ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Strathcona Resources's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.95%.
As of today (2026-06-24), Strathcona Resources's WACC % is 8.20%. Strathcona Resources's ROC % is 6.75% (calculated using TTM income statement data).
Strathcona Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Strathcona Resources (TSX:SCR) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Strathcona Resources's WACC % is 8.20%. Strathcona Resources's ROC % is 6.75% (calculated using TTM income statement data).
Strathcona Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* 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:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Strathcona Resources (TSX:SCR) has a ROC % of 5.95% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Strathcona Resources and its competitors.
Is Strathcona Resources' ROC % too high?
Strathcona Resources' current ROC % is 5.95%. The Oil & Gas industry median ROC % is 3.63. Strathcona Resources' value of 5.95% is 64.1% above this industry median. 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' ROC % compare to COP and EOG?
Strathcona Resources' ROC % of 5.95% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.63. Strathcona Resources' value of 5.95% is 64.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Oil & Gas company?
The median ROC % among Oil & Gas companies is 3.63, based on 998 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Strathcona Resources's current ROC % of 5.95% is 64.1% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Strathcona Resources and its competitors. For the Oil & Gas industry, the median ROC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Strathcona Resources's current ROC % is 5.95%. 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 ROC % is 5.95% and 64.1% above the Oil & Gas industry median of 3.63. 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 ROC % calculated?
ROC % is calculated from a company's financial statements. For Strathcona Resources (TSX:SCR), the current ROC % is 5.95% 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:
ROC %: 5.95%
GF Value™: C$30.52 vs. price of C$38.53 (26.2% above fair value)
Industry Position: 64.1% above the Oil & Gas median
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 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.
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