Executive Summary
Santos Limited explores for, develops, produces, transports, and markets hydrocarbons for homes and businesses in Australia and Asia.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with moderate 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.9%
STO
0.8%
AU Oil and Gas
0.7%
AU Market
1 Year Return
15.8%
STO
-8.5%
AU Oil and Gas
15.8%
AU Market
Return vs Industry: STO exceeded the Australian Oil and Gas industry which returned -8.5% over the past year.
Return vs Market: STO matched the Australian Market which returned 15.8% over the past year.
Shareholder returns
| STO | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.9% | 0.8% | 0.7% |
| 30 Day | -9.1% | -8.5% | 0.4% |
| 90 Day | 1.0% | -1.8% | 6.5% |
| 1 Year | 18.7%15.8% | -4.6%-8.5% | 21.0%15.8% |
| 3 Year | 110.4%103.8% | 12.1%0.7% | 37.4%19.1% |
| 5 Year | 26.0%1.5% | 5.7%-11.1% | 50.7%17.1% |
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 year 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?
12.26x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: STO (A$8.07) is trading above our estimate of fair value (A$3.46)
Significantly Below Fair Value: STO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: STO is poor value based on its PE Ratio (12.3x) compared to the Oil and Gas industry average (8.7x).
PE vs Market: STO is good value based on its PE Ratio (12.3x) compared to the Australian market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: STO is poor value based on its PEG Ratio (1.2x)
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 (1.2x).
Next Steps
Future Growth
How is Santos forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
10.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STO's forecast earnings growth (10.2% per year) is above the savings rate (1.1%).
Earnings vs Market: STO's earnings (10.2% per year) are forecast to grow faster than the Australian market (9.2% per year).
High Growth Earnings: STO's earnings are forecast to grow, but not significantly.
Revenue vs Market: STO's revenue (4.7% per year) is forecast to grow faster than the Australian market (4.2% per year).
High Growth Revenue: STO's revenue (4.7% 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 (10.7%).
Next Steps
Past Performance
How has Santos performed over the past 5 years?
56.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STO has high quality earnings.
Growing Profit Margin: STO's current net profit margins (16.1%) are lower than last year (17.2%).
Past Earnings Growth Analysis
Earnings Trend: STO has become profitable over the past 5 years, growing earnings by 56.8% per year.
Accelerating Growth: STO's earnings growth over the past year (7%) is below its 5-year average (56.8% per year).
Earnings vs Industry: STO earnings growth over the past year (7%) underperformed the Oil and Gas industry 58.2%.
Return on Equity
High ROE: STO's Return on Equity (8.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Santos's financial position?
Financial Position Analysis
Short Term Liabilities: STO's short term assets ($2.0B) exceed 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.
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).
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: STO is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: STO is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Santos's current dividend yield, its reliability and sustainability?
2.30%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STO's dividend (2.3%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).
High Dividend: STO's dividend (2.3%) is low compared to the top 25% of dividend payers in the Australian market (5.42%).
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: With its low payout ratio (20.7%), 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 (39.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
Kevin Gallagher (54yo)
4yrs
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 ($USD3.71M).
Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 4yrs | US$3.86m | 0.034% $5.8m | |
| Chief Financial Officer | 3.2yrs | US$1.15m | 0.0011% $191.6k | |
| Executive Vice President of Developments | 2.9yrs | US$1.18m | 0.0052% $880.9k | |
| Executive Vice President of Production Operations | 2.9yrs | US$1.30m | 0.0030% $501.0k | |
| Executive Vice President of Onshore Oil & Gas | 2.1yrs | US$69.59k | 0.000040% $6.7k | |
| Executive Vice President of Offshore Oil & Gas | 1.3yrs | US$644.15k | no data | |
| Group Executive of Investor Relations | 12yrs | no data | no data | |
| Company Secretary & General Council | 10.1yrs | no data | no data | |
| Executive Vice President of Marketing | 0yrs | no data | no data | |
| Executive Vice President of Exploration & New Ventures | 2.9yrs | no data | no data |
2.9yrs
Average Tenure
Experienced Management: STO's management team is considered experienced (2.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 4yrs | US$3.86m | 0.034% $5.8m | |
| Independent Non-Executive Director | 3.8yrs | US$181.14k | 0.0023% $393.4k | |
| Independent Chairman | 2yrs | US$354.69k | 0.0031% $524.5k | |
| Independent Non-Executive Director | 5.3yrs | US$189.17k | 0.0024% $395.0k | |
| Independent Non-Executive Director | 3.8yrs | US$169.46k | 0.0016% $270.7k | |
| Independent Non-Executive Director | 7.3yrs | US$175.16k | 0.0032% $543.0k | |
| Independent Non-Executive Director | 2.6yrs | US$162.79k | 0.00079% $132.8k | |
| Independent Non-Executive Director | 0.3yrs | no data | 0.00024% $40.3k | |
| Non-Executive Director | 0.8yrs | no data | no data |
3.8yrs
Average Tenure
61yo
Average Age
Experienced Board: STO's board of directors are considered experienced (3.8 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 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$16.811b
- 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 & NSW, Papua New Guinea, Northern Australia, 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. Its proved plus probable reserves include 1,022 million barrels of oil equivalent. The company was founded in 1954 and is headquartered in Adelaide, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 10:36 |
| End of Day Share Price | 2020/02/20 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.