# Strathcona Resources Ltd (SCR.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Communication Services / Interactive Media & Services. Price C$43.11, market value C$9.2 billion.

## Valuation
- **P/E (trailing): 21.7×** (5-yr avg 6.2×, 3-yr avg 6.1×). Strathcona Resources Ltd trades at 21.7× trailing earnings, well above its own five-year average of 6.2×: investors are paying up relative to the company's past. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 9.4×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.11**. A PEG of 0.11 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 2.1×**. Each dollar of revenue is priced at 2.1×.
- **Price / book: 2.0×**. The shares trade at 2.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 5.5×**. Enterprise value is 5.5× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 5.5%** (5-yr avg 45.1%). Free cash flow equals 5.5% of the market value, below its five-year average of 45.1%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 4.6%**. The inverse of the P/E: 4.6% of the price is earned each year.

## Profitability
- **Gross margin: 27.2%**. Strathcona Resources Ltd keeps 27.2% of revenue after the direct cost of what it sells.
- **Operating margin: 24.8%**. 24.8% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 25.7%**. 25.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 16.5%**. 16.5% on shareholders' equity is solid.
- **Return on invested capital: 12.5%**. Return on all capital, debt included, is 12.5%.
- **Return on assets: 7.7%**. Each dollar of assets produces 7.7% of profit.

## Growth
- **Revenue growth (1 yr): -10.2%** (3-yr 4.4%/yr, 5-yr 100.4%/yr). Revenue fell 10.2% over the last year, against 100.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 81.9%** (3-yr -30.6%/yr). Earnings per share rose 81.9%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -35.1%/yr**. Free cash flow has compounded at -35.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.19**. Debt is 0.19 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.0×**. It would take 0.0 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 8.0×**. Operating profit covers interest 8.0× over, a safe margin.
- **Current ratio: 1.02** (quick 1.00). Current assets cover the next year's liabilities 1.02 times.
- **Altman Z-score: 2.81**. A Z-score of 2.81 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 2.78%** (C$1.20 per share, trailing). Strathcona Resources Ltd yields 2.78%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 22%** (211% of free cash flow). 22% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.

## Analyst view
- **Analyst consensus: buy** (10 analysts). 10 analysts cover Strathcona Resources Ltd; the consensus is buy, with an average price target of C$50.60 (+17% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 53.3%** (YTD 54.3%, 3-mo -9.0%). The shares are up 53.3% over twelve months including dividends.
- **From 52-week high: -16.6%** (67.2% above the low). Trading 17% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 53**. An RSI of 53 is neutral.
- **Beta (1 yr): -0.36** (volatility 41%). Beta of -0.36 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SCR.TO · Page: https://foliofundamentals.com/stocks/scr.to

Not investment advice.