SM ENERGY CO (SM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SM - US78454L1008 - Common Stock
18.23 USD
+0.02 (+0.11%)
18.37 USD
+0.14 (+0.77%)
SM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. SM has an excellent profitability rating, 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
- SM had positive earnings in the past year.
- SM had a positive operating cash flow in the past year.
- Of the past 5 years SM 4 years were profitable.
- In the past 5 years SM always reported a positive cash flow from operatings.
1.2 Ratios
- SM's Return On Assets of 8.00% is amongst the best of the industry. SM outperforms 82.13% of its industry peers.
- SM has a better Return On Equity (15.43%) than 79.23% 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 86.47% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SM is below the industry average of 21.94%.
- The 3 year average ROIC (19.03%) for SM is well above the current ROIC(10.83%). The reason for the recent decline needs to be investigated.
| 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
- The Profit Margin of SM (22.03%) is better than 79.71% of its industry peers.
- SM's Profit Margin has improved in the last couple of years.
- SM has a better Operating Margin (30.85%) than 76.81% of its industry peers.
- In the last couple of years the Operating Margin of SM has grown nicely.
- SM has a better Gross Margin (72.96%) than 83.57% 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
- Compared to 5 years ago, SM has more shares outstanding
- The debt/assets ratio for SM is higher compared to a year ago.
2.2 Solvency
- SM has an Altman-Z score of 1.45. This is a bad value and indicates that SM is not financially healthy and even has some risk of bankruptcy.
- SM's Altman-Z score of 1.45 is in line compared to the rest of the industry. SM outperforms 54.59% of its industry peers.
- A Debt/Equity ratio of 0.49 indicates that SM is not too dependend on debt financing.
- SM's Debt to Equity ratio of 0.49 is in line compared to the rest of the industry. SM outperforms 46.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.45 |
ROIC/WACC1.42
WACC7.63%
2.3 Liquidity
- A Current Ratio of 0.56 indicates that SM may have some problems paying its short term obligations.
- The Current ratio of SM (0.56) is worse than 81.64% of its industry peers.
- A Quick Ratio of 0.56 indicates that SM may have some problems paying its short term obligations.
- SM's Quick ratio of 0.56 is on the low side compared to the rest of the industry. SM is outperformed by 77.78% 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
- SM shows a strong growth in Revenue. In the last year, 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
- SM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.34% yearly.
- SM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y-16.59%
EPS Next 2Y-27.07%
EPS Next 3Y-8.42%
EPS Next 5Y-7.34%
Revenue Next Year20.76%
Revenue Next 2Y49.66%
Revenue Next 3Y41.57%
Revenue Next 5Y5%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue 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 2.80, which indicates a rather cheap valuation of SM.
- SM's Price/Earnings ratio is rather cheap when compared to the industry. SM is cheaper than 98.07% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SM to the average of the S&P500 Index (26.94), we can say SM is valued rather cheaply.
- A Price/Forward Earnings ratio of 5.05 indicates a rather cheap valuation of SM.
- 96.14% of the companies in the same industry are more expensive than SM, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. SM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.8 | ||
| Fwd PE | 5.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SM is valued cheaper than 98.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.14 |
4.3 Compensation for Growth
- SM has an outstanding profitability rating, which may justify a higher PE ratio.
- SM's earnings are expected to decrease with -8.42% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-27.07%
EPS Next 3Y-8.42%
5. Dividend
5.1 Amount
- SM has a Yearly Dividend Yield of 4.36%, which is a nice return.
- SM's Dividend Yield is a higher than the industry average which is at 3.75.
- Compared to an average S&P500 Dividend Yield of 1.83, SM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
5.2 History
- The dividend of SM is nicely growing with an annual growth rate of 49.05%!
- 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
- SM pays out 12.60% of its income as dividend. This is a sustainable payout ratio.
DP12.6%
EPS Next 2Y-27.07%
EPS Next 3Y-8.42%
18.23
+0.02 (+0.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-03 2025-11-03/bmo
Earnings (Next)02-17 2026-02-17/amc
Inst Owners104.61%
Inst Owner Change-0.19%
Ins Owners1.48%
Ins Owner Change0.9%
Market Cap2.09B
Revenue(TTM)3.30B
Net Income(TTM)727.30M
Analysts77.14
Price Target34.42 (88.81%)
Short Float %7.56%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.36% |
Yearly Dividend0.74
Dividend Growth(5Y)49.05%
DP12.6%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
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)-2.17%
PT rev (3m)-14.74%
EPS NQ rev (1m)-6.09%
EPS NQ rev (3m)-17.85%
EPS NY rev (1m)-1.39%
EPS NY rev (3m)-2.83%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-4.11%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.8 | ||
| Fwd PE | 5.05 | ||
| P/S | 0.63 | ||
| P/FCF | N/A | ||
| P/OCF | 0.98 | ||
| P/B | 0.44 | ||
| P/tB | 0.44 | ||
| EV/EBITDA | 2.14 |
EPS(TTM)6.5
EY35.66%
EPS(NY)3.61
Fwd EY19.81%
FCF(TTM)-13.64
FCFYN/A
OCF(TTM)18.66
OCFY102.33%
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
WACC7.63%
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)0.46%
EPS 3Y54.53%
EPS 5YN/A
EPS Q2Q%-17.9%
EPS Next Y-16.59%
EPS Next 2Y-27.07%
EPS Next 3Y-8.42%
EPS Next 5Y-7.34%
Revenue 1Y (TTM)34.93%
Revenue growth 3Y0.85%
Revenue growth 5Y11.1%
Sales Q2Q%26.1%
Revenue Next Year20.76%
Revenue Next 2Y49.66%
Revenue Next 3Y41.57%
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 for SM stock?
ChartMill assigns a valuation rating of 6 / 10 to SM ENERGY CO (SM). This can be considered as Fairly Valued.
How profitable is SM ENERGY CO (SM) stock?
SM ENERGY CO (SM) has a profitability rating of 8 / 10.
How financially healthy is SM ENERGY CO?
The financial health rating of SM ENERGY CO (SM) is 2 / 10.
How sustainable is the dividend of SM ENERGY CO (SM) stock?
The dividend rating of SM ENERGY CO (SM) is 7 / 10 and the dividend payout ratio is 12.6%.