SM ENERGY CO (SM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SM - US78454L1008 - Common Stock
18.43 USD
+0.12 (+0.66%)
18.37 USD
-0.06 (-0.33%)
Overall SM gets a fundamental rating of 5 out of 10. We evaluated SM against 210 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 correct valuation and a medium growth rate. Finally SM also has an excellent dividend rating.
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 8.00%, SM belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
With a decent Return On Equity value of 15.43%, SM is doing good in the industry, outperforming 76.67% of the companies in the same industry.
SM has a better Return On Invested Capital (10.83%) than 85.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SM is below the industry average of 21.41%.
The last Return On Invested Capital (10.83%) for SM is well below the 3 year average (19.03%), which needs to be investigated, but indicates that SM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 15.43% | ||
| ROIC | 10.83% |
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
SM's Profit Margin of 22.03% is fine compared to the rest of the industry. SM outperforms 78.57% of its industry peers.
SM's Profit Margin has improved in the last couple of years.
SM has a better Operating Margin (30.85%) than 75.24% of its industry peers.
SM's Operating Margin has improved in the last couple of years.
SM's Gross Margin of 72.96% is amongst the best of the industry. SM outperforms 83.81% of its industry peers.
SM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.85% | ||
| PM (TTM) | 22.03% | ||
| GM | 72.96% |
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.
SM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SM has more shares outstanding
Compared to 1 year ago, SM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that SM is in the distress zone and has some risk of bankruptcy.
SM has a Altman-Z score (1.45) which is in line with its industry peers.
A Debt/Equity ratio of 0.49 indicates that SM is not too dependend on debt financing.
The Debt to Equity ratio of SM (0.49) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.45 |
ROIC/WACC1.4
WACC7.73%
2.3 Liquidity
SM has a Current Ratio of 0.56. This is a bad value and indicates that SM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.56, SM is doing worse than 83.81% of the companies in the same industry.
SM has a Quick Ratio of 0.56. 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's Quick ratio of 0.56 is on the low side compared to the rest of the industry. SM is outperformed by 80.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.46% over the past year.
The Earnings Per Share has been growing by 54.53% on average over the past years. This is a very strong growth
SM shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.93%.
The Revenue has been growing by 11.10% on average over the past years. This is quite good.
EPS 1Y (TTM)0.46%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%-17.9%
Revenue 1Y (TTM)34.93%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%26.1%
3.2 Future
Based on estimates for the next years, SM will show a decrease in Earnings Per Share. The EPS will decrease by -7.34% on average per year.
SM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y-14.51%
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
EPS Next 5Y-7.34%
Revenue Next Year22.51%
Revenue Next 2Y9.47%
Revenue Next 3Y7.23%
Revenue Next 5Y5%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 2.84, the valuation of SM can be described as very cheap.
97.62% of the companies in the same industry are more expensive than SM, based on the Price/Earnings ratio.
SM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.65.
Based on the Price/Forward Earnings ratio of 3.85, the valuation of SM can be described as very cheap.
97.14% of the companies in the same industry are more expensive than SM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.45. SM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.84 | ||
| Fwd PE | 3.85 |
4.2 Price Multiples
97.62% of the companies in the same industry are more expensive than SM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.15 |
4.3 Compensation for Growth
SM has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SM's earnings are expected to decrease with -5.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
5. Dividend
5.1 Amount
SM has a Yearly Dividend Yield of 4.34%, which is a nice return.
The stock price of SM dropped by -35.45% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 5.88, SM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, SM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
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 12.60% of its income as dividend. This is a sustainable payout ratio.
DP12.6%
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
18.43
+0.12 (+0.66%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners101.71%
Inst Owner Change0.89%
Ins Owners1.47%
Ins Owner Change5.07%
Market Cap2.11B
Revenue(TTM)3.30B
Net Income(TTM)727.30M
Analysts76.36
Price Target37.57 (103.85%)
Short Float %8.76%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
Yearly Dividend0.74
Dividend Growth(5Y)49.05%
DP12.6%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.28%
Min EPS beat(2)0.33%
Max EPS beat(2)20.23%
EPS beat(4)3
Avg EPS beat(4)5.95%
Min EPS beat(4)-2.75%
Max EPS beat(4)20.23%
EPS beat(8)7
Avg EPS beat(8)7.84%
EPS beat(12)10
Avg EPS beat(12)6.82%
EPS beat(16)13
Avg EPS beat(16)8.65%
Revenue beat(2)0
Avg Revenue beat(2)-4.32%
Min Revenue beat(2)-6.86%
Max Revenue beat(2)-1.79%
Revenue beat(4)0
Avg Revenue beat(4)-3.29%
Min Revenue beat(4)-6.86%
Max Revenue beat(4)-1.06%
Revenue beat(8)1
Avg Revenue beat(8)-2.84%
Revenue beat(12)3
Avg Revenue beat(12)-1.96%
Revenue beat(16)7
Avg Revenue beat(16)4.31%
PT rev (1m)-6.95%
PT rev (3m)-7.72%
EPS NQ rev (1m)-7.44%
EPS NQ rev (3m)-12.49%
EPS NY rev (1m)0.25%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)-2.55%
Revenue NQ rev (3m)-3.37%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.84 | ||
| Fwd PE | 3.85 | ||
| P/S | 0.64 | ||
| P/FCF | N/A | ||
| P/OCF | 0.99 | ||
| P/B | 0.45 | ||
| P/tB | 0.45 | ||
| EV/EBITDA | 2.15 |
EPS(TTM)6.5
EY35.27%
EPS(NY)4.78
Fwd EY25.96%
FCF(TTM)-13.64
FCFYN/A
OCF(TTM)18.66
OCFY101.22%
SpS28.82
BVpS41.14
TBVpS41.14
PEG (NY)N/A
PEG (5Y)N/A
Graham Number77.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 15.43% | ||
| ROCE | 12.8% | ||
| ROIC | 10.83% | ||
| ROICexc | 11.06% | ||
| ROICexgc | 11.06% | ||
| OM | 30.85% | ||
| PM (TTM) | 22.03% | ||
| GM | 72.96% | ||
| 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
ROICexgc growth 3Y-22.74%
ROICexgc 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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 322.04% | ||
| Cap/Sales | 112.06% | ||
| Interest Coverage | 6 | ||
| Cash Conversion | 98.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.45 |
F-Score6
WACC7.73%
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)0.46%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%-17.9%
EPS Next Y-14.51%
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
EPS Next 5Y-7.34%
Revenue 1Y (TTM)34.93%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%26.1%
Revenue Next Year22.51%
Revenue Next 2Y9.47%
Revenue Next 3Y7.23%
Revenue Next 5Y5%
EBIT growth 1Y7.44%
EBIT growth 3Y-3.62%
EBIT growth 5Y76.14%
EBIT Next Year108.41%
EBIT Next 3Y28.71%
EBIT Next 5Y19%
FCF growth 1Y-803.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y54.15%
OCF growth 3Y15.4%
OCF growth 5Y16.7%
SM ENERGY CO / SM FAQ
Can you provide the ChartMill fundamental rating for SM ENERGY CO?
ChartMill assigns a fundamental rating of 5 / 10 to SM.
What is the valuation status of SM ENERGY CO (SM) stock?
ChartMill assigns a valuation rating of 6 / 10 to SM ENERGY CO (SM). This can be considered as Fairly Valued.
Can you provide the profitability details for SM ENERGY CO?
SM ENERGY CO (SM) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for SM stock?
The Price/Earnings (PE) ratio for SM ENERGY CO (SM) is 2.84 and the Price/Book (PB) ratio is 0.45.
Can you provide the expected EPS growth for SM stock?
The Earnings per Share (EPS) of SM ENERGY CO (SM) is expected to decline by -14.51% in the next year.