SM ENERGY CO (SM) Stock Fundamental Analysis
USA - NYSE:SM - US78454L1008 - Common Stock
27.41 USD
+1.34 (+5.14%)
27.41 USD
0 (0%)
Overall SM gets a fundamental rating of 5 out of 10. We evaluated SM against 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.
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.
Each year in the past 5 years SM had a positive operating cash flow.
1.2 Ratios
SM has a Return On Assets of 9.04%. This is amongst the best in the industry. SM outperforms 82.38% of its industry peers.
SM's Return On Equity of 17.71% is fine compared to the rest of the industry. SM outperforms 78.10% of its industry peers.
SM has a better Return On Invested Capital (11.02%) than 83.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SM is below the industry average of 21.90%.
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 has a better Profit Margin (25.94%) than 82.38% of its industry peers.
SM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 33.89%, SM belongs to the best 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.
With an excellent Gross Margin value of 74.08%, SM belongs to the best of the industry, outperforming 86.19% of the companies in the same industry.
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
SM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SM has been reduced compared to 1 year ago.
SM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SM is higher compared to a year ago.
2.2 Solvency
SM has an Altman-Z score of 1.59. 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 1.59, SM perfoms like the industry average, outperforming 57.62% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that SM is somewhat dependend on debt financing.
The Debt to Equity ratio of SM (0.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.59 |
ROIC/WACC1.4
WACC7.88%
2.3 Liquidity
A Current Ratio of 0.69 indicates that SM may have some problems paying its short term obligations.
The Current ratio of SM (0.69) is worse than 77.14% 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.
Looking at the Quick ratio, with a value of 0.69, SM is doing worse than 70.00% of the companies in the same industry.
| 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
The Revenue has grown by 28.20% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to decrease by -5.62% on average over the next years.
Based on estimates for the next years, SM will show a quite strong growth in Revenue. The Revenue will grow by 8.77% on average per year.
EPS Next Y-15.02%
EPS Next 2Y-15.11%
EPS Next 3Y-1.06%
EPS Next 5Y-5.62%
Revenue Next Year22.44%
Revenue Next 2Y9.63%
Revenue Next 3Y8.77%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.04, the valuation of SM can be described as very cheap.
Based on the Price/Earnings ratio, SM is valued cheaper than 97.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, SM is valued rather cheaply.
The Price/Forward Earnings ratio is 5.60, which indicates a rather cheap valuation of SM.
91.43% of the companies in the same industry are more expensive than SM, based on the Price/Forward Earnings ratio.
SM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.04 | ||
| Fwd PE | 5.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SM is valued cheaper than 91.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.68 |
4.3 Compensation for Growth
The excellent profitability rating of SM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.11%
EPS Next 3Y-1.06%
5. Dividend
5.1 Amount
SM has a Yearly Dividend Yield of 2.94%.
SM's Dividend Yield is comparable with the industry average which is at 6.18.
Compared to an average S&P500 Dividend Yield of 2.38, SM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
On average, the dividend of SM grows each year by 49.05%, which is quite nice.
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
10.98% of the earnings are spent on dividend by SM. This is a low number and sustainable payout ratio.
DP10.98%
EPS Next 2Y-15.11%
EPS Next 3Y-1.06%
27.41
+1.34 (+5.14%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners103.05%
Inst Owner Change-0.62%
Ins Owners1.47%
Ins Owner Change5.09%
Market Cap3.15B
Analysts76.36
Price Target40.8 (48.85%)
Short Float %9.29%
Short Ratio5.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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)0.21%
PT rev (3m)2.77%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)-27.31%
EPS NY rev (1m)-3.3%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-3.5%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.04 | ||
| Fwd PE | 5.6 | ||
| P/S | 1.01 | ||
| P/FCF | N/A | ||
| P/OCF | 1.51 | ||
| P/B | 0.69 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 2.68 |
EPS(TTM)6.79
EY24.77%
EPS(NY)4.89
Fwd EY17.85%
FCF(TTM)-13.17
FCFYN/A
OCF(TTM)18.13
OCFY66.15%
SpS27.26
BVpS39.93
TBVpS39.93
PEG (NY)N/A
PEG (5Y)N/A
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
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-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 | 1.59 |
F-Score3
WACC7.88%
ROIC/WACC1.4
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-15.02%
EPS Next 2Y-15.11%
EPS Next 3Y-1.06%
EPS Next 5Y-5.62%
Revenue 1Y (TTM)28.2%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%24.96%
Revenue Next Year22.44%
Revenue Next 2Y9.63%
Revenue Next 3Y8.77%
Revenue Next 5YN/A
EBIT growth 1Y9.02%
EBIT growth 3Y-3.62%
EBIT growth 5Y76.14%
EBIT Next Year107.78%
EBIT Next 3Y28.71%
EBIT Next 5Y21.88%
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%