Suncor Energy (SU) AI Stock Analysis

• Market Cap: C$66.35B
• Dividend Yield: 4.17%
• Average Volume (3M): 5.09M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.99
• Revenue Growth: 2.16%
• EPS Growth: -20.22%
• Country: CA
• Employees: 15,010
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.71
• Shares Outstanding: 1,227,580,600
• 10 Day Avg. Volume: 4,144,237
• 30 Day Avg. Volume: 5,091,787
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$61.28
• Price Target Upside: 13.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: C$62.00 ▲(14.71% Upside)

Suncor Energy's strong financial performance and attractive valuation are key strengths, supported by positive earnings call insights. Technical analysis shows stable momentum, while the company's strategic focus on cost efficiency and shareholder returns enhances its market position.

Positive Factors

Cash Flow Performance

Free cash flow for Suncor Energy was higher than expected due to lower capital expenditures.

Operational Efficiency

Execution on the Coke Drum Replacement was ahead of schedule and under budget, allowing Suncor Energy to reduce capital expenditure guidance.

Production and Growth

Upward revisions are made to Oil Sands production volumes and actual commodity prices.

Negative Factors

Debt Levels

The company's net debt increased by approximately $0.7 billion compared to the previous quarter.

Financial Performance

Cash flow from operations before working capital adjustments came in slightly below expectations.

Suncor Energy Business Overview & Revenue Model

Company Description

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 Oil Sands segment recovers bitumen from mining and in situ operations, and upgrades it into refinery feedstock and diesel fuel, or blends the bitumen with diluent for direct sale to market. The Exploration and Production segment is involved in offshore operations off the east coast of Canada and in the North Sea; and operating onshore assets in Libya and Syria. The Refining and Marketing segment refines crude oil and intermediate feedstock into various petroleum and petrochemical products; and markets refined petroleum products to retail, commercial, and industrial customers through its other retail sellers. The Corporate and Eliminations segment operates four wind farms in Ontario and Western Canada. 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.

How the Company Makes Money

Suncor Energy generates revenue primarily through the extraction and production of oil and natural gas, with a significant portion coming from its oil sands operations. The company upgrades bitumen into synthetic crude oil, which is then sold to refineries to produce various petroleum products. Additionally, Suncor operates its own refineries and retail networks, allowing it to capture value across the entire supply chain from production to consumer sales. Revenue is also derived from its exploration and production activities in offshore and onshore fields. Furthermore, Suncor's refining and marketing segment, which includes the sale of refined products through a network of Petro-Canada branded retail stations, contributes significantly to its earnings. Strategic partnerships and investments in renewable energy projects also form a part of its diversified revenue streams, although they represent a smaller portion of its overall income compared to its traditional oil and gas operations.

Suncor Energy Financial Statement Overview

Summary

Suncor Energy exhibits strong profitability with a gross profit margin of 39.44% and net profit margin of 11.33%. The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.33 and a solid ROE of 13.6%. Cash flow management is robust with a free cash flow of $9.01 billion TTM. However, a 2% decline in revenue indicates challenges in 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.88B	52.21B	62.91B	39.13B	24.66B
Gross Profit	22.38B	21.92B	26.87B	17.56B	5.07B
EBITDA	16.40B	18.33B	22.28B	12.63B	2.55B
Net Income	6.02B	8.29B	9.08B	4.12B	-4.32B
Balance Sheet
Total Assets	89.78B	88.54B	84.62B	83.74B	84.62B
Cash, Cash Equivalents and Short-Term Investments	3.48B	1.73B	1.98B	2.21B	1.89B
Total Debt	14.69B	15.80B	16.03B	18.78B	22.14B
Total Liabilities	45.27B	45.26B	45.25B	47.13B	48.86B
Stockholders Equity	44.51B	43.28B	39.37B	36.61B	35.76B
Cash Flow
Free Cash Flow	9.48B	6.52B	10.56B	7.21B	-1.25B
Operating Cash Flow	15.96B	12.34B	15.68B	11.76B	2.67B
Investing Cash Flow	-6.47B	-6.51B	-4.79B	-3.98B	-4.52B
Financing Cash Flow	-7.88B	-5.99B	-11.23B	-7.46B	1.79B

Suncor Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 54.05 is above the 20-day moving average (MA) of 54.03, above the 50-day MA of 52.68, and above the 200-day MA of 52.13, indicating a bullish trend. The MACD of 0.50 indicates Positive momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 54.93 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
SU	78 Outperform	C$66.35B	11.92	12.46%	4.17%	2.16%	-20.22%
Sector *	66 Neutral	$15.08B	10.38	7.41%	5.57%	4.43%	-69.91%
CNQ	―	$65.97B	12.22	18.99%	5.16%	―	―
CVE	―	$27.45B	14.54	8.83%	3.55%	―	―
IMO	―	$43.22B	12.97	18.80%	2.26%	―	―
PBA	―	$21.74B	16.95	11.55%	5.38%	―	―
TRP	―	$50.87B	16.55	15.25%	5.16%	―	―

Suncor Energy Corporate Events

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.

Suncor Energy to Announce Q2 2025 Financial Results

Suncor Energy announced that it will release its second quarter financial results on August 5, 2025, followed by a webcast on August 6, 2025, featuring remarks from key executives and a Q&A session with analysts. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

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 Achieves Record First-Quarter Results in 2025

Suncor Energy reported record-breaking first-quarter results for 2025, generating over $3 billion in adjusted funds from operations and $1.9 billion in free funds flow. The company achieved its highest-ever first-quarter upstream production and refining throughput, with exceptional asset utilization rates. Suncor returned $1.5 billion to shareholders through dividends and share repurchases, demonstrating its strong financial performance and commitment to delivering shareholder value despite a volatile business environment.

Suncor Energy Announces Results from Annual General Meeting

Suncor Energy held its Annual General Meeting in Calgary, where shareholders elected eleven board members, appointed KPMG LLP as auditors, and approved the management’s approach to executive compensation. A proposal for a report on the costs of achieving Net Zero by 2050 was denied. The meeting saw approximately 70.29% of outstanding shares represented, indicating strong shareholder engagement.

Suncor Energy Declares Quarterly Dividend Amidst Strategic Transition

Suncor Energy has announced a quarterly dividend of $0.57 per share, payable on June 25, 2025, to shareholders of record as of June 4, 2025. This decision reflects Suncor’s ongoing commitment to providing shareholder value while continuing to advance its strategy of transitioning to a lower-emissions future, which may positively impact its market positioning and stakeholder confidence.