SM ENERGY CO (SM) Stock Fundamental Analysis
NYSE:SM - New York Stock Exchange, Inc. - US78454L1008 - Common Stock - Currency: USD
Taking everything into account, SM scores 6 out of 10 in our fundamental rating. SM was compared to 211 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SM had positive earnings in the past year.
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 (9.35%) than 82.46% of its industry peers.
SM has a Return On Equity of 18.65%. This is amongst the best in the industry. SM outperforms 80.09% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.82%, SM belongs to the top of the industry, outperforming 84.83% of the companies in the same industry.
SM had an Average Return On Invested Capital over the past 3 years of 19.03%. This is below the industry average of 23.79%.
The 3 year average ROIC (19.03%) for SM is well above the current ROIC(11.82%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.35% | ||
| ROE | 18.65% | ||
| ROIC | 11.82% |
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
Looking at the Profit Margin, with a value of 27.61%, SM belongs to the top of the industry, outperforming 81.04% of the companies in the same industry.
In the last couple of years the Profit Margin of SM has grown nicely.
SM has a Operating Margin of 37.40%. This is amongst the best in the industry. SM outperforms 82.46% of its industry peers.
In the last couple of years the Operating Margin of SM has grown nicely.
SM's Gross Margin of 75.64% is amongst the best of the industry. SM outperforms 86.73% of its industry peers.
SM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.4% | ||
| PM (TTM) | 27.61% | ||
| GM | 75.64% |
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
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.
Compared to 5 years ago, SM has more shares outstanding
Compared to 1 year ago, SM has a worse debt to assets ratio.
2.2 Solvency
SM has an Altman-Z score of 1.62. This is a bad value and indicates that SM is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.62, SM perfoms like the industry average, outperforming 57.82% of the companies in the same industry.
SM has a Debt/Equity ratio of 0.62. This is a neutral value indicating SM is somewhat dependend on debt financing.
SM has a Debt to Equity ratio (0.62) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.62 |
ROIC/WACC1.37
WACC8.63%
2.3 Liquidity
A Current Ratio of 0.57 indicates that SM may have some problems paying its short term obligations.
SM has a worse Current ratio (0.57) than 81.52% of its industry peers.
SM has a Quick Ratio of 0.57. This is a bad value and indicates that SM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.57, SM is doing worse than 75.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.80% over the past year.
Measured over the past years, SM shows a very strong growth in Earnings Per Share. The EPS has been growing by 54.53% on average per year.
Looking at the last year, SM shows a very strong growth in Revenue. The Revenue has grown by 26.04%.
SM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.10% yearly.
EPS 1Y (TTM)18.8%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%24.82%
Revenue 1Y (TTM)26.04%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%50.85%
3.2 Future
Based on estimates for the next years, SM will show a decrease in Earnings Per Share. The EPS will decrease by -1.21% on average per year.
The Revenue is expected to grow by 8.26% on average over the next years. This is quite good.
EPS Next Y-12.13%
EPS Next 2Y-8.11%
EPS Next 3Y-2.11%
EPS Next 5Y-1.21%
Revenue Next Year21.83%
Revenue Next 2Y10.38%
Revenue Next 3Y8.26%
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.
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 3.99.
Based on the Price/Earnings ratio, SM is valued cheaper than 94.79% of the companies in the same industry.
SM is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.97, which indicates a rather cheap valuation of SM.
Based on the Price/Forward Earnings ratio, SM is valued cheaply inside the industry as 92.42% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.99 | ||
| Fwd PE | 4.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SM is valued cheaply inside the industry as 89.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.97 |
4.3 Compensation for Growth
SM has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SM's earnings are expected to decrease with -2.11% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.11%
EPS Next 3Y-2.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.82%, SM has a reasonable but not impressive dividend return.
SM's Dividend Yield is comparable with the industry average which is at 6.48.
SM's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
On average, the dividend of SM grows each year by 49.05%, 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)49.05%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
SM pays out 10.60% of its income as dividend. This is a sustainable payout ratio.
DP10.6%
EPS Next 2Y-8.11%
EPS Next 3Y-2.11%
28.52
+0.14 (+0.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners103.5%
Inst Owner Change0%
Ins Owners1.33%
Ins Owner Change4.58%
Market Cap3.26B
Analysts76.36
Price Target39.7 (39.2%)
Short Float %7.43%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
Yearly Dividend0.74
Dividend Growth(5Y)49.05%
DP10.6%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.63%
Min EPS beat(2)-2.75%
Max EPS beat(2)6.01%
EPS beat(4)3
Avg EPS beat(4)5.83%
Min EPS beat(4)-2.75%
Max EPS beat(4)17.15%
EPS beat(8)7
Avg EPS beat(8)7.67%
EPS beat(12)9
Avg EPS beat(12)4.61%
EPS beat(16)13
Avg EPS beat(16)42.67%
Revenue beat(2)0
Avg Revenue beat(2)-2.25%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-1.06%
Revenue beat(4)1
Avg Revenue beat(4)-2.14%
Min Revenue beat(4)-4.07%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-2.22%
Revenue beat(12)5
Avg Revenue beat(12)1.33%
Revenue beat(16)9
Avg Revenue beat(16)9.81%
PT rev (1m)0%
PT rev (3m)-19.98%
EPS NQ rev (1m)0.8%
EPS NQ rev (3m)-18.9%
EPS NY rev (1m)3.46%
EPS NY rev (3m)-9.39%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)-6.18%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)-2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.99 | ||
| Fwd PE | 4.97 | ||
| P/S | 1.1 | ||
| P/FCF | N/A | ||
| P/OCF | 1.64 | ||
| P/B | 0.74 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 2.97 |
EPS(TTM)7.14
EY25.04%
EPS(NY)5.73
Fwd EY20.1%
FCF(TTM)-13.29
FCFYN/A
OCF(TTM)17.38
OCFY60.95%
SpS25.99
BVpS38.47
TBVpS38.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.35% | ||
| ROE | 18.65% | ||
| ROCE | 13.97% | ||
| ROIC | 11.82% | ||
| ROICexc | 11.82% | ||
| ROICexgc | 11.82% | ||
| OM | 37.4% | ||
| PM (TTM) | 27.61% | ||
| GM | 75.64% | ||
| 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
ROICexcg growth 3Y-22.74%
ROICexcg 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-Score4
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 384.52% | ||
| Cap/Sales | 118.01% | ||
| Interest Coverage | 8.08 | ||
| Cash Conversion | 98.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.62 |
F-Score4
WACC8.63%
ROIC/WACC1.37
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)18.8%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%24.82%
EPS Next Y-12.13%
EPS Next 2Y-8.11%
EPS Next 3Y-2.11%
EPS Next 5Y-1.21%
Revenue 1Y (TTM)26.04%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%50.85%
Revenue Next Year21.83%
Revenue Next 2Y10.38%
Revenue Next 3Y8.26%
Revenue Next 5YN/A
EBIT growth 1Y23%
EBIT growth 3Y-3.62%
EBIT growth 5Y76.14%
EBIT Next Year104.03%
EBIT Next 3Y26.63%
EBIT Next 5Y22%
FCF growth 1Y-315.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.71%
OCF growth 3Y15.4%
OCF growth 5Y16.7%