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STO

SantosASX:STO Stock Report

Last Price

AU$7.26

Market Cap

AU$24.5b

7D

3.9%

1Y

0.7%

Updated

20 Jan, 2022

Data

Company Financials +
STO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance3/6
Financial Health5/6
Dividends2/6

STO Stock Overview

Santos Limited explores for, develops, produces, transports, and markets hydrocarbons for homes and businesses in Australia and Asia.

Santos Competitors

Woodside Petroleum

ASX:WPL

AU$25.1b

Oil Search

ASX:OSH

AU$8.4b

Beach Energy

ASX:BPT

AU$3.4b

Karoon Energy

ASX:KAR

AU$1.1b

Price History & Performance

Summary of all time highs, changes and price drops for Santos
Historical stock prices
Current Share PriceAU$7.26
52 Week HighAU$7.84
52 Week LowAU$5.84
Beta1.86
1 Month Change16.16%
3 Month Change3.13%
1 Year Change0.69%
3 Year Change15.42%
5 Year Change78.38%
Change since IPO148.63%

Recent News & Updates

Nov 08
Is There An Opportunity With Santos Limited's (ASX:STO) 50% Undervaluation?

Is There An Opportunity With Santos Limited's (ASX:STO) 50% Undervaluation?

How far off is Santos Limited ( ASX:STO ) from its intrinsic value? Using the most recent financial data, we'll take a...

Oct 14
Santos (ASX:STO) Takes On Some Risk With Its Use Of Debt

Santos (ASX:STO) Takes On Some Risk With Its Use Of Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Aug 23
We Like The Quality Of Santos' (ASX:STO) Earnings

We Like The Quality Of Santos' (ASX:STO) Earnings

The market seemed underwhelmed by last week's earnings announcement from Santos Limited ( ASX:STO ) despite the healthy...

Jun 26
Is Santos (ASX:STO) A Risky Investment?

Is Santos (ASX:STO) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

STOAU Oil and GasAU Market
7D3.9%0.05%-1.7%
1Y0.7%5.2%7.7%

Return vs Industry: STO underperformed the Australian Oil and Gas industry which returned 5.2% over the past year.

Return vs Market: STO underperformed the Australian Market which returned 7.7% over the past year.

Price Volatility

Is STO's price volatile compared to industry and market?
STO volatility
STO Average Weekly Movement4.4%
Oil and Gas Industry Average Movement10.6%
Market Average Movement8.5%
10% most volatile stocks in AU Market15.3%
10% least volatile stocks in AU Market3.6%

Stable Share Price: STO is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: STO's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19542,722Kevin Gallagherhttps://www.santos.com

Santos Limited explores for, develops, produces, transports, and markets hydrocarbons for homes and businesses in Australia and Asia. Its five principal assets are located in the Cooper Basin, Queensland and NSW, Papua New Guinea, Northern Australia and Timor-Leste, and Western Australia. The company produces natural gas, such as liquefied petroleum gas, ethane, methane, coal seam gas, liquefied natural gas, shale gas, and condensate, as well as oil.

Santos Fundamentals Summary

How do Santos's earnings and revenue compare to its market cap?
STO fundamental statistics
Market CapUS$17.72b
Earnings (TTM)US$286.00m
Revenue (TTM)US$3.76b

62.0x

P/E Ratio

4.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STO income statement (TTM)
RevenueUS$3.76b
Cost of RevenueUS$2.88b
Gross ProfitUS$878.00m
ExpensesUS$592.00m
EarningsUS$286.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 16, 2022

Earnings per share (EPS)0.085
Gross Margin23.36%
Net Profit Margin7.61%
Debt/Equity Ratio71.5%

How did STO perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

77%

Payout Ratio

Valuation

Is Santos undervalued compared to its fair value and its price relative to the market?

35.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STO (A$7.26) is trading below our estimate of fair value (A$11.29)

Significantly Below Fair Value: STO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: STO is poor value based on its PE Ratio (62x) compared to the Australian Oil and Gas industry average (31.5x).

PE vs Market: STO is poor value based on its PE Ratio (62x) compared to the Australian market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: STO is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: STO is good value based on its PB Ratio (2.4x) compared to the AU Oil and Gas industry average (2.5x).


Future Growth

How is Santos forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STO's forecast earnings growth (15.7% per year) is above the savings rate (1.9%).

Earnings vs Market: STO's earnings (15.7% per year) are forecast to grow faster than the Australian market (11.4% per year).

High Growth Earnings: STO's earnings are forecast to grow, but not significantly.

Revenue vs Market: STO's revenue (7.8% per year) is forecast to grow faster than the Australian market (4.9% per year).

High Growth Revenue: STO's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STO's Return on Equity is forecast to be low in 3 years time (10.1%).


Past Performance

How has Santos performed over the past 5 years?

59.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STO has high quality earnings.

Growing Profit Margin: STO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: STO has become profitable over the past 5 years, growing earnings by 59.9% per year.

Accelerating Growth: STO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: STO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-50.5%).


Return on Equity

High ROE: STO's Return on Equity (3.9%) is considered low.


Financial Health

How is Santos's financial position?


Financial Position Analysis

Short Term Liabilities: STO's short term assets ($3.7B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: STO's short term assets ($3.7B) do not cover its long term liabilities ($9.5B).


Debt to Equity History and Analysis

Debt Level: STO's net debt to equity ratio (38.4%) is considered satisfactory.

Reducing Debt: STO's debt to equity ratio has reduced from 83.6% to 71.5% over the past 5 years.

Debt Coverage: STO's debt is well covered by operating cash flow (30.3%).

Interest Coverage: STO's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Dividend

What is Santos's current dividend yield, its reliability and sustainability?

2.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STO's dividend (2%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.21%).

High Dividend: STO's dividend (2%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


Stability and Growth of Payments

Stable Dividend: STO's dividend payments have been volatile in the past 10 years.

Growing Dividend: STO's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.5%), STO's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STO's dividends in 3 years are forecast to be well covered by earnings (34.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Kevin Gallagher (56 yo)

5.92yrs

Tenure

US$4,238,484

Compensation

Mr. Kevin Thomas Gallagher, B.Eng, MAICD, FIEAust, has been the Chief Executive Officer and Managing Director of Santos Limited since February 1, 2016. Mr. Gallagher served as the Chief Executive Officer o...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD4.24M) is about average for companies of similar size in the Australian market ($USD3.74M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: STO's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: STO's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 62.2%.


Top Shareholders

Company Information

Santos Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Santos Limited
  • Ticker: STO
  • Exchange: ASX
  • Founded: 1954
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: AU$24.537b
  • Shares outstanding: 3.38b
  • Website: https://www.santos.com

Number of Employees


Location

  • Santos Limited
  • Santos Centre
  • Ground Floor
  • Adelaide
  • South Australia
  • 5000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 15:48
End of Day Share Price2022/01/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.