Canadian stock alert

CANA

Afternoon Alert: Suncor Energy decreases 0.3%, leads Oil & gas - integrated sector lower 18 January 2018 12:16 EST

NEWS BITES - NORTH AMERICA

Suncor Energy Inc. (TSX:SU) has decreased 0.3% to trade at CAD47.19 vs. the Oil & gas - integrated sector which weakened 1.2 points (or 0.1%) to 879.2. Representing a weighting of about 50.2% of the sector, the stock accounted for the loss. Trading volume was 1.2 times average so far today.

SECTION 1: The past week

Current indications of bearish signals that support the trend in the unusual trading

1.1 5-day Recap

Suncor Energy underperformed the S&P/TSX 60 index in 3 out of 5 days.

DayHeadlineClose price [CAD]Price change %Relative change %Comment
TuesdaySuncor Energy falls for a second consecutive day, a two-day fall of 0.6%47.06-0.5-0.1Steepest Fall
MondaySuncor Energy falls 0.9% from 14-day high47.28-0.1-0.4

Note

DayHeadlineClose price [CAD]Price change %Relative change %Comment
WednesdaySuncor Energy rises with rising open interest47.340.60.4Top Rise
FridaySuncor Energy rises for a second consecutive day, a two-day rise of 0.7%47.350.50.4
ThursdaySuncor Energy rises with rising open interest47.110.2-0.1

SECTION 2: Technical indicators

Overbought/Bearish:

The 1.1% discount to 12-month high of CAD47.69 against the 32.8% premium to 12-month low of CAD35.54 suggests the climb might be peaking.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Dividend yield of 2.7% [1.9%]

Overvaluation:

Price/Sales of 2.5 [0.8]

Price to Book of 1.9 [0.8]

Return on Equity 1.0% [5.5%]

Return on Assets 0.5% [2.7%]

Return on Capital Employed 0.7% [3.5%]

Note

Bullish:

The positive 0.7 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are rising - another bullish signal. In the past week, the stock's MACD has been positive every day, a reinforcing bullish signal.

In the last three months the stock has hit a new 52-week high eleven times, pointing to a significant uptrend.

The price increased 0.2% in the last week and jumped 6.7% in the last month.

The present value of CAD1,000 invested one year ago is CAD1,174 [vs CAD1,063 for the S&P/TSX 60 Index], including a capital gain of CAD138 and dividend reinvested of CAD36. The total return to shareholders for 1 year is 17.4%.

SECTION 3: Ranking

DescriptionValueRank In Market
MCap $US billion62.4In Top 1%
Price/MAP2001.13In Top Quartile
52-week Range (in CAD)35.5-47.7
1-month Range (in CAD)43.7-47.7
Stochastic-9.4Bearish

SECTION 4: Earnings

FY2016 Annual Report: Suncor Energy Revenue down 8.2%

Suncor Energy (TSX:SU) reported total revenue for the year-ended 31 December 2016 of CAD26.8b ($US20.0b), down 8.2% from CAD29.2b ($US21.0b) in the previous year.

Major changes compared with previous year:

Favourable Changes:

- EBIT Margin up from 1.8% to 2.0%

- Cost of Goods Sold to Sales down from 39% to 36.6%

- Interest expenses to Sales down from 8.6% to 1.7%

- Net tangible assets per share up 3.7% from CAD24.85 ($US17.9) to CAD25.78 ($US19.2)

Unfavourable Changes:

- Total revenue down 8.2% from CAD29.2b ($US21.0b) to CAD26.8b ($US20.0b)

- EBIT to total assets down from 0.7% to 0.6%

- Total revenue to total assets down from 0.4 to 0.3

- Sales and marketing expenses to Sales up from 29% to 33.9%

- Current ratio down 6.8% from 1.5 to 1.4

- Working capital to total assets down from 4.2% to 3.3%

- Retained earnings to total assets down from 22.8% to 18.1%

- Total current assets to Total Assets down from 13.5% to 12.4%

- Current Debtors to Total Assets down from 4.2% to 4%

- Total Liabilities to EBITDA of 6.6 compares unfavourably with the Joseph Piotroski benchmark of less than 5. This ratio has deteriorated by 38.4% from the previous year's ratio of 4.8.

- Total Liabilities to Operating Cash Flow of 7.8 compares unfavourably with the Joseph Piotroski benchmark of less than 4. This ratio has deteriorated by 38.8% from the previous year's ratio of 5.6.

Note:

- Depreciation to Sales down from 25.3% to 22.7%

- Total non-current assets to Total Assets up from 86.5% to 87.6%

- Fixed Assets to Total Assets up from 81% to 82.6%

- Current Inventory to Total Assets down from 4% to 3.7%

SECTION 5: Recent News of Suncor Energy

January 12: S&P Dow Jones Indices Announces Changes to the S&P/TSX Canadian Indices

Canada NewsWire

TORONTO, Jan. 12, 2018

Results of the Quarterly Review of the S&P/TSX Composite Buyback and Shareholder Yield Indices

TORONTO, Jan. 12, 2018 /CNW/ - S&P Dow Jones Indices Canadian Index Operations announces the following index changes as a result of the quarterly S&P/TSX Composite Shareholder Yield and the S&P/TSX Composite Buyback Indices Reviews.

January 03: Suncor Energy closes 2017 with strong performance

CALGARY, ALBERTA--(Marketwired - Jan. 3, 2018) - Suncor today provided a business update for the fourth quarter of 2017, highlighting upstream production of 736,000 barrels of oil equivalent per day (boe/d), which is in line with record production from the third quarter of 2017. Oil sands operations produced approximately 447,000 barrels per day (bbls/d) including 6,000 bbls/d from Fort Hills.

January 02: Suncor Energy appoints Director

Suncor Energy has appointed Dennis Houston as a Director. The effective date is Monday, January 01.

December 05 2017: Suncor Energy (SU) issued new U.S. patent [9,835,001]

Suncor Energy (SU) has been issued a new U.S. patent titled "Well instrumentation deployment past a downhole tool for in situ hydrocarbon recovery operations" by the US Patent and Trademark Office. The patent number is 9,835,001 and was issued on December 5, 2017.

ABSTRACT

A transition device for deploying instrumentation below a downhole tool, such as a downhole pump, employed in hydrocarbon recovery operations can include a housing serially connectable between the downhole tool and a guide string insertable into the well ahead of the downhole tool.

December 04 2017: Suncor Energy begins regulatory process to add significant low-carbon power with cogeneration at its Oil Sands operations

CALGARY, ALBERTA--(Marketwired - Dec. 4, 2017) - Suncor today took its first steps in the regulatory process to replace coke-fired boilers with two cogeneration units at its Oil Sands Base Plant as a part of its plan to remain globally cost and carbon competitive. In addition to providing the facility with steam needed for its operations, the cogeneration units are expected to export approximately 700 megawatts (MW) of electricity to the provincial grid, equivalent to roughly seven per cent of Alberta's current electricity demand.

The project, which has been submitted to the Canadian Environmental Assessment Agency (CEAA), is expected to offer base load reliability to Alberta's electricity grid as the province transitions to more intermittent renewable energy sources, while contributing lower carbon power supply to Alberta.

"We believe that bold, ambitious action is required by all of us to effectively tackle the climate change challenge," said Steve Williams, Suncor president and chief executive officer.

Suncor Energy Inc. (T:SU; TSE:SU; N:SU; CN:SU)

ISIN: CA8672241079

PermID: 4295861310

CIK: Suncor Energy Inc.

Source: www.BuySellSignals.com