Strathcona Resources (TSX:SCR) Interest Coverage: 7.38 (As of Mar. 2026) — 17% Above Median


TSX:SCR Strathcona Resources Ltd TSX:SCR
40 GF Score
Price C$38.53
GF Value C$30.52
Valuation Modestly Overvalued
! 3 Warning Signs
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What is Strathcona Resources Interest Coverage?

Strathcona Resources TSX:SCR -7.25% 40 Interest Coverage is 7.38 as of Mar. 2026, which is 17% above its 10-year median of 6.32. GuruFocus rates TSX:SCR with a GF Score™ of 40/100 and a GF Value™ of C$30.52 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 728 Oil & Gas companies, Strathcona Resources ranks better than 58.52% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Strathcona Resources's Operating Income for the three months ended in Mar. 2026 was C$214 Mil. Strathcona Resources's Interest Expense for the three months ended in Mar. 2026 was C$-29 Mil. Strathcona Resources's interest coverage for the quarter that ended in Mar. 2026 was 7.38. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Strathcona Resources's Interest Coverage or its related term are showing as below:

TSX:SCR' s Interest Coverage Range Over the Past 10 Years
Min: 3.87   Med: 6.32   Max: 10.04
Current: 8.27


TSX:SCR's Interest Coverage is ranked better than
58.52% of 728 companies
in the Oil & Gas industry
Industry Median: 5.885 vs TSX:SCR: 8.27

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Strathcona Resources  (TSX:SCR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Strathcona Resources Interest Coverage Related Terms


Strathcona Resources Interest Coverage Historical Data

* Premium members only.

The historical data trend for Strathcona Resources's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Strathcona Resources Interest Coverage Chart

Strathcona Resources Annual Data
Trend Dec22 Dec23 Dec24 Dec25
Interest Coverage
10.04 3.87 5.44 7.19

Strathcona Resources Quarterly Data
Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.67 3.76 10.18 42.96 7.38

TSX:SCR vs COP, EOG, OXY: Interest Coverage Comparison

For the Oil & Gas E&P subindustry, Strathcona Resources's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Strathcona Resources Interest Coverage vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Strathcona Resources's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Strathcona Resources's Interest Coverage falls into.


TSX:SCR
40GF Score
Strathcona Resources Ltd TSX:SCR
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Strathcona Resources Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Strathcona Resources's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Strathcona Resources's Interest Expense was C$-129 Mil. Its Operating Income was C$928 Mil. And its Long-Term Debt & Capital Lease Obligation was C$2,140 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*928/-129
=7.19

Strathcona Resources's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Strathcona Resources's Interest Expense was C$-29 Mil. Its Operating Income was C$214 Mil. And its Long-Term Debt & Capital Lease Obligation was C$2,150 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*214/-29
=7.38

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 7.38 mean?
Strathcona Resources (TSX:SCR) has a Interest Coverage of 7.38 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Strathcona Resources and its competitors. This is 17% above median its historical median of 6.32. Over the past decade, Strathcona Resources' Interest Coverage has ranged from 3.87 to 10.04. According to the industry distribution chart, Strathcona Resources ranks #302 out of 728 companies in the Oil & Gas industry, placing it in the top 41.5%.
Is Strathcona Resources' Interest Coverage too high?
Strathcona Resources' current Interest Coverage of 7.38 is 17% above median its 10-year median of 6.32. Over the past 10 years, this metric has ranged from a low of 3.87 to a high of 10.04. The Oil & Gas industry median Interest Coverage is 5.89. Strathcona Resources' value of 7.38 is 25.4% above this industry median. Based on the distribution chart, Strathcona Resources ranks #302 out of 728 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Strathcona Resources has a GF Score™ of 40/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Strathcona Resources' Interest Coverage compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Strathcona Resources ranks #302 out of 728 companies for Interest Coverage. This puts Strathcona Resources in the upper half of its industry. The industry median Interest Coverage is 5.89. Strathcona Resources' value of 7.38 is 25.4% above this benchmark. Historically, Strathcona Resources' own Interest Coverage has ranged from 3.87 to 10.04 over the past decade. While the company's 10-year median is 6.32 vs. the industry median of 5.89, Strathcona Resources has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 728 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Strathcona Resources's current Interest Coverage of 7.38 is 25.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Strathcona Resources and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Strathcona Resources's current Interest Coverage is 7.38, which is 17% above median its own 10-year median of 6.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Strathcona Resources stock overvalued right now?
Based on GuruFocus' analysis, Strathcona Resources (TSX:SCR) is currently considered Modestly Overvalued. The stock's GF Value™ is C$30.52, compared to a current price of C$38.53 — trading 26.2% above its estimated fair value. The current Interest Coverage is 7.38, which is 17% above median its 10-year median of 6.32 and 25.4% above the Oil & Gas industry median of 5.89. Strathcona Resources' overall GF Score™ is 40/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Strathcona Resources (TSX:SCR), the current Interest Coverage is 7.38 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Strathcona Resources (TSX:SCR) Overvalued in 2026?

Based on GuruFocus' analysis, Strathcona Resources stock appears to be overvalued. The current stock price of C$38.53 is trading 26.2% above its estimated GF Value™ of C$30.52. GuruFocus considers Strathcona Resources to be Modestly Overvalued.

Key valuation signals for TSX:SCR:

  • Interest Coverage: 7.38 (17% above median its 10-year median of 6.32)
  • GF Value™: C$30.52 vs. price of C$38.53 (26.2% above fair value)
  • GF Score™: 40/100 with 3 warning signs
  • Industry Position: 25.4% above the Oil & Gas median (#302 of 728)

No single metric tells the full story. See the TSX:SCR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Strathcona Resources Business Description

Industry EnergyOil & Gas
Other Exchanges STHRF:USAYE20:Germany
Address 421-7th Avenue S.W, Suite 1900, Calgary, AB, CAN, T2P4K9
Strathcona Resources Ltd is an energy company, it is a consolidator and developer of oil and gas assets. It has three segments: Cold Lake, which includes the development and production of bitumen in the Cold Lake region of Northern Alberta; Lloydminster Thermal, which includes the development and production of heavy oil through thermal steam-assisted gravity drainage methods in Southwest Saskatchewan; and Lloydminster Conventional, which includes the development and production of heavy oil through both conventional and enhanced oil recovery initiatives in Southeast Alberta and Southwest Saskatchewan.
40GF Score

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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$38.53
Price
C$30.52
GF Value