SM ENERGY CO (SM)
US78454L1008 - Common Stock
Overall SM gets a fundamental rating of 7 out of 10. We evaluated SM against 204 industry peers in the Oil, Gas & Consumable Fuels industry. SM has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SM. This makes SM very considerable for value investing!
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.
In multiple years SM reported negative net income over the last 5 years.
Each year in the past 5 years SM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 10.33%, SM is doing good in the industry, outperforming 75.86% of the companies in the same industry.
SM has a better Return On Equity (20.41%) than 71.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.76%, SM is in the better half of the industry, outperforming 67.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SM is in line with the industry average of 22.54%.
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
The Profit Margin of SM (33.89%) is better than 82.76% of its industry peers.
SM's Profit Margin has improved in the last couple of years.
The Operating Margin of SM (38.74%) is better than 76.85% of its industry peers.
In the last couple of years the Operating Margin of SM has grown nicely.
Looking at the Gross Margin, with a value of 77.12%, SM belongs to the top of the industry, outperforming 87.19% of the companies in the same industry.
SM's Gross Margin has improved in the last couple of years.
| 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
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.
Compared to 5 years ago, SM has more shares outstanding
SM has a better debt/assets ratio than last year.
2.2 Solvency
SM has an Altman-Z score of 2.14. This is not the best score and indicates that SM is in the grey zone with still only limited risk for bankruptcy at the moment.
SM has a Altman-Z score of 2.14. This is in the better half of the industry: SM outperforms 60.59% of its industry peers.
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 in line with its industry peers.
SM has a Debt/Equity ratio of 0.67. This is a neutral value indicating SM is somewhat dependend on debt financing.
SM's Debt to Equity ratio of 0.67 is on the low side compared to the rest of the industry. SM is outperformed by 64.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.41 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.34
WACC8.03%
2.3 Liquidity
A Current Ratio of 3.52 indicates that SM has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.52, SM belongs to the best of the industry, outperforming 82.27% of the companies in the same industry.
A Quick Ratio of 3.52 indicates that SM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.52, SM belongs to the top of the industry, outperforming 83.74% of the companies in the same industry.
| 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 14.92% over the past year.
The Earnings Per Share has been growing by 187.86% on average over the past years. This is a very strong growth
SM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.42%.
SM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.67% yearly.
EPS 1Y (TTM)14.92%
EPS 3YN/A
EPS 5Y187.86%
EPS Q2Q%-6.36%
Revenue 1Y (TTM)0.42%
Revenue growth 3Y28.2%
Revenue growth 5Y7.67%
Sales Q2Q%0.42%
3.2 Future
Based on estimates for the next years, SM will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.07% on average per year.
Based on estimates for the next years, SM will show a quite strong growth in Revenue. The Revenue will grow by 12.61% on average per year.
EPS Next Y20.09%
EPS Next 2Y13.63%
EPS Next 3Y12.49%
EPS Next 5Y10.07%
Revenue Next Year14.55%
Revenue Next 2Y18.04%
Revenue Next 3Y12.61%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SM is valuated cheaply with a Price/Earnings ratio of 7.03.
Compared to the rest of the industry, the Price/Earnings ratio of SM indicates a somewhat cheap valuation: SM is cheaper than 79.80% of the companies listed in the same industry.
SM is valuated cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.94, the valuation of SM can be described as very cheap.
83.25% of the companies in the same industry are more expensive than SM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SM to the average of the S&P500 Index (23.56), we can say SM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.03 | ||
| Fwd PE | 5.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SM is valued a bit cheaper than 78.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SM is valued a bit cheaper than 66.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.41 | ||
| EV/EBITDA | 3.61 |
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 excellent profitability rating of SM may justify a higher PE ratio.
A more expensive valuation may be justified as SM's earnings are expected to grow with 12.49% in the coming years.
PEG (NY)0.35
PEG (5Y)0.04
EPS Next 2Y13.63%
EPS Next 3Y12.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.81%, SM has a reasonable but not impressive dividend return.
SM's Dividend Yield is slightly below the industry average, which is at 6.45.
Compared to an average S&P500 Dividend Yield of 2.23, SM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of SM is nicely growing with an annual growth rate of 43.22%!
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)43.22%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
SM pays out 9.59% of its income as dividend. This is a sustainable payout ratio.
SM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP9.59%
EPS Next 2Y13.63%
EPS Next 3Y12.49%
SM ENERGY CO
NYSE:SM (11/21/2024, 12:11:08 PM)
45.485
+0.73 (+1.62%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.20B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.03 | ||
| Fwd PE | 5.94 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.35
PEG (5Y)0.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.33% | ||
| ROE | 20.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.74% | ||
| PM (TTM) | 33.89% | ||
| GM | 77.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.52 | ||
| Quick Ratio | 3.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.92%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y20.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.42%
Revenue growth 3Y28.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y