STRATHCONA RESOURCES LTD (SCR.CA) Stock Fundamental Analysis
TSX:SCR - Toronto Stock Exchange - CA8629521086 - Common Stock - Currency: CAD
Taking everything into account, SCR scores 5 out of 10 in our fundamental rating. SCR was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. SCR has an excellent profitability rating, but there are concerns on its financial health. SCR may be a bit undervalued, certainly considering the very reasonable score on growth
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 5.66%. This is amongst the best in the industry. SCR outperforms 85.02% of its industry peers.
SCR's Return On Equity of 10.68% is amongst the best of the industry. SCR outperforms 80.68% of its industry peers.
With an excellent Return On Invested Capital value of 8.66%, SCR belongs to the best of the industry, outperforming 87.92% 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 7.37%.
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 has a Profit Margin of 12.71%. This is in the better half of the industry: SCR outperforms 74.88% of its industry peers.
In the last couple of years the Profit Margin of SCR has declined.
SCR has a better Operating Margin (25.29%) than 76.33% of its industry peers.
In the last couple of years the Operating Margin of SCR has declined.
SCR has a Gross Margin of 46.40%. This is in the better half of the industry: SCR outperforms 70.05% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SCR is still creating some value.
SCR has about the same amout of shares outstanding than it did 1 year ago.
SCR has more shares outstanding than it did 5 years ago.
SCR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that SCR is in the distress zone and has some risk of bankruptcy.
SCR has a better Altman-Z score (1.76) than 69.57% of its industry peers.
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 is in the better half of the industry, outperforming 79.71% 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.
SCR's Debt to Equity ratio of 0.49 is in line compared to the rest of the industry. SCR outperforms 46.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.32 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.99
WACC8.76%
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 76.81% of its industry peers.
A Quick Ratio of 0.49 indicates that SCR may have some problems paying its short term obligations.
SCR's Quick ratio of 0.49 is on the low side compared to the rest of the industry. SCR is outperformed by 78.26% 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 -18.54% in the last year.
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.
The Revenue has been growing by 141.42% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-18.54%
EPS 3Y-7.4%
EPS 5YN/A
EPS Q2Q%-68.94%
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 26.31% on average over the next years. This is a very strong growth
Based on estimates for the next years, SCR will show a decrease in Revenue. The Revenue will decrease by -1.05% on average per year.
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.
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
A Price/Earnings ratio of 10.10 indicates a reasonable valuation of SCR.
Compared to the rest of the industry, the Price/Earnings ratio of SCR indicates a somewhat cheap valuation: SCR is cheaper than 67.15% of the companies listed in the same industry.
SCR is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
SCR is valuated cheaply with a Price/Forward Earnings ratio of 7.34.
67.63% of the companies in the same industry are more expensive than SCR, based on the Price/Forward Earnings ratio.
SCR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 7.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SCR indicates a rather cheap valuation: SCR is cheaper than 83.09% of the companies listed in the same industry.
75.85% 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 | 9.3 | ||
| EV/EBITDA | 4.31 |
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
With a Yearly Dividend Yield of 3.28%, SCR has a reasonable but not impressive dividend return.
SCR's Dividend Yield is a higher than the industry average which is at 6.56.
SCR's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
SCR has paid a dividend for at least 10 years, which is a reliable 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 2Y-0.08%
EPS Next 3Y11.17%
TSX:SCR (5/22/2025, 7:00:00 PM)
28.48
-0.16 (-0.56%)
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 Cap6.10B
Analysts70
Price Target32.51 (14.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP17.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-37.16%
Min EPS beat(2)-50.81%
Max EPS beat(2)-23.5%
EPS beat(4)0
Avg EPS beat(4)-40.43%
Min EPS beat(4)-54.27%
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)17.24%
Min Revenue beat(2)9.02%
Max Revenue beat(2)25.46%
Revenue beat(4)4
Avg Revenue beat(4)27.87%
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)-7.27%
PT rev (3m)-9.57%
EPS NQ rev (1m)-19.78%
EPS NQ rev (3m)1.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-16.98%
Revenue NY rev (3m)-18.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 7.34 | ||
| P/S | 1.28 | ||
| P/FCF | 9.3 | ||
| P/OCF | 3.06 | ||
| P/B | 1.08 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 4.31 |
EPS(TTM)2.82
EY9.9%
EPS(NY)3.88
Fwd EY13.63%
FCF(TTM)3.06
FCFY10.75%
OCF(TTM)9.3
OCFY32.66%
SpS22.17
BVpS26.4
TBVpS26.4
PEG (NY)0.27
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 | 1.76 |
F-Score8
WACC8.76%
ROIC/WACC0.99
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%-68.94%
EPS Next Y37.68%
EPS Next 2Y-0.08%
EPS Next 3Y11.17%
EPS Next 5Y26.31%
Revenue 1Y (TTM)10.22%
Revenue growth 3Y145.74%
Revenue growth 5Y141.42%
Sales Q2Q%9.57%
Revenue Next Year-16.9%
Revenue Next 2Y-10.12%
Revenue Next 3Y-1.05%
Revenue Next 5YN/A
EBIT growth 1Y9.19%
EBIT growth 3Y120.11%
EBIT growth 5YN/A
EBIT Next Year224%
EBIT Next 3Y48.22%
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%