SM ENERGY CO (SM) Stock Fundamental Analysis
NYSE:SM - US78454L1008 - Common Stock
27.78 USD
+1.86 (+7.18%)
27.78 USD
0 (0%)
Taking everything into account, SM scores 5 out of 10 in our fundamental rating. SM was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. SM has an excellent profitability rating, but there are concerns on its financial health. SM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SM was profitable.
In the past year SM had a positive cash flow from operations.
SM had positive earnings in 4 of the past 5 years.
In the past 5 years SM always reported a positive cash flow from operatings.
1.2 Ratios
SM has a Return On Assets of 9.04%. This is amongst the best in the industry. SM outperforms 81.25% of its industry peers.
Looking at the Return On Equity, with a value of 17.71%, SM is in the better half of the industry, outperforming 77.88% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.02%, SM belongs to the best of the industry, outperforming 83.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SM is below the industry average of 23.53%.
The 3 year average ROIC (19.03%) for SM is well above the current ROIC(11.02%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.04% | ||
| ROE | 17.71% | ||
| ROIC | 11.02% |
ROA(3y)13.75%
ROA(5y)5.32%
ROE(3y)25.61%
ROE(5y)8.13%
ROIC(3y)19.03%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SM (25.94%) is better than 80.77% of its industry peers.
SM's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 33.89%, SM is doing good in the industry, outperforming 78.85% of the companies in the same industry.
In the last couple of years the Operating Margin of SM has grown nicely.
SM has a Gross Margin of 74.08%. This is amongst the best in the industry. SM outperforms 86.54% of its industry peers.
In the last couple of years the Gross Margin of SM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.89% | ||
| PM (TTM) | 25.94% | ||
| GM | 74.08% |
OM growth 3Y-4.43%
OM growth 5Y58.54%
PM growth 3Y174.7%
PM growth 5YN/A
GM growth 3Y-1.85%
GM growth 5Y2.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SM is creating value.
SM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SM has more shares outstanding
The debt/assets ratio for SM is higher compared to a year ago.
2.2 Solvency
SM has an Altman-Z score of 1.62. This is a bad value and indicates that SM is not financially healthy and even has some risk of bankruptcy.
SM has a Altman-Z score of 1.62. This is comparable to the rest of the industry: SM outperforms 57.69% of its industry peers.
SM has a Debt/Equity ratio of 0.59. This is a neutral value indicating SM is somewhat dependend on debt financing.
SM has a Debt to Equity ratio (0.59) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.62 |
ROIC/WACC1.35
WACC8.16%
2.3 Liquidity
A Current Ratio of 0.69 indicates that SM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.69, SM is doing worse than 77.40% of the companies in the same industry.
SM has a Quick Ratio of 0.69. This is a bad value and indicates that SM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SM (0.69) is worse than 70.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.19% over the past year.
Measured over the past years, SM shows a very strong growth in Earnings Per Share. The EPS has been growing by 54.53% on average per year.
Looking at the last year, SM shows a very strong growth in Revenue. The Revenue has grown by 28.20%.
The Revenue has been growing by 11.10% on average over the past years. This is quite good.
EPS 1Y (TTM)3.19%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%-18.92%
Revenue 1Y (TTM)28.2%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%24.96%
3.2 Future
Based on estimates for the next years, SM will show a decrease in Earnings Per Share. The EPS will decrease by -5.62% on average per year.
SM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.96% yearly.
EPS Next Y-15.02%
EPS Next 2Y-15.11%
EPS Next 3Y-1.06%
EPS Next 5Y-5.62%
Revenue Next Year22.22%
Revenue Next 2Y9.81%
Revenue Next 3Y8.96%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.09, which indicates a rather cheap valuation of SM.
96.63% of the companies in the same industry are more expensive than SM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.24, SM is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.68, the valuation of SM can be described as very cheap.
SM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SM is cheaper than 91.35% of the companies in the same industry.
SM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.09 | ||
| Fwd PE | 5.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SM is valued cheaply inside the industry as 91.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.78 |
4.3 Compensation for Growth
The excellent profitability rating of SM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.11%
EPS Next 3Y-1.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, SM has a reasonable but not impressive dividend return.
SM's Dividend Yield is comparable with the industry average which is at 6.34.
Compared to an average S&P500 Dividend Yield of 2.32, SM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
The dividend of SM is nicely growing with an annual growth rate of 49.05%!
SM has been paying a dividend for at least 10 years, so it has a reliable track record.
SM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)49.05%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
SM pays out 10.98% of its income as dividend. This is a sustainable payout ratio.
DP10.98%
EPS Next 2Y-15.11%
EPS Next 3Y-1.06%
27.78
+1.86 (+7.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners103.05%
Inst Owner Change-0.62%
Ins Owners1.47%
Ins Owner Change5.28%
Market Cap3.19B
Analysts76.36
Price Target40.89 (47.19%)
Short Float %8.72%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend0.74
Dividend Growth(5Y)49.05%
DP10.98%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.12%
Min EPS beat(2)6.01%
Max EPS beat(2)20.23%
EPS beat(4)3
Avg EPS beat(4)6.6%
Min EPS beat(4)-2.75%
Max EPS beat(4)20.23%
EPS beat(8)7
Avg EPS beat(8)8.49%
EPS beat(12)9
Avg EPS beat(12)6.19%
EPS beat(16)13
Avg EPS beat(16)37.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-1.79%
Max Revenue beat(2)-1.06%
Revenue beat(4)0
Avg Revenue beat(4)-2.59%
Min Revenue beat(4)-4.07%
Max Revenue beat(4)-1.06%
Revenue beat(8)2
Avg Revenue beat(8)-1.98%
Revenue beat(12)4
Avg Revenue beat(12)-0.69%
Revenue beat(16)8
Avg Revenue beat(16)7.52%
PT rev (1m)2.56%
PT rev (3m)2.78%
EPS NQ rev (1m)-5.61%
EPS NQ rev (3m)-26.12%
EPS NY rev (1m)-3.3%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)2.05%
Revenue NQ rev (3m)-3.11%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.09 | ||
| Fwd PE | 5.68 | ||
| P/S | 1.02 | ||
| P/FCF | N/A | ||
| P/OCF | 1.53 | ||
| P/B | 0.7 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 2.78 |
EPS(TTM)6.79
EY24.44%
EPS(NY)4.89
Fwd EY17.62%
FCF(TTM)-13.17
FCFYN/A
OCF(TTM)18.13
OCFY65.27%
SpS27.26
BVpS39.93
TBVpS39.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.04% | ||
| ROE | 17.71% | ||
| ROCE | 13.02% | ||
| ROIC | 11.02% | ||
| ROICexc | 11.16% | ||
| ROICexgc | 11.16% | ||
| OM | 33.89% | ||
| PM (TTM) | 25.94% | ||
| GM | 74.08% | ||
| FCFM | N/A |
ROA(3y)13.75%
ROA(5y)5.32%
ROE(3y)25.61%
ROE(5y)8.13%
ROIC(3y)19.03%
ROIC(5y)N/A
ROICexc(3y)20.6%
ROICexc(5y)N/A
ROICexgc(3y)20.6%
ROICexgc(5y)N/A
ROCE(3y)22.49%
ROCE(5y)N/A
ROICexcg growth 3Y-22.74%
ROICexcg growth 5Y66.18%
ROICexc growth 3Y-22.74%
ROICexc growth 5Y66.18%
OM growth 3Y-4.43%
OM growth 5Y58.54%
PM growth 3Y174.7%
PM growth 5YN/A
GM growth 3Y-1.85%
GM growth 5Y2.19%
F-Score3
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 350.58% | ||
| Cap/Sales | 114.84% | ||
| Interest Coverage | 8.06 | ||
| Cash Conversion | 99.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.62 |
F-Score3
WACC8.16%
ROIC/WACC1.35
Cap/Depr(3y)242.28%
Cap/Depr(5y)177.04%
Cap/Sales(3y)66.47%
Cap/Sales(5y)54.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.19%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%-18.92%
EPS Next Y-15.02%
EPS Next 2Y-15.11%
EPS Next 3Y-1.06%
EPS Next 5Y-5.62%
Revenue 1Y (TTM)28.2%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%24.96%
Revenue Next Year22.22%
Revenue Next 2Y9.81%
Revenue Next 3Y8.96%
Revenue Next 5YN/A
EBIT growth 1Y9.02%
EBIT growth 3Y-3.62%
EBIT growth 5Y76.14%
EBIT Next Year107.78%
EBIT Next 3Y28.71%
EBIT Next 5Y21.88%
FCF growth 1Y-516.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.43%
OCF growth 3Y15.4%
OCF growth 5Y16.7%