SM ENERGY CO (SM) Stock Fundamental Analysis
NYSE:SM - New York Stock Exchange, Inc. - US78454L1008 - Common Stock - Currency: USD
Taking everything into account, SM scores 5 out of 10 in our fundamental rating. SM was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. While SM has a great profitability rating, there are quite some concerns on its financial health. SM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SM had positive earnings in the past year.
SM had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 9.35%, SM belongs to the top of the industry, outperforming 82.63% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.65%, SM belongs to the top of the industry, outperforming 80.28% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.82%, SM belongs to the top of the industry, outperforming 84.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SM is below the industry average of 23.55%.
The 3 year average ROIC (19.03%) for SM is well above the current ROIC(11.82%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.35% | ||
| ROE | 18.65% | ||
| ROIC | 11.82% |
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 (27.61%) is better than 80.75% of its industry peers.
SM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 37.40%, SM belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
SM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 75.64%, SM belongs to the top of the industry, outperforming 86.39% of the companies in the same industry.
In the last couple of years the Gross Margin of SM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.4% | ||
| PM (TTM) | 27.61% | ||
| GM | 75.64% |
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
The debt/assets ratio for SM is higher compared to a year ago.
2.2 Solvency
SM has an Altman-Z score of 1.59. 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 1.59. This is comparable to the rest of the industry: SM outperforms 56.34% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that SM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, SM is in line with its industry, outperforming 41.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.59 |
ROIC/WACC1.37
WACC8.63%
2.3 Liquidity
SM has a Current Ratio of 0.57. 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 Current ratio of SM (0.57) is worse than 81.22% of its industry peers.
A Quick Ratio of 0.57 indicates that SM may have some problems paying its short term obligations.
The Quick ratio of SM (0.57) is worse than 75.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
SM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.80%, which is quite good.
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.
SM shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.04%.
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)18.8%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%24.82%
Revenue 1Y (TTM)26.04%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%50.85%
3.2 Future
Based on estimates for the next years, SM will show a decrease in Earnings Per Share. The EPS will decrease by -1.21% on average per year.
SM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.45% yearly.
EPS Next Y-15.06%
EPS Next 2Y-9.56%
EPS Next 3Y-3.99%
EPS Next 5Y-1.21%
Revenue Next Year20.44%
Revenue Next 2Y10.38%
Revenue Next 3Y7.45%
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.
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
SM is valuated cheaply with a Price/Earnings ratio of 3.75.
95.31% 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 26.55, SM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.83, the valuation of SM can be described as very cheap.
Based on the Price/Forward Earnings ratio, SM is valued cheaper than 93.43% 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 22.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.75 | ||
| Fwd PE | 4.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SM is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.87 |
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 -3.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.56%
EPS Next 3Y-3.99%
5. Dividend
5.1 Amount
SM has a Yearly Dividend Yield of 3.33%.
Compared to an average industry Dividend Yield of 6.74, SM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, SM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
On average, the dividend of SM grows each year by 49.05%, which is quite nice.
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
10.60% of the earnings are spent on dividend by SM. This is a low number and sustainable payout ratio.
DP10.6%
EPS Next 2Y-9.56%
EPS Next 3Y-3.99%
26.8
+0.81 (+3.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners102.73%
Inst Owner Change0.78%
Ins Owners1.41%
Ins Owner Change0.49%
Market Cap3.07B
Analysts78.18
Price Target39.7 (48.13%)
Short Float %8.35%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend0.74
Dividend Growth(5Y)49.05%
DP10.6%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.63%
Min EPS beat(2)-2.75%
Max EPS beat(2)6.01%
EPS beat(4)3
Avg EPS beat(4)5.83%
Min EPS beat(4)-2.75%
Max EPS beat(4)17.15%
EPS beat(8)7
Avg EPS beat(8)7.67%
EPS beat(12)9
Avg EPS beat(12)4.61%
EPS beat(16)13
Avg EPS beat(16)42.67%
Revenue beat(2)0
Avg Revenue beat(2)-2.25%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-1.06%
Revenue beat(4)1
Avg Revenue beat(4)-2.14%
Min Revenue beat(4)-4.07%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-2.22%
Revenue beat(12)5
Avg Revenue beat(12)1.33%
Revenue beat(16)9
Avg Revenue beat(16)9.81%
PT rev (1m)-0.2%
PT rev (3m)-27.15%
EPS NQ rev (1m)-4.14%
EPS NQ rev (3m)-24.5%
EPS NY rev (1m)-7.69%
EPS NY rev (3m)-27.88%
Revenue NQ rev (1m)-2.47%
Revenue NQ rev (3m)-6.98%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.75 | ||
| Fwd PE | 4.83 | ||
| P/S | 1.03 | ||
| P/FCF | N/A | ||
| P/OCF | 1.54 | ||
| P/B | 0.7 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 2.87 |
EPS(TTM)7.14
EY26.64%
EPS(NY)5.55
Fwd EY20.72%
FCF(TTM)-13.29
FCFYN/A
OCF(TTM)17.38
OCFY64.86%
SpS25.99
BVpS38.47
TBVpS38.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.35% | ||
| ROE | 18.65% | ||
| ROCE | 13.97% | ||
| ROIC | 11.82% | ||
| ROICexc | 11.82% | ||
| ROICexgc | 11.82% | ||
| OM | 37.4% | ||
| PM (TTM) | 27.61% | ||
| GM | 75.64% | ||
| 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-Score4
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 384.52% | ||
| Cap/Sales | 118.01% | ||
| Interest Coverage | 8.08 | ||
| Cash Conversion | 98.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.59 |
F-Score4
WACC8.63%
ROIC/WACC1.37
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)18.8%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%24.82%
EPS Next Y-15.06%
EPS Next 2Y-9.56%
EPS Next 3Y-3.99%
EPS Next 5Y-1.21%
Revenue 1Y (TTM)26.04%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%50.85%
Revenue Next Year20.44%
Revenue Next 2Y10.38%
Revenue Next 3Y7.45%
Revenue Next 5YN/A
EBIT growth 1Y23%
EBIT growth 3Y-3.62%
EBIT growth 5Y76.14%
EBIT Next Year104.03%
EBIT Next 3Y26.63%
EBIT Next 5Y22%
FCF growth 1Y-315.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.71%
OCF growth 3Y15.4%
OCF growth 5Y16.7%