SM ENERGY CO (SM) Stock Fundamental Analysis
USA - NYSE:SM - US78454L1008 - Common Stock
25.85 USD
+1.09 (+4.4%)
25.85 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SM. SM was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. SM scores excellent on profitability, but there are concerns on its financial health. SM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SM was profitable.
SM had a positive operating cash flow in the past year.
Of the past 5 years SM 4 years were profitable.
In the past 5 years SM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.04%, SM belongs to the top of the industry, outperforming 83.41% of the companies in the same industry.
With a decent Return On Equity value of 17.71%, SM is doing good in the industry, outperforming 78.67% of the companies in the same industry.
SM has a Return On Invested Capital of 11.02%. This is amongst the best in the industry. SM outperforms 84.36% of its industry peers.
SM had an Average Return On Invested Capital over the past 3 years of 19.03%. This is below the industry average of 21.71%.
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 82.94% of its industry peers.
SM's Profit Margin has improved in the last couple of years.
The Operating Margin of SM (33.89%) is better than 81.04% of its industry peers.
In the last couple of years the Operating Margin of SM has grown nicely.
SM's Gross Margin of 74.08% is amongst the best of the industry. SM outperforms 86.26% of its industry peers.
SM's Gross Margin has improved in the last couple of years.
| 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
SM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SM has been reduced compared to 1 year ago.
SM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.57, we must say that SM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.57, SM perfoms like the industry average, outperforming 56.40% of the companies in the same industry.
SM has a Debt/Equity ratio of 0.59. This is a neutral value indicating SM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, SM perfoms like the industry average, outperforming 43.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.57 |
ROIC/WACC1.4
WACC7.87%
2.3 Liquidity
SM has a Current 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.
SM has a worse Current ratio (0.69) than 76.78% of its industry peers.
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.
With a Quick ratio value of 0.69, SM is not doing good in the industry: 69.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
SM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.19%.
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.
The Revenue has grown by 28.20% in the past year. This is a very strong growth!
SM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.10% yearly.
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
The Earnings Per Share is expected to decrease by -5.62% on average over the next years.
Based on estimates for the next years, SM will show a quite strong growth in Revenue. The Revenue will grow by 8.77% on average per year.
EPS Next Y-14.16%
EPS Next 2Y-16.11%
EPS Next 3Y0.02%
EPS Next 5Y-5.62%
Revenue Next Year22.44%
Revenue Next 2Y9.63%
Revenue Next 3Y8.77%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.81, the valuation of SM can be described as very cheap.
Based on the Price/Earnings ratio, SM is valued cheaply inside the industry as 98.58% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.86, SM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.41, the valuation of SM can be described as very cheap.
Based on the Price/Forward Earnings ratio, SM is valued cheaply inside the industry as 93.36% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.32. SM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.81 | ||
| Fwd PE | 5.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SM is valued cheaply inside the industry as 91.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.61 |
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-16.11%
EPS Next 3Y0.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.23%, SM has a reasonable but not impressive dividend return.
SM's Dividend Yield is comparable with the industry average which is at 6.08.
Compared to an average S&P500 Dividend Yield of 2.41, SM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
The dividend of SM is nicely growing with an annual growth rate of 49.05%!
SM has paid a dividend for at least 10 years, which is 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-16.11%
EPS Next 3Y0.02%
25.85
+1.09 (+4.4%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners101.71%
Inst Owner Change-0.59%
Ins Owners1.47%
Ins Owner Change5.09%
Market Cap2.97B
Analysts76.36
Price Target40.38 (56.21%)
Short Float %9.28%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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)-0.21%
PT rev (3m)2.77%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)1.01%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)2.99%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.81 | ||
| Fwd PE | 5.41 | ||
| P/S | 0.95 | ||
| P/FCF | N/A | ||
| P/OCF | 1.43 | ||
| P/B | 0.65 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 2.61 |
EPS(TTM)6.79
EY26.27%
EPS(NY)4.78
Fwd EY18.49%
FCF(TTM)-13.17
FCFYN/A
OCF(TTM)18.13
OCFY70.14%
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 | 1.57 |
F-Score3
WACC7.87%
ROIC/WACC1.4
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-14.16%
EPS Next 2Y-16.11%
EPS Next 3Y0.02%
EPS Next 5Y-5.62%
Revenue 1Y (TTM)28.2%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%24.96%
Revenue Next Year22.44%
Revenue Next 2Y9.63%
Revenue Next 3Y8.77%
Revenue Next 5YN/A
EBIT growth 1Y9.02%
EBIT growth 3Y-3.62%
EBIT growth 5Y76.14%
EBIT Next Year108.41%
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%