SITIO ROYALTIES CORP-A (STR) Stock Fundamental Analysis
NYSE:STR - New York Stock Exchange, Inc. - US82983N1081 - Common Stock - Currency: USD
Overall STR gets a fundamental rating of 4 out of 10. We evaluated STR against 211 industry peers in the Oil, Gas & Consumable Fuels industry. STR has an average financial health and profitability rating. STR is valued expensive and it does not seem to be growing.
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.
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
STR has a worse Return On Assets (0.89%) than 63.51% of its industry peers.
STR has a Return On Equity (2.92%) which is comparable to the rest of the industry.
The Return On Invested Capital of STR (4.67%) is worse than 60.19% 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 23.79%.
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 comparable to the rest of the industry.
STR's Profit Margin has declined in the last couple of years.
STR has a Operating Margin of 40.37%. This is amongst the best in the industry. STR outperforms 85.31% of its industry peers.
STR's Operating Margin has declined in the last couple of years.
| 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.
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.
STR has a worse debt/assets ratio than last year.
2.2 Solvency
STR has an Altman-Z score of 0.79. 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 (0.79) which is comparable to the rest of the 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 comparable to the rest of the industry.
A Debt/Equity ratio of 0.76 indicates that STR is somewhat dependend on debt financing.
STR has a worse Debt to Equity ratio (0.76) than 63.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 11.1 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.47
WACC9.84%
2.3 Liquidity
A Current Ratio of 2.33 indicates that STR has no problem at all paying its short term obligations.
STR has a better Current ratio (2.33) than 81.04% 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 has a Quick ratio of 2.33. This is amongst the best in the industry. STR outperforms 82.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
The earnings per share for STR have decreased strongly by -64.08% in the last year.
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 been growing slightly by 7.24% 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)-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
Based on estimates for the next years, STR will show a decrease in Earnings Per Share. The EPS will decrease by -0.02% on average per year.
The Revenue is expected to decrease by -0.46% on average over the next years.
EPS Next Y-30.56%
EPS Next 2Y-16.25%
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
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
A Price/Earnings ratio of 36.45 indicates a quite expensive valuation of STR.
Based on the Price/Earnings ratio, STR is valued a bit more expensive than the industry average as 63.51% of the companies are valued more cheaply.
STR's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 55.22, the valuation of STR can be described as expensive.
Based on the Price/Forward Earnings ratio, STR is valued a bit more expensive than 67.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STR to the average of the S&P500 Index (21.76), we can say STR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.45 | ||
| Fwd PE | 55.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STR indicates a somewhat cheap valuation: STR is cheaper than 64.45% of the companies listed 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 | 28.92 | ||
| EV/EBITDA | 6.53 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.25%
EPS Next 3Y-0.02%
5. Dividend
5.1 Amount
STR has a Yearly Dividend Yield of 7.28%, which is a nice return.
Compared to an average industry Dividend Yield of 6.51, STR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, STR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.28% |
5.2 History
The dividend of STR has a limited annual growth rate of 5.99%.
STR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)5.99%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
STR pays out 268.59% of its income as dividend. 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-16.25%
EPS Next 3Y-0.02%
18.59
+0.71 (+3.97%)
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 Change0.75%
Market Cap2.81B
Analysts74.55
Price Target25.16 (35.34%)
Short Float %2.49%
Short Ratio1.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.28% |
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)-6.67%
PT rev (3m)-7.66%
EPS NQ rev (1m)8.33%
EPS NQ rev (3m)-39.81%
EPS NY rev (1m)-5.04%
EPS NY rev (3m)-32.1%
Revenue NQ rev (1m)-1.15%
Revenue NQ rev (3m)-6.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.45 | ||
| Fwd PE | 55.22 | ||
| P/S | 4.41 | ||
| P/FCF | 28.92 | ||
| P/OCF | 6.32 | ||
| P/B | 1.97 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 6.53 |
EPS(TTM)0.51
EY2.74%
EPS(NY)0.34
Fwd EY1.81%
FCF(TTM)0.64
FCFY3.46%
OCF(TTM)2.94
OCFY15.83%
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 | 0.79 |
F-Score7
WACC9.84%
ROIC/WACC0.47
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-30.56%
EPS Next 2Y-16.25%
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%