STR.WS (Sitio Royalties) ROCE %: 9.57% (As of Mar. 2022)

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STR.WS Sitio Royalties Corp STR.WS
12 GF Score
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! 4 Warning Signs
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What is Sitio Royalties ROCE %?

Sitio Royalties STR.WS 12 ROCE % is 9.57% as of Mar. 2022. GuruFocus rates STR.WS with a GF Score™ of 12/100. The stock has 4 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Sitio Royalties's annualized ROCE % for the quarter that ended in Mar. 2022 was 9.57%.

Sitio Royalties  (AMEX:STR.WS) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Sitio Royalties ROCE % Related Terms

Sitio Royalties ROCE % Historical Data

* Premium members only.

The historical data trend for Sitio Royalties's ROCE % 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.

Sitio Royalties ROCE % Chart

Sitio Royalties Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROCE %
Get a 7-Day Free Trial 21.72 41.51 15.00 4.72 12.62

Sitio Royalties Quarterly Data
Dec16 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.19 13.45 18.71 16.63 9.57
STR.WS
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Sitio Royalties Corp STR.WS
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Sitio Royalties ROCE % Calculation

Sitio Royalties's annualized ROCE % for the fiscal year that ended in Dec. 2021 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2021 )  (A: Dec. 2020 )(A: Dec. 2021 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2021 )  (A: Dec. 2020 )(A: Dec. 2021 )
=33.475/( ( (275.629 - 3.097) + (261.841 - 3.973) )/ 2 )
=33.475/( (272.532+257.868)/ 2 )
=33.475/265.2
=12.62 %

Sitio Royalties's ROCE % of for the quarter that ended in Mar. 2022 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2022 )  (Q: Dec. 2021 )(Q: Mar. 2022 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2022 )  (Q: Dec. 2021 )(Q: Mar. 2022 )
=24.404/( ( (261.841 - 3.973) + (259.036 - 6.662) )/ 2 )
=24.404/( ( 257.868 + 252.374 )/ 2 )
=24.404/255.121
=9.57 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2022) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 9.57% mean?
Sitio Royalties (STR.WS) has a ROCE % of 9.57% as of Mar. 2022.
Is Sitio Royalties' ROCE % too high?
Sitio Royalties' current ROCE % is 9.57%. The Oil & Gas industry median ROCE % is 7.93. Sitio Royalties' value of 9.57% is 20.7% above 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' ROCE % compare to AMPY and CEI?
Sitio Royalties' ROCE % of 9.57% can be compared against companies in the Oil & Gas industry. The industry median ROCE % is 7.93. Sitio Royalties' value of 9.57% is 20.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Oil & Gas company?
The median ROCE % among Oil & Gas companies is 7.93, based on 981 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sitio Royalties's current ROCE % of 9.57% is 20.7% above 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Oil & Gas industry, the median ROCE % is 7.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sitio Royalties's current ROCE % is 9.57%. 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 ROCE % of 9.57%. The current ROCE % is 9.57% and 20.7% above the Oil & Gas industry median of 7.93. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Sitio Royalties (STR.WS), the current ROCE % is 9.57% 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 Business Description

Industry EnergyOil & Gas
Address 609 Main Street, Suite 3950, Houston, TX, USA, 77002
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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