average (MA) of 55.70, below the 50-day MA of 56.50, and above the 200-day MA of 52.78, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 47.55 is Neutral, neither overbought nor oversold. The STOCH value of 73.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SU.

Suncor Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRP	―	$73.07B	17.37	15.25%	4.78%	-2.93%	23.33%
CNQ	―	$93.30B	11.34	20.18%	6.13%	3.42%	11.18%
IMO	―	$65.08B	14.19	18.80%	2.16%	-5.55%	-4.81%
SU	―	C$67.41B	12.31	12.46%	4.10%	-1.96%	-22.38%
CVE	―	C$42.24B	16.41	8.83%	3.79%	-7.82%	-42.65%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PPL	―	$30.64B	17.63	10.69%	5.31%	-3.86%	-9.35%

Suncor Energy Corporate Events

Suncor Energy to Announce Q3 2025 Financial Results

Suncor Energy announced it will release its third quarter 2025 financial results on November 4, 2025, followed by a webcast on November 5, 2025, to discuss the results. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, impacting its operations and market positioning.

The most recent analyst rating on (TSE:SU) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on Suncor Energy stock, see the TSE:SU Stock Forecast page.

Suncor Energy Announces CFO Retirement and Leadership Changes

On October 14, 2025, Suncor Energy announced the retirement of its Chief Financial Officer, Kris Smith, effective December 31, 2025. Kris Smith, who has been with the company for over 25 years, will transition to an executive advisory role on November 1, 2025, to ensure a smooth transition. Troy Little, currently the Senior Vice President of External Affairs, will succeed him as CFO, bringing extensive financial experience and strong investment community relationships. Additionally, Adam Albeldawi will expand his role as Chief Human Resources Officer to include responsibilities for Investor Relations, Government Affairs, and Public Affairs. These leadership changes are part of Suncor’s strategic succession planning to maintain its industry-leading performance.

The most recent analyst rating on (TSE:SU) stock is a Buy with a C$65.00 price target. To see the full list of analyst forecasts on Suncor Energy stock, see the TSE:SU Stock Forecast page.

Suncor Energy Reports Strong Q2 2025 Performance

Suncor Energy, a leading integrated energy company in Canada, is involved in oil sands development, offshore oil production, petroleum refining, and retail distribution. In its second quarter of 2025, Suncor reported strong operational performance with record upstream production and refinery throughput. The company generated $2.7 billion in adjusted funds from operations and returned $1.45 billion to shareholders through dividends and share repurchases. Key highlights include a record upstream production of 808,000 barrels per day and refinery throughput of 442,000 barrels per day. Despite a decrease in net earnings to $1.134 billion due to lower upstream price realizations, Suncor maintained consistent operating expenses. Looking ahead, Suncor has reduced its 2025 capital guidance, reflecting strong execution and capital discipline, positioning the company for a robust second half of the year.

Suncor Energy’s Record-Breaking Earnings Call Highlights

Suncor Energy’s recent earnings call conveyed a positive sentiment, highlighting the company’s operational successes and robust shareholder returns. Despite challenges such as crude oil price volatility and the impacts of turnaround activities, the company demonstrated strong performance and maintained an optimistic outlook.

Suncor Energy Achieves Record Production and Strong Financial Performance in Q2 2025

Suncor Energy reported a robust second quarter in 2025, with notable achievements including generating $2.7 billion in adjusted funds from operations and $1.0 billion in free funds flow. The company returned $1.45 billion to shareholders through share repurchases and dividends. Suncor achieved record production and refinery throughput, and successfully completed major turnaround activities ahead of schedule, which contributed to its strong performance. The company also reduced its capital guidance for 2025 by $400 million, highlighting its capital discipline and execution efficiency. These results underscore Suncor’s commitment to delivering superior returns to shareholders and position the company well for continued success in the latter half of the year.

The most recent analyst rating on (TSE:SU) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on Suncor Energy stock, see the TSE:SU Stock Forecast page.

Suncor Energy Declares Quarterly Dividend

Suncor Energy has announced a quarterly dividend of $0.57 per share, payable on September 25, 2025, to shareholders of record as of September 4, 2025. This decision reflects Suncor’s ongoing commitment to returning value to its shareholders and may enhance its attractiveness to investors, reinforcing its position in the energy sector.

The most recent analyst rating on (TSE:SU) stock is a Buy with a C$60.00 price target. To see the full list of analyst forecasts on Suncor Energy stock, see the TSE:SU Stock Forecast page.