RE:price-to-earnings multiple of 8.5, which is really cheapThe amount of debt they are paying back is amazing. One could expect the same to happen next year. Another 100 million shares in buybacks which saves a whopping 168 million in dividends per year, year after year. So if they buyback another 100 million thats 336 million saved per year. Cash outflow keeps decreasing. Another 4 billion of their debt paid off for 2022. Debt services costs will drop significantly. Then in 2023 the Trans Mountain Pipeline will be finished allowing for less of what Alberta produces to be sold at Western Canadian Select prices and more at Western Texas Intermedidate prices. Might even result in WCS prices going up. Another factor is the flying industry which represents 14% of all oil consumed in the world. How much flying is going on now? Virtually nothing. I would put this at 2% its nowhere near where it used to be. I used to look in the sky and see plane exhaust trails (chemtrails) all across the sky and for the last two years nothing. One here one there thats it. There is so much pent up demand for travel. This is so obvious. We also have the biggest generation ever practically all retired. Baby Boomers which is from 1946 to 1964, or in other words 76 to 58. A massive chunck of these are retired with 10k people retiring in the states ever day, and 1k every day in Canada. Alll my piers who are retiring all talk about traveling and its huge every year. I have done very little traveling compared to what i plan to do when i retire.
DeepTrueShip wrote: Suncor Which is one of the largest energy companies in Canada. Due to a steep rise in oil prices, Suncor stock has already gained 65% to investors in the last year. It also offers you a tasty dividend yield of 4.6% making Suncor attractive to the income investor.
In Q4 of 2021, Suncor’s adjusted funds from operations rose by 11% to $2.17 per share. The oil sands generated $2.2 billion in FFO with an average realization of $87 per barrel. Suncor’s operating costs for its oil sands stood at $25.9 per barrel in 2021, allowing it to expand its adjusted earnings to $2.56.
Analysts expect Suncor to report adjusted earnings of $4.34 per share in 2022, valuing it at a price-to-earnings multiple of 8.5, which is really cheap. Suncor’s robust cash flows in the last year allowed the company to return $4 billion to shareholders and repay $4 billion of debt.
https://www.fool.ca/2022/02/11/3-stocks-to-buy-as-inflation-touches-40-year-highs/