SM ENERGY CO (SM) Stock Fundamental Analysis
NYSE:SM - New York Stock Exchange, Inc. - US78454L1008 - Common Stock - Currency: USD
SM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. SM scores excellent on profitability, 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! These ratings would make SM suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year SM was profitable.
SM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SM reported negative net income in multiple years.
Of the past 5 years SM 4 years had a positive operating cash flow.
1.2 Ratios
SM has a Return On Assets of 10.33%. This is in the better half of the industry: SM outperforms 76.96% of its industry peers.
SM has a better Return On Equity (20.41%) than 75.00% of its industry peers.
SM's Return On Invested Capital of 10.76% is fine compared to the rest of the industry. SM outperforms 71.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SM is significantly below the industry average of 28.75%.
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 84.31% 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 77.94% of the companies in the same industry.
SM's Operating Margin has improved in the last couple of years.
SM has a Gross Margin of 77.12%. This is amongst the best in the industry. SM outperforms 86.76% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SM is creating value.
There is no outstanding debt for SM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 1.96 indicates that SM is not a great score, but indicates only limited risk for bankruptcy at the moment.
SM has a Altman-Z score (1.96) which is comparable to the rest of the industry.
SM has a debt to FCF ratio of 5.41. This is a neutral value as SM would need 5.41 years to pay back of all of its debts.
SM has a Debt to FCF ratio (5.41) which is comparable to the rest of the industry.
SM has a Debt/Equity ratio of 0.67. This is a neutral value indicating SM is somewhat dependend on debt financing.
SM has a Debt to Equity ratio of 0.67. This is in the lower half of the industry: SM underperforms 65.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 1.96 |
ROIC/WACC1.27
WACC8.47%
2.3 Liquidity
A Current Ratio of 3.52 indicates that SM has no problem at all paying its short term obligations.
SM's Current ratio of 3.52 is amongst the best of the industry. SM outperforms 82.84% of its industry peers.
SM has a Quick Ratio of 3.52. This indicates that SM is financially healthy and has no problem in meeting its short term obligations.
SM's Quick ratio of 3.52 is amongst the best of the industry. SM outperforms 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.52 | ||
| Quick Ratio | 3.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.50% over the past year.
The Earnings Per Share has been growing by 54.53% on average over the past years. This is a very strong growth
EPS 1Y (TTM)14.5%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%20.13%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%40%
3.2 Future
The Earnings Per Share is expected to grow by 7.46% 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 12.03% on average per year.
EPS Next Y17.77%
EPS Next 2Y9.03%
EPS Next 3Y7.46%
EPS Next 5YN/A
Revenue Next Year24.26%
Revenue Next 2Y12.03%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.06, which indicates a rather cheap valuation of SM.
86.76% of the companies in the same industry are more expensive than SM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, SM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.30, the valuation of SM can be described as very cheap.
SM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SM is cheaper than 93.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, SM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.06 | ||
| Fwd PE | 4.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SM is valued cheaply inside the industry as 86.76% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SM is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.86 | ||
| EV/EBITDA | 2.91 |
4.3 Compensation for Growth
SM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SM may justify a higher PE ratio.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y9.03%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
SM has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of SM has falen by -25.37%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SM's Dividend Yield is slightly below the industry average, which is at 6.67.
SM's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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.
SM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.59%
EPS Next 2Y9.03%
EPS Next 3Y7.46%
34.35
-2.76 (-7.44%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners102.73%
Inst Owner Change-91.25%
Ins Owners1.41%
Ins Owner Change0.52%
Market Cap3.93B
Analysts79.13
Price Target54.5 (58.66%)
Short Float %9.08%
Short Ratio7.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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)0.94%
PT rev (3m)0.43%
EPS NQ rev (1m)-1.67%
EPS NQ rev (3m)-4.14%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-1.32%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.06 | ||
| Fwd PE | 4.3 | ||
| P/S | 1.61 | ||
| P/FCF | 7.86 | ||
| P/OCF | 2.34 | ||
| P/B | 0.97 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 2.91 |
EPS(TTM)6.79
EY19.77%
EPS(NY)8
Fwd EY23.28%
FCF(TTM)4.37
FCFY12.72%
OCF(TTM)14.69
OCFY42.77%
SpS21.38
BVpS35.5
TBVpS35.5
PEG (NY)0.28
PEG (5Y)N/A
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 | 1.96 |
F-Score6
WACC8.47%
ROIC/WACC1.27
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)14.5%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%20.13%
EPS Next Y17.77%
EPS Next 2Y9.03%
EPS Next 3Y7.46%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%40%
Revenue Next Year24.26%
Revenue Next 2Y12.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-7.24%
EBIT growth 3YN/A
EBIT growth 5Y25.3%
EBIT Next Year111.5%
EBIT Next 3Y36.87%
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%