SANDRIDGE ENERGY INC (SD) Stock Fundamental Analysis
NYSE:SD - New York Stock Exchange, Inc. - US80007P8692 - Common Stock - Currency: USD
Taking everything into account, SD scores 6 out of 10 in our fundamental rating. SD was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. SD is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SD may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make SD suitable for value 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.
In the past 5 years SD always reported a positive cash flow from operatings.
1.2 Ratios
SD's Return On Assets of 11.03% is amongst the best of the industry. SD outperforms 84.29% of its industry peers.
SD's Return On Equity of 13.96% is fine compared to the rest of the industry. SD outperforms 68.57% of its industry peers.
SD has a Return On Invested Capital (6.06%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SD is significantly below the industry average of 23.80%.
The 3 year average ROIC (13.55%) for SD is well above the current ROIC(6.06%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.03% | ||
| ROE | 13.96% | ||
| ROIC | 6.06% |
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 47.17%, SD belongs to the best of the industry, outperforming 91.90% of the companies in the same industry.
In the last couple of years the Profit Margin of SD has declined.
SD's Operating Margin of 28.52% is fine compared to the rest of the industry. SD outperforms 67.62% of its industry peers.
In the last couple of years the Operating Margin of SD has declined.
SD has a better Gross Margin (65.10%) than 74.29% 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 | 28.52% | ||
| PM (TTM) | 47.17% | ||
| GM | 65.1% |
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
Compared to 5 years ago, SD has more shares outstanding
The debt/assets ratio for SD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that SD is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.27, SD is in line with its industry, outperforming 48.10% 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 | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC0.65
WACC9.3%
2.3 Liquidity
A Current Ratio of 2.13 indicates that SD has no problem at all paying its short term obligations.
SD's Current ratio of 2.13 is fine compared to the rest of the industry. SD outperforms 79.52% of its industry peers.
SD has a Quick Ratio of 2.13. This indicates that SD is financially healthy and has no problem in meeting its short term obligations.
SD has a better Quick ratio (2.13) than 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 2.13 |
3. Growth
3.1 Past
SD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.49%, which is quite impressive.
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.
Looking at the last year, SD shows a small growth in Revenue. The Revenue has grown by 1.40% in the last year.
SD shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -14.03% yearly.
EPS 1Y (TTM)34.49%
EPS 3Y-18.51%
EPS 5YN/A
EPS Q2Q%69.57%
Revenue 1Y (TTM)1.4%
Revenue growth 3Y-9.48%
Revenue growth 5Y-14.03%
Sales Q2Q%40.7%
3.2 Future
The Earnings Per Share is expected to grow by 17.37% on average over the next years. This is quite good.
SD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.66% yearly.
EPS Next Y79.42%
EPS Next 2Y32.7%
EPS Next 3Y17.37%
EPS Next 5YN/A
Revenue Next Year24.74%
Revenue Next 2Y14.54%
Revenue Next 3Y8.66%
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.
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
With a Price/Earnings ratio of 9.51, 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 somewhat cheap valuation: SD is cheaper than 73.81% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, SD is valued rather cheaply.
SD is valuated cheaply with a Price/Forward Earnings ratio of 6.33.
85.24% of the companies in the same industry are more expensive than SD, based on the Price/Forward Earnings ratio.
SD is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 6.33 |
4.2 Price Multiples
79.52% of the companies in the same industry are more expensive than SD, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.91 |
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 17.37% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y32.7%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
SD has a Yearly Dividend Yield of 4.07%, which is a nice return.
SD's Dividend Yield is a higher than the industry average which is at 6.41.
SD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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 25.73% of its income as dividend. This is a sustainable payout ratio.
SD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.73%
EPS Next 2Y32.7%
EPS Next 3Y17.37%
10.37
-0.45 (-4.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.08%
Inst Owner Change-0.34%
Ins Owners1.23%
Ins Owner Change0.96%
Market Cap380.48M
Analysts82
Price Target19.38 (86.89%)
Short Float %2.76%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend1.95
Dividend Growth(5Y)76.46%
DP25.73%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.59%
Min EPS beat(2)-31.23%
Max EPS beat(2)-11.94%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-14.63%
Min Revenue beat(2)-24.75%
Max Revenue beat(2)-4.52%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 6.33 | ||
| P/S | 2.76 | ||
| P/FCF | N/A | ||
| P/OCF | 4.84 | ||
| P/B | 0.82 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 3.91 |
EPS(TTM)1.09
EY10.51%
EPS(NY)1.64
Fwd EY15.79%
FCF(TTM)-2.33
FCFYN/A
OCF(TTM)2.14
OCFY20.65%
SpS3.75
BVpS12.67
TBVpS12.67
PEG (NY)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.03% | ||
| ROE | 13.96% | ||
| ROCE | 7.45% | ||
| ROIC | 6.06% | ||
| ROICexc | 7.48% | ||
| ROICexgc | 7.48% | ||
| OM | 28.52% | ||
| PM (TTM) | 47.17% | ||
| GM | 65.1% | ||
| FCFM | N/A |
ROA(3y)20.59%
ROA(5y)-2.31%
ROE(3y)25.44%
ROE(5y)-18.53%
ROIC(3y)13.55%
ROIC(5y)N/A
ROICexc(3y)24.76%
ROICexc(5y)N/A
ROICexgc(3y)24.76%
ROICexgc(5y)N/A
ROCE(3y)16.66%
ROCE(5y)N/A
ROICexcg growth 3Y-50.65%
ROICexcg growth 5YN/A
ROICexc growth 3Y-50.65%
ROICexc growth 5YN/A
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%
F-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 446.96% | ||
| Cap/Sales | 119.34% | ||
| Interest Coverage | 311.51 | ||
| Cash Conversion | 103.41% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 2.13 | ||
| Altman-Z | 1.27 |
F-Score6
WACC9.3%
ROIC/WACC0.65
Cap/Depr(3y)301.66%
Cap/Depr(5y)205.04%
Cap/Sales(3y)55.94%
Cap/Sales(5y)37.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)34.49%
EPS 3Y-18.51%
EPS 5YN/A
EPS Q2Q%69.57%
EPS Next Y79.42%
EPS Next 2Y32.7%
EPS Next 3Y17.37%
EPS Next 5YN/A
Revenue 1Y (TTM)1.4%
Revenue growth 3Y-9.48%
Revenue growth 5Y-14.03%
Sales Q2Q%40.7%
Revenue Next Year24.74%
Revenue Next 2Y14.54%
Revenue Next 3Y8.66%
Revenue Next 5YN/A
EBIT growth 1Y-24.18%
EBIT growth 3Y-30.53%
EBIT growth 5YN/A
EBIT Next Year214.61%
EBIT Next 3Y47.18%
EBIT Next 5YN/A
FCF growth 1Y-169.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-54.39%
OCF growth 3Y-12.48%
OCF growth 5Y-9.43%