Santos Limited
Santos Limited Fundamental Analysis
Santos Limited (SSLZY) shows weak financial fundamentals with a PE ratio of 20.38, profit margin of 16.35%, and ROE of 5.22%. The company generates $5.0B in annual revenue with weak year-over-year growth of -8.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SSLZY's fundamental strength across five key dimensions:
Efficiency Score
WeakSSLZY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSSLZY trades at attractive valuation levels.
Growth Score
WeakSSLZY faces weak or negative growth trends.
Financial Health Score
ExcellentSSLZY maintains a strong and stable balance sheet.
Profitability Score
ModerateSSLZY maintains healthy but balanced margins.
Key Financial Metrics
Is SSLZY Expensive or Cheap?
P/E Ratio
SSLZY trades at 20.38 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SSLZY's PEG of -1.09 indicates potential undervaluation.
Price to Book
The market values Santos Limited at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.09 times EBITDA. This is generally considered low.
How Well Does SSLZY Make Money?
Net Profit Margin
For every $100 in sales, Santos Limited keeps $16.35 as profit after all expenses.
Operating Margin
Core operations generate 29.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.22 in profit for every $100 of shareholder equity.
ROA
Santos Limited generates $2.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Santos Limited generates strong operating cash flow of $2.71B, reflecting robust business health.
Free Cash Flow
Santos Limited generates strong free cash flow of $716.39M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.22 in free cash annually.
FCF Yield
SSLZY converts 4.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How SSLZY Stacks Against Its Sector Peers
| Metric | SSLZY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.38 | 19.94 | Neutral |
| ROE | 5.22% | 987.00% | Weak |
| Net Margin | 16.35% | -42983.00% (disorted) | Strong |
| Debt/Equity | 0.56 | -0.60 (disorted) | Distorted |
| Current Ratio | 1.53 | 4.67 | Neutral |
| ROA | 2.56% | -11498250.00% (disorted) | Weak |
SSLZY outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Santos Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-14.42%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
15.98%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-11.04%
Industry Style: Cyclical, Value, Commodity
Declining