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 214 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
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.
Each year in the past 5 years STR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.84%, STR is doing worse than 65.42% of the companies in the same industry.
STR has a worse Return On Equity (2.71%) than 60.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.47%, STR is doing worse than 62.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STR is significantly below the industry average of 25.71%.
The 3 year average ROIC (4.16%) for STR is below the current ROIC(4.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 2.71% | ||
| ROIC | 4.47% |
ROA(3y)0.26%
ROA(5y)1.86%
ROE(3y)0.85%
ROE(5y)3.9%
ROIC(3y)4.16%
ROIC(5y)5.14%
1.3 Margins
STR has a Profit Margin (6.37%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of STR has declined.
With an excellent Operating Margin value of 39.94%, STR belongs to the best of the industry, outperforming 84.11% of the companies in the same industry.
In the last couple of years the Operating Margin of STR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.94% | ||
| PM (TTM) | 6.37% | ||
| GM | N/A |
OM growth 3Y-6.29%
OM growth 5Y-5.96%
PM growth 3Y-30.49%
PM growth 5Y-33.36%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STR is destroying value.
The number of shares outstanding for STR has been reduced compared to 1 year ago.
The number of shares outstanding for STR has been increased compared to 5 years ago.
Compared to 1 year ago, STR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that STR is in the distress zone and has some risk of bankruptcy.
STR has a Altman-Z score (0.78) which is in line with its industry peers.
STR has a debt to FCF ratio of 8.13. This is a slightly negative value and a sign of low solvency as STR would need 8.13 years to pay back of all of its debts.
The Debt to FCF ratio of STR (8.13) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.74 indicates that STR is somewhat dependend on debt financing.
STR has a worse Debt to Equity ratio (0.74) than 64.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 8.13 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.4
WACC11.03%
2.3 Liquidity
A Current Ratio of 2.82 indicates that STR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.82, STR belongs to the top of the industry, outperforming 82.24% of the companies in the same industry.
STR has a Quick Ratio of 2.82. This indicates that STR is financially healthy and has no problem in meeting its short term obligations.
STR has a Quick ratio of 2.82. This is amongst the best in the industry. STR outperforms 83.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.82 |
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%.
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 5.23% 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)5.23%
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-20.92%
EPS Next 2Y-7.04%
EPS Next 3Y-0.02%
EPS Next 5YN/A
Revenue Next Year-7.67%
Revenue Next 2Y-3.69%
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.
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
Based on the Price/Earnings ratio of 36.48, the valuation of STR can be described as expensive.
65.42% of the companies in the same industry are cheaper than STR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.21. STR is valued rather expensively when compared to this.
STR is valuated quite expensively with a Price/Forward Earnings ratio of 44.86.
STR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. STR is more expensive than 67.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, STR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.48 | ||
| Fwd PE | 44.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STR is valued a bit cheaper than the industry average as 60.28% of the companies are valued more expensively.
STR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.25 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.04%
EPS Next 3Y-0.02%
5. Dividend
5.1 Amount
STR has a Yearly Dividend Yield of 7.51%, which is a nice return.
STR's Dividend Yield is a higher than the industry average which is at 7.22.
Compared to an average S&P500 Dividend Yield of 2.41, STR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.51% |
5.2 History
The dividend of STR is nicely growing with an annual growth rate of 6.01%!
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)6.01%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
STR pays out 307.78% 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.
DP307.78%
EPS Next 2Y-7.04%
EPS Next 3Y-0.02%
NYSE:STR (5/12/2025, 10:00:04 AM)
18.605
+0.75 (+4.23%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners108.48%
Inst Owner Change0%
Ins Owners0.8%
Ins Owner Change0.37%
Market Cap2.82B
Analysts76.67
Price Target26.96 (44.91%)
Short Float %3.71%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.51% |
Yearly Dividend0.79
Dividend Growth(5Y)6.01%
DP307.78%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.32%
Min EPS beat(2)-32.87%
Max EPS beat(2)14.24%
EPS beat(4)1
Avg EPS beat(4)-19.83%
Min EPS beat(4)-45.25%
Max EPS beat(4)14.24%
EPS beat(8)3
Avg EPS beat(8)56.04%
EPS beat(12)4
Avg EPS beat(12)31.16%
EPS beat(16)6
Avg EPS beat(16)16.72%
Revenue beat(2)1
Avg Revenue beat(2)0.99%
Min Revenue beat(2)-3.49%
Max Revenue beat(2)5.47%
Revenue beat(4)3
Avg Revenue beat(4)2.59%
Min Revenue beat(4)-3.49%
Max Revenue beat(4)5.47%
Revenue beat(8)3
Avg Revenue beat(8)-1.53%
Revenue beat(12)4
Avg Revenue beat(12)-8.88%
Revenue beat(16)7
Avg Revenue beat(16)-6.79%
PT rev (1m)-1.07%
PT rev (3m)-5.61%
EPS NQ rev (1m)-22.66%
EPS NQ rev (3m)-19.49%
EPS NY rev (1m)-22.67%
EPS NY rev (3m)-30.83%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)2.66%
Revenue NY rev (1m)-4.36%
Revenue NY rev (3m)-6.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.48 | ||
| Fwd PE | 44.86 | ||
| P/S | 4.51 | ||
| P/FCF | 21.25 | ||
| P/OCF | 6.09 | ||
| P/B | 1.92 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)0.51
EY2.74%
EPS(NY)0.41
Fwd EY2.23%
FCF(TTM)0.88
FCFY4.71%
OCF(TTM)3.05
OCFY16.42%
SpS4.13
BVpS9.68
TBVpS9.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 2.71% | ||
| ROCE | 5.31% | ||
| ROIC | 4.47% | ||
| ROICexc | 4.47% | ||
| ROICexgc | 4.47% | ||
| OM | 39.94% | ||
| PM (TTM) | 6.37% | ||
| GM | N/A | ||
| FCFM | 21.23% |
ROA(3y)0.26%
ROA(5y)1.86%
ROE(3y)0.85%
ROE(5y)3.9%
ROIC(3y)4.16%
ROIC(5y)5.14%
ROICexc(3y)4.17%
ROICexc(5y)5.17%
ROICexgc(3y)4.17%
ROICexgc(5y)13.69%
ROCE(3y)4.94%
ROCE(5y)6.11%
ROICexcg growth 3Y-53.73%
ROICexcg growth 5Y-37.58%
ROICexc growth 3Y-25.67%
ROICexc growth 5Y-16.42%
OM growth 3Y-6.29%
OM growth 5Y-5.96%
PM growth 3Y-30.49%
PM growth 5Y-33.36%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 8.13 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 102.99% | ||
| Cap/Sales | 52.83% | ||
| Interest Coverage | 3 | ||
| Cash Conversion | 81.17% | ||
| Profit Quality | 333.18% | ||
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.82 | ||
| Altman-Z | 0.78 |
F-Score7
WACC11.03%
ROIC/WACC0.4
Cap/Depr(3y)232.25%
Cap/Depr(5y)144.43%
Cap/Sales(3y)77.69%
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-20.92%
EPS Next 2Y-7.04%
EPS Next 3Y-0.02%
EPS Next 5YN/A
Revenue 1Y (TTM)5.23%
Revenue growth 3Y109.41%
Revenue growth 5Y55.58%
Sales Q2Q%8.01%
Revenue Next Year-7.67%
Revenue Next 2Y-3.69%
Revenue Next 3Y-0.46%
Revenue Next 5YN/A
EBIT growth 1Y-2.55%
EBIT growth 3Y96.24%
EBIT growth 5Y46.31%
EBIT Next Year154.23%
EBIT Next 3Y37.67%
EBIT Next 5YN/A
FCF growth 1Y-57.85%
FCF growth 3Y47.03%
FCF growth 5Y33.04%
OCF growth 1Y-5.14%
OCF growth 3Y120.73%
OCF growth 5Y52.98%