Strathcona Resources Ltd.

TSX:SCR Stock Report

Market Cap: CA$6.9b

Strathcona Resources Valuation

Is SCR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SCR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SCR (CA$32.39) is trading above our estimate of fair value (CA$30.66)

Significantly Below Fair Value: SCR is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SCR?

Key metric: As SCR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SCR. This is calculated by dividing SCR's market cap by their current earnings.
What is SCR's PE Ratio?
PE Ratio8.9x
EarningsCA$779.50m
Market CapCA$6.90b

Price to Earnings Ratio vs Peers

How does SCR's PE Ratio compare to its peers?

The above table shows the PE ratio for SCR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.2x
MEG MEG Energy
13.4x-1.3%CA$6.8b
PSK PrairieSky Royalty
31.8x2.1%CA$7.0b
WCP Whitecap Resources
7x-17.0%CA$6.1b
POU Paramount Resources
12.6x-21.3%CA$4.6b
SCR Strathcona Resources
8.9x-9.6%CA$6.9b

Price-To-Earnings vs Peers: SCR is good value based on its Price-To-Earnings Ratio (8.9x) compared to the peer average (16.2x).

Price to Earnings Ratio vs Industry

How does SCR's PE Ratio compare vs other companies in the CA Oil and Gas Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HAM Highwood Asset Management
1.2x-43.9%US$62.92m
ALPS.U Alpine Summit Energy Partners
1xn/aUS$24.02m
KUB.H Carcetti Capital
0.7xn/aUS$5.82m
GCOM Green Shift Commodities
1.6xn/aUS$4.89m
SCR 8.9xIndustry Avg. 11.1xNo. of Companies11PE0816243240+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SCR is good value based on its Price-To-Earnings Ratio (8.9x) compared to the Canadian Oil and Gas industry average (10.8x).

Price to Earnings Ratio vs Fair Ratio

What is SCR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SCR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.9x
Fair PE Ratio10.2x

Price-To-Earnings vs Fair Ratio: SCR is good value based on its Price-To-Earnings Ratio (8.9x) compared to the estimated Fair Price-To-Earnings Ratio (10.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SCR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$32.39
CA$34.38
+6.1%
7.1%CA$38.00CA$30.00n/a8
Nov ’25CA$27.22
CA$33.63
+23.5%
7.0%CA$37.00CA$30.00n/a8
Oct ’25CA$27.38
CA$35.25
+28.7%
11.8%CA$42.00CA$30.00n/a8
Sep ’25CA$31.00
CA$37.00
+19.4%
7.2%CA$42.00CA$34.00n/a8
Aug ’25CA$31.07
CA$37.00
+19.1%
7.2%CA$42.00CA$34.00n/a8
Jul ’25CA$32.23
CA$36.57
+13.5%
8.4%CA$40.00CA$31.00n/a7
Jun ’25CA$36.69
CA$36.57
-0.3%
8.4%CA$40.00CA$31.00n/a7
May ’25CA$30.50
CA$35.38
+16.0%
11.0%CA$40.00CA$29.00n/a8
Apr ’25CA$31.20
CA$30.88
-1.0%
8.2%CA$35.00CA$26.00n/a8
Mar ’25CA$23.89
CA$29.00
+21.4%
12.4%CA$35.00CA$24.00n/a8
Feb ’25CA$23.80
CA$29.43
+23.6%
12.4%CA$35.00CA$24.00n/a7
Jan ’25CA$21.43
CA$32.00
+49.3%
18.5%CA$40.00CA$25.00n/a6
Dec ’24CA$22.40
CA$33.50
+49.6%
14.8%CA$40.00CA$28.00n/a6
Nov ’24CA$27.19
CA$36.00
+32.4%
9.8%CA$40.00CA$31.00CA$27.225

Analyst Forecast: Target price is less than 20% higher than the current share price.

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