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Suncor Energy

DB:SM3
Snowflake Description

Good value average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SM3
DB
CA$35B
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Suncor Energy Inc. operates as an integrated energy company. The last earnings update was 40 days ago. More info.


Add to Portfolio Compare Print
  • Suncor Energy has significant price volatility in the past 3 months.
SM3 Share Price and Events
7 Day Returns
22.9%
DB:SM3
6.5%
DE Oil and Gas
2.1%
DE Market
1 Year Returns
-47.8%
DB:SM3
28.1%
DE Oil and Gas
-16.6%
DE Market
SM3 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Suncor Energy (SM3) 22.9% -31.5% -48.7% -47.8% -47.5% -47.8%
DE Oil and Gas 6.5% -7.3% -23.7% 28.1% -18.9% 149.7%
DE Market 2.1% -12.6% -22.9% -16.6% -21.9% -27.8%
1 Year Return vs Industry and Market
  • SM3 underperformed the Oil and Gas industry which returned 28.1% over the past year.
  • SM3 underperformed the Market in Germany which returned -16.6% over the past year.
Price Volatility
SM3
Industry
5yr Volatility vs Market

SM3 Value

 Is Suncor Energy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Suncor Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Suncor Energy.

DB:SM3 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:SM3
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.948 (1 + (1- 26.5%) (51.11%))
1.204
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.204 * 5.44%)
6.16%

Discounted Cash Flow Calculation for DB:SM3 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Suncor Energy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:SM3 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 6.16%)
2020 1,047.90 Analyst x10 987.12
2021 2,153.10 Analyst x10 1,910.57
2022 4,234.00 Analyst x2 3,539.15
2023 5,201.00 Analyst x1 4,095.29
2024 5,881.90 Est @ 13.09% 4,362.79
2025 6,414.04 Est @ 9.05% 4,481.55
2026 6,812.74 Est @ 6.22% 4,484.02
2027 7,101.21 Est @ 4.23% 4,402.78
2028 7,303.37 Est @ 2.85% 4,265.48
2029 7,440.38 Est @ 1.88% 4,093.44
Present value of next 10 years cash flows CA$36,622.00
DB:SM3 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$7,440.38 × (1 + -0.39%) ÷ (6.16% – -0.39%)
CA$113,194.01
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$113,194.01 ÷ (1 + 6.16%)10
CA$62,275.52
DB:SM3 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$36,622.00 + CA$62,275.52
CA$98,897.52
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$98,897.52 / 1,526.81
CA$64.77
DB:SM3 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:SM3 represents 0.67512x of TSX:SU
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.67512x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 64.77 x 0.67512
€43.73
Value per share (EUR) From above. €43.73
Current discount Discount to share price of €15.55
= -1 x (€15.55 - €43.73) / €43.73
64.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Suncor Energy is available for.
Intrinsic value
>50%
Share price is €15.55 vs Future cash flow value of €43.73
Current Discount Checks
For Suncor Energy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Suncor Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Suncor Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Suncor Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Suncor Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:SM3 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$1.86
TSX:SU Share Price ** TSX (2020-04-07) in CAD CA$23.03
Europe Oil and Gas Industry PE Ratio Median Figure of 104 Publicly-Listed Oil and Gas Companies 6.51x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 16.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Suncor Energy.

DB:SM3 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:SU Share Price ÷ EPS (both in CAD)

= 23.03 ÷ 1.86

12.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Suncor Energy is overvalued based on earnings compared to the Europe Oil and Gas industry average.
  • Suncor Energy is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Suncor Energy's expected growth come at a high price?
Raw Data
DB:SM3 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
-18.6%per year
Europe Oil and Gas Industry PEG Ratio Median Figure of 66 Publicly-Listed Oil and Gas Companies 0.32x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

DB:SM3 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.38x ÷ -18.6%

-0.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Suncor Energy earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Suncor Energy's assets?
Raw Data
DB:SM3 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$27.44
TSX:SU Share Price * TSX (2020-04-07) in CAD CA$23.03
Germany Oil and Gas Industry PB Ratio Median Figure of 6 Publicly-Listed Oil and Gas Companies 1x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.45x
DB:SM3 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:SU Share Price ÷ Book Value per Share (both in CAD)

= 23.03 ÷ 27.44

0.84x

* Primary Listing of Suncor Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Suncor Energy is good value based on assets compared to the DE Oil and Gas industry average.
X
Value checks
We assess Suncor Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Suncor Energy has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SM3 Future Performance

 How is Suncor Energy expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-18.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Suncor Energy expected to grow at an attractive rate?
  • Suncor Energy's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Suncor Energy's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Suncor Energy's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:SM3 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:SM3 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts -18.6%
DB:SM3 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts -10.3%
Europe Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 13.1%
Europe Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 1.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:SM3 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:SM3 Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 9,939
2022-12-31 30,512 7,970 3,096 1
2021-12-31 29,233 7,792 711 6
2020-12-31 24,312 6,205 -1,402 6
2020-04-07
DB:SM3 Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 38,344 10,421 2,899
2019-09-30 37,418 11,157 4,954
2019-06-30 38,462 12,391 5,731
2019-03-31 38,718 11,404 3,974
2018-12-31 38,542 10,580 3,293
2018-09-30 38,954 10,295 4,955
2018-06-30 36,070 8,837 4,432
2018-03-31 32,974 8,062 3,895
2017-12-31 31,954 8,966 4,458
2017-09-30 30,821 9,002 3,607
2017-06-30 30,267 8,069 2,710
2017-03-31 28,950 7,260 1,540

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Suncor Energy's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Suncor Energy's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:SM3 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Suncor Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SM3 Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 2.03 2.03 2.03 1.00
2021-12-31 0.47 1.64 -1.11 7.00
2020-12-31 -0.89 0.56 -2.51 7.00
2020-04-07
DB:SM3 Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 1.86
2019-09-30 3.15
2019-06-30 3.60
2019-03-31 2.47
2018-12-31 2.03
2018-09-30 3.03
2018-06-30 2.69
2018-03-31 2.36
2017-12-31 2.68
2017-09-30 2.17
2017-06-30 1.63
2017-03-31 0.93

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Suncor Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Suncor Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Suncor Energy has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SM3 Past Performance

  How has Suncor Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Suncor Energy's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Suncor Energy has delivered over 20% year on year earnings growth in the past 5 years.
  • Suncor Energy's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Suncor Energy's 1-year earnings growth is negative, it can't be compared to the Europe Oil and Gas industry average.
Earnings and Revenue History
Suncor Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Suncor Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SM3 Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 38,344.00 2,899.00 11,559.00
2019-09-30 37,418.00 4,954.00 11,431.00
2019-06-30 38,462.00 5,731.00 11,289.00
2019-03-31 38,718.00 3,974.00 11,045.00
2018-12-31 38,542.00 3,293.00 10,751.00
2018-09-30 38,954.00 4,955.00 10,455.00
2018-06-30 36,070.00 4,432.00 10,051.00
2018-03-31 32,974.00 3,895.00 9,657.00
2017-12-31 31,954.00 4,458.00 9,350.00
2017-09-30 30,821.00 3,607.00 9,495.00
2017-06-30 30,267.00 2,710.00 9,623.00
2017-03-31 28,950.00 1,540.00 9,426.00
2016-12-31 26,807.00 434.00 9,469.00
2016-09-30 25,466.00 -2,104.00 9,165.00
2016-06-30 25,542.00 -2,872.00 8,881.00
2016-03-31 27,723.00 -1,408.00 9,046.00
2015-12-31 29,208.00 -1,995.00 9,137.00
2015-09-30 31,608.00 96.00 9,194.00
2015-06-30 34,298.00 1,391.00 9,442.00
2015-03-31 36,649.00 873.00 9,860.00
2014-12-31 39,862.00 2,699.00 9,963.00
2014-09-30 40,777.00 3,058.00 10,220.00
2014-06-30 40,890.00 3,833.00 10,227.00
2014-03-31 40,092.00 4,302.00 10,029.00
2013-12-31 39,593.00 3,911.00 9,852.00
2013-09-30 39,175.00 2,894.00 9,522.00
2013-06-30 38,375.00 2,744.00 9,544.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Suncor Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Suncor Energy used its assets less efficiently than the Europe Oil and Gas industry average last year based on Return on Assets.
  • Suncor Energy has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Suncor Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Suncor Energy has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SM3 Health

 How is Suncor Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Suncor Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Suncor Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Suncor Energy's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Suncor Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Suncor Energy Company Filings, last reported 3 months ago.

DB:SM3 Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 42,042.00 15,039.00 1,960.00
2019-09-30 45,184.00 14,741.00 2,089.00
2019-06-30 45,509.00 15,182.00 2,061.00
2019-03-31 44,262.00 16,139.00 1,875.00
2018-12-31 44,005.00 16,090.00 2,221.00
2018-09-30 45,800.00 16,343.00 2,332.00
2018-06-30 45,543.00 17,802.00 1,983.00
2018-03-31 45,483.00 17,623.00 2,083.00
2017-12-31 45,383.00 14,260.00 2,672.00
2017-09-30 45,378.00 14,338.00 2,757.00
2017-06-30 44,887.00 14,599.00 2,352.00
2017-03-31 45,516.00 16,739.00 3,577.00
2016-12-31 44,630.00 16,296.00 3,016.00
2016-09-30 43,976.00 17,831.00 3,102.00
2016-06-30 44,453.00 17,553.00 3,008.00
2016-03-31 42,935.00 18,014.00 3,134.00
2015-12-31 39,039.00 14,035.00 4,049.00
2015-09-30 41,148.00 14,960.00 5,409.00
2015-06-30 41,615.00 14,126.00 4,892.00
2015-03-31 41,272.00 14,347.00 4,825.00
2014-12-31 41,603.00 12,275.00 5,495.00
2014-09-30 41,983.00 11,924.00 5,351.00
2014-06-30 41,886.00 11,474.00 4,932.00
2014-03-31 42,258.00 11,808.00 4,846.00
2013-12-31 41,180.00 10,387.00 5,202.00
2013-09-30 41,132.00 11,133.00 5,340.00
2013-06-30 40,243.00 11,644.00 4,530.00
  • Suncor Energy's level of debt (35.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (29.5% vs 35.8% today).
  • Debt is well covered by operating cash flow (69.3%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Suncor Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Suncor Energy has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SM3 Dividends

 What is Suncor Energy's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.08%
Current annual income from Suncor Energy dividends. Estimated to be 11.59% next year.
If you bought €2,000 of Suncor Energy shares you are expected to receive €162 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Suncor Energy's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.67%).
  • Suncor Energy's dividend is above the markets top 25% of dividend payers in Germany (4.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:SM3 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Europe Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 68 Stocks 8.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.7%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:SM3 Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 33.10 1.00
2022-12-31 2.02 5.00
2021-12-31 1.89 17.00
2020-12-31 1.85 17.00
2020-04-07
DB:SM3 Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-02-05 1.860 7.125
2019-11-13 1.680 3.961
2019-07-24 1.680 4.245
2019-05-01 1.680 4.019
2019-02-05 1.680 3.781
2019-01-15 1.680 3.974
2018-11-15 1.440 3.533
2018-07-25 1.440 2.903
2018-05-01 1.440 2.753
2018-02-26 1.440 3.218
2018-02-08 1.440 3.363
2017-11-14 1.280 2.836
2017-07-26 1.280 3.062
2017-04-26 1.280 3.178
2017-02-08 1.280 3.099
2016-11-15 1.160 2.728
2016-07-27 1.160 3.158
2016-04-27 1.160 3.286
2016-02-03 1.160 3.376
2015-11-17 1.160 3.396
2015-07-29 1.160 3.199
2015-04-29 1.120 3.162
2015-02-05 1.120 2.950
2014-11-18 1.120 3.083
2014-07-31 1.120 2.741
2014-07-30 1.120 2.474
2014-04-28 0.920 2.093
2014-02-04 0.920 2.446
2014-02-03 0.920 2.605
2013-11-19 0.800 2.172
2013-08-01 0.778 2.145
2013-04-29 0.800 2.516
2013-02-06 0.520 1.700
2012-11-13 0.520 1.573
2012-07-25 0.520 1.602
2012-05-01 0.520 1.785
2012-02-02 0.440 1.330
2011-11-08 0.440 1.415
2011-07-26 0.440 1.449
2011-05-03 0.440 1.134
2011-02-02 0.400 0.928
2010-11-10 0.400 1.085
2010-07-27 0.400 1.190
2010-05-04 0.400 1.226
2010-02-05 0.400 1.229
2009-11-13 0.400 1.087
2009-08-04 0.400 1.096
2009-04-28 0.200 0.577

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Suncor Energy's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.9x coverage).
X
Income/ dividend checks
We assess Suncor Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Suncor Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Suncor Energy has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SM3 Management

 What is the CEO of Suncor Energy's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Little
COMPENSATION CA$11,718,684
AGE 56
TENURE AS CEO 0.9 years
CEO Bio

Mr. Mark S. Little has been President of Suncor Energy Inc. since November 14, 2018 and its Chief Executive Officer and Director since May 5, 2019. Mr. Little is responsible for all of the operations and many of the corporate services. He was Chief Operating Officer of Suncor Energy Inc. since December 1, 2017. He served as the President of Upstream at Suncor Energy Inc. since January 5, 2017 until December 1, 2017. He served an Executive Vice President of Upstream at Suncor Energy Inc. from January 1, 2014 to January 5, 2017. Mr. Little served as an Executive Vice President of Oil Sands and In Situ at Suncor Energy Inc. since January 1, 2012. He served as an Executive Vice President of Oil Sands at Suncor Energy Inc. until January 1, 2012 and also served as its Senior Vice President International & Offshore. He served as a Senior Vice President of Strategic Growth & Energy Trading at Suncor Energy Inc. Before joining Suncor, he led the development of oil sands projects for a major international energy company. His past experience also includes leadership roles in oil sands production and refining operations, strategic planning, environment, health and safety, and energy trading. He holds degrees in both computer science and applied petroleum engineering technology and he is a graduate of the advanced management program at Harvard Business School. From 2003 to 2007 he served as Honorary Colonel for the 409 and 441 Tactical Fighter Squadrons at 4 Wing Airforce Base in Cold Lake, Alta., a role that reflected his commitment to the relationship between the Air Force, the community and industry.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mark's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the Suncor Energy management team in years:

0.9
Average Tenure
  • The average tenure for the Suncor Energy management team is less than 2 years, this suggests a new team.
Management Team

Mark Little

TITLE
CEO, President & Director
COMPENSATION
CA$12M
AGE
56
TENURE
0.9 yrs

Alister Cowan

TITLE
Chief Financial Officer
COMPENSATION
CA$5M
TENURE
5.8 yrs

Mike MacSween

TITLE
Executive Vice President of Upstream
COMPENSATION
CA$4M

Kris Smith

TITLE
Executive Vice President of Downstream
COMPENSATION
CA$5M

Steve Reynish

TITLE
Executive Vice President of Strategy & Operations Services
COMPENSATION
CA$5M

Trevor Bell

TITLE
Vice President of Investor Relations

Arlene Strom

TITLE
Chief Legal Officer

Paul Gardner

TITLE
Chief People Officer
TENURE
8.3 yrs

Bruno Francoeur

TITLE
Chief Transformation Officer
TENURE
0.9 yrs

Martha Findlay

TITLE
Chief Sustainability Officer
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Suncor Energy board of directors in years:

3.6
Average Tenure
64.5
Average Age
  • The tenure for the Suncor Energy board of directors is about average.
Board of Directors

Mike Wilson

TITLE
Independent Chairman
COMPENSATION
CA$529K
AGE
67
TENURE
3 yrs

Mark Little

TITLE
CEO, President & Director
COMPENSATION
CA$12M
AGE
56
TENURE
0.9 yrs

Eira Thomas

TITLE
Independent Director
COMPENSATION
CA$311K
AGE
50
TENURE
14 yrs

John Gass

TITLE
Independent Director
COMPENSATION
CA$313K
AGE
67
TENURE
6.2 yrs

Patty Bedient

TITLE
Independent Director
COMPENSATION
CA$323K
AGE
65
TENURE
4.2 yrs

Mel Benson

TITLE
Independent Director
COMPENSATION
CA$300K
AGE
70
TENURE
20 yrs

Maureen McCaw

TITLE
Independent Director
COMPENSATION
CA$309K
AGE
64
TENURE
16 yrs

Denny Houston

TITLE
Independent Director
COMPENSATION
CA$303K
AGE
68
TENURE
2.3 yrs

Brian MacDonald

TITLE
Independent Director
COMPENSATION
CA$307K
AGE
53
TENURE
1.8 yrs

Lorraine Mitchelmore

TITLE
Independent Director
COMPENSATION
CA$263K
AGE
56
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Suncor Energy individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
20. Mar 20 Buy Lorraine Mitchelmore Individual 19. Mar 20 19. Mar 20 300 €10.18 €3,055
09. Mar 20 Buy Kris Smith Individual 09. Mar 20 09. Mar 20 8,500 €18.88 €160,453
13. Feb 20 Buy Lorraine Mitchelmore Individual 12. Feb 20 12. Feb 20 500 €26.94 €13,471
20. Aug 19 Buy Mark Little Individual 19. Aug 19 19. Aug 19 10,290 €25.83 €265,535
02. Aug 19 Buy Brian MacDonald Individual 01. Aug 19 02. Aug 19 5,000 €25.87 €128,500
28. May 19 Buy Brian MacDonald Individual 24. May 19 24. May 19 3,000 €27.77 €83,296
X
Management checks
We assess Suncor Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Suncor Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SM3 News

Simply Wall St News

SM3 Company Info

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 for, acquires, develops, produces, refines, transports, and markets crude oil in Canada and internationally; markets petroleum and petrochemical products under the Petro-Canada brand primarily in Canada. It operates in 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 with diluent for direct sale to market. The Exploration and Production segment is involved in the offshore operations of 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 dealers, sales channel, other retail stations, and commercial road transportation networks. The Corporate and Eliminations segment operates four wind power facilities located in Alberta, Saskatchewan, and Ontario with a gross installed capacity of 111 MW. The company also engages in the marketing, supply, and trading of 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 1953 and is headquartered in Calgary, Canada.

Details
Name: Suncor Energy Inc.
SM3
Exchange: DB
Founded: 1953
CA$22,984,116,206
1,526,810,321
Website: http://www.suncor.com
Address: Suncor Energy Inc.
150 - 6 Avenue S.W.,
PO Box 2844,
Calgary,
Alberta, T2P 3E3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX SU New Common Shares The Toronto Stock Exchange CA CAD 18. Mar 1993
NYSE SU New Common Shares New York Stock Exchange US USD 18. Mar 1993
DB SM3 New Common Shares Deutsche Boerse AG DE EUR 18. Mar 1993
SWX SU New Common Shares SIX Swiss Exchange CH CHF 18. Mar 1993
BMV SUU N New Common Shares Bolsa Mexicana de Valores MX MXN 18. Mar 1993
Number of employees
Current staff
Staff numbers
12,889
Suncor Energy employees.
Industry
Integrated Oil and Gas
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 22:54
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.