SM ENERGY CO (SM) Fundamental Analysis & Valuation

NYSE:SM • US78454L1008

Current stock price

32.68 USD
+1.18 (+3.75%)
At close:
32.4942 USD
-0.19 (-0.57%)
After Hours:

This SM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. SM Profitability Analysis

1.1 Basic Checks

  • In the past year SM was profitable.
  • SM had a positive operating cash flow in the past year.
  • SM had positive earnings in each of the past 5 years.
  • In the past 5 years SM always reported a positive cash flow from operatings.
SM Yearly Net Income VS EBIT VS OCF VS FCFSM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B -2B

1.2 Ratios

  • SM has a better Return On Assets (7.00%) than 75.60% of its industry peers.
  • SM has a Return On Equity of 13.47%. This is in the better half of the industry: SM outperforms 72.73% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 8.02%, SM is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
  • SM had an Average Return On Invested Capital over the past 3 years of 10.34%. This is significantly below the industry average of 23.05%.
Industry RankSector Rank
ROA 7%
ROE 13.47%
ROIC 8.02%
ROA(3y)9.6%
ROA(5y)9.79%
ROE(3y)18.09%
ROE(5y)18.41%
ROIC(3y)10.34%
ROIC(5y)16.41%
SM Yearly ROA, ROE, ROICSM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

1.3 Margins

  • The Profit Margin of SM (20.55%) is better than 75.12% of its industry peers.
  • In the last couple of years the Profit Margin of SM has declined.
  • SM has a better Operating Margin (26.06%) than 69.38% of its industry peers.
  • SM's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 71.94%, SM belongs to the top of the industry, outperforming 83.73% of the companies in the same industry.
  • SM's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 26.06%
PM (TTM) 20.55%
GM 71.94%
OM growth 3Y-23.57%
OM growth 5YN/A
PM growth 3Y-14.7%
PM growth 5YN/A
GM growth 3Y-4.08%
GM growth 5Y1.96%
SM Yearly Profit, Operating, Gross MarginsSM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50

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4

2. SM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SM is creating some value.
  • The number of shares outstanding for SM remains at a similar level compared to 1 year ago.
  • SM has about the same amout of shares outstanding than it did 5 years ago.
  • The debt/assets ratio for SM has been reduced compared to a year ago.
SM Yearly Shares OutstandingSM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
SM Yearly Total Debt VS Total AssetsSM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • SM has an Altman-Z score of 2.10. 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.
  • The Altman-Z score of SM (2.10) is better than 64.59% of its industry peers.
  • The Debt to FCF ratio of SM is 5.04, which is a neutral value as it means it would take SM, 5.04 years of fcf income to pay off all of its debts.
  • SM has a Debt to FCF ratio of 5.04. This is in the better half of the industry: SM outperforms 67.94% of its industry peers.
  • SM has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
  • SM has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: SM outperforms 52.63% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 5.04
Altman-Z 2.1
ROIC/WACC1.02
WACC7.89%
SM Yearly LT Debt VS Equity VS FCFSM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B

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 Current ratio of 0.69. This is in the lower half of the industry: SM underperforms 74.16% of its industry peers.
  • A Quick Ratio of 0.69 indicates that SM may have some problems paying its short term obligations.
  • SM has a Quick ratio of 0.69. This is in the lower half of the industry: SM underperforms 66.99% of its industry peers.
Industry RankSector Rank
Current Ratio 0.69
Quick Ratio 0.69
SM Yearly Current Assets VS Current LiabilitesSM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. SM Growth Analysis

3.1 Past

  • The earnings per share for SM have decreased strongly by -20.18% in the last year.
  • The Earnings Per Share has been decreasing by -9.37% on average over the past years.
  • Looking at the last year, SM shows a quite strong growth in Revenue. The Revenue has grown by 17.24% in the last year.
  • SM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.86% yearly.
EPS 1Y (TTM)-20.18%
EPS 3Y-9.37%
EPS 5YN/A
EPS Q2Q%-56.54%
Revenue 1Y (TTM)17.24%
Revenue growth 3Y-2.07%
Revenue growth 5Y22.86%
Sales Q2Q%-17.27%

3.2 Future

  • Based on estimates for the next years, SM will show a decrease in Earnings Per Share. The EPS will decrease by -7.73% on average per year.
  • SM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.08% yearly.
EPS Next Y-35.69%
EPS Next 2Y-8.27%
EPS Next 3Y-7.73%
EPS Next 5YN/A
Revenue Next Year99.91%
Revenue Next 2Y48.32%
Revenue Next 3Y28.08%
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 stable.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SM Yearly Revenue VS EstimatesSM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
SM Yearly EPS VS EstimatesSM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 -2 4 6

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7

4. SM Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 6.03, the valuation of SM can be described as very cheap.
  • SM's Price/Earnings ratio is rather cheap when compared to the industry. SM is cheaper than 94.26% of the companies in the same industry.
  • SM is valuated cheaply when we compare the Price/Earnings ratio to 25.61, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 9.38, the valuation of SM can be described as very reasonable.
  • SM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SM is cheaper than 91.39% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.79. SM is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 6.03
Fwd PE 9.38
SM Price Earnings VS Forward Price EarningsSM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • SM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SM is cheaper than 86.60% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, SM is valued a bit cheaper than the industry average as 75.12% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 14.45
EV/EBITDA 4.86
SM Per share dataSM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • The decent profitability rating of SM may justify a higher PE ratio.
  • A cheap valuation may be justified as SM's earnings are expected to decrease with -7.73% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.27%
EPS Next 3Y-7.73%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. SM Dividend Analysis

5.1 Amount

  • SM has a Yearly Dividend Yield of 3.17%.
  • SM's Dividend Yield is a higher than the industry average which is at 3.29.
  • SM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 3.17%

5.2 History

  • The dividend of SM is nicely growing with an annual growth rate of 108.88%!
  • 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)108.88%
Div Incr Years3
Div Non Decr Years4
SM Yearly Dividends per shareSM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • 14.20% of the earnings are spent on dividend by SM. This is a low number and sustainable payout ratio.
DP14.2%
EPS Next 2Y-8.27%
EPS Next 3Y-7.73%
SM Yearly Income VS Free CF VS DividendSM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B
SM Dividend Payout.SM Dividend Payout, showing the Payout Ratio.SM Dividend Payout.PayoutRetained Earnings

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SM Fundamentals: All Metrics, Ratios and Statistics

SM ENERGY CO

NYSE:SM (3/26/2026, 4:54:42 PM)

After market: 32.4942 -0.19 (-0.57%)

32.68

+1.18 (+3.75%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-25
Earnings (Next)04-29
Inst Owners48.59%
Inst Owner Change-1.98%
Ins Owners0.56%
Ins Owner Change-2.14%
Market Cap7.79B
Revenue(TTM)3.15B
Net Income(TTM)648.00M
Analysts75.24
Price Target30.77 (-5.84%)
Short Float %6.31%
Short Ratio2.09
Dividend
Industry RankSector Rank
Dividend Yield 3.17%
Yearly Dividend0.8
Dividend Growth(5Y)108.88%
DP14.2%
Div Incr Years3
Div Non Decr Years4
Ex-Date03-09
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.18%
Min EPS beat(2)-4.69%
Max EPS beat(2)0.33%
EPS beat(4)3
Avg EPS beat(4)5.47%
Min EPS beat(4)-4.69%
Max EPS beat(4)20.23%
EPS beat(8)6
Avg EPS beat(8)5.76%
EPS beat(12)10
Avg EPS beat(12)6.49%
EPS beat(16)12
Avg EPS beat(16)5.31%
Revenue beat(2)0
Avg Revenue beat(2)-8.69%
Min Revenue beat(2)-10.51%
Max Revenue beat(2)-6.86%
Revenue beat(4)0
Avg Revenue beat(4)-5.06%
Min Revenue beat(4)-10.51%
Max Revenue beat(4)-1.06%
Revenue beat(8)1
Avg Revenue beat(8)-3.8%
Revenue beat(12)2
Avg Revenue beat(12)-3.34%
Revenue beat(16)6
Avg Revenue beat(16)1.28%
PT rev (1m)-3.72%
PT rev (3m)-11.71%
EPS NQ rev (1m)-6.04%
EPS NQ rev (3m)-3.84%
EPS NY rev (1m)-6.71%
EPS NY rev (3m)-9.88%
Revenue NQ rev (1m)60.53%
Revenue NQ rev (3m)78.69%
Revenue NY rev (1m)4.14%
Revenue NY rev (3m)17.33%
Valuation
Industry RankSector Rank
PE 6.03
Fwd PE 9.38
P/S 2.47
P/FCF 14.45
P/OCF 3.87
P/B 1.62
P/tB 1.62
EV/EBITDA 4.86
EPS(TTM)5.42
EY16.59%
EPS(NY)3.49
Fwd EY10.67%
FCF(TTM)2.26
FCFY6.92%
OCF(TTM)8.44
OCFY25.82%
SpS13.23
BVpS20.18
TBVpS20.18
PEG (NY)N/A
PEG (5Y)N/A
Graham Number49.61
Profitability
Industry RankSector Rank
ROA 7%
ROE 13.47%
ROCE 10.17%
ROIC 8.02%
ROICexc 8.41%
ROICexgc 8.41%
OM 26.06%
PM (TTM) 20.55%
GM 71.94%
FCFM 17.09%
ROA(3y)9.6%
ROA(5y)9.79%
ROE(3y)18.09%
ROE(5y)18.41%
ROIC(3y)10.34%
ROIC(5y)16.41%
ROICexc(3y)10.98%
ROICexc(5y)17.71%
ROICexgc(3y)10.98%
ROICexgc(5y)17.71%
ROCE(3y)13.11%
ROCE(5y)20.8%
ROICexgc growth 3Y-36.68%
ROICexgc growth 5YN/A
ROICexc growth 3Y-36.68%
ROICexc growth 5YN/A
OM growth 3Y-23.57%
OM growth 5YN/A
PM growth 3Y-14.7%
PM growth 5YN/A
GM growth 3Y-4.08%
GM growth 5Y1.96%
F-Score7
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 5.04
Debt/EBITDA 1.13
Cap/Depr 121.96%
Cap/Sales 46.67%
Interest Coverage 4.95
Cash Conversion 99.11%
Profit Quality 83.18%
Current Ratio 0.69
Quick Ratio 0.69
Altman-Z 2.1
F-Score7
WACC7.89%
ROIC/WACC1.02
Cap/Depr(3y)234.35%
Cap/Depr(5y)187.27%
Cap/Sales(3y)73.3%
Cap/Sales(5y)54.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.18%
EPS 3Y-9.37%
EPS 5YN/A
EPS Q2Q%-56.54%
EPS Next Y-35.69%
EPS Next 2Y-8.27%
EPS Next 3Y-7.73%
EPS Next 5YN/A
Revenue 1Y (TTM)17.24%
Revenue growth 3Y-2.07%
Revenue growth 5Y22.86%
Sales Q2Q%-17.27%
Revenue Next Year99.91%
Revenue Next 2Y48.32%
Revenue Next 3Y28.08%
Revenue Next 5YN/A
EBIT growth 1Y-19.86%
EBIT growth 3Y-25.16%
EBIT growth 5YN/A
EBIT Next Year337.91%
EBIT Next 3Y76.38%
EBIT Next 5YN/A
FCF growth 1Y133.03%
FCF growth 3Y-12.57%
FCF growth 5Y18.04%
OCF growth 1Y12.82%
OCF growth 3Y6.04%
OCF growth 5Y20.52%

SM ENERGY CO / SM Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for SM ENERGY CO?

ChartMill assigns a fundamental rating of 6 / 10 to SM.


What is the valuation status for SM stock?

ChartMill assigns a valuation rating of 7 / 10 to SM ENERGY CO (SM). This can be considered as Undervalued.


How profitable is SM ENERGY CO (SM) stock?

SM ENERGY CO (SM) has a profitability rating of 6 / 10.


How financially healthy is SM ENERGY CO?

The financial health rating of SM ENERGY CO (SM) is 4 / 10.


How sustainable is the dividend of SM ENERGY CO (SM) stock?

The dividend rating of SM ENERGY CO (SM) is 6 / 10 and the dividend payout ratio is 14.2%.