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A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Sitio Royalties's Debt-to-EBITDA or its related term are showing as below:
STR.WS'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.14 Med: 0.76 Max: 1.43
Current: 0.74
During the past 6 years, the highest Debt-to-EBITDA Ratio of Sitio Royalties was 1.43. The lowest was 0.14. And the median was 0.76.
STR.WS's Debt-to-EBITDA is not ranked
in the Oil & Gas industry.
Industry Median: 1.83
vs STR.WS: 0.74
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Sitio Royalties Debt-to-EBITDA Related Terms
Sitio Royalties Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Sitio Royalties's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STR.WS vs AMPY, CEI, EP: Debt-to-EBITDA Comparison
For the Oil & Gas E&P subindustry, Sitio Royalties's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sitio Royalties Debt-to-EBITDA vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Sitio Royalties's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Sitio Royalties's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2022) EBITDA data.
Sitio Royalties (STR.WS) has a Debt-to-EBITDA of 0.98 as of Mar. 2022. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Sitio Royalties. This is 29% above median its historical median of 0.76. Over the past decade, Sitio Royalties' Debt-to-EBITDA has ranged from 0.14 to 1.43.
Is Sitio Royalties' Debt-to-EBITDA too high?
Sitio Royalties' current Debt-to-EBITDA of 0.98 is 29% above median its 10-year median of 0.76. Over the past 10 years, this metric has ranged from a low of 0.14 to a high of 1.43. The Oil & Gas industry median Debt-to-EBITDA is 1.83. Sitio Royalties' value of 0.98 is 46.4% below this industry median. Overall, Sitio Royalties has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Sitio Royalties' Debt-to-EBITDA compare to AMPY and CEI?
Sitio Royalties' Debt-to-EBITDA of 0.98 can be compared against companies in the Oil & Gas industry. The industry median Debt-to-EBITDA is 1.83. Sitio Royalties' value of 0.98 is 46.4% below this benchmark. Historically, Sitio Royalties' own Debt-to-EBITDA has ranged from 0.14 to 1.43 over the past decade. While the company's 10-year median is 0.76 vs. the industry median of 1.83, Sitio Royalties has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Oil & Gas company?
The median Debt-to-EBITDA among Oil & Gas companies is 1.83, based on 718 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sitio Royalties's current Debt-to-EBITDA of 0.98 is 46.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Sitio Royalties. For the Oil & Gas industry, the median Debt-to-EBITDA is 1.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sitio Royalties's current Debt-to-EBITDA is 0.98, which is 29% above median its own 10-year median of 0.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sitio Royalties stock overvalued right now?
Sitio Royalties (STR.WS) has a current Debt-to-EBITDA of 0.98. The current Debt-to-EBITDA is 0.98, which is 29% above median its 10-year median of 0.76 and 46.4% below the Oil & Gas industry median of 1.83. Sitio Royalties' overall GF Score™ is 12/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Sitio Royalties (STR.WS), the current Debt-to-EBITDA is 0.98 as of Mar. 2022. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Sitio Royalties Corp is a pure-play mineral and royalty company. The group is focused on large-scale consolidation of high-quality oil & gas mineral and royalty interests across premium basins. Sitio invests in mineral and royalty interests in the Permian and other productive U.S. oil basins.
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