SU.TO stock: an Altman Z score of one - incredibly close to potentially filing for bankruptcy

 Sept. 14, 2020

Introduction

It is my stock research. I have to learn more about Su.to stock. 

Close to file for bankruptcy

Here is the article. 

Suncor

Suncor Energy (TSX:SU)(NYSE:SU) has been unfairly treated during this pandemic. On the one hand, it’s true that the company has seen a loss from cutting production. However, the energy giant is the largest fully integrated energy company in Canada. So, when one area of the business is down, Suncor sees an uptick in its other services.

But that only work if the company has a long-term solution. True, it has long-term contracts, but that won’t help as the company continues to bring on more and more debt. In fact, as of its recent earnings quarter, the company has an Altman Z score of one, meaning it is getting incredibly close to potentially filing for bankruptcy.

So, it’s no wonder that the company cut dividends, and it’s highly likely Suncor could cut dividends even further before the year is out. Once another market crash hits, investors could see the once major dividend player cut dividends altogether.