Suncor Energy (SU) AI Stock Analysis

• Market Cap: C$70.85B
• Dividend Yield: 3.92%
• Average Volume (3M): 8.96M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.04
• Revenue Growth: -3.08%
• EPS Growth: -31.48%
• Country: CA
• Employees: 15,010
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 1.48
• Shares Outstanding: 1,201,266,700
• 10 Day Avg. Volume: 8,499,200
• 30 Day Avg. Volume: 8,959,080
• PEG Ratio: -0.43
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 6.90
• 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$68.09
• Price Target Upside: 15.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: C$69.00 ▲(16.99% Upside)

Suncor Energy's strong financial performance and operational efficiency are significant strengths, supported by a solid balance sheet and attractive dividend yield. The positive earnings call further boosts confidence, despite some challenges in commodity pricing and currency fluctuations. Technical indicators suggest a stable trend, contributing to a favorable overall stock score.

Positive Factors

Operational Efficiency

Record production and refining throughput demonstrate Suncor's operational efficiency, enhancing its competitive position and long-term profitability.

Cost Management

Effective cost management, with flat operating costs amid higher production, strengthens Suncor's ability to sustain margins and invest in growth.

Shareholder Returns

Increasing dividends and consistent share buybacks reflect Suncor's commitment to returning value to shareholders, supporting investor confidence.

Negative Factors

Revenue Decline

A negative revenue growth rate indicates declining sales, which could challenge Suncor's ability to sustain long-term growth if not addressed.

Free Cash Flow Decline

Declining free cash flow growth may limit Suncor's capacity to fund new projects and investments, potentially impacting future expansion.

Profit Margin Pressure

Decreasing net profit margins suggest pressure on profitability, which could affect Suncor's financial health if the trend continues.

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 through multiple streams, primarily from the sale of crude oil, natural gas, and refined petroleum products. The Oil Sands segment, which includes extraction and production of bitumen, is a significant revenue driver, as the company extracts heavy crude oil from the oil sands in Alberta. The Exploration and Production segment contributes further by exploring and producing conventional oil and gas outside of the oil sands. Suncor's Refining and Marketing segment refines crude oil into various fuels and sells them through its extensive retail network and commercial channels, providing a steady income stream. Additionally, Suncor has entered partnerships and joint ventures, particularly in its oil sands operations, to share costs and increase production efficiency, further enhancing its revenue potential. The company is also investing in renewable energy, which may contribute to future earnings as the global energy landscape shifts.

Suncor Energy Financial Statement Overview

Summary

Suncor Energy demonstrates strong profitability margins and a stable balance sheet. However, declining revenue and free cash flow growth are concerns. The company maintains efficient operations and a balanced leverage position, but focus on revenue growth and cash flow improvement is crucial.

Income Statement

Suncor Energy's income statement shows a strong gross profit margin of over 40% in TTM, indicating efficient cost management. However, the net profit margin has slightly decreased compared to previous years, reflecting some pressure on profitability. The revenue growth rate is negative in the TTM period, suggesting a decline in sales, which could be a concern if it continues. Overall, the company maintains solid EBIT and EBITDA margins, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of approximately 0.33 in TTM, indicating a balanced approach to leverage. The return on equity remains healthy, although slightly lower than previous years, suggesting consistent shareholder value creation. The equity ratio is strong, highlighting a solid asset base supported by equity.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth in the TTM period, which could impact future investments. However, the operating cash flow to net income ratio remains robust, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is healthy, suggesting efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.16B	50.69B	49.09B	58.34B	39.13B	24.66B
Gross Profit	21.37B	19.85B	19.54B	24.83B	15.28B	4.30B
EBITDA	15.06B	16.40B	18.33B	22.28B	12.63B	2.55B
Net Income	5.26B	6.02B	8.29B	9.08B	4.12B	-4.32B
Balance Sheet
Total Assets	89.47B	89.78B	88.54B	84.62B	83.74B	84.62B
Cash, Cash Equivalents and Short-Term Investments	2.94B	3.48B	1.73B	1.98B	2.21B	1.89B
Total Debt	14.45B	14.69B	15.80B	16.03B	18.78B	22.14B
Total Liabilities	44.31B	45.27B	45.26B	45.25B	47.13B	48.86B
Stockholders Equity	45.16B	44.51B	43.28B	39.37B	36.61B	35.76B
Cash Flow
Free Cash Flow	8.04B	9.48B	6.52B	10.56B	7.21B	-1.25B
Operating Cash Flow	13.94B	15.96B	12.34B	15.68B	11.76B	2.67B
Investing Cash Flow	-6.21B	-6.47B	-6.51B	-4.79B	-3.98B	-4.52B
Financing Cash Flow	-7.83B	-7.88B	-5.99B	-11.23B	-7.46B	1.79B

Suncor Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 58.98
• 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 Neutral. The current price of 58.98 is below the 20-day moving average (MA) of 60.89, above the 50-day MA of 58.73, and above the 200-day MA of 53.57, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 42.98 is Neutral, neither overbought nor oversold. The STOCH value of 21.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SU.

Suncor Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNQ	81 Outperform	C$91.64B	13.87	16.17%	5.34%	8.06%	-10.64%
SU	77 Outperform	C$70.85B	13.79	11.41%	3.92%	-3.08%	-31.48%
CVE	73 Outperform	$43.53B	13.32	10.65%	3.39%	-9.17%	-12.97%
IMO	72 Outperform	C$57.66B	14.83	16.52%	2.48%	-6.18%	-14.06%
PPL	70 Outperform	C$29.58B	18.15	10.22%	5.54%	2.81%	-14.92%
TRP	70 Outperform	C$78.01B	22.98	12.96%	4.50%	-3.98%	-33.45%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Suncor Energy Corporate Events

Suncor Energy Announces $1 Billion Note Offering to Repay Debt

Suncor Energy announced a $1 billion offering of senior unsecured notes, split into two tranches with different maturity dates and interest rates. The proceeds from this offering will be used to repay existing debt, potentially strengthening Suncor’s financial position and enhancing its ability to invest in future projects.

Suncor Energy Announces $1 Billion Note Offering to Repay Debt

Suncor Energy has announced a $1 billion offering of senior unsecured notes, split into two tranches with different maturity dates and interest rates. The proceeds from this offering will be used to repay existing debt, potentially strengthening the company’s financial position and offering flexibility in its capital management strategy. This move may enhance Suncor’s industry positioning by reducing financial liabilities and supporting its ongoing transition to a lower-emissions future.

Suncor Energy Achieves Record Third-Quarter Results in 2025

Suncor Energy reported strong third-quarter 2025 results, achieving record refinery throughput and upstream production. The company generated $3.8 billion in adjusted funds from operations and returned over $1.4 billion to shareholders through share repurchases and dividends. Suncor’s performance reflects its commitment to operational excellence and a robust integrated business model, leading to increased shareholder value and reliable cash flow generation.

Suncor Energy Boosts Quarterly Dividend Amid Strong Performance

Suncor Energy has announced a 5% increase in its quarterly dividend to $0.60 per common share, reflecting the company’s strong operational improvements and financial performance. This decision underscores the Board’s confidence in Suncor’s ability to generate value for shareholders through enhanced free funds flow and share repurchases, with dividends payable on December 24, 2025.

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.