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 214 industry peers in the Oil, Gas & Consumable Fuels industry. SCR has an excellent profitability rating, but 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. These ratings could make SCR a good candidate for value investing.
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.
Each year in the past 5 years SCR had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.14%, SCR belongs to the best of the industry, outperforming 85.51% of the companies in the same industry.
With an excellent Return On Equity value of 11.86%, SCR belongs to the best of the industry, outperforming 81.78% of the companies in the same industry.
SCR's Return On Invested Capital of 8.80% is amongst the best of the industry. SCR outperforms 88.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCR is significantly above the industry average of 7.31%.
| 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 76.64% 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 78.50% of its industry peers.
In the last couple of years the Operating Margin of SCR has declined.
SCR has a better Gross Margin (47.01%) than 71.50% of its industry peers.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SCR is creating some value.
Compared to 1 year ago, SCR has about the same amount of shares outstanding.
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 1.84. 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.
The Altman-Z score of SCR (1.84) is better than 67.29% of its industry peers.
SCR has a debt to FCF ratio of 4.58. This is a neutral value as SCR would need 4.58 years to pay back of all of its debts.
SCR has a Debt to FCF ratio of 4.58. This is in the better half of the industry: SCR outperforms 77.10% of its industry peers.
SCR has a Debt/Equity ratio of 0.53. This is a neutral value indicating SCR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, SCR perfoms like the industry average, outperforming 46.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.58 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.1
WACC7.98%
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 63.55% 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's Quick ratio of 0.96 is fine compared to the rest of the industry. SCR outperforms 66.36% 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.
The Earnings Per Share has been decreasing by -7.40% on average over the past years.
Looking at the last year, SCR shows a decrease in Revenue. The Revenue has decreased by -8.21% in the last year.
SCR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 141.42% yearly.
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
SCR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.31% yearly.
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
A Price/Earnings ratio of 10.19 indicates a reasonable valuation of SCR.
SCR's Price/Earnings ratio is a bit cheaper when compared to the industry. SCR is cheaper than 69.16% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.29. SCR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.58, the valuation of SCR can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCR is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of SCR to the average of the S&P500 Index (36.06), we can say SCR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 11.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCR is valued cheaper than 86.92% of the companies in the same industry.
SCR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SCR is cheaper than 77.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.98 | ||
| EV/EBITDA | 4.25 |
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.
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 3.48%.
Compared to an average industry Dividend Yield of 6.24, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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
SCR pays out 22.98% of its income as dividend. This is a sustainable payout ratio.
DP22.98%
EPS Next 2Y-0.08%
EPS Next 3Y11.17%
TSX:SCR (7/16/2025, 7:00:00 PM)
32.6
+0.08 (+0.25%)
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 Cap6.98B
Analysts70.91
Price Target32.44 (-0.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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)-0.1%
PT rev (3m)-7.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.82%
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 | 10.19 | ||
| Fwd PE | 11.58 | ||
| P/S | 1.42 | ||
| P/FCF | 9.98 | ||
| P/OCF | 3.32 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 4.25 |
EPS(TTM)3.2
EY9.82%
EPS(NY)2.82
Fwd EY8.64%
FCF(TTM)3.27
FCFY10.02%
OCF(TTM)9.81
OCFY30.08%
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 | 1.84 |
F-Score6
WACC7.98%
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%