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Stock

Santos Limited

SSLZY
37
Oil & Gas Exploration & Production · Energy
Price
$6.29
-0.10 (-1.56%)
Market Cap
$20.43B
Exchange
Other OTC
Winston Score
37
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Sep 15, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Mixed
Growth
Weak
Cash Flow
Strong
Stability
Strong
Valuation
Strong
Dividends
Mixed

Share count rising — dilution

+51.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 2.15B (2021) → 3.25B (2025)

§Winston Score History

The full picture

Santos is one of Australia's largest oil and gas companies. It finds, produces, and sells natural gas and crude oil, supplying energy to homes, power plants, and industrial customers across the Asia-Pacific region. The company is a major operator of liquefied natural gas (LNG) projects, including the GLNG facility in Queensland and the Papua New Guinea LNG project.

Santos makes money by selling natural gas, LNG, and oil on both long-term contracts and spot markets. It operates primarily in Australia, Papua New Guinea, and Timor-Leste, with a market cap around $20 billion. Its large reserve base and established LNG infrastructure give it a strong position in Asian energy markets. Key growth drivers include expanding LNG capacity and its Barossa gas project, though the company faces risks from volatile commodity prices and increasing pressure to reduce carbon emissions.

Score breakdown

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Quality

Profit per sale
Gross Margin
19.6%
Thin — 19.6% gross margin
Profit after running costs
Operating Margin
16.0%
Healthy — 16.0% operating margin
Return on the money invested
ROCE
4.6%
Weak — 4.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
-3.1%
Shrinking sales (-3.1% YoY)
Profit growth
EPS YoY
-28.1%
Earnings shrinking (-28.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
1/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
257%
Turns 257% of profit into real cash
Spare cash per sale
FCF Margin
5.3%
Thin free cash flow (5.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.47
Conservative — low debt load (0.47)
Covers its interest
Interest Cover
4.56x
Adequate interest coverage (4.6x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
27.3x
Growth-priced — P/E 27.3

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+14.7
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (27.3 → 12.7)

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Dividends

Dividend
Dividend Yield
3.77%
Moderate income — 3.77% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
-11.5%
Dividend cut (-11.5% YoY) — warning sign

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