ScoreWhy 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
Real-Time Research ReportHow 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.
-0.86%
-1.03
56.92%
S&P 500
14.9%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
21.29%
EBIT Growth (5y)
45.58%
EBIT to Interest (avg)
8.34
Debt to EBITDA (avg)
1.30
Net Debt to Equity (avg)
0.62
Sales to Capital Employed (avg)
0.44
Tax Ratio
20.64%
Dividend Payout Ratio
11.40%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
22.70%
ROE (avg)
17.71%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.35
EV to EBIT
8.77
EV to EBITDA
4.12
EV to Capital Employed
1.23
EV to Sales
2.70
PEG Ratio
NA
Dividend Yield
1.83%
ROCE (Latest)
14.02%
ROE (Latest)
15.79%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 2,136.95 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 14.86%
NET SALES(9M)
At USD 2,449.08 MM has Grown at 33.24%
DEBTORS TURNOVER RATIO(HY)
Highest at 11.11 times
-10What is not working for the Company
INTEREST(9M)
At USD 129.87 MM has Grown at 37.63%
ROCE(HY)
Lowest at 16.58%
RAW MATERIAL COST(Y)
Grown by 31.18% (YoY
PRE-TAX PROFIT(Q)
Lowest at USD 197.68 MM
NET PROFIT(Q)
Lowest at USD 150.07 MM
EPS(Q)
Lowest at USD 1.35
Here's what is working for SM Energy Co.
Operating Cash Flow
Highest at USD 2,136.95 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
At USD 2,449.08 MM has Grown at 33.24%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Dividend Payout Ratio
Highest at 14.86% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Debtors Turnover Ratio
Highest at 11.11 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at USD 325.37 MM
in the last five periodsMOJO 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 129.87 MM has Grown at 37.63%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
Lowest at USD 197.68 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 197.68 MM has Fallen at -19.55%
over average net sales of the previous four periods of USD 245.73 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 150.07 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Net Profit
At USD 150.07 MM has Fallen at -22.89%
over average net sales of the previous four periods of USD 194.62 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 1.35
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Raw Material Cost
Grown by 31.18% (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 0.19 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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