SM ENERGY CO (SM) Fundamental Analysis & Valuation

NYSE:SM • US78454L1008

24.09 USD
-0.1 (-0.41%)
At close: Mar 3, 2026
23.75 USD
-0.34 (-1.41%)
Pre-Market: 3/4/2026, 8:00:07 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This SM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

SM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of SM get a neutral evaluation. Nothing too spectacular is happening here. SM is valued quite cheap, while showing a decent growth score. This is a good combination!


Dividend Valuation Growth Profitability Health

6

1. SM Profitability Analysis

1.1 Basic Checks

  • In the past year SM was profitable.
  • In the past year SM had a positive cash flow from operations.
  • SM had positive earnings in each of the past 5 years.
  • SM had a positive operating cash flow in each of the past 5 years.
SM Yearly Net Income VS EBIT VS OCF VS FCFSM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B -2B

1.2 Ratios

  • The Return On Assets of SM (7.00%) is better than 75.85% of its industry peers.
  • Looking at the Return On Equity, with a value of 13.47%, SM is in the better half of the industry, outperforming 73.43% of the companies in the same industry.
  • SM has a Return On Invested Capital of 8.02%. This is in the better half of the industry: SM outperforms 73.91% of its industry peers.
  • SM had an Average Return On Invested Capital over the past 3 years of 10.34%. This is significantly below the industry average of 22.19%.
Industry RankSector Rank
ROA 7%
ROE 13.47%
ROIC 8.02%
ROA(3y)9.6%
ROA(5y)9.79%
ROE(3y)18.09%
ROE(5y)18.41%
ROIC(3y)10.34%
ROIC(5y)16.41%
SM Yearly ROA, ROE, ROICSM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

1.3 Margins

  • SM has a Profit Margin of 20.55%. This is in the better half of the industry: SM outperforms 75.85% of its industry peers.
  • SM's Profit Margin has declined in the last couple of years.
  • SM's Operating Margin of 26.06% is fine compared to the rest of the industry. SM outperforms 67.15% of its industry peers.
  • SM's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 71.94%, SM belongs to the top of the industry, outperforming 83.09% of the companies in the same industry.
  • SM's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 26.06%
PM (TTM) 20.55%
GM 71.94%
OM growth 3Y-23.57%
OM growth 5YN/A
PM growth 3Y-14.7%
PM growth 5YN/A
GM growth 3Y-4.08%
GM growth 5Y1.96%
SM Yearly Profit, Operating, Gross MarginsSM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50

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4

2. SM Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SM is creating some value.
  • Compared to 1 year ago, SM has about the same amount of shares outstanding.
  • Compared to 5 years ago, SM has about the same amount of shares outstanding.
  • SM has a better debt/assets ratio than last year.
SM Yearly Shares OutstandingSM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
SM Yearly Total Debt VS Total AssetsSM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • An Altman-Z score of 1.86 indicates that SM is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • SM's Altman-Z score of 1.86 is fine compared to the rest of the industry. SM outperforms 61.84% of its industry peers.
  • SM has a debt to FCF ratio of 5.04. This is a neutral value as SM would need 5.04 years to pay back of all of its debts.
  • SM has a better Debt to FCF ratio (5.04) than 66.67% of its industry peers.
  • SM has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
  • SM has a Debt to Equity ratio (0.48) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 5.04
Altman-Z 1.86
ROIC/WACC1.08
WACC7.42%
SM Yearly LT Debt VS Equity VS FCFSM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B

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.
  • Looking at the Current ratio, with a value of 0.69, SM is doing worse than 73.43% of the companies in the same industry.
  • A Quick Ratio of 0.69 indicates that SM may have some problems paying 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 67.15% of its industry peers.
Industry RankSector Rank
Current Ratio 0.69
Quick Ratio 0.69
SM Yearly Current Assets VS Current LiabilitesSM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. SM Growth Analysis

3.1 Past

  • The earnings per share for SM have decreased strongly by -20.18% in the last year.
  • The Earnings Per Share has been decreasing by -9.37% on average over the past years.
  • Looking at the last year, SM shows a quite strong growth in Revenue. The Revenue has grown by 17.24% in the last year.
  • SM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.86% yearly.
EPS 1Y (TTM)-20.18%
EPS 3Y-9.37%
EPS 5YN/A
EPS Q2Q%-56.54%
Revenue 1Y (TTM)17.24%
Revenue growth 3Y-2.07%
Revenue growth 5Y22.86%
Sales Q2Q%-17.27%

3.2 Future

  • SM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.73% yearly.
  • SM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 30.24% yearly.
EPS Next Y-35.69%
EPS Next 2Y-8.27%
EPS Next 3Y-7.73%
EPS Next 5YN/A
Revenue Next Year104.33%
Revenue Next 2Y50.23%
Revenue Next 3Y30.24%
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 stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
SM Yearly Revenue VS EstimatesSM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
SM Yearly EPS VS EstimatesSM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 -2 4 6

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8

4. SM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 4.44, which indicates a rather cheap valuation of SM.
  • Based on the Price/Earnings ratio, SM is valued cheaper than 97.10% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.83, SM is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 6.91, 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 94.69% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 24.95. SM is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 4.44
Fwd PE 6.91
SM Price Earnings VS Forward Price EarningsSM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SM is valued cheaply inside the industry as 89.37% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of SM indicates a rather cheap valuation: SM is cheaper than 83.09% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 10.65
EV/EBITDA 3.99
SM Per share dataSM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • The decent 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 -7.73% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.27%
EPS Next 3Y-7.73%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. SM Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.64%, SM has a reasonable but not impressive dividend return.
  • SM's Dividend Yield is a higher than the industry average which is at 3.47.
  • Compared to an average S&P500 Dividend Yield of 1.82, SM pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.64%

5.2 History

  • The dividend of SM is nicely growing with an annual growth rate of 108.88%!
  • 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)108.88%
Div Incr Years3
Div Non Decr Years4
SM Yearly Dividends per shareSM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • SM pays out 14.20% of its income as dividend. This is a sustainable payout ratio.
DP14.2%
EPS Next 2Y-8.27%
EPS Next 3Y-7.73%
SM Yearly Income VS Free CF VS DividendSM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B
SM Dividend Payout.SM Dividend Payout, showing the Payout Ratio.SM Dividend Payout.PayoutRetained Earnings

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SM Fundamentals: All Metrics, Ratios and Statistics

SM ENERGY CO

NYSE:SM (3/3/2026, 8:04:00 PM)

Premarket: 23.75 -0.34 (-1.41%)

24.09

-0.1 (-0.41%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-25
Earnings (Next)04-29
Inst Owners104.61%
Inst Owner Change-2.09%
Ins Owners1.48%
Ins Owner Change-1.8%
Market Cap5.74B
Revenue(TTM)3.15B
Net Income(TTM)648.02M
Analysts75.24
Price Target30.77 (27.73%)
Short Float %5.37%
Short Ratio2
Dividend
Industry RankSector Rank
Dividend Yield 3.64%
Yearly Dividend0.8
Dividend Growth(5Y)108.88%
DP14.2%
Div Incr Years3
Div Non Decr Years4
Ex-Date03-09
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.18%
Min EPS beat(2)-4.69%
Max EPS beat(2)0.33%
EPS beat(4)3
Avg EPS beat(4)5.47%
Min EPS beat(4)-4.69%
Max EPS beat(4)20.23%
EPS beat(8)6
Avg EPS beat(8)5.76%
EPS beat(12)10
Avg EPS beat(12)6.49%
EPS beat(16)12
Avg EPS beat(16)5.31%
Revenue beat(2)0
Avg Revenue beat(2)-8.69%
Min Revenue beat(2)-10.51%
Max Revenue beat(2)-6.86%
Revenue beat(4)0
Avg Revenue beat(4)-5.06%
Min Revenue beat(4)-10.51%
Max Revenue beat(4)-1.06%
Revenue beat(8)1
Avg Revenue beat(8)-3.8%
Revenue beat(12)2
Avg Revenue beat(12)-3.34%
Revenue beat(16)6
Avg Revenue beat(16)1.28%
PT rev (1m)-10.62%
PT rev (3m)-18.1%
EPS NQ rev (1m)7.11%
EPS NQ rev (3m)-3.81%
EPS NY rev (1m)3.47%
EPS NY rev (3m)-21.9%
Revenue NQ rev (1m)59.07%
Revenue NQ rev (3m)76.12%
Revenue NY rev (1m)3.07%
Revenue NY rev (3m)93.98%
Valuation
Industry RankSector Rank
PE 4.44
Fwd PE 6.91
P/S 1.82
P/FCF 10.65
P/OCF 2.86
P/B 1.19
P/tB 1.19
EV/EBITDA 3.99
EPS(TTM)5.42
EY22.5%
EPS(NY)3.49
Fwd EY14.47%
FCF(TTM)2.26
FCFY9.39%
OCF(TTM)8.44
OCFY35.02%
SpS13.23
BVpS20.18
TBVpS20.18
PEG (NY)N/A
PEG (5Y)N/A
Graham Number49.61
Profitability
Industry RankSector Rank
ROA 7%
ROE 13.47%
ROCE 10.17%
ROIC 8.02%
ROICexc 8.41%
ROICexgc 8.41%
OM 26.06%
PM (TTM) 20.55%
GM 71.94%
FCFM 17.09%
ROA(3y)9.6%
ROA(5y)9.79%
ROE(3y)18.09%
ROE(5y)18.41%
ROIC(3y)10.34%
ROIC(5y)16.41%
ROICexc(3y)10.98%
ROICexc(5y)17.71%
ROICexgc(3y)10.98%
ROICexgc(5y)17.71%
ROCE(3y)13.11%
ROCE(5y)20.8%
ROICexgc growth 3Y-36.68%
ROICexgc growth 5YN/A
ROICexc growth 3Y-36.68%
ROICexc growth 5YN/A
OM growth 3Y-23.57%
OM growth 5YN/A
PM growth 3Y-14.7%
PM growth 5YN/A
GM growth 3Y-4.08%
GM growth 5Y1.96%
F-Score7
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 5.04
Debt/EBITDA 1.13
Cap/Depr 121.96%
Cap/Sales 46.67%
Interest Coverage 4.95
Cash Conversion 99.11%
Profit Quality 83.18%
Current Ratio 0.69
Quick Ratio 0.69
Altman-Z 1.86
F-Score7
WACC7.42%
ROIC/WACC1.08
Cap/Depr(3y)234.35%
Cap/Depr(5y)187.27%
Cap/Sales(3y)73.3%
Cap/Sales(5y)54.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.18%
EPS 3Y-9.37%
EPS 5YN/A
EPS Q2Q%-56.54%
EPS Next Y-35.69%
EPS Next 2Y-8.27%
EPS Next 3Y-7.73%
EPS Next 5YN/A
Revenue 1Y (TTM)17.24%
Revenue growth 3Y-2.07%
Revenue growth 5Y22.86%
Sales Q2Q%-17.27%
Revenue Next Year104.33%
Revenue Next 2Y50.23%
Revenue Next 3Y30.24%
Revenue Next 5YN/A
EBIT growth 1Y-19.85%
EBIT growth 3Y-25.16%
EBIT growth 5YN/A
EBIT Next Year341.51%
EBIT Next 3Y76.86%
EBIT Next 5YN/A
FCF growth 1Y133.03%
FCF growth 3Y-12.57%
FCF growth 5Y18.04%
OCF growth 1Y12.82%
OCF growth 3Y6.04%
OCF growth 5Y20.52%

SM ENERGY CO / SM FAQ

Can you provide the ChartMill fundamental rating for SM ENERGY CO?

ChartMill assigns a fundamental rating of 6 / 10 to SM.


What is the valuation status for SM stock?

ChartMill assigns a valuation rating of 8 / 10 to SM ENERGY CO (SM). This can be considered as Undervalued.


How profitable is SM ENERGY CO (SM) stock?

SM ENERGY CO (SM) has a profitability rating of 6 / 10.


How financially healthy is SM ENERGY CO?

The financial health rating of SM ENERGY CO (SM) is 4 / 10.


How sustainable is the dividend of SM ENERGY CO (SM) stock?

The dividend rating of SM ENERGY CO (SM) is 6 / 10 and the dividend payout ratio is 14.2%.