Santos (SSLZY) AI Stock Analysis

• Market Cap: $16.17B
• Dividend Yield: 4.41%
• Average Volume (3M): 1.42K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.63
• Revenue Growth: -9.46%
• EPS Growth: -13.76%
• Country: US
• Employees: 3,958
• Sector: Energy
• Sector Strength: 76
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.17
• Shares Outstanding: 3,247,773,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,421
• PEG Ratio: 0.02
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.60
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 9.85
• Enterprise Value/Ebitda: 1.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $5.50 ▲(10.00%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 (SSLZY) is a leading independent energy company in the Asia-Pacific region, with a focus on the exploration, development, production, and sale of natural gas and oil. Founded in 1954, the company operates across Australia and Papua New Guinea, supplying energy to domestic and international markets. Santos is committed to providing cleaner energy solutions and has a growing portfolio in liquefied natural gas (LNG), which is pivotal to its operations.

How the Company Makes Money

Santos makes money primarily through the exploration and production of hydrocarbons, focusing on natural gas and oil. Its revenue streams are generated from the sale of these products to both domestic and international markets. A significant portion of Santos' earnings comes from its liquefied natural gas (LNG) operations, which involve long-term contracts with major global buyers. Additionally, the company engages in joint ventures and strategic partnerships that enhance its production capabilities and market reach. Santos also invests in sustainable energy projects, aligning with its commitment to reduce carbon emissions and transition to cleaner energy sources, which could potentially contribute to future revenue streams.

Santos Financial Statement Overview

Summary

Santos displays a mixed financial performance with strong gross margins but concerning EBIT absence in 2024. The balance sheet is stable with moderate leverage, yet cash flow issues suggest potential liquidity risks.

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: 5.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 is above the 20-day moving average (MA) of 4.51, above the 50-day MA of 4.12, and above the 200-day MA of 4.23, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 77.09 is Negative, neither overbought nor oversold. The STOCH value of 87.94 is Negative, 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
CTRA	77 Outperform	$20.59B	15.74	9.40%	3.26%	10.33%	-0.13%
OVV	76 Outperform	$10.78B	17.68	6.17%	3.08%	-14.46%	-67.20%
WDS	75 Outperform	$31.52B	8.90	10.23%	6.32%	-0.93%	115.30%
DVN	74 Outperform	$22.02B	7.80	20.88%	2.92%	12.06%	-16.37%
SSLZY	70 Outperform	$16.17B	13.18	7.94%	4.41%	-9.46%	-13.76%
Sector *	68 Neutral	$15.30B	9.97	6.41%	5.16%	4.26%	-71.53%
AR	67 Neutral	$13.59B	58.44	3.21%	―	6.67%	240.70%