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SITIO ROYALTIES CORP-A (STR) Stock Fundamental Analysis

NYSE:STR - New York Stock Exchange, Inc. - US82983N1081 - Common Stock - Currency: USD

18.17  -0.42 (-2.26%)

Fundamental Rating

3

Taking everything into account, STR scores 3 out of 10 in our fundamental rating. STR was compared to 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 does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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.
STR Yearly Net Income VS EBIT VS OCF VS FCFSTR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M

1.2 Ratios

STR has a Return On Assets of 0.89%. This is in the lower half of the industry: STR underperforms 63.81% of its industry peers.
STR's Return On Equity of 2.92% is on the low side compared to the rest of the industry. STR is outperformed by 60.00% of its industry peers.
STR has a Return On Invested Capital of 4.67%. This is in the lower half of the industry: STR underperforms 60.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STR is significantly below the industry average of 23.80%.
The last Return On Invested Capital (4.67%) for STR is above the 3 year average (4.15%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 0.89%
ROE 2.92%
ROIC 4.67%
ROA(3y)0.26%
ROA(5y)1.86%
ROE(3y)0.85%
ROE(5y)3.9%
ROIC(3y)4.15%
ROIC(5y)5.14%
STR Yearly ROA, ROE, ROICSTR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

1.3 Margins

STR has a Profit Margin of 6.55%. This is comparable to the rest of the industry: STR outperforms 47.14% of its industry peers.
STR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 40.37%, STR belongs to the top of the industry, outperforming 85.24% of the companies in the same industry.
In the last couple of years the Operating Margin of STR has declined.
Industry RankSector Rank
OM 40.37%
PM (TTM) 6.55%
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
STR Yearly Profit, Operating, Gross MarginsSTR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80 100

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
STR Yearly Shares OutstandingSTR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
STR Yearly Total Debt VS Total AssetsSTR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

Based on the Altman-Z score of 0.81, we must say that STR is in the distress zone and has some risk of bankruptcy.
STR has a Altman-Z score (0.81) which is in line with its industry peers.
The Debt to FCF ratio of STR is 11.10, which is on the high side as it means it would take STR, 11.10 years of fcf income to pay off all of its debts.
STR has a Debt to FCF ratio of 11.10. This is comparable to the rest of the industry: STR outperforms 50.48% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that STR is somewhat dependend on debt financing.
STR has a Debt to Equity ratio of 0.76. This is in the lower half of the industry: STR underperforms 62.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 11.1
Altman-Z 0.81
ROIC/WACC0.48
WACC9.79%
STR Yearly LT Debt VS Equity VS FCFSTR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 2.33 indicates that STR has no problem at all paying its short term obligations.
The Current ratio of STR (2.33) is better than 81.43% of its industry peers.
A Quick Ratio of 2.33 indicates that STR has no problem at all paying its short term obligations.
STR's Quick ratio of 2.33 is amongst the best of the industry. STR outperforms 82.86% of its industry peers.
Industry RankSector Rank
Current Ratio 2.33
Quick Ratio 2.33
STR Yearly Current Assets VS Current LiabilitesSTR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

3

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%.
The earnings per share for STR have been decreasing by -17.29% on average. This is quite bad
The Revenue has been growing slightly by 7.24% 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)7.24%
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-29.56%
EPS Next 2Y-11.41%
EPS Next 3Y-0.02%
EPS Next 5YN/A
Revenue Next Year-6.83%
Revenue Next 2Y-4.26%
Revenue Next 3Y-0.46%
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.
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.
STR Yearly Revenue VS EstimatesSTR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M
STR Yearly EPS VS EstimatesSTR Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

1

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 35.63 indicates a quite expensive valuation of STR.
64.29% of the companies in the same industry are cheaper than STR, based on the Price/Earnings ratio.
STR is valuated rather expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
STR is valuated quite expensively with a Price/Forward Earnings ratio of 48.23.
Based on the Price/Forward Earnings ratio, STR is valued a bit more expensive than 68.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. STR is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 35.63
Fwd PE 48.23
STR Price Earnings VS Forward Price EarningsSTR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

63.81% of the companies in the same industry are more expensive than STR, based on the Enterprise Value to EBITDA ratio.
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 28.26
EV/EBITDA 6.71
STR Per share dataSTR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.41%
EPS Next 3Y-0.02%

5

5. Dividend

5.1 Amount

STR has a Yearly Dividend Yield of 7.49%, which is a nice return.
Compared to an average industry Dividend Yield of 6.41, STR pays a bit more dividend than its industry peers.
STR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
Industry RankSector Rank
Dividend Yield 7.49%

5.2 History

The dividend of STR has a limited annual growth rate of 5.99%.
STR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.99%
Div Incr Years0
Div Non Decr Years0
STR Yearly Dividends per shareSTR Yearly Dividends per shareYearly Dividends per share 2015 2016 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

STR pays out 268.59% 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.
DP268.59%
EPS Next 2Y-11.41%
EPS Next 3Y-0.02%
STR Yearly Income VS Free CF VS DividendSTR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M
STR Dividend Payout.STR Dividend Payout, showing the Payout Ratio.STR Dividend Payout.PayoutRetained Earnings

SITIO ROYALTIES CORP-A

NYSE:STR (7/14/2025, 12:28:02 PM)

18.17

-0.42 (-2.26%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners93.19%
Inst Owner Change0%
Ins Owners1.16%
Ins Owner Change0.75%
Market Cap2.74B
Analysts74.55
Price Target25.16 (38.47%)
Short Float %2.49%
Short Ratio1.51
Dividend
Industry RankSector Rank
Dividend Yield 7.49%
Yearly Dividend0.79
Dividend Growth(5Y)5.99%
DP268.59%
Div Incr Years0
Div Non Decr Years0
Ex-Date05-20 2025-05-20 (0.35)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.31%
Min EPS beat(2)-32.87%
Max EPS beat(2)35.49%
EPS beat(4)2
Avg EPS beat(4)0.36%
Min EPS beat(4)-32.87%
Max EPS beat(4)35.49%
EPS beat(8)3
Avg EPS beat(8)57.4%
EPS beat(12)5
Avg EPS beat(12)45.26%
EPS beat(16)7
Avg EPS beat(16)29.89%
Revenue beat(2)2
Avg Revenue beat(2)5.58%
Min Revenue beat(2)5.47%
Max Revenue beat(2)5.7%
Revenue beat(4)3
Avg Revenue beat(4)2.7%
Min Revenue beat(4)-3.49%
Max Revenue beat(4)5.7%
Revenue beat(8)4
Avg Revenue beat(8)-0.4%
Revenue beat(12)5
Avg Revenue beat(12)-0.07%
Revenue beat(16)7
Avg Revenue beat(16)-6.63%
PT rev (1m)-2.63%
PT rev (3m)-7.66%
EPS NQ rev (1m)-9.17%
EPS NQ rev (3m)-41.71%
EPS NY rev (1m)-3.67%
EPS NY rev (3m)-31.12%
Revenue NQ rev (1m)-1.15%
Revenue NQ rev (3m)-4.78%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)-3.49%
Valuation
Industry RankSector Rank
PE 35.63
Fwd PE 48.23
P/S 4.31
P/FCF 28.26
P/OCF 6.17
P/B 1.92
P/tB 1.92
EV/EBITDA 6.71
EPS(TTM)0.51
EY2.81%
EPS(NY)0.38
Fwd EY2.07%
FCF(TTM)0.64
FCFY3.54%
OCF(TTM)2.94
OCFY16.2%
SpS4.22
BVpS9.45
TBVpS9.45
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.89%
ROE 2.92%
ROCE 5.56%
ROIC 4.67%
ROICexc 4.67%
ROICexgc 4.67%
OM 40.37%
PM (TTM) 6.55%
GM N/A
FCFM 15.24%
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 Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 11.1
Debt/EBITDA 1.86
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 2.93
Cash Conversion 76.82%
Profit Quality 232.61%
Current Ratio 2.33
Quick Ratio 2.33
Altman-Z 0.81
F-Score7
WACC9.79%
ROIC/WACC0.48
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)-64.08%
EPS 3Y-21.7%
EPS 5Y-17.29%
EPS Q2Q%30%
EPS Next Y-29.56%
EPS Next 2Y-11.41%
EPS Next 3Y-0.02%
EPS Next 5YN/A
Revenue 1Y (TTM)7.24%
Revenue growth 3Y109.41%
Revenue growth 5Y55.58%
Sales Q2Q%8.01%
Revenue Next Year-6.83%
Revenue Next 2Y-4.26%
Revenue Next 3Y-0.46%
Revenue Next 5YN/A
EBIT growth 1Y4.59%
EBIT growth 3Y96.14%
EBIT growth 5Y46.26%
EBIT Next Year143.52%
EBIT Next 3Y37.67%
EBIT Next 5YN/A
FCF growth 1Y131.44%
FCF growth 3Y46.83%
FCF growth 5Y32.93%
OCF growth 1Y78.17%
OCF growth 3Y120.66%
OCF growth 5Y52.95%