SITIO ROYALTIES CORP-A (STR)

US82983N1081 - Common Stock

23.58  +0.15 (+0.64%)

Fundamental Rating

4

Overall STR gets a fundamental rating of 4 out of 10. We evaluated STR against 212 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. STR is quite expensive at the moment. It does show a decent growth rate.



3

1. Profitability

1.1 Basic Checks

In the past year STR was profitable.
STR had a positive operating cash flow in the past year.
STR had positive earnings in 4 of the past 5 years.
In the past 5 years STR always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of STR (-0.33%) is worse than 80.57% of its industry peers.
STR has a Return On Equity of -0.97%. This is in the lower half of the industry: STR underperforms 78.20% of its industry peers.
STR has a Return On Invested Capital of 4.28%. This is in the lower half of the industry: STR underperforms 69.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STR is significantly below the industry average of 38.31%.
Industry RankSector 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

STR has a Operating Margin of 43.11%. This is amongst the best in the industry. STR outperforms 81.99% of its industry peers.
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 RankSector 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

5

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 0.97, we must say that STR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.97, STR perfoms like the industry average, outperforming 40.76% of the companies in the same industry.
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.
The Debt to FCF ratio of STR (2.75) is better than 71.56% 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 45.97% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 2.75
Altman-Z 0.97
ROIC/WACC0.49
WACC8.64%

2.3 Liquidity

STR has a Current Ratio of 4.85. This indicates that STR is financially healthy and has no problem in meeting its short term obligations.
STR has a better Current ratio (4.85) than 88.63% of its industry peers.
A Quick Ratio of 4.85 indicates that STR has no problem at all paying its short term obligations.
STR has a Quick ratio of 4.85. This is amongst the best in the industry. STR outperforms 89.57% of its industry peers.
Industry RankSector Rank
Current Ratio 4.85
Quick Ratio 4.85

5

3. Growth

3.1 Past

STR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.49%.
The Earnings Per Share has been growing by 88.21% on average over the past years. This is a very strong growth
The Revenue has grown by 60.54% in the past year. This is a very strong growth!
Measured over the past years, STR shows a very strong growth in Revenue. The Revenue has been growing by 43.59% on average per year.
EPS 1Y (TTM)-54.49%
EPS 3Y88.21%
EPS 5YN/A
EPS Q2Q%-64.29%
Revenue 1Y (TTM)60.54%
Revenue growth 3Y148%
Revenue growth 5Y43.59%
Sales Q2Q%0.37%

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 -34.26% yearly.
The Revenue is expected to grow by 7.17% on average over the next years.
EPS Next Y-46.66%
EPS Next 2Y-34.97%
EPS Next 3Y-34.26%
EPS Next 5YN/A
Revenue Next Year8.36%
Revenue Next 2Y5.08%
Revenue Next 3Y7.17%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 16.61, STR is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of STR indicates a slightly more expensive valuation: STR is more expensive than 62.56% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.24, STR is valued a bit cheaper.
With a Price/Forward Earnings ratio of 34.85, STR can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, STR is valued a bit more expensive than the industry average as 71.09% of the companies are valued more cheaply.
STR is valuated expensively when we compare the Price/Forward Earnings ratio to 19.93, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.61
Fwd PE 34.85

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 is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 11.59
EV/EBITDA 8.17

4.3 Compensation for Growth

STR's earnings are expected to decrease with -34.26% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-34.97%
EPS Next 3Y-34.26%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 8.04%, STR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.06, STR pays a better dividend. On top of this STR pays more dividend than 82.46% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, STR pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.04%

5.2 History

The dividend of STR has a limited annual growth rate of 1.12%.
STR has paid a dividend for at least 10 years, which is 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

STR has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-1048.49%
EPS Next 2Y-34.97%
EPS Next 3Y-34.26%

SITIO ROYALTIES CORP-A

NYSE:STR (6/12/2024, 10:50:19 AM)

23.58

+0.15 (+0.64%)

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 Cap3.64B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 8.04%
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)
Min 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)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 16.61
Fwd PE 34.85
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 RankSector 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 RankSector 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)-54.49%
EPS 3Y88.21%
EPS 5Y
EPS Q2Q%
EPS Next Y-46.66%
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