Suncor Energy 2

I do not own this stock (TSX-SU). This stock has a current dividend yield of 1.47%, which is quite high for this stock. The 5 year median dividend yield is much lower at .65% and the 10 year median dividend yield is even lower at .4%. This is a stock that raises it dividend each year, at least lately, but has a very low yield.

When I look at insider trading, I find insider selling of $55.5M and net insider selling at $54.5M. An awful lot of insiders CEO, CFO, Officers and other officers of the company have lots and lots of options. The insider selling occurred mostly when the stock was peaking in the early part of 2011 and it seems to be the selling of stock options. This company is currently worth about $47B, so insider selling is worth way less than 1% of the market cap of this company at .12%.

According to Reuters, the CEO, Richard George got just over 1.5M shares in options compensation that is worth some $115M. See Reuters page on this stock. Some 808 institutions own 69% of the stock of this company. Over the past 3 months they have increased their investment in this company marginally. (See my site for information on Insider Trading.)

The 10 year low median Price/Earnings Ratio is 19.82 and the 10 year high P/E Ratio is 29.99. The current P/E Ratio at 10.07 is relatively low. It is also a low absolute P/E Ratio. This suggests a rather low stock price.

I get a Graham price of $39.72. The current stock price of $30.22 is some 24% lower. The Graham Price and low stock price median difference over the past 10 years is a stock price 19% above the Graham Price. This difference points to a current good stock price. Also, it is good to see a stock price below the Graham Price.

I get a 10 year median Price/Book Value Ratio of 2.00 and a current P/B Ratio of 1.29. The current P/B ratio is some 65% below the 10 year median ratio. This difference also points to a good current stock price. I get a current dividend yield of 1.46% and a 5 year median dividend yield of .65%. This is a rather high dividend yield for this stock as the yield is usually less than ½ of 1%.

When the stock price is very low like this one is, you must look for a reason. It could be that the stock is out of favor for a good reason. However, in this case, it is probably that this stock market is over all low.

When I look for analysts’ recommendations, I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. Even the analysts who gave this a Hold recommendation think it is a good stock, they just do not think that this company or any oil company will revive in the near term. Analysts’ are calling the stock deeply discounted, very cheap and beaten up. Quite a number of analysts think this company is a good buy. Although a number of Hold recommendations feel that it is not the right time now to buy this stock.

Suncor Energy Inc. is an integrated energy company. Suncor's operations include oil sands development and upgrading, conventional and offshore oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand. Suncor is also developing a growing renewable energy portfolio. Their international and offshore business includes operations in the North Sea (United Kingdom, Netherlands and Norway) and the East Coast of Canada. They are also in Libya, Syria and Trinidad and Tobago. Its web site is here Suncor. See my spreadsheet at su.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.