| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 3/6 |
| Financial Health | 5/6 |
| Dividends | 2/6 |
STO Stock Overview
Santos Limited explores for, develops, produces, transports, and markets hydrocarbons for homes and businesses in Australia and Asia.
Santos Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | AU$7.26 |
| 52 Week High | AU$7.84 |
| 52 Week Low | AU$5.84 |
| Beta | 1.86 |
| 1 Month Change | 16.16% |
| 3 Month Change | 3.13% |
| 1 Year Change | 0.69% |
| 3 Year Change | 15.42% |
| 5 Year Change | 78.38% |
| Change since IPO | 148.63% |
Recent News & Updates
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...
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...
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...
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
| STO | AU Oil and Gas | AU Market | |
|---|---|---|---|
| 7D | 3.9% | 0.05% | -1.7% |
| 1Y | 0.7% | 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
| STO volatility | |
|---|---|
| STO Average Weekly Movement | 4.4% |
| Oil and Gas Industry Average Movement | 10.6% |
| Market Average Movement | 8.5% |
| 10% most volatile stocks in AU Market | 15.3% |
| 10% least volatile stocks in AU Market | 3.6% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1954 | 2,722 | Kevin Gallagher | https://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
| STO fundamental statistics | |
|---|---|
| Market Cap | US$17.72b |
| Earnings (TTM) | US$286.00m |
| Revenue (TTM) | US$3.76b |
62.0x
P/E Ratio4.7x
P/S RatioIs STO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| STO income statement (TTM) | |
|---|---|
| Revenue | US$3.76b |
| Cost of Revenue | US$2.88b |
| Gross Profit | US$878.00m |
| Expenses | US$592.00m |
| Earnings | US$286.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Feb 16, 2022
| Earnings per share (EPS) | 0.085 |
| Gross Margin | 23.36% |
| Net Profit Margin | 7.61% |
| Debt/Equity Ratio | 71.5% |
How did STO perform over the long term?
See historical performance and comparisonDividends
2.0%
Current Dividend Yield77%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/20 15:48 |
| End of Day Share Price | 2022/01/20 00:00 |
| Earnings | 2021/06/30 |
| 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.