SITIO ROYALTIES CORP-A (STR)
US82983N1081 - Common Stock
Taking everything into account, STR scores 4 out of 10 in our fundamental rating. STR was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While STR seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, STR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year STR was profitable.
STR had a positive operating cash flow in the past year.
STR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years STR had a positive operating cash flow.
1.2 Ratios
STR's Return On Assets of -0.33% is on the low side compared to the rest of the industry. STR is outperformed by 79.05% of its industry peers.
The Return On Equity of STR (-0.97%) is worse than 77.14% of its industry peers.
The Return On Invested Capital of STR (4.28%) is worse than 69.52% 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 30.77%.
| 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 amongst the best in the industry. STR outperforms 82.38% of its industry peers.
STR's Operating Margin has declined in the last couple of years.
The Profit Margin and Gross Margin are not available for STR so they could not be analyzed.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STR is destroying value.
The number of shares outstanding for STR has been increased compared to 1 year ago.
Compared to 5 years ago, STR has more shares outstanding
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 0.98, we must say that STR is in the distress zone and has some risk of bankruptcy.
STR has a worse Altman-Z score (0.98) than 60.00% of its industry peers.
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.
STR has a Debt to FCF ratio of 2.75. This is in the better half of the industry: STR outperforms 71.43% of its industry peers.
STR has a Debt/Equity ratio of 0.54. This is a neutral value indicating STR is somewhat dependend on debt financing.
STR has a Debt to Equity ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.5
WACC8.49%
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.
With an excellent Current ratio value of 4.85, STR belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
STR has a Quick Ratio of 4.85. This indicates that STR is financially healthy and has no problem in meeting its short term obligations.
STR's Quick ratio of 4.85 is amongst the best of the industry. STR outperforms 89.05% of its industry peers.
| 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 -54.49%.
Measured over the past years, STR shows a very strong growth in Earnings Per Share. The EPS has been growing by 88.21% on average per year.
The Revenue has grown by 60.54% in the past year. This is a very strong growth!
The Revenue has been growing by 43.59% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-54.49%
EPS 3Y88.21%
EPS 5YN/A
EPS Q2Q%-64.29%
Revenue 1Y (TTM)60.54%
Revenue growth 3Y148%
Revenue growth 5Y43.59%
Sales Q2Q%0.37%
3.2 Future
Based on estimates for the next years, STR will show a very negative growth in Earnings Per Share. The EPS will decrease by -34.26% on average per year.
The Revenue is expected to grow by 7.17% on average over the next years.
EPS Next Y-49.89%
EPS Next 2Y-33.84%
EPS Next 3Y-34.26%
EPS Next 5YN/A
Revenue Next Year10.5%
Revenue Next 2Y5.8%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.06, which indicates a rather expensive current valuation of STR.
Based on the Price/Earnings ratio, STR is valued a bit more expensive than the industry average as 62.86% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 24.41. STR is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 34.59, which means the current valuation is very expensive for STR.
STR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. STR is more expensive than 73.33% of the companies in the same industry.
STR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 34.59 |
4.2 Price Multiples
STR's Enterprise Value to EBITDA ratio is in line with the industry average.
60.48% of the companies in the same industry are more expensive than STR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.9 | ||
| EV/EBITDA | 8.32 |
4.3 Compensation for Growth
STR's earnings are expected to decrease with -34.26% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-33.84%
EPS Next 3Y-34.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.13%, STR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.93, STR pays a bit more dividend than its industry peers.
STR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.13% |
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 recently.
Dividend Growth(5Y)1.12%
Div Incr Years1
Div Non Decr Years1
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-33.84%
EPS Next 3Y-34.26%
SITIO ROYALTIES CORP-A
NYSE:STR (7/26/2024, 7:04:01 PM)
After market: 24.22 0 (0%)24.22
+0.25 (+1.04%)
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 Cap3.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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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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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 17.06 | ||
| Fwd PE | 34.59 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-54.49%
EPS 3Y88.21%
EPS 5Y
EPS Q2Q%
EPS Next Y-49.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)60.54%
Revenue growth 3Y148%
Revenue growth 5Y
Sales 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