Sitio Royalties Corp.
Sitio Royalties Corp. Fundamental Analysis
Sitio Royalties Corp. (STRDW) shows weak financial fundamentals with a PE ratio of 37.82, profit margin of 6.06%, and ROE of 2.57%. The company generates $50.9B in annual revenue with moderate year-over-year growth of 5.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STRDW's fundamental strength across five key dimensions:
Efficiency Score
WeakSTRDW struggles to generate sufficient returns from assets.
Valuation Score
ModerateSTRDW shows balanced valuation metrics.
Growth Score
ModerateSTRDW shows steady but slowing expansion.
Financial Health Score
ExcellentSTRDW maintains a strong and stable balance sheet.
Profitability Score
ModerateSTRDW maintains healthy but balanced margins.
Key Financial Metrics
Is STRDW Expensive or Cheap?
P/E Ratio
STRDW trades at 37.82 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, STRDW's PEG of -2.23 indicates potential undervaluation.
Price to Book
The market values Sitio Royalties Corp. at 1.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.63 times EBITDA. This is generally considered low.
How Well Does STRDW Make Money?
Net Profit Margin
For every $100 in sales, Sitio Royalties Corp. keeps $6.06 as profit after all expenses.
Operating Margin
Core operations generate 31.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.57 in profit for every $100 of shareholder equity.
ROA
Sitio Royalties Corp. generates $0.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sitio Royalties Corp. generates strong operating cash flow of $35.96B, reflecting robust business health.
Free Cash Flow
Sitio Royalties Corp. generates strong free cash flow of $23.32B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.62 in free cash annually.
FCF Yield
STRDW converts 20.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.003
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How STRDW Stacks Against Its Sector Peers
| Metric | STRDW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.82 | 20.19 | Worse (Expensive) |
| ROE | 2.57% | 1019.00% | Weak |
| Net Margin | 6.06% | -44017.00% (disorted) | Weak |
| Debt/Equity | 0.78 | -0.65 (disorted) | Distorted |
| Current Ratio | 4.04 | 4.60 | Strong Liquidity |
| ROA | 0.81% | -11655350.00% (disorted) | Weak |
STRDW outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sitio Royalties Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.79%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-59.07%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
19.16%
Industry Style: Cyclical, Value, Commodity
High Growth