SM Energy Co. (SM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

EQT Corp.

Antero Resources Corp.

Devon Energy Corp.

SM Energy Co.

Range Resources Corp.

Pioneer Natural Resources Co.

Diamondback Energy, Inc.

Ovintiv, Inc.

Occidental Petroleum Corp.

Marathon Oil Corp.

Murphy Oil Corp.

Why is SM Energy Co. ?

High Management Efficiency with a high ROCE of 22.70%

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Operating profit has grown by an annual rate 50.40%

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)

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 -54.59%, its profits have risen by 2.8% ; the PEG ratio of the company is 0.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -54.59% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SM Energy Co. should be less than 10%
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.

-51.73%

-1.02

56.93%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.05%

EBIT Growth (5y)

50.40%

EBIT to Interest (avg)

8.34

Debt to EBITDA (avg)

1.30

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

0.46

Tax Ratio

20.64%

Dividend Payout Ratio

11.40%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

22.70%

ROE (avg)

17.71%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.65

EV to EBIT

5.03

EV to EBITDA

2.76

EV to Capital Employed

0.78

EV to Sales

1.88

PEG Ratio

0.89

Dividend Yield

242.09%

ROCE (Latest)

15.56%

ROE (Latest)

18.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,084.25 MM

NET SALES(HY)

At USD 1,637.49 MM has Grown at 37.09%

DIVIDEND PER SHARE(HY)

Highest at USD 10.39

-12What is not working for the Company

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

OPERATING PROFIT MARGIN(Q)

Lowest at 64.27 %

PRE-TAX PROFIT(Q)

Lowest at USD 213.94 MM

NET PROFIT(Q)

Lowest at USD 170.87 MM

Here's what is working for SM Energy Co.

Operating Cash Flow

Highest at USD 2,084.25 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)

Net Sales

At USD 1,637.49 MM has Grown at 37.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Dividend per share

Highest at USD 10.39

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 292.99 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Interest

At USD 86.93 MM has Grown at 99.02%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 64.27 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 213.94 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 170.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Raw Material Cost

Grown by 31.42% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income