Sitio Royalties Corp. Class A
Find Ratings ReportsSITIO ROYALTIES CORP's gross profit margin for the third quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. SITIO ROYALTIES CORP is extremely liquid. Currently, the Quick Ratio is 5.04 which clearly shows the ability to cover any short-term cash needs. STR managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 6.38% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 156.71 | 115.5 |
EBITDA ($mil) | 132.67 | 98.5 |
EBIT ($mil) | 51.95 | 66.5 |
Net Income ($mil) | 0.29 | 69.01 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 1.34 | 10.81 |
Total Assets ($mil) | 5131.12 | 2486.42 |
Total Debt ($mil) | 1001.72 | 666.83 |
Equity ($mil) | 1680.24 | 1794.87 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 92.26 | 93.75 |
EBITDA Margin | 84.65 | 85.28 |
Operating Margin | 33.15 | 57.57 |
Sales Turnover | 0.11 | 0.13 |
Return on Assets | 0.52 | 8.19 |
Return on Equity | 1.59 | 11.35 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 5.96 | 6.29 |
Debt/Capital | 0.37 | 0.27 |
Interest Expense | 26.36 | 13.81 |
Interest Coverage | 1.97 | 4.82 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 81.76 | 12.71 |
Div / share | 0.4 | 0.71 |
EPS | 0.0 | 0.7 |
Book value / share | 20.55 | 141.26 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 502130.0 | 566119.0 |
HOLD. SITIO ROYALTIES CORP's P/E ratio indicates a significant premium compared to an average of 13.78 for the Oil and Gas Extraction subsector and a significant premium compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 1.13 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 2.46. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. The valuation analysis reveals that, SITIO ROYALTIES CORP seems to be trading at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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STR 83.21 | Peers 13.78 | STR NM | Peers 5.77 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. STR is trading at a significant premium to its peers. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. STR's P/CF is negative making the measure meaningless. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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STR 28.77 | Peers 11.29 | STR NM | Peers 8.64 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. STR is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. STR's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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STR 1.13 | Peers 2.46 | STR -74.32 | Peers 5.25 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. STR is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, STR is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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STR 3.50 | Peers 2.48 | STR 70.07 | Peers -8.61 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. STR is trading at a significant premium to its subsector. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. STR has a sales growth rate that significantly exceeds its peers. |
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