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 209 industry peers in the Oil, Gas & Consumable Fuels industry. SCR scores excellent on profitability, but 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! This makes SCR very considerable 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.
SCR had positive earnings in 4 of the past 5 years.
SCR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.14%, SCR belongs to the best of the industry, outperforming 85.65% of the companies in the same industry.
The Return On Equity of SCR (11.86%) is better than 81.82% of its industry peers.
The Return On Invested Capital of SCR (8.80%) is better than 88.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCR is significantly above the industry average of 7.47%.
| 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 has a better Profit Margin (14.45%) than 76.08% 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 26.62%, SCR is in the better half of the industry, outperforming 78.47% of the companies in the same industry.
In the last couple of years the Operating Margin of SCR has declined.
SCR has a better Gross Margin (47.01%) than 71.29% 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) well above the Cost of Capital (WACC), SCR is creating value.
SCR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, SCR has more shares outstanding
SCR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.84 indicates that SCR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.84, SCR is doing good in the industry, outperforming 66.99% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 4.58, SCR is in the better half of the industry, outperforming 77.51% of the companies in the same industry.
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 45.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.58 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.32
WACC6.68%
2.3 Liquidity
A Current Ratio of 1.01 indicates that SCR should not have too much problems paying its short term obligations.
The Current ratio of SCR (1.01) is better than 62.20% of its industry peers.
A Quick Ratio of 0.96 indicates that SCR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.96, SCR is in the better half of the industry, outperforming 65.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
SCR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.59%, which is quite impressive.
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.
Looking at the last year, SCR shows a decrease in Revenue. The Revenue has decreased by -8.21% in the last year.
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
Based on the Price/Earnings ratio of 9.84, the valuation of SCR can be described as reasonable.
69.38% of the companies in the same industry are more expensive than SCR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, SCR is valued rather cheaply.
The Price/Forward Earnings ratio is 11.19, which indicates a very decent valuation of SCR.
SCR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, SCR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 11.19 |
4.2 Price Multiples
86.12% 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 75.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.64 | ||
| EV/EBITDA | 4.27 |
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)0.26
PEG (5Y)N/A
EPS Next 2Y-0.08%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.22%, SCR has a reasonable but not impressive dividend return.
SCR's Dividend Yield is a higher than the industry average which is at 6.54.
Compared to an average S&P500 Dividend Yield of 2.39, SCR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
5.2 History
SCR has paid a dividend for at least 10 years, which is a reliable track record.
SCR has decreased its dividend 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 (6/13/2025, 7:00:00 PM)
31.5
-1.37 (-4.17%)
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 Cap6.75B
Analysts70
Price Target32.47 (3.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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)-2.43%
PT rev (3m)-9.05%
EPS NQ rev (1m)-1.82%
EPS NQ rev (3m)26.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.16%
Revenue NQ rev (1m)-4.22%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-16.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 11.19 | ||
| P/S | 1.38 | ||
| P/FCF | 9.64 | ||
| P/OCF | 3.21 | ||
| P/B | 1.13 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 4.27 |
EPS(TTM)3.2
EY10.16%
EPS(NY)2.82
Fwd EY8.94%
FCF(TTM)3.27
FCFY10.37%
OCF(TTM)9.81
OCFY31.13%
SpS22.89
BVpS27.88
TBVpS27.88
PEG (NY)0.26
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
WACC6.68%
ROIC/WACC1.32
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%