Suncor Energy Inc. Common Stock (SU)

FairStock Score: 77/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I want an understandable business, durable economics, and a margin of safety. Suncor is an integrated energy company—oil sands, exploration and production, and refining and marketing—so I understand how it makes money, but it remains a price-taker in a cyclical commodity. At the 2026-10-26 close of $79.48, FairStock shows a P/E of 14.86 and P/B of 2.70. Trailing free cash flow is $10.3B, a 13.5% FCF yield, and EV/EBITDA is 4.34—cheap on cash-flow measures. Financial health is a strength: debt-to-equity is 0.30 and Piotroski F-Score is 9/9. In the latest reported quarter (fiscal Q2 2026), revenue was $19.0B, net income $3.7B, and margin 19.63%. ROE is 19.25%, though ROCE of 8.58% reminds me this is capital-intensive. The moat is moderate: scale and integration help, but no integrated oil company controls the oil price. Valuation is mixed. FairStock's Graham Number is $70.31, so at $79.48 the margin of safety is -12.90%; the price sits above that conservative anchor. The Altman Z-Score of 1.86 and P/B of 2.70 add caution. Growth has been strong, but in commodities I treat rapid profit growth as cyclical, not permanent. The 77/100 FairStock Score and 0.06 PEG are encouraging, yet I would want a wider discount to intrinsic value before calling it a classic Graham bargain.

In plain English: Suncor is an integrated oil and gas company that produces oil from oil sands and also refines and sells fuel. The business looks strong: in fiscal Q2 2026, it earned $3.7 billion on $19.0 billion of revenue, carries low debt, and generates lots of cash. At $79.48, the price looks a little high compared with its earnings and asset value, though strong cash flow makes it look reasonable.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer