Suncor Energy Inc (SU, Financial), a leading player in the Oil & Gas industry, has seen a significant surge in its stock price over the past three months. With a current market cap of $43.47 billion and a stock price of $33.54, the company's stock has gained 0.42% over the past week and a remarkable 16.39% over the past three months. The company's GF Value, a measure of intrinsic value defined by GuruFocus.com, stands at $37.14, slightly lower than the past GF Value of $40.24. Despite this, the stock remains modestly undervalued, maintaining the same GF Valuation as three months ago.
Unpacking Suncor Energy Inc
Suncor Energy Inc is an integrated energy company with a diverse portfolio of operations. These include oil sands development, production and upgrading, offshore oil and gas, petroleum refining in Canada and the U.S., and the company's Petro-Canada retail and wholesale distribution networks. Suncor is not only developing petroleum resources but also advancing the transition to a low-emissions future through investment in power, renewable fuels, and hydrogen. The company also conducts energy trading activities focused principally on the marketing and trading of crude oil, natural gas, byproducts, refined products, and power.
Profitability Analysis
Suncor Energy Inc's Profitability Rank stands at 7/10, indicating a strong profitability profile. The company's Operating Margin of 14.62% is better than 61.3% of 982 companies in the same industry. The company's ROE and ROA stand at 15.31% and 7.12% respectively, outperforming a majority of companies in the industry. The ROIC of 8.46% further underscores the company's ability to generate cash flow relative to the capital invested in its business. Over the past decade, Suncor has maintained profitability for eight years, better than 74.61% of 953 companies.
Growth Prospects
Suncor Energy Inc's Growth Rank is 8/10, indicating strong growth potential. The company's 3-Year Revenue Growth Rate per Share of 21.00% and 5-Year Revenue Growth Rate per Share of 12.40% are better than a majority of companies in the industry. The company's future total revenue growth rate is estimated at 12.15%, outperforming 80.69% of 259 companies. The 3-Year EPS without NRI Growth Rate of 52.00% further underscores the company's robust growth prospects.
Major Stock Holders
Dodge & Cox is the largest holder of Suncor Energy Inc's stock, holding 45,030,054 shares, which represents 3.44% of the company's stock. HOTCHKIS & WILEY and Jim Simons (Trades, Portfolio) hold 2,331,206 and 1,117,566 shares respectively, representing 0.18% and 0.09% of the company's stock.
Competitive Landscape
Suncor Energy Inc faces competition from Cenovus Energy Inc(TSX:CVE, Financial) with a stock market cap of $36.79 billion, Imperial Oil Ltd(TSX:IMO, Financial) with a market cap of $33.5 billion, and Saudi Arabian Oil Co(SAU:2222, Financial) with a market cap of $2.16 trillion.
Conclusion
In conclusion, Suncor Energy Inc's impressive stock performance, robust profitability, and strong growth prospects make it a compelling investment. The company's modest undervaluation, despite the recent surge in stock price, further underscores its investment appeal. However, investors should also consider the competitive landscape and the holdings of major stockholders when making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
