SM ENERGY CO (SM) Stock Fundamental Analysis
USA - NYSE:SM - US78454L1008 - Common Stock
26.74 USD
-0.45 (-1.66%)
27.15 USD
+0.41 (+1.53%)
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. 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
In the past year SM was profitable.
In the past year SM had a positive cash flow from operations.
SM had positive earnings in 4 of the past 5 years.
SM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.04%, SM belongs to the best of the industry, outperforming 82.38% of the companies in the same industry.
With a decent Return On Equity value of 17.71%, SM is doing good in the industry, outperforming 78.10% of the companies in the same industry.
SM's Return On Invested Capital of 11.02% is amongst the best of the industry. SM outperforms 83.81% of its industry peers.
SM had an Average Return On Invested Capital over the past 3 years of 19.03%. This is below the industry average of 21.91%.
The 3 year average ROIC (19.03%) for SM is well above the current ROIC(11.02%). The reason for the recent decline needs to be investigated.
| 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
SM's Profit Margin of 25.94% is amongst the best of the industry. SM outperforms 82.38% of its industry peers.
In the last couple of years the Profit Margin of SM has grown nicely.
With an excellent Operating Margin value of 33.89%, SM belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
SM's Operating Margin has improved in the last couple of years.
SM's Gross Margin of 74.08% is amongst the best of the industry. SM outperforms 86.19% 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
SM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SM has less shares outstanding
The number of shares outstanding for SM has been increased compared to 5 years ago.
The debt/assets ratio for SM is higher compared to a year ago.
2.2 Solvency
SM has an Altman-Z score of 1.60. This is a bad value and indicates that SM is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.60, SM perfoms like the industry average, outperforming 57.62% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that SM is somewhat dependend on debt financing.
SM's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. SM outperforms 43.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.6 |
ROIC/WACC1.36
WACC8.13%
2.3 Liquidity
A Current Ratio of 0.69 indicates that SM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.69, SM is doing worse than 77.14% of the companies in the same industry.
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.
With a Quick ratio value of 0.69, SM is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
SM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.19%.
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.
Looking at the last year, SM shows a very strong growth in Revenue. The Revenue has grown by 28.20%.
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
The Earnings Per Share is expected to decrease by -5.62% on average over the next years.
SM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.77% yearly.
EPS Next Y-15.02%
EPS Next 2Y-15.11%
EPS Next 3Y-1.06%
EPS Next 5Y-5.62%
Revenue Next Year22.44%
Revenue Next 2Y9.63%
Revenue Next 3Y8.77%
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 decreasing.
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 3.94.
97.62% of the companies in the same industry are more expensive than SM, based on the Price/Earnings ratio.
SM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
SM is valuated cheaply with a Price/Forward Earnings ratio of 5.46.
Based on the Price/Forward Earnings ratio, SM is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
SM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.94 | ||
| Fwd PE | 5.46 |
4.2 Price Multiples
SM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SM is cheaper than 91.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.72 |
4.3 Compensation for Growth
SM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.11%
EPS Next 3Y-1.06%
5. Dividend
5.1 Amount
SM has a Yearly Dividend Yield of 2.94%.
SM's Dividend Yield is comparable with the industry average which is at 6.14.
SM's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
The dividend of SM is nicely growing with an annual growth rate of 49.05%!
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-15.11%
EPS Next 3Y-1.06%
26.74
-0.45 (-1.66%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners103.05%
Inst Owner Change-0.62%
Ins Owners1.47%
Ins Owner Change5.09%
Market Cap3.07B
Analysts76.36
Price Target40.8 (52.58%)
Short Float %9.52%
Short Ratio5.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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)0.21%
PT rev (3m)2.77%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)-27.31%
EPS NY rev (1m)-3.3%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-3.5%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.94 | ||
| Fwd PE | 5.46 | ||
| P/S | 0.98 | ||
| P/FCF | N/A | ||
| P/OCF | 1.47 | ||
| P/B | 0.67 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 2.72 |
EPS(TTM)6.79
EY25.39%
EPS(NY)4.89
Fwd EY18.3%
FCF(TTM)-13.17
FCFYN/A
OCF(TTM)18.13
OCFY67.81%
SpS27.26
BVpS39.93
TBVpS39.93
PEG (NY)N/A
PEG (5Y)N/A
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
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-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 | 1.6 |
F-Score3
WACC8.13%
ROIC/WACC1.36
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-15.02%
EPS Next 2Y-15.11%
EPS Next 3Y-1.06%
EPS Next 5Y-5.62%
Revenue 1Y (TTM)28.2%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%24.96%
Revenue Next Year22.44%
Revenue Next 2Y9.63%
Revenue Next 3Y8.77%
Revenue Next 5YN/A
EBIT growth 1Y9.02%
EBIT growth 3Y-3.62%
EBIT growth 5Y76.14%
EBIT Next Year107.78%
EBIT Next 3Y28.71%
EBIT Next 5Y21.88%
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%