SITIO ROYALTIES CORP-A (STR) Stock Fundamental Analysis
USA - NYSE:STR - US82983N1081 - Common Stock
18.12 USD
-0.18 (-0.98%)
17.3 USD
-0.82 (-4.53%)
STR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year STR was profitable.
In the past year STR had a positive cash flow from operations.
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 (0.75%) is worse than 63.33% of its industry peers.
STR has a Return On Equity of 2.47%. This is in the lower half of the industry: STR underperforms 61.90% of its industry peers.
The Return On Invested Capital of STR (4.20%) is worse than 61.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STR is significantly below the industry average of 21.71%.
The last Return On Invested Capital (4.20%) for STR is above the 3 year average (4.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 2.47% | ||
| ROIC | 4.2% |
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 (5.65%) which is in line with its industry peers.
In the last couple of years the Profit Margin of STR has declined.
STR has a Operating Margin of 37.27%. This is amongst the best in the industry. STR outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of STR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.27% | ||
| PM (TTM) | 5.65% | ||
| 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.
STR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for STR is higher compared to a year ago.
2.2 Solvency
STR has an Altman-Z score of 0.80. This is a bad value and indicates that STR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of STR (0.80) is comparable to the rest of the industry.
STR has a debt to FCF ratio of 4.19. This is a neutral value as STR would need 4.19 years to pay back of all of its debts.
STR has a better Debt to FCF ratio (4.19) than 70.00% of its industry peers.
A Debt/Equity ratio of 0.77 indicates that STR is somewhat dependend on debt financing.
STR has a worse Debt to Equity ratio (0.77) than 65.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.43
WACC9.79%
2.3 Liquidity
STR has a Current Ratio of 4.04. This indicates that STR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of STR (4.04) is better than 88.57% of its industry peers.
STR has a Quick Ratio of 4.04. This indicates that STR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 4.04, STR belongs to the best of the industry, outperforming 89.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.04 | ||
| Quick Ratio | 4.04 |
3. Growth
3.1 Past
The earnings per share for STR have decreased strongly by -72.15% in the last year.
STR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.29% yearly.
Looking at the last year, STR shows a decrease in Revenue. The Revenue has decreased by -1.91% in the last year.
The Revenue has been growing by 55.58% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-72.15%
EPS 3Y-21.7%
EPS 5Y-17.29%
EPS Q2Q%-46.67%
Revenue 1Y (TTM)-1.91%
Revenue growth 3Y109.41%
Revenue growth 5Y55.58%
Sales Q2Q%-13.58%
3.2 Future
The Earnings Per Share is expected to grow by 3.44% 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 -0.92% on average per year.
EPS Next Y-26.46%
EPS Next 2Y-15.29%
EPS Next 3Y3.44%
EPS Next 5YN/A
Revenue Next Year-4.51%
Revenue Next 2Y-3.19%
Revenue Next 3Y-0.92%
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
With a Price/Earnings ratio of 41.18, STR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of STR indicates a slightly more expensive valuation: STR is more expensive than 63.33% of the companies listed in the same industry.
STR is valuated expensively when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
STR is valuated quite expensively with a Price/Forward Earnings ratio of 52.61.
STR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. STR is more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STR to the average of the S&P500 Index (22.86), we can say STR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.18 | ||
| Fwd PE | 52.61 |
4.2 Price Multiples
STR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STR is cheaper than 61.43% of the companies in the same industry.
STR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STR is cheaper than 72.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.62 | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.29%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
STR has a Yearly Dividend Yield of 7.73%, which is a nice return.
Compared to an average industry Dividend Yield of 6.00, STR pays a better dividend. On top of this STR pays more dividend than 82.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, STR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.73% |
5.2 History
On average, the dividend of STR grows each year by 6.01%, which is quite nice.
STR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)6.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
308.31% of the earnings are spent on dividend by STR. This is not a sustainable payout ratio.
The dividend of STR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP308.31%
EPS Next 2Y-15.29%
EPS Next 3Y3.44%
18.12
-0.18 (-0.98%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.33%
Inst Owner Change0%
Ins Owners1.3%
Ins Owner Change-3.4%
Market Cap2.74B
Analysts74.55
Price Target30.6 (68.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.73% |
Yearly Dividend0.79
Dividend Growth(5Y)6.01%
DP308.31%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)43.91%
Min EPS beat(2)35.49%
Max EPS beat(2)52.32%
EPS beat(4)3
Avg EPS beat(4)17.29%
Min EPS beat(4)-32.87%
Max EPS beat(4)52.32%
EPS beat(8)4
Avg EPS beat(8)76.89%
EPS beat(12)5
Avg EPS beat(12)37.47%
EPS beat(16)8
Avg EPS beat(16)34.39%
Revenue beat(2)2
Avg Revenue beat(2)4.95%
Min Revenue beat(2)4.21%
Max Revenue beat(2)5.7%
Revenue beat(4)3
Avg Revenue beat(4)2.97%
Min Revenue beat(4)-3.49%
Max Revenue beat(4)5.7%
Revenue beat(8)5
Avg Revenue beat(8)1.26%
Revenue beat(12)5
Avg Revenue beat(12)-0.78%
Revenue beat(16)8
Avg Revenue beat(16)-5.56%
PT rev (1m)20%
PT rev (3m)13.51%
EPS NQ rev (1m)-6.45%
EPS NQ rev (3m)-40.67%
EPS NY rev (1m)4.41%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)1.45%
Revenue NQ rev (3m)-9.21%
Revenue NY rev (1m)2.49%
Revenue NY rev (3m)3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.18 | ||
| Fwd PE | 52.61 | ||
| P/S | 4.46 | ||
| P/FCF | 10.62 | ||
| P/OCF | 6.32 | ||
| P/B | 1.95 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 7.06 |
EPS(TTM)0.44
EY2.43%
EPS(NY)0.34
Fwd EY1.9%
FCF(TTM)1.71
FCFY9.42%
OCF(TTM)2.87
OCFY15.83%
SpS4.07
BVpS9.28
TBVpS9.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 2.47% | ||
| ROCE | 5% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.2% | ||
| ROICexgc | 4.2% | ||
| OM | 37.27% | ||
| PM (TTM) | 5.65% | ||
| GM | N/A | ||
| FCFM | 41.97% |
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 Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 56.34% | ||
| Cap/Sales | 28.59% | ||
| Interest Coverage | 2.71 | ||
| Cash Conversion | 80.17% | ||
| Profit Quality | 743.39% | ||
| Current Ratio | 4.04 | ||
| Quick Ratio | 4.04 | ||
| Altman-Z | 0.8 |
F-Score7
WACC9.79%
ROIC/WACC0.43
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)-72.15%
EPS 3Y-21.7%
EPS 5Y-17.29%
EPS Q2Q%-46.67%
EPS Next Y-26.46%
EPS Next 2Y-15.29%
EPS Next 3Y3.44%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.91%
Revenue growth 3Y109.41%
Revenue growth 5Y55.58%
Sales Q2Q%-13.58%
Revenue Next Year-4.51%
Revenue Next 2Y-3.19%
Revenue Next 3Y-0.92%
Revenue Next 5YN/A
EBIT growth 1Y-13.6%
EBIT growth 3Y96.14%
EBIT growth 5Y46.26%
EBIT Next Year148.31%
EBIT Next 3Y37.32%
EBIT Next 5YN/A
FCF growth 1Y137.59%
FCF growth 3Y46.83%
FCF growth 5Y32.93%
OCF growth 1Y39.98%
OCF growth 3Y120.66%
OCF growth 5Y52.95%