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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sitio Royalties's annualized net income for the quarter that ended in Mar. 2022 was $-4.52 Mil. Sitio Royalties's average shareholder tangible equity for the quarter that ended in Mar. 2022 was $126.85 Mil. Therefore, Sitio Royalties's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2022 was -3.56%.
The historical rank and industry rank for Sitio Royalties's Return-on-Tangible-Equity or its related term are showing as below:
STR.WS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.25 Med: 14.6 Max: 56.15
Current: 10.15
During the past 6 years, Sitio Royalties's highest Return-on-Tangible-Equity was 56.15%. The lowest was 5.25%. And the median was 14.60%.
STR.WS's Return-on-Tangible-Equity is not ranked
in the Oil & Gas industry.
Industry Median: 8.4
vs STR.WS: 10.15
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sitio Royalties Return-on-Tangible-Equity Related Terms
Sitio Royalties Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sitio Royalties's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Oil & Gas E&P subindustry, Sitio Royalties's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Sitio Royalties's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sitio Royalties's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2022) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -3.56% mean?
Sitio Royalties (STR.WS) has a Return-on-Tangible-Equity of -3.56% as of Mar. 2022. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sitio Royalties and its competitors. Over the past decade, Sitio Royalties' Return-on-Tangible-Equity has ranged from 5.25 to 56.15.
Is Sitio Royalties' Return-on-Tangible-Equity too high?
Sitio Royalties' current Return-on-Tangible-Equity is -3.56%. Over the past 10 years, this metric has ranged from a low of 5.25 to a high of 56.15. Overall, Sitio Royalties has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Sitio Royalties' Return-on-Tangible-Equity compare to AMPY and CEI?
Sitio Royalties' Return-on-Tangible-Equity of -3.56% can be compared against companies in the Oil & Gas industry. The industry median Return-on-Tangible-Equity is 8.40. Historically, Sitio Royalties' own Return-on-Tangible-Equity has ranged from 5.25 to 56.15 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 8.40, based on 949 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sitio Royalties and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 8.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sitio Royalties's current Return-on-Tangible-Equity is -3.56%. 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 Return-on-Tangible-Equity of -3.56%. The current Return-on-Tangible-Equity is -3.56%. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sitio Royalties (STR.WS), the current Return-on-Tangible-Equity is -3.56% 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.
12GF Score
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