SM ENERGY CO (SM)
US78454L1008 - Common Stock
Taking everything into account, SM scores 6 out of 10 in our fundamental rating. SM was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While SM has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SM. These ratings would make SM suitable for value investing!
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.
In multiple years SM reported negative net income over the last 5 years.
In the past 5 years SM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 11.73%, SM is doing good in the industry, outperforming 77.62% of the companies in the same industry.
The Return On Equity of SM (20.29%) is better than 69.05% of its industry peers.
SM's Return On Invested Capital of 13.05% is fine compared to the rest of the industry. SM outperforms 72.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SM is significantly below the industry average of 30.77%.
The last Return On Invested Capital (13.05%) for SM is well below the 3 year average (22.74%), which needs to be investigated, but indicates that SM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.73% | ||
| ROE | 20.29% | ||
| ROIC | 13.05% |
ROA(3y)10.99%
ROA(5y)2.93%
ROE(3y)20.14%
ROE(5y)3.14%
ROIC(3y)22.74%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SM (31.80%) is better than 80.00% of its industry peers.
In the last couple of years the Profit Margin of SM has grown nicely.
With a decent Operating Margin value of 38.33%, SM is doing good in the industry, outperforming 74.29% of the companies in the same industry.
SM's Operating Margin has improved in the last couple of years.
SM has a better Gross Margin (76.33%) than 84.29% of its industry peers.
SM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.33% | ||
| PM (TTM) | 31.8% | ||
| GM | 76.33% |
OM growth 3YN/A
OM growth 5Y16.37%
PM growth 3YN/A
PM growth 5Y2.14%
GM growth 3Y5.32%
GM growth 5Y1.65%
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.
The number of shares outstanding for SM has been increased compared to 5 years ago.
The debt/assets ratio for SM has been reduced compared to a year ago.
2.2 Solvency
SM has an Altman-Z score of 2.52. This is not the best score and indicates that SM is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.52, SM is in the better half of the industry, outperforming 67.14% of the companies in the same industry.
The Debt to FCF ratio of SM is 4.81, which is a neutral value as it means it would take SM, 4.81 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.81, SM is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
SM has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
SM's Debt to Equity ratio of 0.43 is in line compared to the rest of the industry. SM outperforms 51.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.64
WACC7.94%
2.3 Liquidity
SM has a Current Ratio of 1.48. This is a normal value and indicates that SM is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.48, SM is doing good in the industry, outperforming 60.48% of the companies in the same industry.
SM has a Quick Ratio of 1.48. This is a normal value and indicates that SM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.48, SM is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
SM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.35%.
Measured over the past years, SM shows a very strong growth in Earnings Per Share. The EPS has been growing by 187.86% on average per year.
The Revenue for SM has decreased by -23.18% in the past year. This is quite bad
SM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.67% yearly.
EPS 1Y (TTM)-9.35%
EPS 3YN/A
EPS 5Y187.86%
EPS Q2Q%6.02%
Revenue 1Y (TTM)-23.18%
Revenue growth 3Y28.2%
Revenue growth 5Y7.67%
Sales Q2Q%-2.38%
3.2 Future
Based on estimates for the next years, SM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.07% on average per year.
Based on estimates for the next years, SM will show a small growth in Revenue. The Revenue will grow by 3.54% on average per year.
EPS Next Y12.41%
EPS Next 2Y14.3%
EPS Next 3Y9.12%
EPS Next 5Y10.07%
Revenue Next Year6.44%
Revenue Next 2Y7.73%
Revenue Next 3Y3.54%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
Based on the Price/Earnings ratio of 7.64, the valuation of SM can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of SM indicates a somewhat cheap valuation: SM is cheaper than 76.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.41, SM is valued rather cheaply.
A Price/Forward Earnings ratio of 5.93 indicates a rather cheap valuation of SM.
SM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SM is cheaper than 85.24% 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 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 5.93 |
4.2 Price Multiples
SM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SM is cheaper than 77.62% of the companies in the same industry.
SM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.11 | ||
| EV/EBITDA | 3.93 |
4.3 Compensation for Growth
SM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SM may justify a higher PE ratio.
PEG (NY)0.62
PEG (5Y)0.04
EPS Next 2Y14.3%
EPS Next 3Y9.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, SM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.93, SM is paying slightly less dividend.
SM's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
The dividend of SM is nicely growing with an annual growth rate of 43.22%!
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)43.22%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
SM pays out 9.88% of its income as dividend. This is a sustainable payout ratio.
The dividend of SM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.88%
EPS Next 2Y14.3%
EPS Next 3Y9.12%
SM ENERGY CO
NYSE:SM (7/26/2024, 5:30:00 PM)
After market: 45.91 0 (0%)45.91
+0.31 (+0.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 5.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.62
PEG (5Y)0.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.73% | ||
| ROE | 20.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.33% | ||
| PM (TTM) | 31.8% | ||
| GM | 76.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-9.35%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y12.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-23.18%
Revenue growth 3Y28.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y