SANDRIDGE ENERGY INC (SD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SD - US80007P8692 - Common Stock
15.18 USD
-0.14 (-0.91%)
15.18 USD
0 (0%)
Taking everything into account, SD scores 7 out of 10 in our fundamental rating. SD was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. SD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SD may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make SD a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year SD was profitable.
- SD had a positive operating cash flow in the past year.
- SD had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years SD had a positive operating cash flow.
1.2 Ratios
- SD has a Return On Assets of 10.75%. This is amongst the best in the industry. SD outperforms 90.82% of its industry peers.
- With a decent Return On Equity value of 13.52%, SD is doing good in the industry, outperforming 73.91% of the companies in the same industry.
- SD has a Return On Invested Capital of 7.58%. This is in the better half of the industry: SD outperforms 70.05% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SD is significantly below the industry average of 21.94%.
- The last Return On Invested Capital (7.58%) for SD is well below the 3 year average (13.55%), which needs to be investigated, but indicates that SD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.75% | ||
| ROE | 13.52% | ||
| ROIC | 7.58% |
ROA(3y)20.59%
ROA(5y)-2.31%
ROE(3y)25.44%
ROE(5y)-18.53%
ROIC(3y)13.55%
ROIC(5y)N/A
1.3 Margins
- SD's Profit Margin of 42.69% is amongst the best of the industry. SD outperforms 93.72% of its industry peers.
- SD's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 33.24%, SD belongs to the best of the industry, outperforming 80.68% of the companies in the same industry.
- In the last couple of years the Operating Margin of SD has declined.
- The Gross Margin of SD (69.02%) is better than 76.33% of its industry peers.
- In the last couple of years the Gross Margin of SD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.24% | ||
| PM (TTM) | 42.69% | ||
| GM | 69.02% |
OM growth 3Y-23.26%
OM growth 5YN/A
PM growth 3Y-10.06%
PM growth 5YN/A
GM growth 3Y-4.89%
GM growth 5Y1.33%
2. Health
2.1 Basic Checks
- SD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for SD has been increased compared to 1 year ago.
- SD has more shares outstanding than it did 5 years ago.
- SD has a worse debt/assets ratio than last year.
2.2 Solvency
- SD has an Altman-Z score of 2.21. This is not the best score and indicates that SD is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.21, SD is doing good in the industry, outperforming 68.60% of the companies in the same industry.
- There is no outstanding debt for SD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.85
WACC8.91%
2.3 Liquidity
- SD has a Current Ratio of 2.17. This indicates that SD is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.17, SD is in the better half of the industry, outperforming 78.74% of the companies in the same industry.
- A Quick Ratio of 2.17 indicates that SD has no problem at all paying its short term obligations.
- SD's Quick ratio of 2.17 is amongst the best of the industry. SD outperforms 80.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 57.45% over the past year.
- The earnings per share for SD have been decreasing by -18.51% on average. This is quite bad
- Looking at the last year, SD shows a very strong growth in Revenue. The Revenue has grown by 29.68%.
- The Revenue for SD have been decreasing by -14.03% on average. This is quite bad
EPS 1Y (TTM)57.45%
EPS 3Y-18.51%
EPS 5YN/A
EPS Q2Q%121.05%
Revenue 1Y (TTM)29.68%
Revenue growth 3Y-9.48%
Revenue growth 5Y-14.03%
Sales Q2Q%32.49%
3.2 Future
- SD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.92% yearly.
- SD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.95% yearly.
EPS Next Y67.24%
EPS Next 2Y36.81%
EPS Next 3Y27.92%
EPS Next 5YN/A
Revenue Next Year19.71%
Revenue Next 2Y18.26%
Revenue Next 3Y13.95%
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 accelerating.
- 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
- With a Price/Earnings ratio of 10.26, the valuation of SD can be described as very reasonable.
- Based on the Price/Earnings ratio, SD is valued cheaper than 81.64% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SD to the average of the S&P500 Index (27.30), we can say SD is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.72, which indicates a very decent valuation of SD.
- Based on the Price/Forward Earnings ratio, SD is valued cheaply inside the industry as 85.51% of the companies are valued more expensively.
- SD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SD indicates a somewhat cheap valuation: SD is cheaper than 77.78% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.42 | ||
| EV/EBITDA | 4.92 |
4.3 Compensation for Growth
- SD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of SD may justify a higher PE ratio.
- A more expensive valuation may be justified as SD's earnings are expected to grow with 27.92% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y36.81%
EPS Next 3Y27.92%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.15%, SD has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.75, SD has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, SD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
- The dividend of SD is nicely growing with an annual growth rate of 76.46%!
- SD has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)76.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 24.06% of the earnings are spent on dividend by SD. This is a low number and sustainable payout ratio.
- The dividend of SD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.06%
EPS Next 2Y36.81%
EPS Next 3Y27.92%
SANDRIDGE ENERGY INC / SD FAQ
Can you provide the ChartMill fundamental rating for SANDRIDGE ENERGY INC?
ChartMill assigns a fundamental rating of 7 / 10 to SD.
Can you provide the valuation status for SANDRIDGE ENERGY INC?
ChartMill assigns a valuation rating of 8 / 10 to SANDRIDGE ENERGY INC (SD). This can be considered as Undervalued.
What is the profitability of SD stock?
SANDRIDGE ENERGY INC (SD) has a profitability rating of 7 / 10.
What are the PE and PB ratios of SANDRIDGE ENERGY INC (SD) stock?
The Price/Earnings (PE) ratio for SANDRIDGE ENERGY INC (SD) is 10.26 and the Price/Book (PB) ratio is 1.13.
How financially healthy is SANDRIDGE ENERGY INC?
The financial health rating of SANDRIDGE ENERGY INC (SD) is 7 / 10.