SM ENERGY CO (SM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SM - US78454L1008 - Common Stock
18.51 USD
-0.41 (-2.17%)
18.62 USD
+0.11 (+0.59%)
SM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 209 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 correct valuation and a medium growth rate. SM also has an excellent dividend rating.
1. Profitability
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 4 of the past 5 years.
SM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SM has a Return On Assets of 8.00%. This is amongst the best in the industry. SM outperforms 82.38% of its industry peers.
SM has a Return On Equity of 15.43%. This is in the better half of the industry: SM outperforms 79.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.83%, SM belongs to the top of the industry, outperforming 86.19% of the companies in the same industry.
SM had an Average Return On Invested Capital over the past 3 years of 19.03%. This is below the industry average of 21.18%.
The last Return On Invested Capital (10.83%) for SM is well below the 3 year average (19.03%), which needs to be investigated, but indicates that SM had better years and this may not be a problem.
| 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
SM's Profit Margin of 22.03% is fine compared to the rest of the industry. SM outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of SM has grown nicely.
The Operating Margin of SM (30.85%) is better than 76.19% of its industry peers.
In the last couple of years the Operating Margin of SM has grown nicely.
The Gross Margin of SM (72.96%) is better than 83.33% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SM is creating value.
Compared to 1 year ago, SM has less shares outstanding
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
Based on the Altman-Z score of 1.45, we must say that SM is in the distress zone and has some risk of bankruptcy.
SM has a Altman-Z score of 1.45. This is comparable to the rest of the industry: SM outperforms 56.19% of its industry peers.
SM has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.49, SM is in line with its industry, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.45 |
ROIC/WACC1.41
WACC7.7%
2.3 Liquidity
A Current Ratio of 0.56 indicates that SM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.56, SM is doing worse than 81.43% of the companies in the same industry.
A Quick Ratio of 0.56 indicates that SM may have some problems paying its short term obligations.
SM has a Quick ratio of 0.56. This is in the lower half of the industry: SM underperforms 77.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
SM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.46%.
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 34.93%.
Measured over the past years, SM shows a quite strong growth in Revenue. The Revenue has been growing by 11.10% on average per year.
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.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y-15.41%
EPS Next 2Y-24.52%
EPS Next 3Y-7.54%
EPS Next 5Y-7.34%
Revenue Next Year20.94%
Revenue Next 2Y42.78%
Revenue Next 3Y36.61%
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
The Price/Earnings ratio is 2.85, which indicates a rather cheap valuation of SM.
Compared to the rest of the industry, the Price/Earnings ratio of SM indicates a rather cheap valuation: SM is cheaper than 98.57% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, SM is valued rather cheaply.
A Price/Forward Earnings ratio of 4.79 indicates a rather cheap valuation of SM.
Based on the Price/Forward Earnings ratio, SM is valued cheaply inside the industry as 96.19% of the companies are valued more expensively.
SM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.85 | ||
| Fwd PE | 4.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SM is valued cheaper than 98.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.16 |
4.3 Compensation for Growth
The excellent 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 -7.54% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.52%
EPS Next 3Y-7.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.23%, SM is a good candidate for dividend investing.
In the last 3 months the price of SM has falen by -32.89%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.93, SM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, SM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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-24.52%
EPS Next 3Y-7.54%
18.51
-0.41 (-2.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners104.74%
Inst Owner Change0.89%
Ins Owners1.48%
Ins Owner Change3.08%
Market Cap2.12B
Revenue(TTM)3.30B
Net Income(TTM)727.30M
Analysts77.14
Price Target34.85 (88.28%)
Short Float %8.12%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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)-7.24%
PT rev (3m)-14.58%
EPS NQ rev (1m)-2.58%
EPS NQ rev (3m)-12.52%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-1.46%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)-1.28%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.85 | ||
| Fwd PE | 4.79 | ||
| P/S | 0.64 | ||
| P/FCF | N/A | ||
| P/OCF | 0.99 | ||
| P/B | 0.45 | ||
| P/tB | 0.45 | ||
| EV/EBITDA | 2.16 |
EPS(TTM)6.5
EY35.12%
EPS(NY)3.87
Fwd EY20.9%
FCF(TTM)-13.64
FCFYN/A
OCF(TTM)18.66
OCFY100.78%
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 | 1.45 |
F-Score6
WACC7.7%
ROIC/WACC1.41
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-15.41%
EPS Next 2Y-24.52%
EPS Next 3Y-7.54%
EPS Next 5Y-7.34%
Revenue 1Y (TTM)34.93%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%26.1%
Revenue Next Year20.94%
Revenue Next 2Y42.78%
Revenue Next 3Y36.61%
Revenue Next 5Y5%
EBIT growth 1Y7.44%
EBIT growth 3Y-3.62%
EBIT growth 5Y76.14%
EBIT Next Year108.77%
EBIT Next 3Y56.91%
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 2.85 and the Price/Book (PB) ratio is 0.45.
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 -15.41% in the next year.