SITIO ROYALTIES CORP-A (STR) Stock Fundamental Analysis
USA - NYSE:STR - US82983N1081 - Common Stock
18.12 USD
-0.18 (-0.98%)
17.3 USD
-0.82 (-4.53%)
Overall STR gets a fundamental rating of 4 out of 10. We evaluated STR against 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. STR does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year STR was profitable.
STR had a positive operating cash flow in the past year.
Of the past 5 years STR 4 years were profitable.
STR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STR has a Return On Assets of 0.75%. This is in the lower half of the industry: STR underperforms 63.33% of its industry peers.
STR has a worse Return On Equity (2.47%) than 61.90% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.20%, STR is doing worse than 61.90% of the companies in the same industry.
STR had an Average Return On Invested Capital over the past 3 years of 4.15%. This is significantly below the industry average of 21.78%.
The 3 year average ROIC (4.15%) for STR is below the current ROIC(4.20%), indicating increased profibility in the last year.
| 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 of 5.65%. This is comparable to the rest of the industry: STR outperforms 46.19% of its industry peers.
STR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 37.27%, STR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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
STR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
STR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for STR has been increased compared to 5 years ago.
STR has a worse debt/assets ratio than last year.
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 in line with its industry peers.
The Debt to FCF ratio of STR is 4.19, which is a neutral value as it means it would take STR, 4.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of STR (4.19) is better than 70.00% of its industry peers.
STR has a Debt/Equity ratio of 0.77. This is a neutral value indicating STR is somewhat dependend on debt financing.
The Debt to Equity ratio of STR (0.77) is worse than 65.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.43
WACC9.79%
2.3 Liquidity
A Current Ratio of 4.04 indicates that STR has no problem at all paying 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.
With an excellent Quick ratio value of 4.04, STR belongs to the best of the industry, outperforming 89.05% of the companies in the same industry.
| 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.
The Revenue has decreased by -1.91% in the past year.
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
The Earnings Per Share is expected to grow by 3.44% on average over the next years.
The Revenue is expected to decrease by -0.92% on average over the next years.
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
Based on the Price/Earnings ratio of 41.18, the valuation of STR can be described as expensive.
Based on the Price/Earnings ratio, STR is valued a bit more expensive than 63.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.13, STR is valued quite expensively.
With a Price/Forward Earnings ratio of 52.61, STR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, STR is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, STR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.18 | ||
| Fwd PE | 52.61 |
4.2 Price Multiples
61.43% of the companies in the same industry are more expensive than STR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STR indicates a somewhat cheap valuation: STR is cheaper than 72.86% of the companies listed 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 6.83, 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 2.39.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
STR pays out 308.31% of its income as dividend. 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-3.4%
Market Cap2.74B
Revenue(TTM)613.65M
Net Income(TTM)34.65M
Analysts74.55
Price Target30.6 (68.87%)
Short Float %N/A
Short RatioN/A
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
Graham NumberN/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%
ROICexgc growth 3Y-53.76%
ROICexgc 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%
SITIO ROYALTIES CORP-A / STR FAQ
Can you provide the ChartMill fundamental rating for SITIO ROYALTIES CORP-A?
ChartMill assigns a fundamental rating of 4 / 10 to STR.
What is the valuation status for STR stock?
ChartMill assigns a valuation rating of 2 / 10 to SITIO ROYALTIES CORP-A (STR). This can be considered as Overvalued.
How profitable is SITIO ROYALTIES CORP-A (STR) stock?
SITIO ROYALTIES CORP-A (STR) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for STR stock?
The Price/Earnings (PE) ratio for SITIO ROYALTIES CORP-A (STR) is 41.18 and the Price/Book (PB) ratio is 1.95.
What is the earnings growth outlook for SITIO ROYALTIES CORP-A?
The Earnings per Share (EPS) of SITIO ROYALTIES CORP-A (STR) is expected to decline by -26.46% in the next year.