SITIO ROYALTIES CORP-A (STR)
US82983N1081 - Common Stock
We assign a fundamental rating of 4 out of 10 to STR. STR was compared to 205 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. While showing a medium growth rate, STR is valued expensive at the moment.
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.
Of the past 5 years STR 4 years were profitable.
STR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STR has a worse Return On Assets (-0.33%) than 76.96% of its industry peers.
With a Return On Equity value of -0.97%, STR is not doing good in the industry: 74.02% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 4.28%, STR is doing worse than 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STR is significantly below the industry average of 29.03%.
| Industry Rank | Sector 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 better Operating Margin (43.11%) than 82.84% of its industry peers.
STR's Operating Margin has declined in the last couple of years.
STR does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector 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
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.
The number of shares outstanding for STR has been increased compared to 5 years ago.
The debt/assets ratio for STR has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that STR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.82, STR is doing worse than 62.25% of the companies in the same industry.
The Debt to FCF ratio of STR is 2.75, which is a good value as it means it would take STR, 2.75 years of fcf income to pay off all of its debts.
STR's Debt to FCF ratio of 2.75 is fine compared to the rest of the industry. STR outperforms 72.06% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that STR is somewhat dependend on debt financing.
STR has a Debt to Equity ratio (0.54) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.49
WACC8.73%
2.3 Liquidity
A Current Ratio of 4.85 indicates that STR has no problem at all paying its short term obligations.
STR has a Current ratio of 4.85. This is amongst the best in the industry. STR outperforms 87.75% of its industry peers.
STR has a Quick 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 Quick ratio (4.85) than 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.85 | ||
| Quick Ratio | 4.85 |
3. Growth
3.1 Past
STR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 367.57%, which is quite impressive.
STR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 88.21% yearly.
The Revenue has grown by 60.54% in the past year. This is a very strong growth!
STR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 43.59% yearly.
EPS 1Y (TTM)367.57%
EPS 3Y88.21%
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)60.54%
Revenue growth 3Y148%
Revenue growth 5Y43.59%
Sales Q2Q%-4.68%
3.2 Future
Based on estimates for the next years, STR will show a very negative growth in Earnings Per Share. The EPS will decrease by -30.13% on average per year.
The Revenue is expected to grow by 1.85% on average over the next years.
EPS Next Y-74.37%
EPS Next 2Y-42.02%
EPS Next 3Y-30.13%
EPS Next 5YN/A
Revenue Next Year3.88%
Revenue Next 2Y0.91%
Revenue Next 3Y1.85%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.86 indicates a reasonable valuation of STR.
STR's Price/Earnings is on the same level as the industry average.
STR is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 34.92, the valuation of STR can be described as expensive.
71.08% of the companies in the same industry are cheaper than STR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, STR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 34.92 |
4.2 Price Multiples
STR's Enterprise Value to EBITDA is on the same level as the industry average.
69.12% of the companies in the same industry are more expensive than STR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.13 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
STR's earnings are expected to decrease with -30.13% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-42.02%
EPS Next 3Y-30.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.95%, STR is a good candidate for dividend investing.
STR's Dividend Yield is rather good when compared to the industry average which is at 7.14. STR pays more dividend than 80.39% of the companies in the same industry.
STR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.95% |
5.2 History
The dividend of STR has a limited annual growth rate of 1.12%.
STR has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of STR decreased 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-42.02%
EPS Next 3Y-30.13%
SITIO ROYALTIES CORP-A
NYSE:STR (12/24/2024, 7:39:35 PM)
After market: 18.78 0 (0%)18.78
+0.21 (+1.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners135.66%
Inst Owner Change0%
Ins Owners0.77%
Ins Owner Change0.06%
Market Cap2.87B
Analysts76.36
Price Target27.74 (47.71%)
Short Float %3.68%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.95% |
Dividend Growth(5Y)1.12%
DP-1048.49%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)303.32%
Min EPS beat(2)-100%
Max EPS beat(2)706.64%
EPS beat(4)2
Avg EPS beat(4)131.9%
Min EPS beat(4)-103.64%
Max EPS beat(4)706.64%
EPS beat(8)3
Avg EPS beat(8)56.65%
EPS beat(12)5
Avg EPS beat(12)28.9%
EPS beat(16)5
Avg EPS beat(16)4.65%
Revenue beat(2)0
Avg Revenue beat(2)-5.07%
Min Revenue beat(2)-5.41%
Max Revenue beat(2)-4.74%
Revenue beat(4)0
Avg Revenue beat(4)-5.65%
Min Revenue beat(4)-9.13%
Max Revenue beat(4)-3.33%
Revenue beat(8)1
Avg Revenue beat(8)-14.62%
Revenue beat(12)4
Avg Revenue beat(12)-9.91%
Revenue beat(16)4
Avg Revenue beat(16)-9.19%
PT rev (1m)-1.45%
PT rev (3m)-4.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-8.14%
EPS NY rev (3m)-30.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-5.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 34.92 | ||
| P/S | 4.84 | ||
| P/FCF | 9.13 | ||
| P/OCF | 5.89 | ||
| P/B | 1.79 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 6.8 |
EPS(TTM)1.73
EY9.21%
EPS(NY)0.54
Fwd EY2.86%
FCF(TTM)2.06
FCFY10.95%
OCF(TTM)3.19
OCFY16.98%
SpS3.88
BVpS10.51
TBVpS10.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.33% | ||
| ROE | -0.97% | ||
| ROCE | 5.41% | ||
| ROIC | 4.28% | ||
| ROICexc | 4.29% | ||
| ROICexgc | 4.29% | ||
| OM | 43.11% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 53% |
ROA(3y)1.62%
ROA(5y)3.98%
ROE(3y)3.24%
ROE(5y)8.09%
ROIC(3y)5.88%
ROIC(5y)6.03%
ROICexc(3y)5.92%
ROICexc(5y)6.08%
ROICexgc(3y)16.64%
ROICexgc(5y)20.88%
ROCE(3y)7.44%
ROCE(5y)7.63%
ROICexcg growth 3Y-24.94%
ROICexcg growth 5Y-42.33%
ROICexc growth 3Y22.35%
ROICexc growth 5Y-24.61%
OM growth 3Y28%
OM growth 5Y-7.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.75 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 59.39% | ||
| Cap/Sales | 29.16% | ||
| Interest Coverage | 3.31 | ||
| Cash Conversion | 89.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.85 | ||
| Quick Ratio | 4.85 | ||
| Altman-Z | 0.82 |
F-Score3
WACC8.73%
ROIC/WACC0.49
Cap/Depr(3y)200.75%
Cap/Depr(5y)160.39%
Cap/Sales(3y)60.72%
Cap/Sales(5y)44.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)367.57%
EPS 3Y88.21%
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y-74.37%
EPS Next 2Y-42.02%
EPS Next 3Y-30.13%
EPS Next 5YN/A
Revenue 1Y (TTM)60.54%
Revenue growth 3Y148%
Revenue growth 5Y43.59%
Sales Q2Q%-4.68%
Revenue Next Year3.88%
Revenue Next 2Y0.91%
Revenue Next 3Y1.85%
Revenue Next 5YN/A
EBIT growth 1Y31.05%
EBIT growth 3Y217.45%
EBIT growth 5Y32.27%
EBIT Next Year191.1%
EBIT Next 3Y41.15%
EBIT Next 5YN/A
FCF growth 1Y179.94%
FCF growth 3Y132.57%
FCF growth 5Y32.78%
OCF growth 1Y195.46%
OCF growth 3Y161.06%
OCF growth 5Y44.31%