Executive Summary
Santos Limited explores for, develops, produces, transports, and markets hydrocarbons for homes and businesses in Australia and Asia. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has Santos's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
Market Performance
7 Day Return
-0.6%
STO
-2.0%
AU Oil and Gas
-1.4%
AU Market
1 Year Return
52.4%
STO
17.6%
AU Oil and Gas
34.8%
AU Market
Return vs Industry: STO exceeded the Australian Oil and Gas industry which returned 17.7% over the past year.
Return vs Market: STO exceeded the Australian Market which returned 35.1% over the past year.
Shareholder returns
| STO | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.6% | -2.0% | -1.4% |
| 30 Day | -2.0% | -5.3% | -1.1% |
| 90 Day | 1.6% | -4.4% | 1.5% |
| 1 Year | 54.6%52.4% | 20.8%17.6% | 39.2%34.8% |
| 3 Year | 18.7%12.2% | -25.0%-32.2% | 30.1%14.6% |
| 5 Year | 70.9%61.5% | 8.1%-6.3% | 62.2%30.9% |
Long-Term Price Volatility Vs. Market
How volatile is Santos's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Is There An Opportunity With Santos Limited's (ASX:STO) 44% Undervaluation?2 months ago | Simply Wall St
Announcing: Santos (ASX:STO) Stock Increased An Energizing 112% In The Last Five Years4 months ago | Simply Wall St
Here's Why Santos (ASX:STO) Has A Meaningful Debt BurdenValuation
Is Santos undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STO (A$7.01) is trading below our estimate of fair value (A$15.9)
Significantly Below Fair Value: STO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: STO is unprofitable, so we can't compare its PE Ratio to the Australian Oil and Gas industry average.
PE vs Market: STO is unprofitable, so we can't compare its PE Ratio to the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate STO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: STO is good value based on its PB Ratio (1.6x) compared to the AU Oil and Gas industry average (2.1x).
Future Growth
How is Santos forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
32.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: STO is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: STO's is expected to become profitable in the next 3 years.
Revenue vs Market: STO's revenue (5.5% per year) is forecast to grow faster than the Australian market (4.9% per year).
High Growth Revenue: STO's revenue (5.5% 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 (9.7%).
Past Performance
How has Santos performed over the past 5 years?
65.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STO is currently unprofitable.
Growing Profit Margin: STO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: STO is unprofitable, but has reduced losses over the past 5 years at a rate of 65.3% per year.
Accelerating Growth: Unable to compare STO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: STO is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-10.5%).
Return on Equity
High ROE: STO has a negative Return on Equity (-4.94%), as it is currently unprofitable.
Financial Health
How is Santos's financial position?
Financial Position Analysis
Short Term Liabilities: STO's short term assets ($2.7B) exceed its short term liabilities ($1.5B).
Long Term Liabilities: STO's short term assets ($2.7B) do not cover its long term liabilities ($8.9B).
Debt to Equity History and Analysis
Debt Level: STO's debt to equity ratio (62.8%) is considered high.
Reducing Debt: STO's debt to equity ratio has reduced from 72.5% to 62.8% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable STO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: STO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 50.8% per year.
Dividend
What is Santos's current dividend yield, its reliability and sustainability?
1.30%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STO's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.08%).
High Dividend: STO's dividend (1.3%) is low compared to the top 25% of dividend payers in the Australian market (5.2%).
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: STO is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: STO's dividends in 3 years are forecast to be well covered by earnings (28.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Kevin Gallagher (55 yo)
5.25yrs
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 ($USD3.39M).
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 considered experienced (4.3 years average tenure).
Board Members
Experienced Board: STO's board of directors are considered experienced (5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: STO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Santos Limited's company bio, 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
- Market Cap: AU$14.557b
- Shares outstanding: 2.08b
- Website: https://www.santos.com
Number of Employees
Location
- Santos Limited
- Santos Centre
- Ground Floor
- Adelaide
- South Australia
- 5000
- Australia
Listings
Biography
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 a...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/16 08:18 |
| End of Day Share Price | 2021/05/14 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.