Suncor Energy Price To Earning vs. Return On Equity

SU Stock  CAD 54.06  0.39  0.73%   
Based on the key profitability measurements obtained from Suncor Energy's financial statements, Suncor Energy's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Suncor Energy's ability to earn profits and add value for shareholders. At this time, Suncor Energy's Price To Sales Ratio is very stable compared to the past year. As of the 11th of December 2024, EV To Sales is likely to grow to 2.42, while Days Sales Outstanding is likely to drop 33.82. At this time, Suncor Energy's Net Income From Continuing Ops is very stable compared to the past year. As of the 11th of December 2024, Net Income Applicable To Common Shares is likely to grow to about 11 B, while Interest Income is likely to drop about 89.3 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.580.3981
Way Up
Very volatile
For Suncor Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Suncor Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Suncor Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Suncor Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Suncor Energy over time as well as its relative position and ranking within its peers.
  
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To learn how to invest in Suncor Stock, please use our How to Invest in Suncor Energy guide.
Please note, there is a significant difference between Suncor Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Suncor Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Suncor Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Suncor Energy Return On Equity vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Suncor Energy's current stock value. Our valuation model uses many indicators to compare Suncor Energy value to that of its competitors to determine the firm's financial worth.
Suncor Energy is currently regarded as top stock in price to earning category among its peers. It also is currently regarded as top stock in return on equity category among its peers reporting about  0.01  of Return On Equity per Price To Earning. The ratio of Price To Earning to Return On Equity for Suncor Energy is roughly  70.31 . At this time, Suncor Energy's Return On Equity is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Suncor Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Suncor Energy's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Suncor Return On Equity vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Suncor Energy

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
12.98 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Suncor Energy

Return On Equity

 = 

Net Income

Total Equity

 = 
0.18
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Suncor Return On Equity Comparison

Suncor Energy is currently under evaluation in return on equity category among its peers.

Suncor Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Suncor Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Suncor Energy will eventually generate negative long term returns. The profitability progress is the general direction of Suncor Energy's change in net profit over the period of time. It can combine multiple indicators of Suncor Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive IncomeB1.1 B
Operating Income8.7 B9.1 B
Income Before Tax10.6 B11.1 B
Total Other Income Expense Net1.9 BB
Net Income8.3 B8.7 B
Income Tax Expense2.3 B2.4 B
Net Income From Continuing Ops8.3 B8.7 B
Net Income Applicable To Common Shares10.4 B11 B
Interest Income94 M89.3 M
Net Interest Income-692 M-726.6 M
Change To Netincome-70.2 M-66.7 M
Net Income Per Share 6.34  6.66 
Income Quality 1.49  2.70 
Net Income Per E B T 0.78  0.67 

Suncor Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Suncor Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Suncor Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Suncor Energy's important profitability drivers and their relationship over time.

Use Suncor Energy in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Suncor Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Suncor Energy will appreciate offsetting losses from the drop in the long position's value.

Suncor Energy Pair Trading

Suncor Energy Pair Trading Analysis

The ability to find closely correlated positions to Suncor Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Suncor Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Suncor Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Suncor Energy to buy it.
The correlation of Suncor Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Suncor Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Suncor Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Suncor Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Suncor Energy position

In addition to having Suncor Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Cross-sector collection of best publicly traded Israel entities that are expected to continue growing. The Israel Wall Street theme has 71 constituents at this time.
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When determining whether Suncor Energy is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Suncor Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Suncor Energy Stock. Highlighted below are key reports to facilitate an investment decision about Suncor Energy Stock:
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To learn how to invest in Suncor Stock, please use our How to Invest in Suncor Energy guide.
You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
To fully project Suncor Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Suncor Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Suncor Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Suncor Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Suncor Energy investors may work on each financial statement separately, they are all related. The changes in Suncor Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Suncor Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.