9/12/2023 0 Comments Energy bits owner ageDigitalisation is helping improve the safety, productivity, accessibility and sustainability of energy systems around the world. You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself.Digital technologies are everywhere, affecting the way we live, work, travel and play. Simply Wall St has no position in any stocks mentioned. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. We aim to bring you long-term focused analysis driven by fundamental data. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Thankfully, Suncor Energy isn't the only one. Keen growth investors love to see insider buying. However, before you get too excited we've discovered 2 warning signs for Suncor Energy (1 doesn't sit too well with us!) that you should be aware of. So it's fair to say that this stock may well deserve a spot on your watchlist. On top of that, insiders own a significant stake in the company and have been buying more shares. If you believe that share price follows earnings per share you should definitely be delving further into Suncor Energy's strong EPS growth. Should You Add Suncor Energy To Your Watchlist? While their ownership only accounts for 0.03%, this is still a considerable amount at stake to encourage the business to maintain a strategy that will deliver value to shareholders. That shows significant buy-in, and may indicate conviction in the business strategy. Indeed, they hold CA$18m worth of its stock. Zooming in, we can see that the biggest insider purchase was by Executive VP of Corporate Development & CFO Kristopher Smith for CA$704k worth of shares, at about CA$39.11 per share.Īlong with the insider buying, another encouraging sign for Suncor Energy is that insiders, as a group, have a considerable shareholding. Knowing this, Suncor Energy will have have all eyes on them in anticipation for the what could happen in the near future. The good news is that Suncor Energy insiders spent a whopping CA$1.3m on stock in just one year, without so much as a single sale. To see the actual numbers, click on the chart. The chart below shows how the company's bottom and top lines have progressed over time. Both of which are great metrics to check off for potential growth. The good news is that Suncor Energy is growing revenues, and EBIT margins improved by 7.1 percentage points to 27%, over the last year. That's a commendable gain of 47%.Ĭareful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Suncor Energy's EPS shot up from CA$4.26 to CA$6.25 a result that's bound to keep shareholders happy. Thus, it makes sense to focus on more recent growth rates, instead. In the last three years Suncor Energy's earnings per share took off so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. View our latest analysis for Suncor Energy Suncor Energy's Improving Profits While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.ĭespite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy buying shares in profitable companies like Suncor Energy ( TSE:SU). Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit.
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