SM ENERGY CO (SM)
US78454L1008 - Common Stock
SM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 209 industry peers in the Oil, Gas & Consumable Fuels industry. While SM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SM. These ratings could make SM a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year SM was profitable.
SM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SM reported negative net income in multiple years.
In the past 5 years SM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SM (12.18%) is better than 80.38% of its industry peers.
SM has a better Return On Equity (21.10%) than 72.25% of its industry peers.
The Return On Invested Capital of SM (13.61%) is better than 76.56% of its industry peers.
SM had an Average Return On Invested Capital over the past 3 years of 22.74%. This is in line with the industry average of 22.73%.
The last Return On Invested Capital (13.61%) for SM is well below the 3 year average (22.74%), which needs to be investigated, but indicates that SM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.18% | ||
| ROE | 21.1% | ||
| ROIC | 13.61% |
ROA(3y)10.99%
ROA(5y)2.93%
ROE(3y)20.14%
ROE(5y)3.14%
ROIC(3y)22.74%
ROIC(5y)N/A
1.3 Margins
SM's Profit Margin of 33.18% is amongst the best of the industry. SM outperforms 81.34% of its industry peers.
In the last couple of years the Profit Margin of SM has grown nicely.
SM's Operating Margin of 39.86% is fine compared to the rest of the industry. SM outperforms 77.51% of its industry peers.
In the last couple of years the Operating Margin of SM has grown nicely.
SM's Gross Margin of 77.51% is amongst the best of the industry. SM outperforms 87.56% of its industry peers.
SM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.86% | ||
| PM (TTM) | 33.18% | ||
| GM | 77.51% |
OM growth 3YN/A
OM growth 5Y16.37%
PM growth 3YN/A
PM growth 5Y2.14%
GM growth 3Y5.32%
GM growth 5Y1.65%
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.
The number of shares outstanding for SM has been increased compared to 5 years ago.
The debt/assets ratio for SM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.49 indicates that SM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SM has a Altman-Z score of 2.49. This is in the better half of the industry: SM outperforms 66.51% of its industry peers.
SM has a debt to FCF ratio of 3.18. This is a good value and a sign of high solvency as SM would need 3.18 years to pay back of all of its debts.
SM has a better Debt to FCF ratio (3.18) than 68.90% of its industry peers.
SM has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.41, SM perfoms like the industry average, outperforming 50.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.76
WACC7.72%
2.3 Liquidity
A Current Ratio of 1.29 indicates that SM should not have too much problems paying its short term obligations.
SM has a Current ratio (1.29) which is comparable to the rest of the industry.
SM has a Quick Ratio of 1.29. This is a normal value and indicates that SM is financially healthy and should not expect problems in meeting its short term obligations.
SM has a better Quick ratio (1.29) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
SM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.03%, which is quite good.
SM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 187.86% yearly.
The Revenue has decreased by -7.11% in the past year.
Measured over the past years, SM shows a small growth in Revenue. The Revenue has been growing by 7.67% on average per year.
EPS 1Y (TTM)15.03%
EPS 3YN/A
EPS 5Y187.86%
EPS Q2Q%44.53%
Revenue 1Y (TTM)-7.11%
Revenue growth 3Y28.2%
Revenue growth 5Y7.67%
Sales Q2Q%15.22%
3.2 Future
Based on estimates for the next years, SM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.07% on average per year.
The Revenue is expected to grow by 12.71% on average over the next years. This is quite good.
EPS Next Y32.81%
EPS Next 2Y32.09%
EPS Next 3Y19.88%
EPS Next 5Y10.07%
Revenue Next Year15.17%
Revenue Next 2Y19.57%
Revenue Next 3Y12.71%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.71 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 80.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.97, SM is valued rather cheaply.
A Price/Forward Earnings ratio of 4.27 indicates a rather cheap valuation of SM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SM indicates a rather cheap valuation: SM is cheaper than 93.78% of the companies listed in the same industry.
SM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.71 | ||
| Fwd PE | 4.27 |
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 81.82% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SM indicates a somewhat cheap valuation: SM is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.18 | ||
| EV/EBITDA | 3.73 |
4.3 Compensation for Growth
SM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of SM may justify a higher PE ratio.
A more expensive valuation may be justified as SM's earnings are expected to grow with 19.88% in the coming years.
PEG (NY)0.2
PEG (5Y)0.04
EPS Next 2Y32.09%
EPS Next 3Y19.88%
5. Dividend
5.1 Amount
SM has a Yearly Dividend Yield of 1.81%.
Compared to an average industry Dividend Yield of 6.32, SM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.22, SM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of SM is nicely growing with an annual growth rate of 43.22%!
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)43.22%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
SM pays out 9.47% of its income as dividend. This is a sustainable payout ratio.
The dividend of SM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.47%
EPS Next 2Y32.09%
EPS Next 3Y19.88%
SM ENERGY CO
NYSE:SM (10/8/2024, 8:24:02 PM)
After market: 44.16 0 (0%)44.16
-1.67 (-3.64%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.71 | ||
| Fwd PE | 4.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.2
PEG (5Y)0.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.18% | ||
| ROE | 21.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 39.86% | ||
| PM (TTM) | 33.18% | ||
| GM | 77.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)15.03%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y32.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.11%
Revenue growth 3Y28.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y