SANDRIDGE ENERGY INC (SD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SD - US80007P8692 - Common Stock
15.245 USD
-0.16 (-1.01%)
SD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making SD a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on SD. This makes SD very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
- SD had positive earnings in the past year.
- SD had a positive operating cash flow in the past year.
- SD had positive earnings in 4 of the past 5 years.
- In the past 5 years SD always reported a positive cash flow from operatings.
1.2 Ratios
- SD has a better Return On Assets (10.75%) than 90.82% of its industry peers.
- The Return On Equity of SD (13.52%) is better than 73.91% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.58%, SD is in the better half of the industry, outperforming 70.05% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- With an excellent Profit Margin value of 42.69%, SD belongs to the best of the industry, outperforming 93.72% of the companies in the same industry.
- In the last couple of years the Profit Margin of SD has declined.
- Looking at the Operating Margin, with a value of 33.24%, SD belongs to the top of the industry, outperforming 80.68% of the companies in the same industry.
- SD's Operating Margin has declined in the last couple of years.
- SD has a better Gross Margin (69.02%) than 76.33% of its industry peers.
- SD's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SD is still creating some value.
- SD has more shares outstanding than it did 1 year ago.
- SD has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for SD is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.25 indicates that SD is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SD has a better Altman-Z score (2.25) than 69.57% of its industry peers.
- SD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.85
WACC8.89%
2.3 Liquidity
- A Current Ratio of 2.17 indicates that SD has no problem at all paying its short term obligations.
- SD has a better Current ratio (2.17) than 78.74% of its industry peers.
- SD has a Quick Ratio of 2.17. This indicates that SD is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 2.17, SD belongs to the best of the industry, outperforming 80.68% of the companies in the same industry.
| 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.
- Measured over the past years, SD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.51% on average per year.
- SD shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.68%.
- Measured over the past years, SD shows a very negative growth in Revenue. The Revenue has been decreasing by -14.03% on average per year.
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
- The Earnings Per Share is expected to grow by 27.92% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 13.95% on average over the next years. This is quite good.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
- With a Price/Earnings ratio of 10.30, the valuation of SD can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of SD indicates a rather cheap valuation: SD is cheaper than 81.16% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. SD is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 8.76, the valuation of SD can be described as reasonable.
- 86.47% of the companies in the same industry are more expensive than SD, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, SD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 8.76 |
4.2 Price Multiples
- SD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SD is cheaper than 77.29% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as SD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.51 | ||
| EV/EBITDA | 5.01 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SD has a very decent profitability rating, which may justify a higher PE ratio.
- SD's earnings are expected to grow with 27.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y36.81%
EPS Next 3Y27.92%
5. Dividend
5.1 Amount
- SD has a Yearly Dividend Yield of 3.03%. Purely for dividend investing, there may be better candidates out there.
- SD's Dividend Yield is comparable with the industry average which is at 3.73.
- Compared to an average S&P500 Dividend Yield of 1.81, SD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
- The dividend of SD is nicely growing with an annual growth rate of 76.46%!
- SD has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)76.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- SD pays out 24.06% of its income as dividend. This is a 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 10.3 and the Price/Book (PB) ratio is 1.14.
How financially healthy is SANDRIDGE ENERGY INC?
The financial health rating of SANDRIDGE ENERGY INC (SD) is 7 / 10.