STRATHCONA RESOURCES LTD (SCR.CA) Stock Fundamental Analysis
TSX:SCR - Toronto Stock Exchange - CA8629521086 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to SCR. SCR was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of SCR while its profitability can be described as average. 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.
The reported net income has been mixed in the past 5 years: SCR reported negative net income in multiple years.
Each year in the past 5 years SCR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SCR (8.14%) is better than 86.57% of its industry peers.
SCR's Return On Equity of 15.36% is amongst the best of the industry. SCR outperforms 83.58% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.56%, SCR belongs to the top of the industry, outperforming 92.54% 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 7.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.14% | ||
| ROE | 15.36% | ||
| ROIC | 12.56% |
ROA(3y)11.1%
ROA(5y)5.74%
ROE(3y)19.75%
ROE(5y)10.12%
ROIC(3y)13.82%
ROIC(5y)N/A
1.3 Margins
SCR's Profit Margin of 13.33% is fine compared to the rest of the industry. SCR outperforms 70.15% of its industry peers.
SCR has a Operating Margin of 25.51%. This is in the better half of the industry: SCR outperforms 76.12% of its industry peers.
SCR has a Gross Margin (28.46%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.51% | ||
| PM (TTM) | 13.33% | ||
| GM | 28.46% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
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 just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SCR has been increased compared to 1 year ago.
The number of shares outstanding for SCR has been increased compared to 5 years ago.
The debt/assets ratio for SCR is higher compared to a year ago.
2.2 Solvency
SCR has an Altman-Z score of 2.04. This is not the best score and indicates that SCR is in the grey zone with still only limited risk for bankruptcy at the moment.
SCR has a Altman-Z score of 2.04. This is in the better half of the industry: SCR outperforms 67.16% of its industry peers.
SCR has a debt to FCF ratio of 3.16. This is a good value and a sign of high solvency as SCR would need 3.16 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.16, SCR belongs to the best of the industry, outperforming 81.59% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that SCR is not too dependend on debt financing.
SCR has a worse Debt to Equity ratio (0.49) than 60.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.52
WACC8.28%
2.3 Liquidity
SCR has a Current Ratio of 0.53. This is a bad value and indicates that SCR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SCR (0.53) is worse than 79.60% of its industry peers.
SCR has a Quick Ratio of 0.53. This is a bad value and indicates that SCR is not financially healthy enough and could expect problems in meeting its short term obligations.
SCR has a worse Quick ratio (0.49) than 81.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The earnings per share for SCR have decreased strongly by -44.15% in the last year.
The Revenue has grown by 1293.66% in the past year. This is a very strong growth!
The Revenue has been growing by 193.99% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-44.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%4500%
Revenue 1Y (TTM)1293.66%
Revenue growth 3Y210.72%
Revenue growth 5Y193.99%
Sales Q2Q%879.22%
3.2 Future
Based on estimates for the next years, SCR will show a very strong growth in Earnings Per Share. The EPS will grow by 29.68% on average per year.
Based on estimates for the next years, SCR will show a decrease in Revenue. The Revenue will decrease by -5.29% on average per year.
EPS Next Y28.81%
EPS Next 2Y21.4%
EPS Next 3Y12.91%
EPS Next 5Y29.68%
Revenue Next Year-0.14%
Revenue Next 2Y0.86%
Revenue Next 3Y-5.29%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SCR is valuated cheaply with a Price/Earnings ratio of 7.32.
80.60% of the companies in the same industry are more expensive than SCR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.35. SCR is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.68 indicates a rather cheap valuation of SCR.
SCR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SCR is cheaper than 74.13% of the companies in the same industry.
SCR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 95.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 6.68 |
4.2 Price Multiples
SCR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SCR is cheaper than 87.06% of the companies in the same industry.
81.09% of the companies in the same industry are more expensive than SCR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.53 | ||
| EV/EBITDA | 3.13 |
4.3 Compensation for Growth
The 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 12.91% in the coming years.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y21.4%
EPS Next 3Y12.91%
5. Dividend
5.1 Amount
SCR has a Yearly Dividend Yield of 3.45%.
SCR's Dividend Yield is a higher than the industry average which is at 6.59.
Compared to an average S&P500 Dividend Yield of 2.28, SCR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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
DPN/A
EPS Next 2Y21.4%
EPS Next 3Y12.91%
STRATHCONA RESOURCES LTD
TSX:SCR (2/5/2025, 7:00:00 PM)
27.31
-0.3 (-1.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0.42%
Inst Owner ChangeN/A
Ins Owners0.31%
Ins Owner ChangeN/A
Market Cap5.85B
Analysts70
Price Target35.96 (31.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend0.53
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-43.69%
Min EPS beat(2)-54.27%
Max EPS beat(2)-33.11%
EPS beat(4)1
Avg EPS beat(4)-41.93%
Min EPS beat(4)-101.68%
Max EPS beat(4)21.35%
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)38.51%
Min Revenue beat(2)30.73%
Max Revenue beat(2)46.29%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)1.08%
PT rev (3m)4.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.26%
EPS NY rev (3m)-5.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)25.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.32 | ||
| Fwd PE | 6.68 | ||
| P/S | 0.9 | ||
| P/FCF | 6.53 | ||
| P/OCF | 2.51 | ||
| P/B | 1.03 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 3.13 |
EPS(TTM)3.73
EY13.66%
EPS(NY)4.09
Fwd EY14.98%
FCF(TTM)4.18
FCFY15.32%
OCF(TTM)10.9
OCFY39.89%
SpS30.42
BVpS26.4
TBVpS26.4
PEG (NY)0.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.14% | ||
| ROE | 15.36% | ||
| ROCE | 17.02% | ||
| ROIC | 12.56% | ||
| ROICexc | 12.56% | ||
| ROICexgc | 12.56% | ||
| OM | 25.51% | ||
| PM (TTM) | 13.33% | ||
| GM | 28.46% | ||
| FCFM | 13.75% |
ROA(3y)11.1%
ROA(5y)5.74%
ROE(3y)19.75%
ROE(5y)10.12%
ROIC(3y)13.82%
ROIC(5y)N/A
ROICexc(3y)13.82%
ROICexc(5y)N/A
ROICexgc(3y)13.82%
ROICexgc(5y)N/A
ROCE(3y)18.71%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.16 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 129.1% | ||
| Cap/Sales | 22.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.07% | ||
| Profit Quality | 103.16% | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 2.04 |
F-Score4
WACC8.28%
ROIC/WACC1.52
Cap/Depr(3y)230.81%
Cap/Depr(5y)358.33%
Cap/Sales(3y)41.45%
Cap/Sales(5y)95.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%4500%
EPS Next Y28.81%
EPS Next 2Y21.4%
EPS Next 3Y12.91%
EPS Next 5Y29.68%
Revenue 1Y (TTM)1293.66%
Revenue growth 3Y210.72%
Revenue growth 5Y193.99%
Sales Q2Q%879.22%
Revenue Next Year-0.14%
Revenue Next 2Y0.86%
Revenue Next 3Y-5.29%
Revenue Next 5YN/A
EBIT growth 1Y625.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year117.8%
EBIT Next 3Y28.95%
EBIT Next 5YN/A
FCF growth 1Y1664.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y678.85%
OCF growth 3Y232.17%
OCF growth 5Y185.06%