SM ENERGY CO (SM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SM - US78454L1008 - Common Stock
20.26 USD
+0.02 (+0.1%)
We assign a fundamental rating of 5 out of 10 to SM. SM was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. While SM belongs to the best of the industry regarding profitability, 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.
SM had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 8.00%, SM belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
SM has a better Return On Equity (15.43%) than 77.51% of its industry peers.
With an excellent Return On Invested Capital value of 10.83%, SM belongs to the best of the industry, outperforming 85.17% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SM is below the industry average of 21.47%.
The 3 year average ROIC (19.03%) for SM is well above the current ROIC(10.83%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 15.43% | ||
| ROIC | 10.83% |
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
With a decent Profit Margin value of 22.03%, SM is doing good in the industry, outperforming 78.95% of the companies in the same industry.
In the last couple of years the Profit Margin of SM has grown nicely.
Looking at the Operating Margin, with a value of 30.85%, SM is in the better half of the industry, outperforming 75.60% 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 (72.96%) than 83.73% of its industry peers.
SM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.85% | ||
| PM (TTM) | 22.03% | ||
| GM | 72.96% |
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
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
Based on the Altman-Z score of 1.48, we must say that SM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SM (1.48) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.49 indicates that SM is not too dependend on debt financing.
SM has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACC1.39
WACC7.77%
2.3 Liquidity
A Current Ratio of 0.56 indicates that SM may have some problems paying its short term obligations.
SM's Current ratio of 0.56 is on the low side compared to the rest of the industry. SM is outperformed by 83.25% of its industry peers.
SM has a Quick Ratio of 0.56. 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 has a Quick ratio of 0.56. This is in the lower half of the industry: SM underperforms 79.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.46% 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.
The Revenue has grown by 34.93% in the past year. This is a very strong growth!
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)0.46%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%-17.9%
Revenue 1Y (TTM)34.93%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%26.1%
3.2 Future
Based on estimates for the next years, SM will show a decrease in Earnings Per Share. The EPS will decrease by -7.34% on average per year.
SM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y-14.51%
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
EPS Next 5Y-7.34%
Revenue Next Year22.51%
Revenue Next 2Y9.47%
Revenue Next 3Y7.23%
Revenue Next 5Y5%
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.
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
With a Price/Earnings ratio of 3.12, the valuation of SM can be described as very cheap.
SM's Price/Earnings ratio is rather cheap when compared to the industry. SM is cheaper than 97.13% of the companies in the same industry.
When comparing the Price/Earnings ratio of SM to the average of the S&P500 Index (26.41), we can say SM is valued rather cheaply.
SM is valuated cheaply with a Price/Forward Earnings ratio of 4.23.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SM indicates a rather cheap valuation: SM is cheaper than 96.17% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, SM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.12 | ||
| Fwd PE | 4.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SM is valued cheaper than 97.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.25 |
4.3 Compensation for Growth
The excellent profitability rating of SM may justify a higher PE ratio.
SM's earnings are expected to decrease with -5.01% in the coming years. This may justify a cheaper valuation.
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 4.27%, which is a nice return.
The stock price of SM dropped by -24.81% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
SM's Dividend Yield is a higher than the industry average which is at 5.92.
Compared to an average S&P500 Dividend Yield of 2.32, SM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
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
12.60% of the earnings are spent on dividend by SM. This is a low number and sustainable payout ratio.
DP12.6%
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
NYSE:SM (12/5/2025, 3:05:10 PM)
20.26
+0.02 (+0.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners101.71%
Inst Owner Change0.89%
Ins Owners1.47%
Ins Owner Change5.07%
Market Cap2.32B
Revenue(TTM)3.30B
Net Income(TTM)727.30M
Analysts76.36
Price Target37.57 (85.44%)
Short Float %8.87%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.27% |
Yearly Dividend0.74
Dividend Growth(5Y)49.05%
DP12.6%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.28%
Min EPS beat(2)0.33%
Max EPS beat(2)20.23%
EPS beat(4)3
Avg EPS beat(4)5.95%
Min EPS beat(4)-2.75%
Max EPS beat(4)20.23%
EPS beat(8)7
Avg EPS beat(8)7.84%
EPS beat(12)10
Avg EPS beat(12)6.82%
EPS beat(16)13
Avg EPS beat(16)8.65%
Revenue beat(2)0
Avg Revenue beat(2)-4.32%
Min Revenue beat(2)-6.86%
Max Revenue beat(2)-1.79%
Revenue beat(4)0
Avg Revenue beat(4)-3.29%
Min Revenue beat(4)-6.86%
Max Revenue beat(4)-1.06%
Revenue beat(8)1
Avg Revenue beat(8)-2.84%
Revenue beat(12)3
Avg Revenue beat(12)-1.96%
Revenue beat(16)7
Avg Revenue beat(16)4.31%
PT rev (1m)-6.95%
PT rev (3m)-8.11%
EPS NQ rev (1m)-7.56%
EPS NQ rev (3m)-12.49%
EPS NY rev (1m)0.25%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)-2.38%
Revenue NQ rev (3m)-3.37%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.12 | ||
| Fwd PE | 4.23 | ||
| P/S | 0.7 | ||
| P/FCF | N/A | ||
| P/OCF | 1.09 | ||
| P/B | 0.49 | ||
| P/tB | 0.49 | ||
| EV/EBITDA | 2.25 |
EPS(TTM)6.5
EY32.08%
EPS(NY)4.78
Fwd EY23.61%
FCF(TTM)-13.64
FCFYN/A
OCF(TTM)18.66
OCFY92.08%
SpS28.82
BVpS41.14
TBVpS41.14
PEG (NY)N/A
PEG (5Y)N/A
Graham Number77.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 15.43% | ||
| ROCE | 12.8% | ||
| ROIC | 10.83% | ||
| ROICexc | 11.06% | ||
| ROICexgc | 11.06% | ||
| OM | 30.85% | ||
| PM (TTM) | 22.03% | ||
| GM | 72.96% | ||
| 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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 322.04% | ||
| Cap/Sales | 112.06% | ||
| Interest Coverage | 6 | ||
| Cash Conversion | 98.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.48 |
F-Score6
WACC7.77%
ROIC/WACC1.39
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)0.46%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%-17.9%
EPS Next Y-14.51%
EPS Next 2Y-16.06%
EPS Next 3Y-5.01%
EPS Next 5Y-7.34%
Revenue 1Y (TTM)34.93%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%26.1%
Revenue Next Year22.51%
Revenue Next 2Y9.47%
Revenue Next 3Y7.23%
Revenue Next 5Y5%
EBIT growth 1Y7.44%
EBIT growth 3Y-3.62%
EBIT growth 5Y76.14%
EBIT Next Year108.41%
EBIT Next 3Y28.71%
EBIT Next 5Y19%
FCF growth 1Y-803.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y54.15%
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 3.12 and the Price/Book (PB) ratio is 0.49.
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.