STO Stock Overview
Santos Limited explores for, develops, produces, transports, and markets hydrocarbons for homes and businesses in Australia and the Asia Pacific.
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$7.18|
|52 Week High||AU$8.86|
|52 Week Low||AU$5.84|
|1 Month Change||2.87%|
|3 Month Change||-10.81%|
|1 Year Change||11.84%|
|3 Year Change||8.95%|
|5 Year Change||118.24%|
|Change since IPO||145.89%|
Recent News & Updates
Santos Limited's (ASX:STO) Intrinsic Value Is Potentially 34% Above Its Share Price
Does the May share price for Santos Limited ( ASX:STO ) reflect what it's really worth? Today, we will estimate the...
|STO||AU Oil and Gas||AU Market|
Return vs Industry: STO underperformed the Australian Oil and Gas industry which returned 32.9% over the past year.
Return vs Market: STO exceeded the Australian Market which returned -8.5% over the past year.
|STO Average Weekly Movement||4.5%|
|Oil and Gas Industry Average Movement||11.7%|
|Market Average Movement||10.6%|
|10% most volatile stocks in AU Market||18.0%|
|10% least volatile stocks in AU Market||4.6%|
Stable Share Price: STO is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: STO's weekly volatility (5%) has been stable over the past year.
About the Company
Santos Limited explores for, develops, produces, transports, and markets hydrocarbons for homes and businesses in Australia and the Asia Pacific. 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 also holds an asset in Alaska; and engages in the development of carbon capture and storage technologies.
Santos Fundamentals Summary
|STO fundamental statistics|
Is STO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|STO income statement (TTM)|
|Cost of Revenue||US$2.98b|
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
Aug 17, 2022
|Earnings per share (EPS)||0.20|
|Net Profit Margin||13.96%|
How did STO perform over the long term?See historical performance and comparison
3.3%Current Dividend Yield
Is STO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for STO?
Other financial metrics that can be useful for relative valuation.
|What is STO's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does STO's PE Ratio compare to its peers?
|STO PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
WDS Woodside Energy Group
BPT Beach Energy
YAL Yancoal Australia
Price-To-Earnings vs Peers: STO is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the peer average (14x).
Price to Earnings Ratio vs Industry
How does STO's PE Ratio compare vs other companies in the AU Oil and Gas Industry?
Price-To-Earnings vs Industry: STO is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the Australian Oil and Gas industry average (12.3x)
Price to Earnings Ratio vs Fair Ratio
What is STO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||25.9x|
|Fair PE Ratio||35.9x|
Price-To-Earnings vs Fair Ratio: STO is good value based on its Price-To-Earnings Ratio (25.9x) compared to the estimated Fair Price-To-Earnings Ratio (35.9x).
Share Price vs Fair Value
What is the Fair Price of STO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: STO (A$7.18) is trading below our estimate of fair value (A$16.47)
Significantly Below Fair Value: STO is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Santos forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STO's forecast earnings growth (9.7% per year) is above the savings rate (1.8%).
Earnings vs Market: STO's earnings (9.7% per year) are forecast to grow faster than the Australian market (6.1% per year).
High Growth Earnings: STO's earnings are forecast to grow, but not significantly.
Revenue vs Market: STO's revenue (4.4% per year) is forecast to grow slower than the Australian market (5.7% per year).
High Growth Revenue: STO's revenue (4.4% 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 (10.8%).
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How has Santos performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
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 38.3% 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 (299.7%).
Return on Equity
High ROE: STO's Return on Equity (4.8%) is considered low.
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How is Santos's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: STO's short term assets ($4.8B) exceed its short term liabilities ($3.0B).
Long Term Liabilities: STO's short term assets ($4.8B) do not cover its long term liabilities ($13.4B).
Debt to Equity History and Analysis
Debt Level: STO's net debt to equity ratio (30.8%) is considered satisfactory.
Reducing Debt: STO's debt to equity ratio has reduced from 73.1% to 52.7% over the past 5 years.
Debt Coverage: STO's debt is well covered by operating cash flow (31.7%).
Interest Coverage: STO's interest payments on its debt are well covered by EBIT (8.2x coverage).
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What is Santos's current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STO's dividend (3.33%) is higher than the bottom 25% of dividend payers in the Australian market (2.56%).
High Dividend: STO's dividend (3.33%) is low compared to the top 25% of dividend payers in the Australian market (6.28%).
Stability and Growth of Payments
Stable Dividend: STO's dividend payments have been volatile in the past 10 years.
Growing Dividend: STO's dividend payments have fallen over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (45.4%), STO's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (48.7%), STO's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Kevin Gallagher (57 yo)
Mr. Kevin Thomas Gallagher, B.Eng, MAICD, FIEAust, served as Independent Non-Executive Director at Mineral Resources Limited since March 01, 2022 until March 2022. He has been the Chief Executive Officer a...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD6.34M) is above average for companies of similar size in the Australian market ($USD4.21M).
Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.
Experienced Management: STO's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.
Experienced Board: STO's board of directors are considered experienced (4.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: STO insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 61.1%.
Santos Limited's employee growth, exchange listings and data sources
- Name: Santos Limited
- Ticker: STO
- Exchange: ASX
- Founded: 1954
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Implied Market Cap: AU$24.023b
- Shares outstanding: 3.35b
- Website: https://www.santos.com
Number of Employees
- Santos Limited
- Santos Centre
- Ground Floor
- South Australia
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/13 00:00|
|End of Day Share Price||2022/08/12 00:00|
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.