Santos Ltd
ASX:STO

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Santos Ltd
ASX:STO
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Price: 6.92 AUD 1.76% Market Closed
Market Cap: 22.4B AUD
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Intrinsic Value

The intrinsic value of one STO stock under the Base Case scenario is 12.69 AUD. Compared to the current market price of 6.92 AUD, Santos Ltd is Undervalued by 45%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

STO Intrinsic Value
12.69 AUD
Undervaluation 45%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

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Santos Ltd

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Economic Moat
Santos Ltd

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0-3
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0-6
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0-12
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Investment Journal
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for Santos Ltd with those of its competitors based on recent analyst estimates.

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of Santos Ltd and its key competitors using the latest financial data.

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of Santos Ltd against its competitors.

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(gross, operating, and net) of Santos Ltd compared to its peers.

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of Santos Ltd against its peers.

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comparing Santos Ltd with its peers.

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Business Breakdown

Santos Ltd. is a leading independent oil and gas producer based in Australia, with a legacy that dates back to 1954. The company operates across the entire energy spectrum, engaging in exploration, production, and development of oil and gas projects in not only Australia but also in several international locations, including Papua New Guinea and the Asia-Pacific region. Notably, Santos has made significant strides in sustainability and innovation, incorporating advanced technologies such as carbon capture and storage (CCS) into its operations. This commitment to environmentally-friendly practices positions Santos favorably as global energy demands evolve and investors increasingly prioritize...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Santos Ltd

Current Assets 3.1B
Cash & Short-Term Investments 1.7B
Receivables 892m
Other Current Assets 472m
Non-Current Assets 26.4B
Long-Term Investments 415m
PP&E 23B
Intangibles 1.3B
Other Non-Current Assets 1.7B
Current Liabilities 2.8B
Accounts Payable 973m
Other Current Liabilities 1.8B
Non-Current Liabilities 11.3B
Long-Term Debt 5.5B
Other Non-Current Liabilities 5.8B
Efficiency

Earnings Waterfall
Santos Ltd

Revenue
5.8B USD
Cost of Revenue
-3.5B USD
Gross Profit
2.2B USD
Operating Expenses
-403m USD
Operating Income
1.8B USD
Other Expenses
-563m USD
Net Income
1.3B USD

Free Cash Flow Analysis
Santos Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

The company maintains its guidance of 6 million tonnes per annum, looking to expand GLNG operations. Capital expenses have risen over 30% due to contractor issues, such as capability and capacity, impacting productivity and causing delays. However, progress is substantial, with major components in place and startup slated for early 2024, despite higher costs. On another front, Barossa project's Phase 1 remains within the original scope, now budgeted at $4.3 billion, up from $3.6 billion.

What is Earnings Call?
Fundamental Scores

STO Profitability Score
Profitability Due Diligence

Santos Ltd's profitability score is 58/100. The higher the profitability score, the more profitable the company is.

Positive Free Cash Flow
Positive Operating Income
Positive Gross Profit
Positive 3-Years Revenue Growth
58/100
Profitability
Score

Santos Ltd's profitability score is 58/100. The higher the profitability score, the more profitable the company is.

STO Solvency Score
Solvency Due Diligence

Santos Ltd's solvency score is 39/100. The higher the solvency score, the more solvent the company is.

Low D/E
Long-Term Solvency
Short-Term Solvency
Positive Net Debt
39/100
Solvency
Score

Santos Ltd's solvency score is 39/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

STO Price Targets Summary
Santos Ltd

Wall Street analysts forecast STO stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for STO is 8.23 AUD with a low forecast of 7.37 AUD and a high forecast of 9.14 AUD.

Lowest
Price Target
7.37 AUD
7% Upside
Average
Price Target
8.23 AUD
19% Upside
Highest
Price Target
9.14 AUD
32% Upside
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Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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Safe
0
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Shareholder Yield

Current shareholder yield for STO is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Buyback Yield
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Ownership

STO Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
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STO News

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Profile

Santos Ltd Logo
Santos Ltd

Country

Australia

Industry

Energy

Market Cap

22.5B AUD

Dividend Yield

6.64%

Description

Santos Ltd. engages in the exploration, development, transportation, and marketing of natural gas. The company is headquartered in Adelaide, South Australia and currently employs 3,786 full-time employees. The firm is engaged in exploration and production activities in Australia. The firm sells Gas, ethane, liquefied natural gas (LNG), crude oil, condensate, naphtha and liquefied petroleum gas (LPG). The firm's segments comprise its key assets/operating areas: Cooper Basin; Queensland and NSW, Papua New Guinea (PNG), Northern Australia and Timor-Leste, and Western Australia. The Cooper Basin produces natural gas, gas liquids and crude oil. Gas is sold primarily to domestic retailers, industry and for the production of liquefied natural gas, while gas liquids and crude oil are sold in domestic and export markets. GLNG produces LNG for export to global markets from the LNG plant at Gladstone. The gas from GLNG is also sold into domestic markets.

Contact

SOUTH AUSTRALIA
Adelaide
Ground Floor Santos CTR, 60 Flinders Street
+61881165000.0
www.santos.com

IPO

1954-10-01

Employees

3 786

Officers

MD, CEO & Director
Mr. Kevin Thomas Gallagher B.Eng, FIEAust, MAICD
Chief Commercial Officer
Mr. Anthony Myles Neilson B.Com., BComm, CA, F.C.A., FFin, M.B.A.
Executive Vice President of Eastern Australia & Papua New Guinea
Mr. Brett Anthony Darley
Chief Financial Officer
Ms. Sherry Leigh Duhe B.S., M.B.A.
Executive VP of Operations & Technical Services
Mr. Steven Trench
Group Executive of Investor Relations
Mr. Andrew Nairn B.Comm
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Group General Counsel and Executive VP of Environment & Governance
Mr. Michael Abbott B.A., BJuris, L.L.B., M.B.A.
Executive Vice President of People & Brand
Ms. Kim Lee
Head of Environment & Access
Mr. Nick Fox
Executive Vice President of Western Australia, Northern Australia & Timor-Leste
Mr. Vince Santostefano BEng (Civil), SPE
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See Also

Discover More
What is the Intrinsic Value of one STO stock?

The intrinsic value of one STO stock under the Base Case scenario is 12.69 AUD.

Is STO stock undervalued or overvalued?

Compared to the current market price of 6.92 AUD, Santos Ltd is Undervalued by 45%.

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