SITIO ROYALTIES CORP-A (STR) Stock Fundamental Analysis
NYSE:STR - US82983N1081 - Common Stock
18.12 USD
-0.18 (-0.98%)
17.3 USD
-0.82 (-4.53%)
We assign a fundamental rating of 4 out of 10 to STR. STR was compared to 209 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. STR does not seem to be growing, but still is valued expensively.
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.
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
With a Return On Assets value of 0.75%, STR is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
The Return On Equity of STR (2.47%) is worse than 61.90% of its industry peers.
With a Return On Invested Capital value of 4.20%, STR is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for STR is significantly below the industry average of 21.96%.
The last Return On Invested Capital (4.20%) for STR is above the 3 year average (4.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 2.47% | ||
| ROIC | 4.2% |
ROA(3y)0.26%
ROA(5y)1.86%
ROE(3y)0.85%
ROE(5y)3.9%
ROIC(3y)4.15%
ROIC(5y)5.14%
1.3 Margins
STR has a Profit Margin (5.65%) which is in line with its industry peers.
STR's Profit Margin has declined in the last couple of years.
STR has a Operating Margin of 37.27%. This is amongst the best in the industry. STR outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of STR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.27% | ||
| PM (TTM) | 5.65% | ||
| GM | N/A |
OM growth 3Y-6.34%
OM growth 5Y-5.99%
PM growth 3Y-30.36%
PM growth 5Y-33.28%
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.
The number of shares outstanding for STR has been reduced compared to 1 year ago.
STR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STR is higher compared to a year ago.
2.2 Solvency
STR has an Altman-Z score of 0.80. This is a bad value and indicates that STR is not financially healthy and even has some risk of bankruptcy.
STR has a Altman-Z score (0.80) which is comparable to the rest of the industry.
STR has a debt to FCF ratio of 4.19. This is a neutral value as STR would need 4.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.19, STR is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that STR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.77, STR is doing worse than 65.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.43
WACC9.79%
2.3 Liquidity
STR has a Current Ratio of 4.04. 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 4.04, STR belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
A Quick Ratio of 4.04 indicates that STR has no problem at all paying its short term obligations.
STR has a better Quick ratio (4.04) than 89.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.04 | ||
| Quick Ratio | 4.04 |
3. Growth
3.1 Past
STR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.15%.
Measured over the past years, STR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.29% on average per year.
STR shows a decrease in Revenue. In the last year, the revenue decreased by -1.91%.
The Revenue has been growing by 55.58% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-72.15%
EPS 3Y-21.7%
EPS 5Y-17.29%
EPS Q2Q%-46.67%
Revenue 1Y (TTM)-1.91%
Revenue growth 3Y109.41%
Revenue growth 5Y55.58%
Sales Q2Q%-13.58%
3.2 Future
STR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.44% yearly.
Based on estimates for the next years, STR will show a decrease in Revenue. The Revenue will decrease by -0.92% on average per year.
EPS Next Y-26.46%
EPS Next 2Y-15.29%
EPS Next 3Y3.44%
EPS Next 5YN/A
Revenue Next Year-4.51%
Revenue Next 2Y-3.19%
Revenue Next 3Y-0.92%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
STR is valuated quite expensively with a Price/Earnings ratio of 41.18.
Compared to the rest of the industry, the Price/Earnings ratio of STR indicates a slightly more expensive valuation: STR is more expensive than 63.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.13. STR is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 52.61 indicates a quite expensive valuation of STR.
STR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. STR is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.76. STR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.18 | ||
| Fwd PE | 52.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STR is valued a bit cheaper than 61.43% of the companies in the same industry.
STR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STR is cheaper than 72.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.62 | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.29%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.73%, STR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.06, STR pays a better dividend. On top of this STR pays more dividend than 82.38% of the companies listed in the same industry.
STR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.73% |
5.2 History
On average, the dividend of STR grows each year by 6.01%, which is quite nice.
STR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)6.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
308.31% of the earnings are spent on dividend by STR. This is not a sustainable payout ratio.
STR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP308.31%
EPS Next 2Y-15.29%
EPS Next 3Y3.44%
18.12
-0.18 (-0.98%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.33%
Inst Owner Change0%
Ins Owners1.3%
Ins Owner Change-3.44%
Market Cap2.74B
Analysts74.55
Price Target30.6 (68.87%)
Short Float %2.72%
Short Ratio1.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.73% |
Yearly Dividend0.79
Dividend Growth(5Y)6.01%
DP308.31%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)43.91%
Min EPS beat(2)35.49%
Max EPS beat(2)52.32%
EPS beat(4)3
Avg EPS beat(4)17.29%
Min EPS beat(4)-32.87%
Max EPS beat(4)52.32%
EPS beat(8)4
Avg EPS beat(8)76.89%
EPS beat(12)5
Avg EPS beat(12)37.47%
EPS beat(16)8
Avg EPS beat(16)34.39%
Revenue beat(2)2
Avg Revenue beat(2)4.95%
Min Revenue beat(2)4.21%
Max Revenue beat(2)5.7%
Revenue beat(4)3
Avg Revenue beat(4)2.97%
Min Revenue beat(4)-3.49%
Max Revenue beat(4)5.7%
Revenue beat(8)5
Avg Revenue beat(8)1.26%
Revenue beat(12)5
Avg Revenue beat(12)-0.78%
Revenue beat(16)8
Avg Revenue beat(16)-5.56%
PT rev (1m)20%
PT rev (3m)13.51%
EPS NQ rev (1m)-6.45%
EPS NQ rev (3m)-40.67%
EPS NY rev (1m)4.41%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)1.45%
Revenue NQ rev (3m)-9.21%
Revenue NY rev (1m)2.49%
Revenue NY rev (3m)3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.18 | ||
| Fwd PE | 52.61 | ||
| P/S | 4.46 | ||
| P/FCF | 10.62 | ||
| P/OCF | 6.32 | ||
| P/B | 1.95 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 7.06 |
EPS(TTM)0.44
EY2.43%
EPS(NY)0.34
Fwd EY1.9%
FCF(TTM)1.71
FCFY9.42%
OCF(TTM)2.87
OCFY15.83%
SpS4.07
BVpS9.28
TBVpS9.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 2.47% | ||
| ROCE | 5% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.2% | ||
| ROICexgc | 4.2% | ||
| OM | 37.27% | ||
| PM (TTM) | 5.65% | ||
| GM | N/A | ||
| FCFM | 41.97% |
ROA(3y)0.26%
ROA(5y)1.86%
ROE(3y)0.85%
ROE(5y)3.9%
ROIC(3y)4.15%
ROIC(5y)5.14%
ROICexc(3y)4.16%
ROICexc(5y)5.17%
ROICexgc(3y)4.16%
ROICexgc(5y)13.68%
ROCE(3y)4.94%
ROCE(5y)6.11%
ROICexcg growth 3Y-53.76%
ROICexcg growth 5Y-37.61%
ROICexc growth 3Y-25.71%
ROICexc growth 5Y-16.45%
OM growth 3Y-6.34%
OM growth 5Y-5.99%
PM growth 3Y-30.36%
PM growth 5Y-33.28%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 56.34% | ||
| Cap/Sales | 28.59% | ||
| Interest Coverage | 2.71 | ||
| Cash Conversion | 80.17% | ||
| Profit Quality | 743.39% | ||
| Current Ratio | 4.04 | ||
| Quick Ratio | 4.04 | ||
| Altman-Z | 0.8 |
F-Score7
WACC9.79%
ROIC/WACC0.43
Cap/Depr(3y)232.31%
Cap/Depr(5y)144.47%
Cap/Sales(3y)77.7%
Cap/Sales(5y)48.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-72.15%
EPS 3Y-21.7%
EPS 5Y-17.29%
EPS Q2Q%-46.67%
EPS Next Y-26.46%
EPS Next 2Y-15.29%
EPS Next 3Y3.44%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.91%
Revenue growth 3Y109.41%
Revenue growth 5Y55.58%
Sales Q2Q%-13.58%
Revenue Next Year-4.51%
Revenue Next 2Y-3.19%
Revenue Next 3Y-0.92%
Revenue Next 5YN/A
EBIT growth 1Y-13.6%
EBIT growth 3Y96.14%
EBIT growth 5Y46.26%
EBIT Next Year148.31%
EBIT Next 3Y37.32%
EBIT Next 5YN/A
FCF growth 1Y137.59%
FCF growth 3Y46.83%
FCF growth 5Y32.93%
OCF growth 1Y39.98%
OCF growth 3Y120.66%
OCF growth 5Y52.95%