Santos (SSLZY) AI Stock Analysis

• Market Cap: $16.29B
• Dividend Yield: 4.36%
• Average Volume (3M): 3.07K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.57
• Revenue Growth: -9.46%
• EPS Growth: -13.76%
• Country: US
• Employees: 3,958
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.17
• Shares Outstanding: 3,247,773,000
• 10 Day Avg. Volume: 1,146
• 30 Day Avg. Volume: 3,067
• PEG Ratio: -1.40
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.20
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 10.72
• Enterprise Value/Ebitda: 1.34
• 1Y Price Target: $5.50
• Price Target Upside: 9.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $5.50 ▲(9.34%Upside)

The overall stock score of 70 reflects solid financial stability and technical strength, with a fair valuation. Financial performance is the most significant factor, highlighting stability but also pointing to profitability and liquidity pressures. Technical analysis indicates bullish momentum, though caution is advised due to overbought signals. Valuation remains reasonable, providing a balanced investment case.

Santos Business Overview & Revenue Model

Company Description

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. In addition, it produces natural gas, liquefied petroleum gas, ethane, methane, coal seam gas, liquefied natural gas, shale gas, and condensate, as well as oil. The company's proved plus probable reserves include 1676 million barrels of oil equivalent. Santos Limited was incorporated in 1954 and is headquartered in Adelaide, Australia.

How the Company Makes Money

Santos Limited generates revenue primarily through the extraction and sale of natural gas, crude oil, and related hydrocarbons. The company's key revenue streams include the production and sale of LNG, which is exported to international markets, and the sale of domestic natural gas to Australian utilities and industrial customers. Santos also derives income from its oil production activities, with sales of crude oil and condensate contributing significantly to its earnings. The company benefits from strategic partnerships and joint ventures that enhance its exploration and production capabilities, allowing it to access new reserves and optimize operational efficiency. Additionally, Santos engages in long-term sales contracts and spot market sales, providing a balanced revenue model that capitalizes on both stable and flexible market opportunities.

Santos Financial Statement Overview

Summary

Santos exhibits a mixed financial performance. Strong gross margins contrast with the absence of EBIT in 2024, signaling profitability concerns. The balance sheet is solid with moderate leverage, yet cash flow challenges indicate liquidity risks. Overall, financial stability is present, but profitability and cash flow pressures persist.

Income Statement

The company demonstrated a fluctuating revenue with a significant drop from 2022 to 2023, followed by a decline in 2024. Gross profit margin improved in 2024 to 68.39% from 37.74% in 2023, indicating operational efficiency. However, the EBIT margin dropped to zero in 2024, raising concerns about core profitability. Net profit margin was stable at 22.65% in 2024, showing resilience despite revenue decline.

Balance Sheet

The balance sheet shows a robust equity position with an equity ratio of 52.44% in 2024. The debt-to-equity ratio is at a moderate 0.43, suggesting manageable leverage. Return on equity was 7.88% in 2024, indicating decent returns to shareholders. The overall balance sheet reflects stability with a healthy equity base.

Cash Flow

Free cash flow significantly declined in 2024, with a negative growth rate impacting cash reserves. The absence of operating cash flow data for 2024 limits the analysis. The free cash flow to net income ratio was 0.37 in 2023, showing limited cash generation relative to profits. The cash flow situation indicates potential liquidity challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.40B	5.89B	7.79B	4.64B	3.39B
Gross Profit	3.70B	2.22B	5.64B	1.59B	1.76B
EBITDA	3.67B	3.97B	4.97B	2.65B	1.04B
Net Income	1.22B	1.42B	2.11B	476.94M	-357.00M
Balance Sheet
Total Assets	29.63B	29.76B	28.86B	31.02B	17.66B
Cash, Cash Equivalents and Short-Term Investments	1.86B	2.13B	2.46B	2.97B	1.32B
Total Debt	6.69B	6.16B	5.52B	8.02B	5.00B
Total Liabilities	14.10B	14.48B	14.01B	17.45B	10.43B
Stockholders Equity	15.54B	15.28B	14.84B	13.57B	7.23B
Cash Flow
Free Cash Flow	449.00M	889.00M	2.15B	1.07B	1.29B
Operating Cash Flow	2.50B	3.26B	3.86B	2.14B	1.48B
Investing Cash Flow	-2.69B	-2.90B	-1.67B	-76.29M	-1.46B
Financing Cash Flow	-206.00M	-860.00M	-3.40B	-464.50M	246.00M

Santos Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSLZY, the sentiment is Positive. The current price of 5.03 is above the 20-day moving average (MA) of 5.02, above the 50-day MA of 4.54, and above the 200-day MA of 4.27, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 68.78 is Neutral, neither overbought nor oversold. The STOCH value of 29.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSLZY.

Santos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OVV	77 Outperform	$10.52B	17.24	6.17%	3.05%	-14.46%	-67.20%
DVN	76 Outperform	$20.66B	7.32	20.88%	3.02%	12.06%	-16.37%
CTRA	76 Outperform	$18.81B	14.38	9.40%	3.57%	10.33%	-0.13%
WDS	75 Outperform	$29.81B	8.24	10.23%	6.73%	-0.93%	115.30%
SSLZY	70 Outperform	$16.29B	13.32	7.94%	4.36%	-9.46%	-13.76%
Sector *	67 Neutral	$15.07B	9.71	6.33%	5.26%	4.07%	-67.00%
AR	67 Neutral	$11.28B	50.00	3.21%	―	6.67%	240.70%