SM ENERGY CO (SM) Stock Fundamental Analysis
USA - NYSE:SM - US78454L1008 - Common Stock
21.26 USD
-0.53 (-2.43%)
21.26 USD
0 (0%)
Taking everything into account, SM scores 5 out of 10 in our fundamental rating. SM was compared to 211 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 decent growth rate and is not valued too expensively.
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.
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
With an excellent Return On Assets value of 9.04%, SM belongs to the best of the industry, outperforming 83.41% of the companies in the same industry.
SM has a Return On Equity of 17.71%. This is in the better half of the industry: SM outperforms 79.15% of its industry peers.
SM has a better Return On Invested Capital (11.02%) than 84.83% of its industry peers.
SM had an Average Return On Invested Capital over the past 3 years of 19.03%. This is below the industry average of 21.53%.
The 3 year average ROIC (19.03%) for SM is well above the current ROIC(11.02%). The reason for the recent decline needs to be investigated.
| 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's Profit Margin of 25.94% is amongst the best of the industry. SM outperforms 82.94% of its industry peers.
SM's Profit Margin has improved in the last couple of years.
SM has a Operating Margin of 33.89%. This is amongst the best in the industry. SM outperforms 81.52% 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 74.08%, SM belongs to the top of the industry, outperforming 85.78% of the companies in the same industry.
SM's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SM is creating value.
SM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SM has been increased compared to 5 years ago.
SM has a worse debt/assets ratio than last year.
2.2 Solvency
SM has an Altman-Z score of 1.51. This is a bad value and indicates that SM is not financially healthy and even has some risk of bankruptcy.
SM has a Altman-Z score of 1.51. This is comparable to the rest of the industry: SM outperforms 56.40% of its industry peers.
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 | 1.51 |
ROIC/WACC1.42
WACC7.75%
2.3 Liquidity
A Current Ratio of 0.69 indicates that SM may have some problems paying its short term obligations.
SM has a worse Current ratio (0.69) than 77.25% 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.
With a Quick ratio value of 0.69, SM is not doing good in the industry: 70.14% of the companies in the same industry are doing better.
| 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
Looking at the last year, SM shows a very strong growth in Revenue. The Revenue has grown by 28.20%.
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)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
Based on estimates for the next years, SM will show a decrease in Earnings Per Share. The EPS will decrease by -6.63% 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 8.77% on average per year.
EPS Next Y-14.16%
EPS Next 2Y-16.11%
EPS Next 3Y0.02%
EPS Next 5Y-6.63%
Revenue Next Year22.44%
Revenue Next 2Y9.63%
Revenue Next 3Y8.77%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
SM is valuated cheaply with a Price/Earnings ratio of 3.13.
98.58% of the companies in the same industry are more expensive than SM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.40. SM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.45 indicates a rather cheap valuation of SM.
94.79% 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 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.13 | ||
| Fwd PE | 4.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SM is valued cheaply inside the industry as 92.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.42 |
4.3 Compensation for Growth
SM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.11%
EPS Next 3Y0.02%
5. Dividend
5.1 Amount
SM has a Yearly Dividend Yield of 3.67%. Purely for dividend investing, there may be better candidates out there.
SM's Dividend Yield is comparable with the industry average which is at 6.28.
SM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
The dividend of SM is nicely growing with an annual growth rate of 49.05%!
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)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-16.11%
EPS Next 3Y0.02%
21.26
-0.53 (-2.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners101.71%
Inst Owner Change-0.29%
Ins Owners1.47%
Ins Owner Change5.09%
Market Cap2.44B
Analysts76.36
Price Target40.38 (89.93%)
Short Float %9.28%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
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)-1.04%
PT rev (3m)1.7%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)-8.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.32%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.13 | ||
| Fwd PE | 4.45 | ||
| P/S | 0.78 | ||
| P/FCF | N/A | ||
| P/OCF | 1.17 | ||
| P/B | 0.53 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 2.42 |
EPS(TTM)6.79
EY31.94%
EPS(NY)4.78
Fwd EY22.48%
FCF(TTM)-13.17
FCFYN/A
OCF(TTM)18.13
OCFY85.29%
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 | 1.51 |
F-Score3
WACC7.75%
ROIC/WACC1.42
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-14.16%
EPS Next 2Y-16.11%
EPS Next 3Y0.02%
EPS Next 5Y-6.63%
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 Year108.41%
EBIT Next 3Y28.71%
EBIT Next 5Y20.22%
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%