SITIO ROYALTIES CORP-A (STR)
US82983N1081 - Common Stock
We assign a fundamental rating of 4 out of 10 to STR. STR was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. The financial health of STR is average, but 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.
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
Looking at the Return On Assets, with a value of -0.33%, STR is doing worse than 78.43% of the companies in the same industry.
Looking at the Return On Equity, with a value of -0.97%, STR is doing worse than 75.49% of the companies in the same industry.
STR has a worse Return On Invested Capital (4.28%) than 67.65% 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 29.06%.
| 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
Looking at the Operating Margin, with a value of 43.11%, 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.
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
STR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
STR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, STR has more shares outstanding
STR has about the same debt/assets ratio as last year.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that STR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.93, STR is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
STR has a debt to FCF ratio of 2.75. This is a good value and a sign of high solvency as STR would need 2.75 years to pay back of 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 72.06% 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 42.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.51
WACC8.4%
2.3 Liquidity
A Current Ratio of 4.85 indicates that STR has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.85, STR belongs to the best of the industry, outperforming 87.75% 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.
STR's Quick ratio of 4.85 is amongst the best of the industry. STR outperforms 87.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.85 | ||
| Quick Ratio | 4.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 367.57% over the past year.
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)367.57%
EPS 3Y88.21%
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)60.54%
Revenue growth 3Y148%
Revenue growth 5Y43.59%
Sales Q2Q%-4.68%
3.2 Future
STR is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -31.20% yearly.
The Revenue is expected to grow by 1.85% on average over the next years.
EPS Next Y-72.86%
EPS Next 2Y-46.55%
EPS Next 3Y-31.2%
EPS Next 5YN/A
Revenue Next Year2.25%
Revenue Next 2Y-0.12%
Revenue Next 3Y1.85%
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
STR is valuated correctly with a Price/Earnings ratio of 12.60.
The rest of the industry has a similar Price/Earnings ratio as STR.
When comparing the Price/Earnings ratio of STR to the average of the S&P500 Index (29.48), we can say STR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 47.70, the valuation of STR can be described as expensive.
Based on the Price/Forward Earnings ratio, STR is valued a bit more expensive than the industry average as 70.59% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of STR to the average of the S&P500 Index (23.95), we can say STR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 47.7 |
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 indicates a somewhat cheap valuation: STR is cheaper than 63.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.6 | ||
| EV/EBITDA | 7.79 |
4.3 Compensation for Growth
A cheap valuation may be justified as STR's earnings are expected to decrease with -31.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-46.55%
EPS Next 3Y-31.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.72%, STR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.64, 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 2.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
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.
STR has decreased its dividend recently.
Dividend Growth(5Y)1.12%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of STR are negative and hence is the payout ratio. STR will probably not be able to sustain this dividend level.
DP-1048.49%
EPS Next 2Y-46.55%
EPS Next 3Y-31.2%
SITIO ROYALTIES CORP-A
NYSE:STR (12/6/2024, 8:16:04 PM)
After market: 21.8 0 (0%)21.8
-0.53 (-2.37%)
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 Cap3.33B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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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 | 12.6 | ||
| Fwd PE | 47.7 | ||
| 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)367.57%
EPS 3Y88.21%
EPS 5Y
EPS Q2Q%
EPS Next Y-72.86%
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