SM ENERGY CO (SM) Stock Fundamental Analysis
NYSE:SM - New York Stock Exchange, Inc. - US78454L1008 - Common Stock
Overall SM gets a fundamental rating of 6 out of 10. We evaluated SM against 210 industry peers in the Oil, Gas & Consumable Fuels industry. SM has an excellent profitability rating, but there are some minor concerns on its financial health. SM is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, SM could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
SM had positive earnings in the past year.
SM had a positive operating cash flow in the past year.
In multiple years SM reported negative net income over the last 5 years.
In the past 5 years SM always reported a positive cash flow from operatings.
1.2 Ratios
SM has a better Return On Assets (10.33%) than 77.18% of its industry peers.
SM has a Return On Equity of 20.41%. This is in the better half of the industry: SM outperforms 74.27% of its industry peers.
SM has a better Return On Invested Capital (10.76%) than 70.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SM is significantly below the industry average of 28.71%.
The 3 year average ROIC (22.74%) for SM is well above the current ROIC(10.76%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 20.41% | ||
| ROIC | 10.76% |
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 33.89% is amongst the best of the industry. SM outperforms 83.50% of its industry peers.
In the last couple of years the Profit Margin of SM has grown nicely.
With a decent Operating Margin value of 38.74%, SM is doing good in the industry, outperforming 78.16% of the companies in the same industry.
SM's Operating Margin has improved in the last couple of years.
SM has a better Gross Margin (77.12%) than 87.38% of its industry peers.
In the last couple of years the Gross Margin of SM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.74% | ||
| PM (TTM) | 33.89% | ||
| GM | 77.12% |
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
SM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SM has been increased compared to 5 years ago.
SM has a better debt/assets ratio than last year.
2.2 Solvency
SM has an Altman-Z score of 2.09. This is not the best score and indicates that SM is in the grey zone with still only limited risk for bankruptcy at the moment.
SM has a Altman-Z score of 2.09. This is in the better half of the industry: SM outperforms 60.19% of its industry peers.
The Debt to FCF ratio of SM is 5.41, which is a neutral value as it means it would take SM, 5.41 years of fcf income to pay off all of its debts.
SM has a Debt to FCF ratio of 5.41. This is comparable to the rest of the industry: SM outperforms 57.77% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that SM is somewhat dependend on debt financing.
SM has a worse Debt to Equity ratio (0.67) than 65.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.09 |
ROIC/WACC1.28
WACC8.44%
2.3 Liquidity
A Current Ratio of 3.52 indicates that SM has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.52, SM belongs to the best of the industry, outperforming 83.01% of the companies in the same industry.
A Quick Ratio of 3.52 indicates that SM has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.52, SM belongs to the best of the industry, outperforming 84.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.52 | ||
| Quick Ratio | 3.52 |
3. Growth
3.1 Past
SM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.92%, 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.
SM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.42%.
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)14.92%
EPS 3YN/A
EPS 5Y187.86%
EPS Q2Q%-6.36%
Revenue 1Y (TTM)0.42%
Revenue growth 3Y28.2%
Revenue growth 5Y7.67%
Sales Q2Q%0.42%
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 9.18% on average per year.
Based on estimates for the next years, SM will show a quite strong growth in Revenue. The Revenue will grow by 12.59% on average per year.
EPS Next Y19.22%
EPS Next 2Y13.62%
EPS Next 3Y11.95%
EPS Next 5Y9.18%
Revenue Next Year14.47%
Revenue Next 2Y18.27%
Revenue Next 3Y12.59%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 6.47, which indicates a rather cheap valuation of SM.
Based on the Price/Earnings ratio, SM is valued cheaply inside the industry as 83.50% of the companies are valued more expensively.
SM is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.47, which 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 86.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, SM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.47 | ||
| Fwd PE | 5.47 |
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 82.52% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SM is valued a bit cheaper than 70.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.59 | ||
| EV/EBITDA | 3.42 |
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.
SM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.34
PEG (5Y)0.03
EPS Next 2Y13.62%
EPS Next 3Y11.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.81%, SM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.39, SM is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.28, SM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
On average, the dividend of SM grows each year by 43.22%, which is quite nice.
SM has paid a dividend for at least 10 years, which is a reliable track record.
SM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)43.22%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
9.59% of the earnings are spent on dividend by SM. This is a low number and sustainable payout ratio.
The dividend of SM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP9.59%
EPS Next 2Y13.62%
EPS Next 3Y11.95%
SM ENERGY CO
NYSE:SM (1/21/2025, 9:31:56 PM)
Premarket: 41.38 -0.5 (-1.19%)41.88
-1.33 (-3.08%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners101.84%
Inst Owner Change-0.52%
Ins Owners1.41%
Ins Owner Change-0.1%
Market Cap4.79B
Analysts79.13
Price Target53.99 (28.92%)
Short Float %8.71%
Short Ratio7.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend0.6
Dividend Growth(5Y)43.22%
DP9.59%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.03%
Min EPS beat(2)2.91%
Max EPS beat(2)17.15%
EPS beat(4)4
Avg EPS beat(4)9.72%
Min EPS beat(4)2.91%
Max EPS beat(4)17.15%
EPS beat(8)7
Avg EPS beat(8)7.26%
EPS beat(12)10
Avg EPS beat(12)9.55%
EPS beat(16)13
Avg EPS beat(16)43.5%
Revenue beat(2)1
Avg Revenue beat(2)-2.03%
Min Revenue beat(2)-4.07%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-4.07%
Max Revenue beat(4)0%
Revenue beat(8)3
Avg Revenue beat(8)-1.29%
Revenue beat(12)7
Avg Revenue beat(12)6.84%
Revenue beat(16)10
Avg Revenue beat(16)10.99%
PT rev (1m)-0.63%
PT rev (3m)-4.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)24.99%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.47 | ||
| Fwd PE | 5.47 | ||
| P/S | 1.96 | ||
| P/FCF | 9.59 | ||
| P/OCF | 2.85 | ||
| P/B | 1.18 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 3.42 |
EPS(TTM)6.47
EY15.45%
EPS(NY)7.66
Fwd EY18.28%
FCF(TTM)4.37
FCFY10.43%
OCF(TTM)14.69
OCFY35.08%
SpS21.38
BVpS35.5
TBVpS35.5
PEG (NY)0.34
PEG (5Y)0.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 20.41% | ||
| ROCE | 12.73% | ||
| ROIC | 10.76% | ||
| ROICexc | 14.03% | ||
| ROICexgc | 14.03% | ||
| OM | 38.74% | ||
| PM (TTM) | 33.89% | ||
| GM | 77.12% | ||
| FCFM | 20.43% |
ROA(3y)10.99%
ROA(5y)2.93%
ROE(3y)20.14%
ROE(5y)3.14%
ROIC(3y)22.74%
ROIC(5y)N/A
ROICexc(3y)24.93%
ROICexc(5y)N/A
ROICexgc(3y)24.93%
ROICexgc(5y)N/A
ROCE(3y)26.89%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y28.45%
ROICexc growth 3YN/A
ROICexc growth 5Y28.45%
OM growth 3YN/A
OM growth 5Y16.37%
PM growth 3YN/A
PM growth 5Y2.14%
GM growth 3Y5.32%
GM growth 5Y1.65%
F-Score6
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 160.09% | ||
| Cap/Sales | 48.28% | ||
| Interest Coverage | 10.24 | ||
| Cash Conversion | 99.73% | ||
| Profit Quality | 60.29% | ||
| Current Ratio | 3.52 | ||
| Quick Ratio | 3.52 | ||
| Altman-Z | 2.09 |
F-Score6
WACC8.44%
ROIC/WACC1.28
Cap/Depr(3y)130.84%
Cap/Depr(5y)117.58%
Cap/Sales(3y)32.79%
Cap/Sales(5y)42.46%
Profit Quality(3y)486.65%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.92%
EPS 3YN/A
EPS 5Y187.86%
EPS Q2Q%-6.36%
EPS Next Y19.22%
EPS Next 2Y13.62%
EPS Next 3Y11.95%
EPS Next 5Y9.18%
Revenue 1Y (TTM)0.42%
Revenue growth 3Y28.2%
Revenue growth 5Y7.67%
Sales Q2Q%0.42%
Revenue Next Year14.47%
Revenue Next 2Y18.27%
Revenue Next 3Y12.59%
Revenue Next 5YN/A
EBIT growth 1Y-7.24%
EBIT growth 3YN/A
EBIT growth 5Y25.3%
EBIT Next Year111.71%
EBIT Next 3Y37.15%
EBIT Next 5Y26.5%
FCF growth 1Y-55.02%
FCF growth 3Y26.41%
FCF growth 5YN/A
OCF growth 1Y-8.02%
OCF growth 3Y25.8%
OCF growth 5Y16.92%