SM ENERGY CO (SM) Stock Fundamental Analysis
USA - NYSE:SM - US78454L1008 - Common Stock
20.61 USD
-0.48 (-2.28%)
20.7 USD
+0.09 (+0.44%)
Overall SM gets a fundamental rating of 5 out of 10. We evaluated SM against 209 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 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.
In the past year SM had a positive cash flow from operations.
Of the past 5 years SM 4 years were profitable.
Each year in the past 5 years SM had a positive operating cash flow.
1.2 Ratios
SM's Return On Assets of 9.04% is amongst the best of the industry. SM outperforms 83.25% of its industry peers.
SM has a better Return On Equity (17.71%) than 79.43% of its industry peers.
With an excellent Return On Invested Capital value of 11.02%, SM belongs to the best of the industry, outperforming 85.17% 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 21.71%.
The last Return On Invested Capital (11.02%) 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 | 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
Looking at the Profit Margin, with a value of 25.94%, SM belongs to the top of the industry, outperforming 82.78% of the companies in the same industry.
In the last couple of years the Profit Margin of SM has grown nicely.
SM has a Operating Margin of 33.89%. This is amongst the best in the industry. SM outperforms 81.34% of its industry peers.
SM's Operating Margin has improved in the last couple of years.
The Gross Margin of SM (74.08%) is better than 85.17% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SM is creating value.
The number of shares outstanding for SM has been reduced compared to 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 1.51, we must say that SM is in the distress zone and has some risk of bankruptcy.
SM has a Altman-Z score (1.51) which is comparable to the rest of the industry.
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 of 0.59. This is comparable to the rest of the industry: SM outperforms 41.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.51 |
ROIC/WACC1.44
WACC7.66%
2.3 Liquidity
A Current Ratio of 0.69 indicates that SM may have some problems paying its short term obligations.
SM has a worse Current ratio (0.69) than 76.56% 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.
The Quick ratio of SM (0.69) is worse than 69.38% 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.
SM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 54.53% yearly.
The Revenue has grown by 28.20% in the past year. This is a very strong growth!
Measured over the past years, SM shows a quite strong growth in Revenue. The Revenue has been growing by 11.10% on average per year.
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 -6.63% on average per year.
SM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.20% yearly.
EPS Next Y-14.73%
EPS Next 2Y-15.76%
EPS Next 3Y-2.55%
EPS Next 5Y-6.63%
Revenue Next Year22.4%
Revenue Next 2Y9.68%
Revenue Next 3Y8.2%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SM is valuated cheaply with a Price/Earnings ratio of 3.04.
Compared to the rest of the industry, the Price/Earnings ratio of SM indicates a rather cheap valuation: SM is cheaper than 98.56% of the companies listed in the same industry.
SM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.83.
The Price/Forward Earnings ratio is 4.28, which indicates a rather cheap valuation of SM.
Based on the Price/Forward Earnings ratio, SM is valued cheaper than 96.17% of the companies in the same industry.
SM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.04 | ||
| Fwd PE | 4.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SM is valued cheaper than 92.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.41 |
4.3 Compensation for Growth
SM has an outstanding profitability rating, which may justify a higher PE ratio.
SM's earnings are expected to decrease with -2.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.76%
EPS Next 3Y-2.55%
5. Dividend
5.1 Amount
SM has a Yearly Dividend Yield of 3.72%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of SM has falen by -22.69%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 6.15, SM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, SM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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
SM pays out 10.98% of its income as dividend. This is a sustainable payout ratio.
DP10.98%
EPS Next 2Y-15.76%
EPS Next 3Y-2.55%
20.61
-0.48 (-2.28%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners101.71%
Inst Owner Change0.31%
Ins Owners1.47%
Ins Owner Change5.09%
Market Cap2.37B
Revenue(TTM)3.13B
Net Income(TTM)812.74M
Analysts76.36
Price Target40.38 (95.92%)
Short Float %9.4%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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)-1.04%
PT rev (3m)1.28%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-9.27%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-2.96%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.04 | ||
| Fwd PE | 4.28 | ||
| P/S | 0.76 | ||
| P/FCF | N/A | ||
| P/OCF | 1.14 | ||
| P/B | 0.52 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 2.41 |
EPS(TTM)6.79
EY32.95%
EPS(NY)4.82
Fwd EY23.38%
FCF(TTM)-13.17
FCFYN/A
OCF(TTM)18.13
OCFY87.98%
SpS27.26
BVpS39.93
TBVpS39.93
PEG (NY)N/A
PEG (5Y)N/A
Graham Number78.11
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
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-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 | 1.51 |
F-Score3
WACC7.66%
ROIC/WACC1.44
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-14.73%
EPS Next 2Y-15.76%
EPS Next 3Y-2.55%
EPS Next 5Y-6.63%
Revenue 1Y (TTM)28.2%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%24.96%
Revenue Next Year22.4%
Revenue Next 2Y9.68%
Revenue Next 3Y8.2%
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 5Y20.22%
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%
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 3.04 and the Price/Book (PB) ratio is 0.52.
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 -14.73% in the next year.