SM ENERGY CO (SM) Stock Fundamental Analysis
NYSE:SM - New York Stock Exchange, Inc. - US78454L1008 - Common Stock - Currency: USD
SM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. SM has an excellent profitability rating, but there are 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.
In the past year SM had a positive cash flow from operations.
Of the past 5 years SM 4 years were profitable.
In the past 5 years SM always reported a positive cash flow from operatings.
1.2 Ratios
SM's Return On Assets of 9.35% is amongst the best of the industry. SM outperforms 80.28% of its industry peers.
The Return On Equity of SM (18.65%) is better than 79.34% of its industry peers.
SM has a Return On Invested Capital of 11.82%. This is amongst the best in the industry. SM outperforms 82.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SM is significantly below the industry average of 25.88%.
The last Return On Invested Capital (11.82%) 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 | 9.35% | ||
| 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
SM has a Profit Margin of 27.61%. This is in the better half of the industry: SM outperforms 79.81% of its industry peers.
In the last couple of years the Profit Margin of SM has grown nicely.
Looking at the Operating Margin, with a value of 37.40%, SM belongs to the top of the industry, outperforming 81.22% of the companies in the same industry.
SM's Operating Margin has improved in the last couple of years.
The Gross Margin of SM (75.64%) is better than 84.98% of its industry peers.
SM's Gross Margin has improved in the last couple of years.
| 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
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.
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
Based on the Altman-Z score of 1.54, we must say that SM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SM (1.54) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.62 indicates that SM is somewhat dependend on debt financing.
SM has a Debt to Equity ratio (0.62) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.54 |
ROIC/WACC1.24
WACC9.5%
2.3 Liquidity
A Current Ratio of 0.57 indicates that SM may have some problems paying its short term obligations.
With a Current ratio value of 0.57, SM is not doing good in the industry: 81.22% of the companies in the same industry are doing better.
A Quick Ratio of 0.57 indicates that SM may have some problems paying its short term obligations.
With a Quick ratio value of 0.57, SM is not doing good in the industry: 74.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.80% over the past year.
The Earnings Per Share has been growing by 54.53% on average over the past years. This is a very strong growth
The Revenue has grown by 26.04% 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)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
The Earnings Per Share is expected to decrease by -1.21% on average over the next years.
The Revenue is expected to grow by 7.55% on average over the next years.
EPS Next Y-15.06%
EPS Next 2Y-9.56%
EPS Next 3Y-3.99%
EPS Next 5Y-1.21%
Revenue Next Year20.76%
Revenue Next 2Y10.17%
Revenue Next 3Y7.55%
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.
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 3.25, 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 rather cheap valuation: SM is cheaper than 96.24% of the companies listed in the same industry.
SM is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.18, the valuation of SM can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SM indicates a rather cheap valuation: SM is cheaper than 93.43% of the companies listed in the same industry.
SM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.25 | ||
| Fwd PE | 4.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SM indicates a rather cheap valuation: SM is cheaper than 89.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.7 |
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 -3.99% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.56%
EPS Next 3Y-3.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.26%, SM has a reasonable but not impressive dividend return.
In the last 3 months the price of SM has falen by -30.92%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SM's Dividend Yield is comparable with the industry average which is at 7.05.
SM's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
The dividend of SM is nicely growing with an annual growth rate of 49.05%!
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)49.05%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
SM pays out 10.60% of its income as dividend. This is a sustainable payout ratio.
DP10.6%
EPS Next 2Y-9.56%
EPS Next 3Y-3.99%
NYSE:SM (5/21/2025, 11:14:01 AM)
23.24
-0.49 (-2.06%)
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 Change0.27%
Market Cap2.66B
Analysts77.39
Price Target39.78 (71.17%)
Short Float %9.43%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
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)-19.82%
PT rev (3m)-27.01%
EPS NQ rev (1m)-18.5%
EPS NQ rev (3m)-32.07%
EPS NY rev (1m)-7.69%
EPS NY rev (3m)-28.09%
Revenue NQ rev (1m)-6.31%
Revenue NQ rev (3m)-4.92%
Revenue NY rev (1m)-3.81%
Revenue NY rev (3m)-2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.25 | ||
| Fwd PE | 4.18 | ||
| P/S | 0.89 | ||
| P/FCF | N/A | ||
| P/OCF | 1.34 | ||
| P/B | 0.6 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 2.7 |
EPS(TTM)7.14
EY30.72%
EPS(NY)5.55
Fwd EY23.9%
FCF(TTM)-13.29
FCFYN/A
OCF(TTM)17.38
OCFY74.79%
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 | 1.54 |
F-Score4
WACC9.5%
ROIC/WACC1.24
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 Year20.76%
Revenue Next 2Y10.17%
Revenue Next 3Y7.55%
Revenue Next 5YN/A
EBIT growth 1Y23%
EBIT growth 3Y-3.62%
EBIT growth 5Y76.14%
EBIT Next Year112.97%
EBIT Next 3Y28.62%
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%