down arrow

SM Energy Co.

  • Market Cap: Small Cap
  • Industry: Oil
  • ISIN: US78454L1008
  • NYSE: SM
USD
35.10
0.79 (2.3%)

Sep 24

NYS

 View all stocks in this country
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
SM Energy Co.
Devon Energy Corp.
Antero Resources Corp.
Diamondback Energy, Inc.
Ovintiv, Inc.
Range Resources Corp.
EQT Corp.
Pioneer Natural Resources Co.
Marathon Oil Corp.
Murphy Oil Corp.
Occidental Petroleum Corp.

Why is SM Energy Co. ?

1
High Management Efficiency with a high ROCE of 22.70%
2
Company has a low Debt to Equity ratio (avg) at times
3
Healthy long term growth as Operating profit has grown by an annual rate 50.40%
4
Flat results in Jun 25
  • INTEREST(HY) At USD 86.93 MM has Grown at 99.02%
  • ROCE(HY) Lowest at 19.27%
  • RAW MATERIAL COST(Y) Grown by 31.42% (YoY)
5
With ROCE of 15.56%, it has a attractive valuation with a 0.78 Enterprise value to Capital Employed
  • The stock is trading at a discount compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of -51.88%, its profits have risen by 2.8% ; the PEG ratio of the company is 0.9
6
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -51.88% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you buy?

  1. Overall Portfolio exposure to SM Energy Co. should be less than 10%
  2. Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is SM Energy Co. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
SM Energy Co.
28.43%
-1.03
56.92%
S&P 500
16.06%
0.70
20.15%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
22.86%
EBIT Growth (5y)
37.97%
EBIT to Interest (avg)
8.34
Debt to EBITDA (avg)
1.30
Net Debt to Equity (avg)
0.62
Sales to Capital Employed (avg)
0.43
Tax Ratio
20.64%
Dividend Payout Ratio
14.20%
Pledged Shares
0
Institutional Holding
58.77%
ROCE (avg)
22.70%
ROE (avg)
17.71%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.62
EV to EBIT
12.41
EV to EBITDA
5.03
EV to Capital Employed
1.41
EV to Sales
3.24
PEG Ratio
NA
Dividend Yield
1.50%
ROCE (Latest)
11.39%
ROE (Latest)
12.73%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

45What is working for the Company
OPERATING CASH FLOW(Y)

Highest at USD 2,699.87 MM

DIVIDEND PER SHARE(HY)

Highest at USD 8.12

INTEREST COVERAGE RATIO(Q)

Highest at 1,658.56

RAW MATERIAL COST(Y)

Fallen by -63.71% (YoY

NET SALES(Q)

Highest at USD 2,500 MM

OPERATING PROFIT(Q)

Highest at USD 1,841 MM

OPERATING PROFIT MARGIN(Q)

Highest at 73.64 %

PRE-TAX PROFIT(Q)

Highest at USD 922 MM

NET PROFIT(Q)

Highest at USD 710.92 MM

EPS(Q)

Highest at USD 4.46

-9What is not working for the Company
INTEREST(HY)

At USD 224 MM has Grown at 157.67%

DEBT-EQUITY RATIO (HY)

Highest at 82.12 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.12 times

Here's what is working for SM Energy Co.

Net Sales
At USD 2,500 MM has Grown at 163.95%
over average net sales of the previous four periods of USD 947.13 MM
MOJO Watch
Near term sales trend is extremely positive

Net Sales (USD MM)

Pre-Tax Profit
At USD 922 MM has Grown at 318.32%
over average net sales of the previous four periods of USD 220.4 MM
MOJO Watch
Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit
At USD 710.92 MM has Grown at 238.69%
over average net sales of the previous four periods of USD 209.9 MM
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow
Highest at USD 2,699.87 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio
Highest at 1,658.56
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share
Highest at USD 8.12 and Grown
In each year in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales
Highest at USD 2,500 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (USD MM)

Operating Profit
Highest at USD 1,841 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin
Highest at 73.64 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit
Highest at USD 922 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit
Highest at USD 710.92 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (USD MM)

EPS
Highest at USD 4.46
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost
Fallen by -63.71% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation
Highest at USD 592 MM
in the last five periods
MOJO Watch
The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation
At USD 592 MM has Grown at 37.04%
period on period (QoQ)
MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for SM Energy Co.

Interest
At USD 224 MM has Grown at 157.67%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio
Highest at 82.12 %
in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio
Lowest at 8.12 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Footer loading