Executive Summary
Santos Limited explores for, develops, produces, transports, and markets hydrocarbons for homes and businesses in Australia and Asia.
Snowflake
Fundamentals
Adequate balance sheet and fair value.
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
Market Performance
7 Day Return
6.4%
STO
3.9%
AU Oil and Gas
2.5%
AU Market
1 Year Return
11.4%
STO
-9.7%
AU Oil and Gas
11.1%
AU Market
Return vs Industry: STO exceeded the Australian Oil and Gas industry which returned -9.7% over the past year.
Return vs Market: STO matched the Australian Market which returned 11.1% over the past year.
Shareholder returns
| STO | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.4% | 3.9% | 2.5% |
| 30 Day | -0.1% | -1.4% | 0.7% |
| 90 Day | 14.3% | 2.7% | 1.4% |
| 1 Year | 14.2%11.4% | -5.9%-9.7% | 17.5%11.1% |
| 3 Year | 111.6%105.0% | 17.0%4.7% | 37.8%19.4% |
| 5 Year | -22.3%-38.5% | -12.1%-28.0% | 51.7%17.6% |
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
10 months ago | Simply Wall St
Is Santos Limited's (ASX:STO) 3.6% ROE Worse Than Average?1 year ago | Simply Wall St
Santos Limited (ASX:STO): Can It Deliver A Superior ROE To The Industry?1 year ago | Simply Wall St
Who Owns Santos Limited (ASX:STO)?Valuation
Is Santos undervalued compared to its fair value and its price relative to the market?
43.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: STO (A$7.83) is trading below our estimate of fair value (A$13.84)
Significantly Undervalued: 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 (12x) compared to the Oil and Gas industry average (9.2x).
PE vs Market: STO is good value based on its PE Ratio (12x) compared to the Australian market (18x).
Price to Earnings Growth Ratio
Low PEG Ratio: STO is poor value based on its PEG Ratio (4.8x)
Price to Book Ratio
PB vs Industry: STO is overvalued based on its PB Ratio (1.5x) compared to the AU Oil and Gas industry average (1.3x).
Next Steps
Future Growth
How is Santos forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
2.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STO's forecast earnings growth (2.5% per year) is above the savings rate (2.3%).
Earnings vs Market: STO's earnings (2.5% per year) are forecast to grow slower than the Australian market (10.3% per year).
High Growth Earnings: STO's earnings are forecast to grow, but not significantly.
Revenue vs Market: STO's revenue (3.3% per year) is forecast to grow slower than the Australian market (3.6% per year).
High Growth Revenue: STO's revenue (3.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: STO's Return on Equity is forecast to be low in 3 years time (11.6%).
Next Steps
Past Performance
How has Santos performed over the past 5 years?
35.7%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: STO's earnings have grown significantly by 35.7% per year over the past 5 years.
Accelerating Growth: STO's earnings growth over the past year (265.6%) exceeds its 5-year average (35.7% per year).
Earnings vs Industry: STO earnings growth over the past year (265.6%) exceeded the Oil and Gas industry 68.1%.
Return on Equity
High ROE: STO's Return on Equity (12.1%) is considered low.
Return on Assets
ROA vs Industry: STO's Return on Assets is below or equal to the Oil and Gas industry average last year.
Return on Capital Employed
ROCE Improving: STO's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Santos's financial position?
Financial Position Analysis
Short Term Liabilities: STO's short term assets ($2.0B) exceeds its short term liabilities ($1.2B)
Long Term Liabilities: STO's short term assets (2.0B) do not cover its long term liabilities (8.5B)
Debt to Equity History and Analysis
Debt Level: STO's debt to equity ratio (56.4%) is considered high
Reducing Debt: STO's debt to equity ratio has reduced from 63.5% to 56.4% over the past 5 years.
Debt Coverage: STO's debt is well covered by operating cash flow (46.7%).
Interest Coverage: STO's interest payments on its debt are well covered by EBIT (6.8x coverage).
Balance Sheet
Inventory Level: STO has a high level of physical assets or inventory.
Debt Coverage by Assets: STO's debt is not covered by short term assets (assets are 0.5x debt).
Next Steps
Dividend
What is Santos's current dividend yield, its reliability and sustainability?
2.34%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: STO's dividend (2.35%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.46%).
High Dividend: STO's dividend (2.35%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).
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: With its reasonably low payout ratio (27.8%), STO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: STO's dividends in 3 years are forecast to be well covered by earnings (19.3% payout ratio).
Next Steps
Management
What is the CEO of Santos's salary, the management and board of directors tenure and is there insider trading?
2.6yrs
Average management tenure
CEO
Kevin Gallagher (54yo)
3.7yrs
Tenure
US$3,860,154
Compensation
Mr. Kevin Thomas Gallagher, B.Eng, MAICD, FIEAust, has been the Chief Executive Officer and Managing Director of Santos Limited since February 1, 2016. Mr. Gallagher served as the Chief Executive Officer o ...
CEO Compensation Analysis
Compensation vs. Market: Kevin's total compensation ($USD3.86M) is about average for companies of similar size in the Australian market ($USD3.84M).
Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.6yrs
Average Tenure
Experienced Management: STO's management team is considered experienced (2.6 years average tenure).
Board Age and Tenure
3.4yrs
Average Tenure
64yo
Average Age
Experienced Board: STO's board of directors are considered experienced (3.4 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 34,097,349 |
| Max Price | US$7.46 |
| Entity | Company |
| Shares | 29,350,802 |
| Max Price | US$7.46 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 8,600 |
| Max Price | US$6.95 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 6,437 |
| Max Price | US$6.99 |
Ownership Breakdown
Management Team
Brett Woods
Executive Vice President of Developments
- Tenure: 2.6yrs
- Compensation: US$1.18m
Andrew Nairn
Group Executive of Investor Relations
- Tenure: 11.7yrs
Vince Santostefano
Executive Vice President of Production Operations
- Tenure: 2.6yrs
- Compensation: US$1.30m
Anthony Neilson
Chief Financial Officer
- Tenure: 2.8yrs
- Compensation: US$1.15m
Kevin Gallagher (54yo)
MD, CEO & Director
- Tenure: 3.7yrs
- Compensation: US$3.86m
Christian Paech
Company Secretary & General Council
- Tenure: 9.8yrs
Phil Byrne
Executive Vice President of Marketing
- Tenure: 2.2yrs
- Compensation: US$884.52k
Bill Ovenden
Executive Vice President of Exploration & New Ventures
- Tenure: 2.6yrs
Brett Darley (52yo)
Executive Vice President of Offshore Oil & Gas
- Tenure: 0.9yrs
- Compensation: US$644.15k
David Banks
Executive Vice President of Onshore Oil & Gas
- Tenure: 1.8yrs
- Compensation: US$69.59k
Board Members
Peter Hearl (68yo)
Independent Non-Executive Director
- Tenure: 3.4yrs
- Compensation: US$181.14k
Keith Spence (65yo)
Independent Chairman
- Tenure: 1.7yrs
- Compensation: US$354.69k
Yasmin Allen (55yo)
Independent Non-Executive Director
- Tenure: 5yrs
- Compensation: US$189.17k
Guy Cowan (67yo)
Independent Non-Executive Director
- Tenure: 3.4yrs
- Compensation: US$169.46k
Hock Goh (64yo)
Independent Non-Executive Director
- Tenure: 7yrs
- Compensation: US$175.16k
Vanessa Guthrie (57yo)
Independent Non-Executive Director
- Tenure: 2.3yrs
- Compensation: US$162.79k
Kevin Gallagher (54yo)
MD, CEO & Director
- Tenure: 3.7yrs
- Compensation: US$3.86m
Guan Yu
Non-Executive Director
- Tenure: 0.4yrs
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$16.227b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SSLZ.Y | OTCPK (Pink Sheets LLC) | Sponsored Adr | US | USD | Jan 1975 | |
| STOS.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1975 |
| STS1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1975 |
| STO | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 1975 |
| STO | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 1975 |
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 & ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/17 10:34 |
| End of Day Share Price | 2019/10/17 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.