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 4 out of 10 in our fundamental rating. STR was compared to 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
STR had positive earnings in the past year.
In the past year STR had a positive cash flow from operations.
Of the past 5 years STR 4 years were profitable.
In the past 5 years STR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.33%, STR is doing worse than 75.37% of the companies in the same industry.
Looking at the Return On Equity, with a value of -0.97%, STR is doing worse than 72.91% of the companies in the same industry.
STR has a Return On Invested Capital of 4.28%. This is in the lower half of the industry: STR underperforms 67.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STR is significantly below the industry average of 28.74%.
| 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
With an excellent Operating Margin value of 43.11%, STR belongs to the best of the industry, outperforming 84.73% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STR is destroying value.
Compared to 1 year ago, STR has more shares outstanding
The number of shares outstanding for STR has been increased compared to 5 years ago.
Compared to 1 year ago, STR has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that STR is in the distress zone and has some risk of bankruptcy.
STR has a worse Altman-Z score (0.86) than 62.07% of its industry peers.
STR has a debt to FCF ratio of 2.75. This is a good value and a sign of high solvency as STR would need 2.75 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.75, STR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that STR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, STR is in line with its industry, outperforming 41.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.48
WACC8.96%
2.3 Liquidity
STR has a Current Ratio of 4.85. This indicates that STR is financially healthy and has no problem in meeting its short term obligations.
STR's Current ratio of 4.85 is amongst the best of the industry. STR outperforms 87.19% of its industry peers.
A Quick Ratio of 4.85 indicates that STR has no problem at all paying its short term obligations.
STR's Quick ratio of 4.85 is amongst the best of the industry. STR outperforms 87.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.85 | ||
| Quick Ratio | 4.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 367.57% over the past year.
The Earnings Per Share has been growing by 88.21% on average over the past years. This is a very strong growth
Looking at the last year, STR shows a very strong growth in Revenue. The Revenue has grown by 60.54%.
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
The Earnings Per Share is expected to decrease by -29.42% on average over the next years. This is quite bad
Based on estimates for the next years, STR will show a small growth in Revenue. The Revenue will grow by 1.43% on average per year.
EPS Next Y-69.62%
EPS Next 2Y-42.49%
EPS Next 3Y-29.42%
EPS Next 5YN/A
Revenue Next Year3.13%
Revenue Next 2Y0.65%
Revenue Next 3Y1.43%
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.
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
The Price/Earnings ratio is 11.57, which indicates a very decent valuation of STR.
The rest of the industry has a similar Price/Earnings ratio as STR.
Compared to an average S&P500 Price/Earnings ratio of 29.62, STR is valued rather cheaply.
A Price/Forward Earnings ratio of 37.81 indicates a quite expensive valuation of STR.
Based on the Price/Forward Earnings ratio, STR is valued a bit more expensive than 70.44% of the companies in the same industry.
STR is valuated expensively when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 37.81 |
4.2 Price Multiples
STR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, STR is valued a bit cheaper than the industry average as 70.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.73 | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
STR's earnings are expected to decrease with -29.42% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-42.49%
EPS Next 3Y-29.42%
5. Dividend
5.1 Amount
STR has a Yearly Dividend Yield of 7.51%, which is a nice return.
Compared to an average industry Dividend Yield of 6.67, STR pays a better dividend. On top of this STR pays more dividend than 80.79% 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 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.51% |
5.2 History
The dividend of STR has a limited annual growth rate of 1.12%.
STR has paid a dividend for at least 10 years, which is a reliable track record.
STR has decreased its dividend 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-42.49%
EPS Next 3Y-29.42%
20.01
+0.03 (+0.15%)
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 Change0.02%
Market Cap3.06B
Analysts76.36
Price Target28.73 (43.58%)
Short Float %1.95%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.51% |
Yearly Dividend1.05
Dividend Growth(5Y)1.12%
DP-1048.49%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)3.55%
PT rev (3m)4.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)18.55%
EPS NY rev (3m)8.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 37.81 | ||
| P/S | 5.16 | ||
| P/FCF | 9.73 | ||
| P/OCF | 6.28 | ||
| P/B | 1.9 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 7.15 |
EPS(TTM)1.73
EY8.65%
EPS(NY)0.53
Fwd EY2.64%
FCF(TTM)2.06
FCFY10.28%
OCF(TTM)3.19
OCFY15.93%
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 | 0.86 |
F-Score3
WACC8.96%
ROIC/WACC0.48
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-69.62%
EPS Next 2Y-42.49%
EPS Next 3Y-29.42%
EPS Next 5YN/A
Revenue 1Y (TTM)60.54%
Revenue growth 3Y148%
Revenue growth 5Y43.59%
Sales Q2Q%-4.68%
Revenue Next Year3.13%
Revenue Next 2Y0.65%
Revenue Next 3Y1.43%
Revenue Next 5YN/A
EBIT growth 1Y31.05%
EBIT growth 3Y217.45%
EBIT growth 5Y32.27%
EBIT Next Year191.31%
EBIT Next 3Y41.33%
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%