STRATHCONA RESOURCES LTD (SCR.CA) Stock Fundamental Analysis
TSX:SCR - Toronto Stock Exchange - CA8629521086 - Common Stock - Currency: CAD
Taking everything into account, SCR scores 6 out of 10 in our fundamental rating. SCR was compared to 219 industry peers in the Oil, Gas & Consumable Fuels industry. While SCR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SCR.
1. Profitability
1.1 Basic Checks
In the past year SCR was profitable.
SCR had a positive operating cash flow in the past year.
SCR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SCR had a positive operating cash flow.
1.2 Ratios
SCR has a better Return On Assets (5.66%) than 84.62% of its industry peers.
The Return On Equity of SCR (10.68%) is better than 82.81% of its industry peers.
With an excellent Return On Invested Capital value of 8.66%, SCR belongs to the best of the industry, outperforming 87.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCR is significantly above the industry average of 7.60%.
The 3 year average ROIC (12.71%) for SCR is well above the current ROIC(8.66%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 10.68% | ||
| ROIC | 8.66% |
ROA(3y)10.38%
ROA(5y)7.26%
ROE(3y)17.86%
ROE(5y)12.95%
ROIC(3y)12.71%
ROIC(5y)N/A
1.3 Margins
SCR's Profit Margin of 12.71% is fine compared to the rest of the industry. SCR outperforms 75.57% of its industry peers.
SCR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 25.29%, SCR is in the better half of the industry, outperforming 78.73% of the companies in the same industry.
SCR's Operating Margin has declined in the last couple of years.
SCR's Gross Margin of 46.40% is fine compared to the rest of the industry. SCR outperforms 70.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.29% | ||
| PM (TTM) | 12.71% | ||
| GM | 46.4% |
OM growth 3Y-10.43%
OM growth 5YN/A
PM growth 3Y-15.7%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
SCR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SCR remains at a similar level compared to 1 year ago.
The number of shares outstanding for SCR has been increased compared to 5 years ago.
Compared to 1 year ago, SCR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that SCR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.74, SCR is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
SCR has a debt to FCF ratio of 4.32. This is a neutral value as SCR would need 4.32 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.32, SCR belongs to the top of the industry, outperforming 80.09% of the companies in the same industry.
SCR has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.49, SCR perfoms like the industry average, outperforming 44.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.25
WACC6.92%
2.3 Liquidity
A Current Ratio of 0.53 indicates that SCR may have some problems paying its short term obligations.
The Current ratio of SCR (0.53) is worse than 73.30% of its industry peers.
A Quick Ratio of 0.49 indicates that SCR may have some problems paying its short term obligations.
With a Quick ratio value of 0.49, SCR is not doing good in the industry: 65.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
SCR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.54%.
SCR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.40% yearly.
The Revenue has grown by 10.22% in the past year. This is quite good.
SCR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 141.42% yearly.
EPS 1Y (TTM)-18.54%
EPS 3Y-7.4%
EPS 5YN/A
EPS Q2Q%-42.98%
Revenue 1Y (TTM)10.22%
Revenue growth 3Y145.74%
Revenue growth 5Y141.42%
Sales Q2Q%9.57%
3.2 Future
The Earnings Per Share is expected to grow by 22.90% on average over the next years. This is a very strong growth
Based on estimates for the next years, SCR will show a very negative growth in Revenue. The Revenue will decrease by -10.04% on average per year.
EPS Next Y26.45%
EPS Next 2Y11.72%
EPS Next 3Y40.21%
EPS Next 5Y22.9%
Revenue Next Year0.09%
Revenue Next 2Y-10.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.71, the valuation of SCR can be described as reasonable.
Based on the Price/Earnings ratio, SCR is valued a bit cheaper than 70.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, SCR is valued rather cheaply.
The Price/Forward Earnings ratio is 6.76, which indicates a rather cheap valuation of SCR.
Based on the Price/Forward Earnings ratio, SCR is valued a bit cheaper than the industry average as 75.11% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, SCR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 6.76 |
4.2 Price Multiples
83.26% of the companies in the same industry are more expensive than SCR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCR indicates a somewhat cheap valuation: SCR is cheaper than 74.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.94 | ||
| EV/EBITDA | 4.19 |
4.3 Compensation for Growth
SCR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SCR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SCR's earnings are expected to grow with 40.21% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y11.72%
EPS Next 3Y40.21%
5. Dividend
5.1 Amount
SCR has a Yearly Dividend Yield of 3.86%.
Compared to an average industry Dividend Yield of 6.94, SCR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, SCR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
SCR has been paying a dividend for over 5 years, so it has already some track record.
SCR has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SCR pays out 17.74% of its income as dividend. This is a sustainable payout ratio.
DP17.74%
EPS Next 2Y11.72%
EPS Next 3Y40.21%
TSX:SCR (3/7/2025, 7:00:00 PM)
27.39
+1.12 (+4.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0.47%
Inst Owner ChangeN/A
Ins Owners0.35%
Ins Owner ChangeN/A
Market Cap5.87B
Analysts70
Price Target35.7 (30.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP17.74%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)13.63%
Min Revenue beat(2)9.02%
Max Revenue beat(2)18.24%
Revenue beat(4)4
Avg Revenue beat(4)26.07%
Min Revenue beat(4)9.02%
Max Revenue beat(4)46.29%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.71%
PT rev (3m)1.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)30.74%
EPS NY rev (1m)-0.97%
EPS NY rev (3m)-6.91%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 6.76 | ||
| P/S | 1.24 | ||
| P/FCF | 8.94 | ||
| P/OCF | 2.94 | ||
| P/B | 1.04 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 4.19 |
EPS(TTM)2.82
EY10.3%
EPS(NY)4.05
Fwd EY14.79%
FCF(TTM)3.06
FCFY11.18%
OCF(TTM)9.3
OCFY33.96%
SpS22.17
BVpS26.4
TBVpS26.4
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 10.68% | ||
| ROCE | 12.29% | ||
| ROIC | 8.66% | ||
| ROICexc | 8.66% | ||
| ROICexgc | 8.66% | ||
| OM | 25.29% | ||
| PM (TTM) | 12.71% | ||
| GM | 46.4% | ||
| FCFM | 13.82% |
ROA(3y)10.38%
ROA(5y)7.26%
ROE(3y)17.86%
ROE(5y)12.95%
ROIC(3y)12.71%
ROIC(5y)N/A
ROICexc(3y)12.71%
ROICexc(5y)N/A
ROICexgc(3y)12.71%
ROICexgc(5y)N/A
ROCE(3y)18.04%
ROCE(5y)N/A
ROICexcg growth 3Y-5%
ROICexcg growth 5YN/A
ROICexc growth 3Y-5%
ROICexc growth 5YN/A
OM growth 3Y-10.43%
OM growth 5YN/A
PM growth 3Y-15.7%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.32 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 153.02% | ||
| Cap/Sales | 28.15% | ||
| Interest Coverage | 6.83 | ||
| Cash Conversion | 96.07% | ||
| Profit Quality | 108.7% | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 1.74 |
F-Score8
WACC6.92%
ROIC/WACC1.25
Cap/Depr(3y)185.15%
Cap/Depr(5y)208.49%
Cap/Sales(3y)30.89%
Cap/Sales(5y)45.3%
Profit Quality(3y)84.64%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.54%
EPS 3Y-7.4%
EPS 5YN/A
EPS Q2Q%-42.98%
EPS Next Y26.45%
EPS Next 2Y11.72%
EPS Next 3Y40.21%
EPS Next 5Y22.9%
Revenue 1Y (TTM)10.22%
Revenue growth 3Y145.74%
Revenue growth 5Y141.42%
Sales Q2Q%9.57%
Revenue Next Year0.09%
Revenue Next 2Y-10.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y9.19%
EBIT growth 3Y120.11%
EBIT growth 5YN/A
EBIT Next Year219.99%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y30.7%
OCF growth 3Y132.82%
OCF growth 5Y184.99%