SANDRIDGE ENERGY INC (SD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SD - US80007P8692 - Common Stock
15.4 USD
+0.22 (+1.45%)
15.4 USD
0 (0%)
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. SD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
- In the past year SD had a positive cash flow from operations.
- Of the past 5 years SD 4 years were profitable.
- SD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.75%, SD belongs to the top of the industry, outperforming 90.82% of the companies in the same industry.
- The Return On Equity of SD (13.52%) is better than 73.91% of its industry peers.
- SD has a better Return On Invested Capital (7.58%) than 70.05% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SD is significantly below the industry average of 21.94%.
- The 3 year average ROIC (13.55%) for SD is well above the current ROIC(7.58%). The reason for the recent decline needs to be investigated.
| 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.
- SD's Profit Margin has declined in the last couple of years.
- SD has a better Operating Margin (33.24%) than 80.68% of its industry peers.
- SD's Operating Margin has declined in the last couple of years.
- SD has a Gross Margin of 69.02%. This is in the better half of the industry: SD outperforms 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
- SD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, SD has more shares outstanding
- The number of shares outstanding for SD has been increased compared to 5 years ago.
- The debt/assets ratio for SD is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.21 indicates that SD is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SD has a Altman-Z score of 2.21. This is in the better half of the industry: SD outperforms 68.60% of its industry peers.
- 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
WACC8.89%
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.
- SD has a Current ratio of 2.17. This is in the better half of the industry: SD outperforms 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.
- Looking at the Quick ratio, with a value of 2.17, SD belongs to the top 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.
- SD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.51% yearly.
- The Revenue has grown by 29.68% in the past year. This is a very strong growth!
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.41, the valuation of SD can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of SD indicates a rather cheap valuation: SD is cheaper than 81.64% of the companies listed in the same industry.
- SD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 8.85, 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 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 8.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SD is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
- 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 | 19.7 | ||
| EV/EBITDA | 4.92 |
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.
- 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
- SD has a Yearly Dividend Yield of 3.15%. Purely for dividend investing, there may be better candidates out there.
- 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
- On average, the dividend of SD grows each year by 76.46%, which is quite nice.
- 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 10.41 and the Price/Book (PB) ratio is 1.15.
How financially healthy is SANDRIDGE ENERGY INC?
The financial health rating of SANDRIDGE ENERGY INC (SD) is 7 / 10.