SITIO ROYALTIES CORP-A (STR) Stock Fundamental Analysis
NYSE:STR - New York Stock Exchange, Inc. - US82983N1081 - Common Stock - Currency: USD
Taking everything into account, STR scores 3 out of 10 in our fundamental rating. 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. 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.
STR had a positive operating cash flow in the past year.
STR had positive earnings in 4 of the past 5 years.
STR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STR has a Return On Assets of 0.89%. This is in the lower half of the industry: STR underperforms 64.32% of its industry peers.
STR's Return On Equity of 2.92% is on the low side compared to the rest of the industry. STR is outperformed by 60.56% of its industry peers.
STR has a worse Return On Invested Capital (4.67%) than 60.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STR is significantly below the industry average of 23.55%.
The 3 year average ROIC (4.15%) for STR is below the current ROIC(4.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 2.92% | ||
| ROIC | 4.67% |
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 (6.55%) which is in line with its industry peers.
In the last couple of years the Profit Margin of STR has declined.
STR's Operating Margin of 40.37% is amongst the best of the industry. STR outperforms 84.98% of its industry peers.
In the last couple of years the Operating Margin of STR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.37% | ||
| PM (TTM) | 6.55% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STR is destroying value.
STR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, STR has more shares outstanding
The debt/assets ratio for STR is higher compared to a year ago.
2.2 Solvency
STR has an Altman-Z score of 0.84. This is a bad value and indicates that STR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.84, STR is in line with its industry, outperforming 40.38% of the companies in the same industry.
The Debt to FCF ratio of STR is 11.10, which is on the high side as it means it would take STR, 11.10 years of fcf income to pay off all of its debts.
STR has a Debt to FCF ratio (11.10) which is in line with its industry peers.
A Debt/Equity ratio of 0.76 indicates that STR is somewhat dependend on debt financing.
STR has a Debt to Equity ratio of 0.76. This is in the lower half of the industry: STR underperforms 62.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 11.1 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.55
WACC8.57%
2.3 Liquidity
STR has a Current Ratio of 2.33. This indicates that STR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of STR (2.33) is better than 81.22% of its industry peers.
STR has a Quick Ratio of 2.33. This indicates that STR is financially healthy and has no problem in meeting its short term obligations.
STR's Quick ratio of 2.33 is amongst the best of the industry. STR outperforms 82.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
STR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.08%.
STR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.29% yearly.
The Revenue has been growing slightly by 7.24% in the past year.
Measured over the past years, STR shows a very strong growth in Revenue. The Revenue has been growing by 55.58% on average per year.
EPS 1Y (TTM)-64.08%
EPS 3Y-21.7%
EPS 5Y-17.29%
EPS Q2Q%30%
Revenue 1Y (TTM)7.24%
Revenue growth 3Y109.41%
Revenue growth 5Y55.58%
Sales Q2Q%8.01%
3.2 Future
The Earnings Per Share is expected to decrease by -0.02% on average over the next years.
Based on estimates for the next years, STR will show a decrease in Revenue. The Revenue will decrease by -0.46% on average per year.
EPS Next Y-26.88%
EPS Next 2Y-14.95%
EPS Next 3Y-0.02%
EPS Next 5YN/A
Revenue Next Year-7.13%
Revenue Next 2Y-4.26%
Revenue Next 3Y-0.46%
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 accelerating.
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
A Price/Earnings ratio of 38.65 indicates a quite expensive valuation of STR.
STR's Price/Earnings ratio is a bit more expensive when compared to the industry. STR is more expensive than 64.32% of the companies in the same industry.
When comparing the Price/Earnings ratio of STR to the average of the S&P500 Index (26.34), we can say STR is valued slightly more expensively.
With a Price/Forward Earnings ratio of 56.77, STR can be considered very expensive at the moment.
STR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. STR is more expensive than 69.01% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.19. STR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.65 | ||
| Fwd PE | 56.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STR is valued a bit cheaper than 63.38% of the companies in the same industry.
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 | 30.66 | ||
| EV/EBITDA | 7.01 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.95%
EPS Next 3Y-0.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.72%, STR is a good candidate for dividend investing.
STR's Dividend Yield is a higher than the industry average which is at 6.54.
Compared to an average S&P500 Dividend Yield of 2.40, STR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
5.2 History
The dividend of STR has a limited annual growth rate of 5.99%.
STR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.99%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
268.59% of the earnings are spent on dividend by STR. This is not a sustainable payout ratio.
STR's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP268.59%
EPS Next 2Y-14.95%
EPS Next 3Y-0.02%
19.71
-0.44 (-2.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners93.19%
Inst Owner Change0%
Ins Owners1.16%
Ins Owner Change0.78%
Market Cap2.97B
Analysts76.36
Price Target25.84 (31.1%)
Short Float %3.94%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
Yearly Dividend0.79
Dividend Growth(5Y)5.99%
DP268.59%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.31%
Min EPS beat(2)-32.87%
Max EPS beat(2)35.49%
EPS beat(4)2
Avg EPS beat(4)0.36%
Min EPS beat(4)-32.87%
Max EPS beat(4)35.49%
EPS beat(8)3
Avg EPS beat(8)57.4%
EPS beat(12)5
Avg EPS beat(12)45.26%
EPS beat(16)7
Avg EPS beat(16)29.89%
Revenue beat(2)2
Avg Revenue beat(2)5.58%
Min Revenue beat(2)5.47%
Max Revenue beat(2)5.7%
Revenue beat(4)3
Avg Revenue beat(4)2.7%
Min Revenue beat(4)-3.49%
Max Revenue beat(4)5.7%
Revenue beat(8)4
Avg Revenue beat(8)-0.4%
Revenue beat(12)5
Avg Revenue beat(12)-0.07%
Revenue beat(16)7
Avg Revenue beat(16)-6.63%
PT rev (1m)-4.14%
PT rev (3m)-10.06%
EPS NQ rev (1m)-17.24%
EPS NQ rev (3m)-45.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-33.68%
Revenue NQ rev (1m)2.69%
Revenue NQ rev (3m)-5.88%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)-6.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.65 | ||
| Fwd PE | 56.77 | ||
| P/S | 4.67 | ||
| P/FCF | 30.66 | ||
| P/OCF | 6.7 | ||
| P/B | 2.09 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 7.01 |
EPS(TTM)0.51
EY2.59%
EPS(NY)0.35
Fwd EY1.76%
FCF(TTM)0.64
FCFY3.26%
OCF(TTM)2.94
OCFY14.93%
SpS4.22
BVpS9.45
TBVpS9.45
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 2.92% | ||
| ROCE | 5.56% | ||
| ROIC | 4.67% | ||
| ROICexc | 4.67% | ||
| ROICexgc | 4.67% | ||
| OM | 40.37% | ||
| PM (TTM) | 6.55% | ||
| GM | N/A | ||
| FCFM | 15.24% |
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 Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 11.1 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.93 | ||
| Cash Conversion | 76.82% | ||
| Profit Quality | 232.61% | ||
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 | ||
| Altman-Z | 0.84 |
F-Score7
WACC8.57%
ROIC/WACC0.55
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)-64.08%
EPS 3Y-21.7%
EPS 5Y-17.29%
EPS Q2Q%30%
EPS Next Y-26.88%
EPS Next 2Y-14.95%
EPS Next 3Y-0.02%
EPS Next 5YN/A
Revenue 1Y (TTM)7.24%
Revenue growth 3Y109.41%
Revenue growth 5Y55.58%
Sales Q2Q%8.01%
Revenue Next Year-7.13%
Revenue Next 2Y-4.26%
Revenue Next 3Y-0.46%
Revenue Next 5YN/A
EBIT growth 1Y4.59%
EBIT growth 3Y96.14%
EBIT growth 5Y46.26%
EBIT Next Year143.52%
EBIT Next 3Y37.67%
EBIT Next 5YN/A
FCF growth 1Y131.44%
FCF growth 3Y46.83%
FCF growth 5Y32.93%
OCF growth 1Y78.17%
OCF growth 3Y120.66%
OCF growth 5Y52.95%