STRATHCONA RESOURCES LTD (SCR.CA) Stock Fundamental Analysis
TSX:SCR - Toronto Stock Exchange - CA8629521086 - Common Stock - Currency: CAD
SCR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 207 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. SCR is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year SCR was profitable.
In the past year SCR had a positive cash flow from operations.
Of the past 5 years SCR 4 years were profitable.
SCR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SCR has a Return On Assets of 6.14%. This is amongst the best in the industry. SCR outperforms 85.51% of its industry peers.
Looking at the Return On Equity, with a value of 11.86%, SCR belongs to the top of the industry, outperforming 82.13% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.80%, SCR belongs to the top of the industry, outperforming 88.41% of the companies in the same industry.
SCR had an Average Return On Invested Capital over the past 3 years of 12.71%. This is significantly above the industry average of 7.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 11.86% | ||
| ROIC | 8.8% |
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 14.45% is fine compared to the rest of the industry. SCR outperforms 76.33% of its industry peers.
In the last couple of years the Profit Margin of SCR has declined.
SCR has a better Operating Margin (26.62%) than 78.26% of its industry peers.
In the last couple of years the Operating Margin of SCR has declined.
With a decent Gross Margin value of 47.01%, SCR is doing good in the industry, outperforming 71.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.62% | ||
| PM (TTM) | 14.45% | ||
| GM | 47.01% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SCR is still creating some 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.
The debt/assets ratio for SCR has been reduced compared to a year ago.
2.2 Solvency
SCR has an Altman-Z score of 1.79. This is a bad value and indicates that SCR is not financially healthy and even has some risk of bankruptcy.
SCR has a Altman-Z score of 1.79. This is in the better half of the industry: SCR outperforms 69.08% of its industry peers.
The Debt to FCF ratio of SCR is 4.58, which is a neutral value as it means it would take SCR, 4.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SCR (4.58) is better than 77.29% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that SCR is somewhat dependend on debt financing.
SCR's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. SCR outperforms 46.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.58 | ||
| Altman-Z | 1.79 |
ROIC/WACC1.1
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.01 indicates that SCR should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.01, SCR is doing good in the industry, outperforming 64.25% of the companies in the same industry.
SCR has a Quick Ratio of 1.01. 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 Quick ratio of 0.96. This is in the better half of the industry: SCR outperforms 67.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.59% over the past year.
Measured over the past years, SCR shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.40% on average per year.
SCR shows a decrease in Revenue. In the last year, the revenue decreased by -8.21%.
The Revenue has been growing by 141.42% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)42.59%
EPS 3Y-7.4%
EPS 5YN/A
EPS Q2Q%80.85%
Revenue 1Y (TTM)-8.21%
Revenue growth 3Y145.74%
Revenue growth 5Y141.42%
Sales Q2Q%13.07%
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 26.31% on average per year.
SCR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.05% yearly.
EPS Next Y37.68%
EPS Next 2Y-0.08%
EPS Next 3Y11.17%
EPS Next 5Y26.31%
Revenue Next Year-16.9%
Revenue Next 2Y-10.12%
Revenue Next 3Y-1.05%
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
The Price/Earnings ratio is 10.26, which indicates a very decent valuation of SCR.
Based on the Price/Earnings ratio, SCR is valued a bit cheaper than the industry average as 71.01% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SCR to the average of the S&P500 Index (27.30), we can say SCR is valued rather cheaply.
A Price/Forward Earnings ratio of 11.66 indicates a reasonable valuation of SCR.
SCR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. SCR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCR is valued cheaper than 87.44% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SCR is valued a bit cheaper than the industry average as 78.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.05 | ||
| EV/EBITDA | 4.03 |
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.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y-0.08%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
SCR has a Yearly Dividend Yield of 3.53%.
Compared to an average industry Dividend Yield of 6.35, SCR pays a bit more dividend than its industry peers.
SCR's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
5.2 History
SCR has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SCR decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
22.98% of the earnings are spent on dividend by SCR. This is a low number and sustainable payout ratio.
DP22.98%
EPS Next 2Y-0.08%
EPS Next 3Y11.17%
TSX:SCR (7/11/2025, 7:00:00 PM)
32.84
+2.39 (+7.85%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0.37%
Inst Owner ChangeN/A
Ins Owners2.1%
Ins Owner ChangeN/A
Market Cap7.04B
Analysts70.91
Price Target32.44 (-1.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP22.98%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-39.66%
Min EPS beat(2)-50.81%
Max EPS beat(2)-28.5%
EPS beat(4)0
Avg EPS beat(4)-33.98%
Min EPS beat(4)-50.81%
Max EPS beat(4)-23.5%
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)31.36%
Min Revenue beat(2)25.46%
Max Revenue beat(2)37.26%
Revenue beat(4)4
Avg Revenue beat(4)25.62%
Min Revenue beat(4)9.02%
Max Revenue beat(4)37.26%
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)-0.24%
PT rev (3m)-7.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25.93%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-16.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 11.66 | ||
| P/S | 1.43 | ||
| P/FCF | 10.05 | ||
| P/OCF | 3.35 | ||
| P/B | 1.18 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 4.03 |
EPS(TTM)3.2
EY9.74%
EPS(NY)2.82
Fwd EY8.57%
FCF(TTM)3.27
FCFY9.95%
OCF(TTM)9.81
OCFY29.86%
SpS22.89
BVpS27.88
TBVpS27.88
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 11.86% | ||
| ROCE | 12.48% | ||
| ROIC | 8.8% | ||
| ROICexc | 9.22% | ||
| ROICexgc | 9.22% | ||
| OM | 26.62% | ||
| PM (TTM) | 14.45% | ||
| GM | 47.01% | ||
| FCFM | 14.27% |
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-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.58 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 161.53% | ||
| Cap/Sales | 28.57% | ||
| Interest Coverage | 7.95 | ||
| Cash Conversion | 96.69% | ||
| Profit Quality | 98.79% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.79 |
F-Score6
WACC7.99%
ROIC/WACC1.1
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)42.59%
EPS 3Y-7.4%
EPS 5YN/A
EPS Q2Q%80.85%
EPS Next Y37.68%
EPS Next 2Y-0.08%
EPS Next 3Y11.17%
EPS Next 5Y26.31%
Revenue 1Y (TTM)-8.21%
Revenue growth 3Y145.74%
Revenue growth 5Y141.42%
Sales Q2Q%13.07%
Revenue Next Year-16.9%
Revenue Next 2Y-10.12%
Revenue Next 3Y-1.05%
Revenue Next 5YN/A
EBIT growth 1Y-1.27%
EBIT growth 3Y120.11%
EBIT growth 5YN/A
EBIT Next Year219.71%
EBIT Next 3Y48.25%
EBIT Next 5YN/A
FCF growth 1Y495.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y434.85%
OCF growth 3Y132.82%
OCF growth 5Y184.99%