SM ENERGY CO (SM) Stock Fundamental Analysis
USA - NYSE:SM - US78454L1008 - Common Stock
18.39 USD
-0.48 (-2.54%)
18.5 USD
+0.11 (+0.6%)
We assign a fundamental rating of 5 out of 10 to SM. SM was compared to 210 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. Finally SM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SM had positive earnings in the past year.
In the past year SM had a positive cash flow from operations.
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
SM's Return On Assets of 8.00% is fine compared to the rest of the industry. SM outperforms 80.00% of its industry peers.
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's Return On Invested Capital of 10.83% is amongst the best of the industry. SM outperforms 84.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SM is below the industry average of 21.71%.
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
Looking at the Profit Margin, with a value of 22.03%, SM is in the better half of the industry, outperforming 78.10% of the companies in the same industry.
SM's Profit Margin has improved in the last couple of years.
SM has a better Operating Margin (30.85%) than 74.76% of its industry peers.
SM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 72.96%, SM belongs to the top of the industry, outperforming 84.29% 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 | 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.
The number of shares outstanding for SM has been increased compared to 5 years ago.
Compared to 1 year ago, SM has a worse debt to assets ratio.
2.2 Solvency
SM has an Altman-Z score of 1.46. This is a bad value and indicates that SM is not financially healthy and even has some risk of bankruptcy.
SM's Altman-Z score of 1.46 is in line compared to the rest of the industry. SM outperforms 55.24% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that SM is not too dependend on debt financing.
SM has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.46 |
ROIC/WACC1.39
WACC7.8%
2.3 Liquidity
A Current Ratio of 0.56 indicates that SM may have some problems paying its short term obligations.
SM has a Current ratio of 0.56. This is amonst the worse of the industry: SM underperforms 83.81% of its industry peers.
A Quick Ratio of 0.56 indicates that SM may have some problems paying its short term obligations.
The Quick ratio of SM (0.56) is worse than 79.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
SM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.46%.
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.
The Revenue has grown by 34.93% 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)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
The Earnings Per Share is expected to decrease by -5.06% on average over the next years.
Based on estimates for the next years, SM will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y-14.51%
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
EPS Next 5Y-5.06%
Revenue Next Year22.51%
Revenue Next 2Y9.47%
Revenue Next 3Y7.23%
Revenue Next 5Y5%
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
A Price/Earnings ratio of 2.83 indicates a rather cheap valuation of SM.
Compared to the rest of the industry, the Price/Earnings ratio of SM indicates a rather cheap valuation: SM is cheaper than 98.57% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SM to the average of the S&P500 Index (25.56), we can say SM is valued rather cheaply.
SM is valuated cheaply with a Price/Forward Earnings ratio of 3.84.
97.14% of the companies in the same industry are more expensive than SM, based on the Price/Forward Earnings ratio.
SM is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.83 | ||
| Fwd PE | 3.84 |
4.2 Price Multiples
97.14% 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 | 2.18 |
4.3 Compensation for Growth
The excellent profitability rating of SM may justify a higher PE ratio.
SM's earnings are expected to decrease with -5.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.34%, SM is a good candidate for dividend investing.
In the last 3 months the price of SM has falen by -33.80%. 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 5.86, SM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, SM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
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
12.60% of the earnings are spent on dividend by SM. This is a low number and sustainable payout ratio.
DP12.6%
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
18.39
-0.48 (-2.54%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners101.71%
Inst Owner Change0.71%
Ins Owners1.47%
Ins Owner Change7.48%
Market Cap2.11B
Revenue(TTM)3.30B
Net Income(TTM)727.30M
Analysts76.36
Price Target39 (112.07%)
Short Float %9.4%
Short Ratio4.77
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)-3.42%
PT rev (3m)-4.22%
EPS NQ rev (1m)-2.53%
EPS NQ rev (3m)-10.85%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)-2.44%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.83 | ||
| Fwd PE | 3.84 | ||
| P/S | 0.64 | ||
| P/FCF | N/A | ||
| P/OCF | 0.99 | ||
| P/B | 0.45 | ||
| P/tB | 0.45 | ||
| EV/EBITDA | 2.18 |
EPS(TTM)6.5
EY35.35%
EPS(NY)4.78
Fwd EY26.02%
FCF(TTM)-13.59
FCFYN/A
OCF(TTM)18.59
OCFY101.09%
SpS28.72
BVpS41
TBVpS41
PEG (NY)N/A
PEG (5Y)N/A
Graham Number77.44
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 | 1.46 |
F-Score6
WACC7.8%
ROIC/WACC1.39
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-5.06%
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 5Y20.04%
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 2.83 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.