SM ENERGY CO (SM) Stock Fundamental Analysis
USA - NYSE:SM - US78454L1008 - Common Stock
18.28 USD
+0.37 (+2.07%)
18.28 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SM. SM was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. SM scores excellent on profitability, but there are concerns on its financial health. SM has a correct valuation and a medium growth rate. Finally SM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SM was profitable.
In the past year SM had a positive cash flow from operations.
Of the past 5 years SM 4 years were profitable.
SM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SM has a better Return On Assets (9.04%) than 83.33% of its industry peers.
The Return On Equity of SM (17.71%) is better than 80.00% of its industry peers.
SM has a Return On Invested Capital of 11.02%. This is amongst the best in the industry. SM outperforms 84.76% of its industry peers.
SM had an Average Return On Invested Capital over the past 3 years of 19.03%. This is below the industry average of 21.78%.
The last Return On Invested Capital (11.02%) for SM is well below the 3 year average (19.03%), which needs to be investigated, but indicates that SM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.04% | ||
| ROE | 17.71% | ||
| ROIC | 11.02% |
ROA(3y)13.75%
ROA(5y)5.32%
ROE(3y)25.61%
ROE(5y)8.13%
ROIC(3y)19.03%
ROIC(5y)N/A
1.3 Margins
SM's Profit Margin of 25.94% is amongst the best of the industry. SM outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of SM has grown nicely.
Looking at the Operating Margin, with a value of 33.89%, SM belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
In the last couple of years the Operating Margin of SM has grown nicely.
The Gross Margin of SM (74.08%) is better than 85.24% of its industry peers.
In the last couple of years the Gross Margin of SM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.89% | ||
| PM (TTM) | 25.94% | ||
| GM | 74.08% |
OM growth 3Y-4.43%
OM growth 5Y58.54%
PM growth 3Y174.7%
PM growth 5YN/A
GM growth 3Y-1.85%
GM growth 5Y2.19%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SM is creating value.
Compared to 1 year ago, SM has less shares outstanding
The number of shares outstanding for SM has been increased compared to 5 years ago.
Compared to 1 year ago, SM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.46, we must say that SM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SM (1.46) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.59 indicates that SM is somewhat dependend on debt financing.
SM's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. SM outperforms 42.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.46 |
ROIC/WACC1.45
WACC7.6%
2.3 Liquidity
SM has a Current Ratio of 0.69. This is a bad value and indicates that SM is not financially healthy enough and could expect problems in meeting its short term obligations.
SM's Current ratio of 0.69 is on the low side compared to the rest of the industry. SM is outperformed by 76.67% of its industry peers.
SM has a Quick Ratio of 0.69. This is a bad value and indicates that SM is not financially healthy enough and could expect problems in meeting its short term obligations.
SM's Quick ratio of 0.69 is on the low side compared to the rest of the industry. SM is outperformed by 69.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
SM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.19%.
The Earnings Per Share has been growing by 54.53% on average over the past years. This is a very strong growth
SM shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.20%.
The Revenue has been growing by 11.10% on average over the past years. This is quite good.
EPS 1Y (TTM)3.19%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%-18.92%
Revenue 1Y (TTM)28.2%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%24.96%
3.2 Future
Based on estimates for the next years, SM will show a decrease in Earnings Per Share. The EPS will decrease by -5.06% on average per year.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y-14.51%
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
EPS Next 5Y-5.06%
Revenue Next Year22.51%
Revenue Next 2Y9.47%
Revenue Next 3Y7.23%
Revenue Next 5Y5%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SM is valuated cheaply with a Price/Earnings ratio of 2.69.
Based on the Price/Earnings ratio, SM is valued cheaper than 99.05% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, SM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 3.82, the valuation of SM can be described as very cheap.
Based on the Price/Forward Earnings ratio, SM is valued cheaply inside the industry as 97.14% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, SM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.69 | ||
| Fwd PE | 3.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SM is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.24 |
4.3 Compensation for Growth
The excellent profitability rating of SM may justify a higher PE ratio.
A cheap valuation may be justified as SM's earnings are expected to decrease with -5.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
5. Dividend
5.1 Amount
SM has a Yearly Dividend Yield of 4.47%, which is a nice return.
In the last 3 months the price of SM has falen by -30.34%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 6.76, SM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, SM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
5.2 History
The dividend of SM is nicely growing with an annual growth rate of 49.05%!
SM has been paying a dividend for at least 10 years, so it has a reliable track record.
SM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)49.05%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
SM pays out 10.98% of its income as dividend. This is a sustainable payout ratio.
DP10.98%
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
18.28
+0.37 (+2.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners101.71%
Inst Owner Change-1.21%
Ins Owners1.47%
Ins Owner Change5.09%
Market Cap2.10B
Revenue(TTM)3.13B
Net Income(TTM)812.74M
Analysts76.36
Price Target39 (113.35%)
Short Float %9.4%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend0.74
Dividend Growth(5Y)49.05%
DP10.98%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.12%
Min EPS beat(2)6.01%
Max EPS beat(2)20.23%
EPS beat(4)3
Avg EPS beat(4)6.6%
Min EPS beat(4)-2.75%
Max EPS beat(4)20.23%
EPS beat(8)7
Avg EPS beat(8)8.49%
EPS beat(12)9
Avg EPS beat(12)6.19%
EPS beat(16)13
Avg EPS beat(16)37.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-1.79%
Max Revenue beat(2)-1.06%
Revenue beat(4)0
Avg Revenue beat(4)-2.59%
Min Revenue beat(4)-4.07%
Max Revenue beat(4)-1.06%
Revenue beat(8)2
Avg Revenue beat(8)-1.98%
Revenue beat(12)4
Avg Revenue beat(12)-0.69%
Revenue beat(16)8
Avg Revenue beat(16)7.52%
PT rev (1m)-4.42%
PT rev (3m)-2.18%
EPS NQ rev (1m)0.94%
EPS NQ rev (3m)-6.26%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-2.96%
Revenue NQ rev (1m)0.67%
Revenue NQ rev (3m)2.32%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.69 | ||
| Fwd PE | 3.82 | ||
| P/S | 0.67 | ||
| P/FCF | N/A | ||
| P/OCF | 1.01 | ||
| P/B | 0.46 | ||
| P/tB | 0.46 | ||
| EV/EBITDA | 2.24 |
EPS(TTM)6.79
EY37.14%
EPS(NY)4.78
Fwd EY26.17%
FCF(TTM)-13.17
FCFYN/A
OCF(TTM)18.13
OCFY99.19%
SpS27.26
BVpS39.93
TBVpS39.93
PEG (NY)N/A
PEG (5Y)N/A
Graham Number78.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.04% | ||
| ROE | 17.71% | ||
| ROCE | 13.02% | ||
| ROIC | 11.02% | ||
| ROICexc | 11.16% | ||
| ROICexgc | 11.16% | ||
| OM | 33.89% | ||
| PM (TTM) | 25.94% | ||
| GM | 74.08% | ||
| FCFM | N/A |
ROA(3y)13.75%
ROA(5y)5.32%
ROE(3y)25.61%
ROE(5y)8.13%
ROIC(3y)19.03%
ROIC(5y)N/A
ROICexc(3y)20.6%
ROICexc(5y)N/A
ROICexgc(3y)20.6%
ROICexgc(5y)N/A
ROCE(3y)22.49%
ROCE(5y)N/A
ROICexgc growth 3Y-22.74%
ROICexgc growth 5Y66.18%
ROICexc growth 3Y-22.74%
ROICexc growth 5Y66.18%
OM growth 3Y-4.43%
OM growth 5Y58.54%
PM growth 3Y174.7%
PM growth 5YN/A
GM growth 3Y-1.85%
GM growth 5Y2.19%
F-Score3
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 350.58% | ||
| Cap/Sales | 114.84% | ||
| Interest Coverage | 8.06 | ||
| Cash Conversion | 99.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.46 |
F-Score3
WACC7.6%
ROIC/WACC1.45
Cap/Depr(3y)242.28%
Cap/Depr(5y)177.04%
Cap/Sales(3y)66.47%
Cap/Sales(5y)54.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.19%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%-18.92%
EPS Next Y-14.51%
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
EPS Next 5Y-5.06%
Revenue 1Y (TTM)28.2%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%24.96%
Revenue Next Year22.51%
Revenue Next 2Y9.47%
Revenue Next 3Y7.23%
Revenue Next 5Y5%
EBIT growth 1Y9.02%
EBIT growth 3Y-3.62%
EBIT growth 5Y76.14%
EBIT Next Year108.41%
EBIT Next 3Y28.71%
EBIT Next 5Y20.04%
FCF growth 1Y-516.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.43%
OCF growth 3Y15.4%
OCF growth 5Y16.7%
SM ENERGY CO / SM FAQ
Can you provide the ChartMill fundamental rating for SM ENERGY CO?
ChartMill assigns a fundamental rating of 5 / 10 to SM.
What is the valuation status of SM ENERGY CO (SM) stock?
ChartMill assigns a valuation rating of 6 / 10 to SM ENERGY CO (SM). This can be considered as Fairly Valued.
Can you provide the profitability details for SM ENERGY CO?
SM ENERGY CO (SM) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for SM stock?
The Price/Earnings (PE) ratio for SM ENERGY CO (SM) is 2.69 and the Price/Book (PB) ratio is 0.46.
Can you provide the expected EPS growth for SM stock?
The Earnings per Share (EPS) of SM ENERGY CO (SM) is expected to decline by -14.51% in the next year.