SITIO ROYALTIES CORP-A (STR)
US82983N1081 - Common Stock
Taking everything into account, STR scores 4 out of 10 in our fundamental rating. STR was compared to 217 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of STR get a neutral evaluation. Nothing too spectacular is happening here. STR shows excellent growth, but is valued quite expensive already.
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.
In the past 5 years STR has always been profitable.
STR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.61%, STR is doing worse than 80.18% of the companies in the same industry.
The Return On Equity of STR (1.81%) is worse than 76.96% of its industry peers.
STR has a worse Return On Invested Capital (3.34%) than 77.88% 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 73.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 1.81% | ||
| ROIC | 3.34% |
ROA(3y)2.93%
ROA(5y)12.15%
ROE(3y)5.94%
ROE(5y)24.83%
ROIC(3y)5.22%
ROIC(5y)8.6%
1.3 Margins
Looking at the Profit Margin, with a value of 6.13%, STR is doing worse than 71.89% of the companies in the same industry.
STR's Profit Margin has declined in the last couple of years.
STR has a better Operating Margin (42.71%) than 68.66% of its industry peers.
STR's Operating Margin has improved in the last couple of years.
STR has a better Gross Margin (92.92%) than 95.85% of its industry peers.
STR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.71% | ||
| PM | 6.13% | ||
| GM | 92.92% |
OM growth 3Y1.65%
OM growth 5YN/A
PM growth 3Y-56.16%
PM growth 5YN/A
GM growth 3Y-0.25%
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.
Compared to 1 year ago, STR has more shares outstanding
The number of shares outstanding for STR has been increased compared to 5 years ago.
The debt/assets ratio for STR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.60, we must say that STR is in the distress zone and has some risk of bankruptcy.
STR has a Altman-Z score of 0.60. This is in the lower half of the industry: STR underperforms 67.74% of its industry peers.
The Debt to FCF ratio of STR is 8.26, which is on the high side as it means it would take STR, 8.26 years of fcf income to pay off all of its debts.
STR has a Debt to FCF ratio of 8.26. This is in the lower half of the industry: STR underperforms 61.29% of its industry peers.
STR has a Debt/Equity ratio of 0.52. This is a neutral value indicating STR is somewhat dependend on debt financing.
STR's Debt to Equity ratio of 0.52 is in line compared to the rest of the industry. STR outperforms 50.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.39
WACC8.53%
2.3 Liquidity
STR has a Current Ratio of 8.86. This indicates that STR is financially healthy and has no problem in meeting its short term obligations.
STR has a Current ratio of 8.86. This is amongst the best in the industry. STR outperforms 94.47% of its industry peers.
STR has a Quick Ratio of 8.86. This indicates that STR is financially healthy and has no problem in meeting its short term obligations.
STR has a better Quick ratio (8.86) than 95.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.86 | ||
| Quick Ratio | 8.86 |
3. Growth
3.1 Past
The earnings per share for STR have decreased strongly by -32.02% in the last year.
The earnings per share for STR have been decreasing by -10.71% on average. This is quite bad
The Revenue has grown by 159.80% in the past year. This is a very strong growth!
The Revenue has been growing by 75.43% on average over the past years. This is a very strong growth!
EPS 1Y-32.02%
EPS 3Y-10.71%
EPS 5YN/A
EPS growth Q2Q-100.64%
Revenue growth 1Y159.8%
Revenue growth 3Y75.43%
Revenue growth 5YN/A
Revenue growth Q2Q55.42%
3.2 Future
Based on estimates for the next years, STR will show a small growth in Earnings Per Share. The EPS will grow by 4.52% on average per year.
The Revenue is expected to grow by 30.21% on average over the next years. This is a very strong growth
EPS Next Y-48.54%
EPS Next 2Y-19.58%
EPS Next 3Y4.52%
EPS Next 5YN/A
Revenue Next Year87.71%
Revenue Next 2Y46.46%
Revenue Next 3Y30.21%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.49 indicates a correct valuation of STR.
STR's Price/Earnings ratio is a bit more expensive when compared to the industry. STR is more expensive than 69.59% of the companies in the same industry.
When comparing the Price/Earnings ratio of STR to the average of the S&P500 Index (25.92), we can say STR is valued slightly cheaper.
A Price/Forward Earnings ratio of 21.74 indicates a rather expensive valuation of STR.
Based on the Price/Forward Earnings ratio, STR is valued a bit more expensive than 70.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.01. STR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 21.74 |
4.2 Price Multiples
STR's Enterprise Value to EBITDA ratio is in line with the industry average.
64.06% of the companies in the same industry are cheaper than STR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.11 | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.58%
EPS Next 3Y4.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.65%, STR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.36, STR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.58, STR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.65% |
5.2 History
The dividend of STR has a limited annual growth rate of 1.12%.
STR has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)1.12%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
351.66% of the earnings are spent on dividend by STR. This is not a sustainable payout ratio.
The dividend of STR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP351.66%
EPS Next 2Y-19.58%
EPS Next 3Y4.52%
SITIO ROYALTIES CORP-A
NYSE:STR (9/22/2023, 7:27:16 PM)
After market: 24.01 0 (0%)24.01
-0.06 (-0.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)08-08 2023-08-08/amc
Earnings (Next)11-06 2023-11-06/amc
Inst Owners0.19%
Inst Owner Change0%
Ins Owners57.75%
Ins Owner Change-0.03%
Market Cap1.96B
Analysts82
Price Target34 (41.61%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.65% |
Dividend Growth(5Y)1.12%
DP351.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date08-17 2023-08-17 (0.4)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-38.7%
Min EPS beat(2)-101.99%
Max EPS beat(2)24.6%
EPS beat(4)2
Avg EPS beat(4)-16.51%
Min EPS beat(4)-101.99%
Max EPS beat(4)24.6%
Revenue beat(2)1
Avg Revenue beat(2)48283%
Min Revenue beat(2)-5.08%
Max Revenue beat(2)96571.1%
Revenue beat(4)1
Avg Revenue beat(4)24139.5%
Min Revenue beat(4)-7.01%
Max Revenue beat(4)96571.1%
PT rev (1m)-1.48%
PT rev (3m)-0.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)51.33%
EPS NY rev (1m)-28.72%
EPS NY rev (3m)-43.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.75%
Revenue NY rev (1m)-1.35%
Revenue NY rev (3m)-13.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 21.74 | ||
| P/S | 3.9 | ||
| P/FCF | 18.11 | ||
| P/OCF | 6.34 | ||
| P/B | 1.15 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 6.7 |
EPS(TTM)1.55
EY6.46%
EPS(NY)1.1
Fwd EY4.6%
FCF(TTM)1.33
FCFY5.52%
OCF(TTM)3.79
OCFY15.77%
SpS6.16
BVpS20.89
TBVpS20.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 1.81% | ||
| ROCE | 4.23% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.34% | ||
| ROICexgc | 3.34% | ||
| OM | 42.71% | ||
| PM | 6.13% | ||
| GM | 92.92% | ||
| FCFM | 21.53% |
ROA(3y)2.93%
ROA(5y)12.15%
ROE(3y)5.94%
ROE(5y)24.83%
ROIC(3y)5.22%
ROIC(5y)8.6%
ROICexc(3y)5.26%
ROICexc(5y)8.74%
ROICexgc(3y)18.56%
ROICexgc(5y)33.44%
ROCE(3y)6.6%
ROCE(5y)10.89%
ROICexcg growth 3Y-58.15%
ROICexcg growth 5YN/A
ROICexc growth 3Y-31.9%
ROICexc growth 5YN/A
OM growth 3Y1.65%
OM growth 5YN/A
PM growth 3Y-56.16%
PM growth 5YN/A
GM growth 3Y-0.25%
GM growth 5YN/A
F-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 8.26 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 95.14% | ||
| Cap/Sales | 39.97% | ||
| Profit Quality | 351.25% | ||
| Current Ratio | 8.86 | ||
| Quick Ratio | 8.86 | ||
| Altman-Z | 0.6 |
F-Score5
WACC8.53%
ROIC/WACC0.39
Cap/Depr(3y)186.57%
Cap/Depr(5y)150.27%
Cap/Sales(3y)53.07%
Cap/Sales(5y)39.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y-32.02%
EPS 3Y-10.71%
EPS 5YN/A
EPS growth Q2Q-100.64%
EPS Next Y-48.54%
EPS Next 2Y-19.58%
EPS Next 3Y4.52%
EPS Next 5YN/A
Revenue growth 1Y159.8%
Revenue growth 3Y75.43%
Revenue growth 5YN/A
Revenue growth Q2Q55.42%
Revenue Next Year87.71%
Revenue Next 2Y46.46%
Revenue Next 3Y30.21%
Revenue Next 5YN/A
EBIT growth 1Y82.93%
EBIT growth 3Y78.32%
EBIT growth 5YN/A
EBIT Next Year166%
EBIT Next 3Y36.82%
EBIT Next 5YN/A
FCF growth 1Y-1043.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y283.76%
OCF growth 3Y44.01%
OCF growth 5YN/A