Sitio Royalties (STR) AI Stock Analysis

• Market Cap: $2.78B
• Dividend Yield: 7.59%
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 35.4
• Beta (1Y): 0.89
• Revenue Growth: 7.18%
• EPS Growth: N/A
• Country: US
• Employees: 72
• Sector: Energy
• Sector Strength: 51
• Industry: Industrial Materials
• EPS (TTM): 0.13
• Shares Outstanding: 77,445,760
• 10 Day Avg. Volume: 1,314,487
• 30 Day Avg. Volume: 1,536,222
• PEG Ratio: -0.03
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.01
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 5.16
• Enterprise Value/Ebitda: 0.75
• 1Y Price Target: $23.20
• Price Target Upside: 25.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $20.50 ▲(11.17%Upside)

Sitio Royalties' overall stock score reflects strong financial performance and strategic corporate events, such as the merger with Viper Energy, which are positive for future growth. However, valuation concerns and mixed technical indicators moderate the overall outlook. The earnings call supports a solid operational performance, but market uncertainties remain a concern.

Sitio Royalties Business Overview & Revenue Model

Company Description

Sitio Royalties (STR) is a company operating in the energy sector, specifically focusing on the acquisition and management of oil and gas mineral and royalty interests. The company's core services include the strategic acquisition of high-quality oil and gas properties, which are often located in prolific production areas across the United States. By managing these assets, Sitio Royalties aims to maximize the value of its portfolio and deliver consistent returns to its stakeholders.

How the Company Makes Money

Sitio Royalties makes money primarily through the collection of royalties from its ownership of mineral and royalty interests in oil and gas properties. These royalties are generated from the production and sale of oil and gas extracted from the land in which the company holds interests. Revenue is driven by factors such as the volume of production, prevailing oil and gas prices, and the terms of the lease agreements with operators. The company may also engage in strategic partnerships or transactions to enhance its asset portfolio and optimize revenue potential. Additionally, Sitio Royalties focuses on cost-effective management of its assets to ensure profitability and sustainability in fluctuating market conditions.

Sitio Royalties Financial Statement Overview

Summary

Sitio Royalties exhibits solid financial performance with consistent revenue growth and strong operational cash flows. The balance sheet is stable with a reasonable debt-to-equity ratio, though opportunities exist to enhance equity strength and shareholder returns. Despite a recent dip in free cash flow, effective cash management supports ongoing operations. Improving net margins and equity returns could further bolster the financial health.

Income Statement

Sitio Royalties shows a positive trajectory in revenue growth and profitability. The TTM data highlights a gross profit margin of 40.26% and a net profit margin of 6.72%, indicating efficient cost management. The revenue growth rate from 2024 to TTM is 1.94%, and the EBIT margin is 33.03%. While EBITDA margin stands at a robust 84.21%, the net profit margin is moderate, which suggests room for improvement in net earnings.

Balance Sheet

The balance sheet presents a stable financial structure with a debt-to-equity ratio of 0.76 and an equity ratio of 30.45%. Return on Equity (ROE) is relatively low at 3.00%, indicating moderate returns for shareholders. The company maintains a reasonable balance between debt and equity, but the equity position could be stronger to enhance financial resilience.

Cash Flow

Cash flow analysis reveals a moderate free cash flow growth rate of -14.42% from 2024 to TTM, indicating a decrease in available cash for investments. The operating cash flow to net income ratio is 10.41, demonstrating strong operational cash generation relative to net income. The free cash flow to net income ratio is 2.65, highlighting effective cash flow management despite recent capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	636.54M	624.41M	593.36M	369.61M	120.59M	45.70M
Gross Profit	256.26M	257.73M	423.27M	265.10M	79.68M	13.65M
EBITDA	535.96M	518.40M	323.75M	354.24M	90.78M	7.98M
Net Income	42.74M	40.95M	-15.54M	184.18M	47.49M	-14.21M
Balance Sheet
Total Assets	4.68B	4.74B	4.76B	5.17B	1.20B	275.73M
Cash, Cash Equivalents and Short-Term Investments	1.74M	3.29M	15.20M	18.82M	12.38M	2.72M
Total Debt	1.08B	1.09B	872.46M	945.76M	134.00M	39.80M
Total Liabilities	1.38B	1.39B	1.16B	1.28B	139.71M	47.33M
Stockholders Equity	1.43B	1.47B	1.61B	1.72B	560.62M	139.76M
Cash Flow
Free Cash Flow	113.43M	132.54M	316.95M	-393.45M	27.19M	-9.82M
Operating Cash Flow	445.17M	462.43M	487.50M	164.96M	65.93M	26.02M
Investing Cash Flow	-333.59M	-329.96M	-59.73M	-558.10M	-38.74M	-21.56M
Financing Cash Flow	-121.58M	-144.37M	-431.40M	399.20M	-22.34M	-15.06M

Sitio Royalties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STR, the sentiment is Negative. The current price of 18.44 is below the 20-day moving average (MA) of 19.29, above the 50-day MA of 18.04, and below the 200-day MA of 19.59, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 45.56 is Neutral, neither overbought nor oversold. The STOCH value of 5.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STR.

Sitio Royalties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STR	71 Outperform	$2.78B	35.42	2.86%	7.59%	7.18%	―
Sector *	68 Neutral	$14.81B	9.70	6.36%	5.32%	4.12%	-71.24%
MTRN	67 Neutral	$1.68B	172.27	1.14%	0.69%	6.97%	-87.87%
MP	57 Neutral	$5.38B	―	-9.62%	―	4.63%	-3189.81%
NEXA	56 Neutral	$654.25M	―	-16.64%	2.05%	12.30%	42.72%
GSM	48 Neutral	$683.05M	27.86	-7.29%	1.53%	-4.98%	-192.96%
TMC	42 Neutral	$2.53B	―	-667.42%	―	―	-3.49%

Sitio Royalties Corporate Events

Sitio Royalties Announces Merger with Viper Energy

On June 2, 2025, Sitio Royalties Corp. and Viper Energy, Inc. entered into a merger agreement where Viper will acquire Sitio in an all-equity transaction. The merger will result in Sitio becoming a wholly owned subsidiary of a new entity, New Cobra Pubco, Inc., which will operate under the name Viper Energy, Inc. Post-merger, Sitio stockholders will own approximately 20% of the new entity, while Viper stockholders will own about 80%. The merger is subject to customary closing conditions, including stockholder approvals and regulatory clearances. Sitio’s Board of Directors has unanimously approved the merger, deeming it fair and in the best interests of its stockholders.

The most recent analyst rating on (STR) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Sitio Royalties stock, see the STR Stock Forecast page.

Sitio Royalties Announces Merger with Viper Energy

On June 2, 2025, Sitio Royalties Corp. and Viper Energy, Inc. announced a merger agreement in which Viper will acquire Sitio in an all-equity transaction valued at approximately $4.1 billion. The merger, expected to close in the third quarter of 2025, will result in former Viper and Sitio stockholders owning about 80% and 20% of the new parent company, respectively. This strategic move is anticipated to enhance Viper’s production profile, cash flow growth, and financial accretion, while also providing significant synergies and access to investment-grade capital. The merger positions the combined entity as a leader in the mineral and royalty interests sector, particularly in the Permian Basin, with improved scale and competitive advantage.

The most recent analyst rating on (STR) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Sitio Royalties stock, see the STR Stock Forecast page.

Sitio Royalties Holds Successful 2025 Annual Meeting

On May 13, 2025, Sitio Royalties Corp. held its 2025 Annual Meeting of Stockholders, where stockholders voted on three key proposals. The election of directors saw high approval rates for all nine nominees, with Christopher L. Conoscenti receiving the highest support at 99.70%. Additionally, the company’s executive compensation was approved in a non-binding advisory vote, and KPMG LLP’s appointment as the independent registered public accounting firm for 2025 was ratified, indicating strong shareholder confidence in the company’s governance and financial oversight.

The most recent analyst rating on (STR) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Sitio Royalties stock, see the STR Stock Forecast page.

Sitio Royalties Amends Credit Agreement with JPMorgan

On May 8, 2025, Sitio Royalties Operating Partnership, LP, along with other guarantors, amended its Third Amended and Restated Credit Agreement with JPMorgan Chase Bank and other lenders. This Fifth Amendment reaffirmed the borrowing base at $925 million and adjusted certain terms and dates related to the semi-annual redetermination of the borrowing base, impacting the company’s financial operations and credit structure.

The most recent analyst rating on (STR) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on Sitio Royalties stock, see the STR Stock Forecast page.