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. While STR seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
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
With a Return On Assets value of 0.75%, STR is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
STR's Return On Equity of 2.47% is on the low side compared to the rest of the industry. STR is outperformed by 61.90% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.20%, STR is doing worse than 61.90% of the companies in the same industry.
STR had an Average Return On Invested Capital over the past 3 years of 4.15%. This is significantly below the industry average of 21.66%.
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's Profit Margin of 5.65% is in line compared to the rest of the industry. STR outperforms 46.19% of 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.
STR's Operating Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STR is destroying value.
Compared to 1 year ago, STR has less shares outstanding
Compared to 5 years ago, STR has more shares outstanding
Compared to 1 year ago, STR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.80, we must say that STR is in the distress zone and has some risk of bankruptcy.
STR has a Altman-Z score (0.80) which is comparable to the rest of the industry.
The Debt to FCF ratio of STR is 4.19, which is a neutral value as it means it would take STR, 4.19 years of fcf income to pay off all of its debts.
STR's Debt to FCF ratio of 4.19 is fine compared to the rest of the industry. STR outperforms 70.00% of its industry peers.
STR has a Debt/Equity ratio of 0.77. This is a neutral value indicating STR is somewhat dependend on debt financing.
The Debt to Equity ratio of STR (0.77) is worse 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
A Current Ratio of 4.04 indicates that STR has no problem at all paying its short term obligations.
STR's Current ratio of 4.04 is amongst the best of the industry. STR outperforms 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.
Looking at the Quick ratio, with a value of 4.04, STR belongs to the top 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
STR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.15%.
The earnings per share for STR have been decreasing by -17.29% on average. This is quite bad
STR shows a decrease in Revenue. In the last year, the revenue decreased by -1.91%.
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
Based on estimates for the next years, STR will show a small growth in Earnings Per Share. The EPS will grow by 3.44% on average per year.
The Revenue is expected to decrease by -0.92% on average over the next years.
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
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
With a Price/Earnings ratio of 41.18, STR can be considered very expensive at the moment.
Based on the Price/Earnings ratio, STR is valued a bit more expensive than the industry average as 63.33% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.38. STR is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 52.61, which means the current valuation is very expensive for STR.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, STR is valued quite 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
With a Yearly Dividend Yield of 7.73%, STR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.18, STR pays a better dividend. On top of this STR pays more dividend than 82.38% of the companies listed in the same industry.
STR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| 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 paid a dividend for at least 10 years, which is 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.
STR's earnings are growing slower than its dividend. 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%