Suncor Energy Inc, a Canadian integrated energy company operating both domestically and internationally, has made significant waves in the market with its recent performance. As of July 19, 2023, the company’s stock (TSE:SU) opened at C$38.53 per share. With a market capitalization of C$50.47 billion, Suncor Energy has established itself as one of the key players in the industry.
Analyzing the financial indicators, Suncor Energy boasts strong liquidity ratios. The quick ratio stands at 0.83, indicating a sufficient ability to meet short-term obligations. Additionally, the current ratio of 1.11 highlights the company’s capability to cover its current liabilities comfortably.
However, it is worth noting that Suncor Energy carries a debt-to-equity ratio of 42.16%. This metric suggests that the company relies more on debt financing than equity financing for its operations and growth initiatives.
In terms of valuation, Suncor Energy has a price-to-earnings (P/E) ratio of 6.41 and a PEG ratio of 0.15, revealing an undervalued state compared to its earnings growth potential. These figures indicate that investors may find attractive opportunities in this stock.
Tracking its historical performance over the past year, Suncor Energy’s shares experienced volatility within a range of C$36.38 – C$50.37 per share. This broad range reflects varying investor sentiment and market conditions throughout that period.
Equities research analysts have recently provided insights into Suncor Energy’s prospects as well. Notably, Morgan Stanley reduced their target price from C$61.00 to C$58.00 in a research report dated March 27th on this particular stock.
Similarly, UBS Group set a target price of C$48.00 while maintaining a “buy” rating for Suncor Energy in a research report released on July 12th. In contrast, other analysts, such as National Bankshares and Jefferies Financial Group, have adjusted their price objectives downward.
Despite the varied opinions of analysts, Suncor Energy has received an average rating of “Moderate Buy” and a consensus price target of C$52.07 according to Bloomberg.com.
Diving into Suncor Energy’s business operations, it operates through three segments: Oil Sands, Exploration and Production, and Refining and Marketing. The Oil Sands segment focuses on exploring, developing, and producing bitumen, synthetic crude oil, and related products.
Moreover, this segment undertakes oil sands mining and upgrading operations along with marketing strategies encompassing the supply chain management of crude oil, natural gas, power, and byproducts.
On the financial side of things, Suncor Energy reported impressive quarterly earnings on May 8th. The company outperformed market expectations by posting earnings per share (EPS) of C$1.36 compared to the consensus estimate of C$1.26 EPS.
Furthermore, Suncor Energy achieved revenue totaling C$12.26 billion for the quarter—an increase from the projected C$10.57 billion in revenues.
The key takeaway from this financial performance is that Suncor Energy holds a net margin of 14.37%, signifying its ability to generate profits relative to its total revenue. Additionally, the return on equity stands at an impressive 20.92%, reflecting strong efficiency in utilizing shareholders’ investments.
In conclusion, Suncor Energy Inc exhibits robust financial indicators amidst its presence as an integrated energy company operating in Canada and abroad. With attractive valuation metrics and positive quarterly results under its belt, Suncor Energy presents alluring opportunities for investors seeking exposure to the energy sector. Nonetheless, it is crucial for investors to consider differing expert opinions prior to making investment decisions surrounding this stock in this ever-changing and volatile market environment.
Suncor Energy Inc.
Updated on: 19/07/2023
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|Analyst / firm||Rating|
Matt Murphy CFA
Bank of America Securities
Suncor Energy Faces Adjusted Earnings Estimates for Q2 2023: Implications and Dividend Payments
Suncor Energy Faces Adjusted Earnings Estimates for Q2 2023
In recent news, Suncor Energy Inc. (TSE:SU – Free Report) (NYSE:SU), one of Canada’s leading integrated energy companies, has experienced a downward revision in its earnings estimates for the second quarter of 2023. This shift was highlighted by Zacks Research analysts, who have reduced their earlier projections. This article will delve into the implications of this change, explore their potential impact on Suncor Energy’s annual earnings, and discuss the company’s dividend payments.
Decrease in Q2 2023 Earnings Estimate:
Zacks Research analyst N. Choudhury has formulated a revised projection for Suncor Energy’s financial performance in the second quarter of 2023. The latest estimate anticipates earnings to be $0.97 per share, lower than the previously forecasted $1.07 per share. This adjustment indicates an expected decline in profitability during this period.
Implications for Full-Year Earnings:
The current consensus estimate for Suncor Energy suggests that the company is expected to generate $5.52 per share as earnings throughout the entire year of 2023. Although the decrease in estimated Q2 earnings may seemingly affect full-year figures, it is essential to evaluate how other quarters’ performance offsets any potential uncertainties.
Predictions for Future Earnings:
In addition to revising Q2 2023 estimates, Zacks Research also provided insights into Suncor Energy’s forthcoming quarterly results. Analysts foresee brighter prospects with projected earnings per share (EPS) of $1.33 for Q3 2023, $1.15 for Q4 2023, and $1.16 for Q1 2025.
Highlighting another facet of Suncor Energy’s operations, the company recently declared its quarterly dividend payout. This dividend was paid out on June 26th, following a shareholder record date of the same day. Shareholders received $0.52 per share as a dividend. With an annualized basis of $2.08, the dividend demonstrates an attractive yield of 5.40%. The ex-dividend date for this payment was Friday, June 2nd.
Suncor Energy Inc.’s adjusted earnings estimates for Q2 2023 have underscored potential challenges facing the company in the short term. As analysts revise their forecasts downward, it is important to carefully analyze how these changes could impact Suncor Energy’s overall financial performance throughout 2023 and beyond.
Despite the revised figures, optimism surrounding future earnings exists, as projected EPS figures for subsequent quarters indicate potential growth and recovery from any temporary setbacks. Furthermore, Suncor Energy’s consistent dividend payouts demonstrate its commitment to rewarding shareholders while maintaining a healthy dividend payout ratio.
Investors and industry observers will be closely monitoring Suncor Energy’s progress in overcoming the hurdles presented by these adjusted earnings estimates, eagerly awaiting further updates on its financial performance and strategic decisions in the ever-evolving energy landscape.
Note: The information in this article is based on publicly available data as of July 19, 2023. It is important to conduct further research or consult with financial professionals before making investment decisions based on this article alone.