SITIO ROYALTIES CORP-A (STR)
US82983N1081 - Common Stock
We assign a fundamental rating of 4 out of 10 to STR. STR was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. STR scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, STR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
STR had positive earnings in the past year.
In the past year STR had a positive cash flow from operations.
Of the past 5 years STR 4 years were profitable.
In the past 5 years STR always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -0.33%, STR is not doing good in the industry: 82.55% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -0.97%, STR is doing worse than 80.66% of the companies in the same industry.
STR's Return On Invested Capital of 4.28% is on the low side compared to the rest of the industry. STR is outperformed by 73.58% of its industry peers.
STR had an Average Return On Invested Capital over the past 3 years of 5.88%. This is significantly below the industry average of 46.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.33% | ||
| ROE | -0.97% | ||
| ROIC | 4.28% |
ROA(3y)1.62%
ROA(5y)3.98%
ROE(3y)3.24%
ROE(5y)8.09%
ROIC(3y)5.88%
ROIC(5y)6.03%
1.3 Margins
STR has a Operating Margin of 43.11%. This is in the better half of the industry: STR outperforms 79.25% of its industry peers.
In the last couple of years the Operating Margin of STR has declined.
STR does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.11% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3Y28%
OM growth 5Y-7.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STR is destroying value.
STR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for STR has been increased compared to 5 years ago.
The debt/assets ratio for STR has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.97, we must say that STR is in the distress zone and has some risk of bankruptcy.
STR has a Altman-Z score (0.97) which is comparable to the rest of the industry.
The Debt to FCF ratio of STR is 2.75, which is a good value as it means it would take STR, 2.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of STR (2.75) is better than 69.34% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that STR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, STR perfoms like the industry average, outperforming 46.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.49
WACC8.74%
2.3 Liquidity
STR has a Current Ratio of 4.85. This indicates that STR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.85, STR belongs to the top of the industry, outperforming 87.26% of the companies in the same industry.
A Quick Ratio of 4.85 indicates that STR has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.85, STR belongs to the top of the industry, outperforming 87.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.85 | ||
| Quick Ratio | 4.85 |
3. Growth
3.1 Past
STR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.18%.
STR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 88.21% yearly.
STR shows a strong growth in Revenue. In the last year, the Revenue has grown by 95.70%.
Measured over the past years, STR shows a very strong growth in Revenue. The Revenue has been growing by 43.59% on average per year.
EPS 1Y (TTM)-41.18%
EPS 3Y88.21%
EPS 5YN/A
EPS growth Q2Q129.31%
Revenue 1Y (TTM)95.7%
Revenue growth 3Y148%
Revenue growth 5Y43.59%
Revenue growth Q2Q49.5%
3.2 Future
The Earnings Per Share is expected to decrease by -7.84% on average over the next years.
The Revenue is expected to grow by 7.17% on average over the next years.
EPS Next Y-26.02%
EPS Next 2Y-9.06%
EPS Next 3Y-7.84%
EPS Next 5YN/A
Revenue Next Year1.8%
Revenue Next 2Y5.39%
Revenue Next 3Y7.17%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.02, the valuation of STR can be described as correct.
62.74% of the companies in the same industry are cheaper than STR, based on the Price/Earnings ratio.
STR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.80.
Based on the Price/Forward Earnings ratio of 20.30, the valuation of STR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STR indicates a slightly more expensive valuation: STR is more expensive than 60.85% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, STR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 20.3 |
4.2 Price Multiples
STR's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.03 | ||
| EV/EBITDA | 8.24 |
4.3 Compensation for Growth
A cheap valuation may be justified as STR's earnings are expected to decrease with -7.84% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.06%
EPS Next 3Y-7.84%
5. Dividend
5.1 Amount
STR has a Yearly Dividend Yield of 7.60%, which is a nice return.
STR's Dividend Yield is rather good when compared to the industry average which is at 5.80. STR pays more dividend than 81.13% of the companies in the same industry.
STR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.6% |
5.2 History
The dividend of STR has a limited annual growth rate of 1.12%.
STR has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of STR decreased in the last 3 years.
Dividend Growth(5Y)1.12%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
STR has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-1048.49%
EPS Next 2Y-9.06%
EPS Next 3Y-7.84%
SITIO ROYALTIES CORP-A
NYSE:STR (4/19/2024, 3:25:28 PM)
After market: 24.03 0 (0%)24.03
+0.78 (+3.35%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.6% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 20.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.33% | ||
| ROE | -0.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 43.11% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.85 | ||
| Quick Ratio | 4.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-41.18%
EPS 3Y88.21%
EPS 5Y
EPS growth Q2Q
EPS Next Y-26.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)95.7%
Revenue growth 3Y148%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y