
TSE:SU
This summary was created by AI, based on 16 opinions in the last 12 months.
Suncor Energy Inc. (SU) has garnered a mix of positive insights and considerations from experts. Many commend the company's impressive turnaround under new management and note its strong potential due to the long-life reserves of oil sands, combined with significant free cash flow generation. While some analysts highlight its solid operational efficiency and attractive dividend returns, others raise concerns about the potential volatility tied to fluctuating oil prices and the challenges facing the broader Canadian energy sector. Despite these concerns, there is a prevailing sentiment that SU remains a good long-term investment, particularly given the backdrop of increasing demand for Canadian energy and ongoing infrastructure development. The stock is viewed as a core holding in the energy space, with substantial upside potential amid reasonable valuations relative to peers.
Cut dividend. Fort Hills has been delayed. Cut operational expenses. About 1B in free cashflow. Still trading cheap, at 4x cashflow. He owns CNQ in the space, for better risk/return. He'd be a buyer instead of a seller. Possibility of increased dividend to entice investors.
Buy on current weakness? He owns CNQ instead. His strategy is to own the larger-cap oil companies. SU will spend some money in capex and likely increase that, buyback shares and raise their dividend. All large oil companies around the world are doing this. Of course, rising oil prices will help. These companies are in better shape than before. Both SU and CNQ make acquisitions at the right time.
Execution has always been an issue for them. The streets are worried about their ability so this is why it trades at a discount. Stock is inexpensive at 3.6x cashflow with a 19% free cashflow yield. If you want to stick in the large cap realm, he prefers Cenovus. Could trade at a discount for some time.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Could buy here if you are okay with the stock moving with the commodity prices. The biggest in Canada. Pays a good dividend. Would recommend a small allocation in the energy space overall. Unlock Premium - Try 5i Free