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Santos

ASX:STO
Snowflake Description

Mediocre balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STO
ASX
A$15B
Market Cap
  1. Home
  2. AU
  3. Energy
Company description

Santos Limited explores for, develops, produces, transports, and markets hydrocarbons for homes and businesses in Australia and Asia. The last earnings update was 58 days ago. More info.


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STO Share Price and Events
7 Day Returns
2.7%
ASX:STO
1.4%
AU Oil and Gas
0.7%
AU Market
1 Year Returns
20.3%
ASX:STO
3.8%
AU Oil and Gas
4.7%
AU Market
STO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Santos (STO) 2.7% 0.8% 19.1% 20.3% 56.3% -46.1%
AU Oil and Gas 1.4% -1.6% 5.5% 3.8% 28.7% -32.5%
AU Market 0.7% 1.1% 6.5% 4.7% 17.5% 4.9%
1 Year Return vs Industry and Market
  • STO outperformed the Oil and Gas industry which returned 3.8% over the past year.
  • STO outperformed the Market in Australia which returned 4.7% over the past year.
Price Volatility
STO
Industry
5yr Volatility vs Market

STO Value

 Is Santos undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Santos to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Santos.

ASX:STO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:STO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.953 (1 + (1- 30%) (45.75%))
1.173
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.173 * 5.96%)
9.3%

Discounted Cash Flow Calculation for ASX:STO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Santos is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:STO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.3%)
2019 912.42 Analyst x5 834.75
2020 1,002.63 Analyst x4 839.19
2021 1,265.27 Analyst x3 968.87
2022 1,396.99 Est @ 10.41% 978.68
2023 1,508.49 Est @ 7.98% 966.83
2024 1,603.22 Est @ 6.28% 940.08
2025 1,684.83 Est @ 5.09% 903.83
2026 1,756.54 Est @ 4.26% 862.09
2027 1,821.06 Est @ 3.67% 817.67
2028 1,880.52 Est @ 3.26% 772.49
Present value of next 10 years cash flows $8,884.50
ASX:STO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,880.52 × (1 + 2.31%) ÷ (9.3% – 2.31%)
$27,514.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $27,514.90 ÷ (1 + 9.3%)10
$11,302.79
ASX:STO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $8,884.50 + $11,302.79
$20,187.28
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $20,187.28 / 2,082.96
$9.69
ASX:STO Discount to Share Price
Calculation Result
Exchange Rate USD/AUD
(Reporting currency to currency of ASX:STO)
1.399
Value per Share
(AUD)
= Value per Share in USD x Exchange Rate (USD/AUD)
= $9.69 x 1.399
A$13.56
Value per share (AUD) From above. A$13.56
Current discount Discount to share price of A$7.22
= -1 x (A$7.22 - A$13.56) / A$13.56
46.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Santos is available for.
Intrinsic value
47%
Share price is A$7.22 vs Future cash flow value of A$13.56
Current Discount Checks
For Santos to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Santos's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Santos's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Santos's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Santos's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:STO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.30
ASX:STO Share Price ** ASX (2019-04-18) in AUD A$7.22
ASX:STO Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.715 $5.16
Australia Oil and Gas Industry PE Ratio Median Figure of 23 Publicly-Listed Oil and Gas Companies 7.92x
Australia Market PE Ratio Median Figure of 545 Publicly-Listed Companies 16.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Santos.

ASX:STO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:STO Share Price ÷ EPS (both in USD)

= 5.16 ÷ 0.30

17.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Santos is overvalued based on earnings compared to the AU Oil and Gas industry average.
  • Santos is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Santos's expected growth come at a high price?
Raw Data
ASX:STO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
4.9%per year
Australia Oil and Gas Industry PEG Ratio Median Figure of 17 Publicly-Listed Oil and Gas Companies 0.24x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:STO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.07x ÷ 4.9%

3.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Santos is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Santos's assets?
Raw Data
ASX:STO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $3.49
ASX:STO Share Price * ASX (2019-04-18) in AUD A$7.22
ASX:STO Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.715 $5.16
Australia Oil and Gas Industry PB Ratio Median Figure of 144 Publicly-Listed Oil and Gas Companies 1.31x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.68x
ASX:STO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:STO Share Price ÷ Book Value per Share (both in USD)

= 5.16 ÷ 3.49

1.48x

* Primary Listing of Santos.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Santos is overvalued based on assets compared to the AU Oil and Gas industry average.
X
Value checks
We assess Santos's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Santos has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

STO Future Performance

 How is Santos expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Santos expected to grow at an attractive rate?
  • Santos's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Santos's earnings growth is positive but not above the Australia market average.
  • Santos's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:STO Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:STO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 4.9%
ASX:STO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 4.3%
Australia Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 4.2%
Australia Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.7%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.6%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:STO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:STO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 4,570 1,916 651 3
2022-12-31 4,503 1,813 651 3
2021-12-31 4,426 1,978 941 10
2020-12-31 4,444 1,945 912 14
2019-12-31 4,310 1,907 806 14
ASX:STO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,660 1,578 630
2018-09-30 3,496 1,415 440
2018-06-30 3,338 1,252 250
2018-03-31 3,223 1,250 -55
2017-12-31 3,100 1,248 -360
2017-09-30 2,976 1,219 -405
2017-06-30 2,852 1,189 -449
2017-03-31 2,723 1,015 -748
2016-12-31 2,594 840 -1,047
2016-09-30 2,483 763 -2,067
2016-06-30 2,372 686 -3,087
2016-03-31 2,407 749 -2,520

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Santos's earnings are expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).
  • Santos's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:STO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Santos Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:STO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.31 0.33 0.30 2.00
2022-12-31 0.31 0.31 0.31 2.00
2021-12-31 0.46 0.57 0.33 8.00
2020-12-31 0.45 0.57 0.34 11.00
2019-12-31 0.40 0.51 0.29 11.00
ASX:STO Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.30
2018-09-30 0.21
2018-06-30 0.12
2018-03-31 -0.03
2017-12-31 -0.17
2017-09-30 -0.20
2017-06-30 -0.23
2017-03-31 -0.40
2016-12-31 -0.58
2016-09-30 -1.24
2016-06-30 -2.00
2016-03-31 -1.87

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Santos is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Santos's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Santos has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

STO Past Performance

  How has Santos performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Santos's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Santos's year on year earnings growth rate has been positive over the past 5 years.
  • Santos has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Santos has become profitable in the last year making it difficult to compare the AU Oil and Gas industry average.
Earnings and Revenue History
Santos's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Santos Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:STO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,660.00 630.00 194.00
2018-09-30 3,495.50 440.00 187.00
2018-06-30 3,338.00 250.00 183.00
2018-03-31 3,222.50 -55.00 189.50
2017-12-31 3,100.00 -360.00 193.00
2017-09-30 2,976.00 -404.50 216.50
2017-06-30 2,852.00 -449.00 240.00
2017-03-31 2,723.00 -748.00 242.50
2016-12-31 2,594.00 -1,047.00 245.00
2016-09-30 2,483.00 -2,067.00 238.50
2016-06-30 2,372.00 -3,087.00 232.00
2016-03-31 2,407.00 -2,520.00 284.00
2015-12-31 2,442.00 -1,953.00 336.00
2015-09-30 2,463.00 -1,336.43 326.90
2015-06-30 2,915.67 -848.13 377.85
2015-03-31 2,989.88 -776.67 330.82
2014-12-31 3,303.47 -765.11 306.04
2014-09-30 3,506.10 -211.70 279.93
2014-06-30 3,752.53 425.33 250.86
2014-03-31 3,514.44 448.29 212.32
2013-12-31 3,221.39 461.48 171.71
2013-09-30 3,196.24 487.92 197.22
2013-06-30 2,963.34 483.36 210.56
2013-03-31 3,361.96 544.89 263.86
2012-12-31 3,346.31 538.86 287.60
2012-09-30 3,250.84 534.37 321.14
2012-06-30 3,114.80 523.06 345.97

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Santos has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Santos used its assets less efficiently than the AU Oil and Gas industry average last year based on Return on Assets.
  • Santos has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Santos's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Santos has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

STO Health

 How is Santos's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Santos's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Santos is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Santos's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Santos's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Santos Company Filings, last reported 3 months ago.

ASX:STO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 7,279.00 4,919.00 1,325.00
2018-09-30 7,279.00 4,919.00 1,325.00
2018-06-30 6,998.00 3,829.00 1,506.00
2018-03-31 6,998.00 3,829.00 1,506.00
2017-12-31 7,151.00 3,943.00 1,231.00
2017-09-30 7,151.00 3,943.00 1,231.00
2017-06-30 6,917.00 4,980.00 2,243.00
2017-03-31 6,917.00 4,980.00 2,243.00
2016-12-31 7,080.00 5,239.00 2,033.00
2016-09-30 7,080.00 5,239.00 2,033.00
2016-06-30 6,369.00 5,387.00 1,035.00
2016-03-31 6,369.00 5,387.00 1,035.00
2015-12-31 7,421.00 5,398.00 840.00
2015-09-30 7,172.13 5,217.06 811.98
2015-06-30 7,475.28 6,925.77 307.85
2015-03-31 7,408.00 6,863.44 305.08
2014-12-31 7,702.63 6,752.59 638.27
2014-09-30 8,234.26 7,218.65 682.33
2014-06-30 9,569.48 6,063.09 448.91
2014-03-31 9,408.00 5,960.78 441.33
2013-12-31 9,132.94 5,161.20 577.74
2013-09-30 9,545.26 5,394.21 603.82
2013-06-30 9,063.03 4,504.05 1,493.11
2013-03-31 10,304.45 5,121.00 1,697.63
2012-12-31 9,711.88 3,845.71 2,229.14
2012-09-30 9,717.25 3,843.32 2,231.91
2012-06-30 9,509.19 3,614.31 2,995.04
  • Santos's level of debt (67.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (56.6% vs 67.6% today).
  • Debt is well covered by operating cash flow (32.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.8x coverage).
X
Financial health checks
We assess Santos's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Santos has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

STO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.4%
Current annual income from Santos dividends. Estimated to be 1.91% next year.
If you bought A$2,000 of Santos shares you are expected to receive A$48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Santos's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • Santos's dividend is below the markets top 25% of dividend payers in Australia (5.81%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:STO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Australia Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 4.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:STO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.11 2.00
2022-12-31 0.07 3.00
2021-12-31 0.09 12.00
2020-12-31 0.11 16.00
2019-12-31 0.11 16.00
ASX:STO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-20 0.124 2.504
2018-08-23 0.070 1.540
2017-08-23 0.000 0.000
2017-02-16 0.000 0.000
2016-08-18 0.000 0.000
2016-02-18 0.071 2.352
2015-02-19 0.240 6.609
2014-08-21 0.309 3.904
2014-02-20 0.268 2.142
2013-08-15 0.261 2.065
2013-02-21 0.267 2.327
2012-08-16 0.305 2.612
2012-02-16 0.290 2.426
2011-08-19 0.283 2.413
2011-03-30 0.376 2.681
2011-02-17 0.363 2.533
2010-08-26 0.373 3.204
2010-02-18 0.343 3.117
2009-08-20 0.348 2.879
2009-04-20 0.295 2.851

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Santos's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.9x coverage).
X
Income/ dividend checks
We assess Santos's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Santos afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Santos has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

STO Management

 What is the CEO of Santos's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kevin Gallagher
COMPENSATION $3,860,154
AGE 53
TENURE AS CEO 3.2 years
CEO Bio

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 of Oil & Gas Business Platform at Murray & Roberts Holdings Ltd., until February 2016 and served as its Operations Executive. He served as the Chief Executive Officer and Managing Director at Clough Limited since November 3, 2011 until February 3, 2016. He served as the Chief Executive Officer of Clough at Murray & Roberts Holdings Ltd., since December 2011. He served as an Executive Vice President of North West Shelf and Chief Executive Officer of North West Shelf Venture at Woodside Petroleum Ltd. until October 31, 2011. He served as Senior Vice President of Australia Business Until at Woodside Petroleum Ltd. He has more than 25 years of global oil & gas industry experience in managing oil and gas operations in Australia, the USA and North and West Africa. He has an established track record in strategy development, execution and building and motivating high performance teams and also has significant experience working in complex contractual environments. He has been with Woodside Petroleum Ltd. since 1998 and served as its Senior Vice President of Australia Business Unit. He spent roles in Mobil Corporation. Mr. Gallagher has 13 years experience with Woodside Energy, where he has led oil and gas operations in Australia, the USA and North and West Africa. He has been a Director at Santos Limited and Santos Finance Ltd. since February 16, 2016. He has been Director of Santos (BBF) Pty Ltd. since March 4, 2016 and Santos (JPDA 91-12) Pty Ltd. since March 07, 2016. He serves as a Director of Western Australian Rugby Union Inc. He served as a Director of Clough Projects Australia Pty Limited until January 29, 2016. He served as a Non Executive Director of Forge Group Limited from November 2011 to March 28, 2013. He served as a Director of Clough Limited until January 29, 2016. Mr. Gallagher is a Member of the Institute of Company Directors. He commenced his career as a drilling engineer with Mobil North Sea, before joining Woodside in 1998.

CEO Compensation
  • Kevin's compensation has increased in line with Santos recently becoming profitable.
  • Kevin's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Santos management team in years:

2.1
Average Tenure
  • The tenure for the Santos management team is about average.
Management Team

Kevin Gallagher

TITLE
MD, CEO & Director
COMPENSATION
$4M
AGE
53
TENURE
3.2 yrs

Anthony Neilson

TITLE
Chief Financial Officer
COMPENSATION
$1M
TENURE
2.3 yrs

Phil Byrne

TITLE
Executive Vice President of Marketing
COMPENSATION
$885K
TENURE
1.7 yrs

Brett Woods

TITLE
Executive Vice President of Developments
COMPENSATION
$1M
TENURE
2.1 yrs

Vince Santostefano

TITLE
Executive Vice President of Production Operations
COMPENSATION
$1M
TENURE
2.1 yrs

David Banks

TITLE
Executive Vice President of Onshore Oil & Gas
COMPENSATION
$70K
TENURE
1.3 yrs

Brett Darley

TITLE
Executive Vice President of Offshore Oil & Gas
COMPENSATION
$644K
AGE
51
TENURE
0.4 yrs

Andrew Nairn

TITLE
Group Executive of Investor Relations
TENURE
11.2 yrs

Christian Paech

TITLE
Company Secretary & General Council
TENURE
9.3 yrs

Bill Ovenden

TITLE
Executive Vice President of Exploration & New Ventures
TENURE
2.1 yrs
Board of Directors Tenure

Average tenure and age of the Santos board of directors in years:

2.9
Average Tenure
63
Average Age
  • The average tenure for the Santos board of directors is less than 3 years, this suggests a new board.
Board of Directors

Keith Spence

TITLE
Chairman
COMPENSATION
$355K
AGE
64
TENURE
1.2 yrs

Kevin Gallagher

TITLE
MD, CEO & Director
COMPENSATION
$4M
AGE
53
TENURE
3.2 yrs

Yasmin Allen

TITLE
Independent Non-Executive Director
COMPENSATION
$189K
AGE
54
TENURE
4.5 yrs

Peter Hearl

TITLE
Independent Non-Executive Director
COMPENSATION
$181K
AGE
67
TENURE
2.9 yrs

Guy Cowan

TITLE
Independent Non-Executive Director
COMPENSATION
$169K
AGE
66
TENURE
2.9 yrs

Hock Goh

TITLE
Independent Non-Executive Director
COMPENSATION
$175K
AGE
63
TENURE
6.5 yrs

Eugene Shi

TITLE
Non-Executive Director
COMPENSATION
$169K
TENURE
1.8 yrs

Vanessa Guthrie

TITLE
Independent Non-Executive Director
COMPENSATION
$163K
AGE
56
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Santos insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
26. Feb 19 Buy Vanessa Guthrie Individual 22. Feb 19 22. Feb 19 6,437 A$6.99 A$44,995
26. Feb 19 Buy Guy Cowan Individual 22. Feb 19 22. Feb 19 8,600 A$6.95 A$59,770
07. May 18 Buy BlackRock, Inc. Company 28. Feb 18 04. May 18 1,787,488 A$6.24 A$11,090,022
X
Management checks
We assess Santos's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Santos has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

STO News

Simply Wall St News

Is Santos Limited's (ASX:STO) 3.6% ROE Worse Than Average?

This article is for those who would like to learn about Return On Equity (ROE). … How Do You Calculate Return On Equity … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Santos Limited (ASX:STO): Can It Deliver A Superior ROE To The Industry?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Santos Limited (ASX:STO) generated a below-average return on equity of 3.6% in the past 12 months, while its industry returned 11.5%. … An investor may attribute an inferior ROE to a relatively inefficient performance, and whilst this can often be the case, knowing the nuts and bolts of the ROE calculation may change that perspective and give you a deeper insight into STO's past performance.

Simply Wall St -

Who Owns Santos Limited (ASX:STO)?

I am going to take a deep dive into Santos Limited’s (ASX:STO) most recent ownership structure, not a frequent subject of discussion among individual investors. … Ownership structure of a company has been found to affect share performance over time. … Therefore, it is beneficial for us to examine STO's ownership structure in more detail.

Simply Wall St -

What You Must Know About Santos Limited's (ASX:STO) Financial Strength

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Santos Limited (ASX:STO), with a market capitalization of US$13.06b, rarely draw their attention from the investing community. … This article will examine STO’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Santos Limited (ASX:STO): Is Breakeven Near?

Santos Limited explores for, develops, produces, transports, and markets hydrocarbons for homes, businesses, and major industries in Australia and Asia. … The AU$12.81b market-cap company announced a latest loss of -AU$360.00m on 31 December 2017 for its most recent financial year result. … Check out our latest analysis for Santos

Simply Wall St -

Where Santos Limited (ASX:STO) Stands In Terms Of Earnings Growth Against Its Industry

Assessing Santos Limited's (ASX:STO) performance as a company requires looking at more than just a years' earnings data. … Below, I will run you through a simple sense check to build perspective on how Santos is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its oil and gas industry peers. … STO is loss-making, with the most recent trailing twelve-month earnings of -AU$360.00m (from 31 December 2017), which compared to last year has become.

Simply Wall St -

Is It The Right Time To Buy Santos Limited (ASX:STO)?

This is based on its high beta, which is a good indicator for share price volatility. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. … However, with a relatively muted revenue growth of 5.80% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Santos, at least in the short term.

Simply Wall St -

Santos Limited (ASX:STO): What Does It Mean For Your Portfolio?

Every stock in the market is exposed to this risk, which arises from macroeconomic factors such as economic growth and geo-political tussles just to name a few. … Not every stock is exposed to the same level of market risk. … Therefore, investors can expect a low beta associated with the size of STO, but a higher beta given the nature of the industry it operates in.

Simply Wall St -

Should You Be Concerned About Santos Limited's (ASX:STO) Shareholders?

In this article, I'm going to take a look at Santos Limited’s (ASX:STO) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … An ownership of this size indicates a strong financial backing and has the potential to influence STO's business strategy. … Thus, investors should dig deeper into STO's business relations with these companies and how it can affect shareholder returns in the long-term.Next Steps: STO's considerably high level of institutional ownership calls for further analysis into its margin of safety.

Simply Wall St -

Are Earnings Prospects Improving For Loss-Making Santos Limited's (ASX:STO)?

Today I will take a look at Santos Limited's (ASX:STO) most recent earnings update (31 December 2017) and compare these latest figures against its performance over the past few years, as well as how the rest of the oil and gas industry performed. … I look at the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … Though Santos's past data is helpful, it is only one aspect of my investment thesis.

Simply Wall St -

STO Company Info

Description

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.

Details
Name: Santos Limited
STO
Exchange: ASX
Founded: 1954
A$15,038,999,163
2,082,963,873
Website: http://www.santos.com
Address: Santos Limited
Santos Centre,
Ground Floor,
Adelaide,
South Australia, 5000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX STO Ordinary Shares Australian Securities Exchange AU AUD 06. Jan 1975
OTCPK STOS.F Ordinary Shares Pink Sheets LLC US USD 06. Jan 1975
DB STS1 Ordinary Shares Deutsche Boerse AG DE EUR 06. Jan 1975
CHIA STO Ordinary Shares Chi-X Australia AU AUD 06. Jan 1975
OTCPK SSLZ.Y Sponsored Adr Pink Sheets LLC US USD 06. Jan 1975
Number of employees
Current staff
Staff numbers
2,190
Santos employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 10:32
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/20
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.