DB:SJL

Stock Analysis Report

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Executive Summary

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of crude oil and condensate, natural gas, and natural gas liquids in the state of Texas.


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has SM Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SJL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

29.6%

SJL

8.2%

DE Oil and Gas

7.9%

DE Market


1 Year Return

-58.9%

SJL

35.5%

DE Oil and Gas

6.3%

DE Market

Return vs Industry: SJL underperformed the German Oil and Gas industry which returned 34.6% over the past year.

Return vs Market: SJL underperformed the German Market which returned 5.6% over the past year.


Shareholder returns

SJLIndustryMarket
7 Day29.6%8.2%7.9%
30 Day28.0%21.7%12.8%
90 Day66.1%13.1%15.6%
1 Year-58.4%-58.9%39.4%35.5%8.1%6.3%
3 Year-70.7%-71.3%9.5%-1.0%1.0%-6.7%
5 Year-89.7%-90.0%174.1%135.2%13.9%-0.8%

Price Volatility Vs. Market

How volatile is SM Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SM Energy undervalued compared to its fair value and its price relative to the market?

0.26x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SJL (€4.12) is trading above our estimate of fair value (€0.13)

Significantly Below Fair Value: SJL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SJL is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: SJL is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SJL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SJL is good value based on its PB Ratio (0.3x) compared to the DE Oil and Gas industry average (1.2x).


Next Steps

Future Growth

How is SM Energy forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

57.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SJL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SJL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SJL's revenue is expected to decline over the next 3 years (-3.1% per year).

High Growth Revenue: SJL's revenue is forecast to decline over the next 3 years (-3.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SJL is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has SM Energy performed over the past 5 years?

10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SJL is currently unprofitable.

Growing Profit Margin: SJL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SJL is unprofitable, but has reduced losses over the past 5 years at a rate of 10.6% per year.

Accelerating Growth: Unable to compare SJL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SJL is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-9.2%).


Return on Equity

High ROE: SJL has a negative Return on Equity (-17.99%), as it is currently unprofitable.


Next Steps

Financial Health

How is SM Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SJL's short term assets ($625.2M) exceed its short term liabilities ($383.5M).

Long Term Liabilities: SJL's short term assets ($625.2M) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: SJL's debt to equity ratio (113%) is considered high.

Reducing Debt: SJL's debt to equity ratio has reduced from 116.9% to 113% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SJL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SJL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 7% per year.


Next Steps

Dividend

What is SM Energy's current dividend yield, its reliability and sustainability?

0.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SJL's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: SJL's dividend (0.36%) is low compared to the top 25% of dividend payers in the German market (3.74%).


Stability and Growth of Payments

Stable Dividend: SJL is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: SJL is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SJL is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SJL's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Jay Ottoson (60yo)

5.33yrs

Tenure

US$5,999,464

Compensation

Mr. Javan D. Ottoson, also known as Jay, has been the Chief Executive Officer of SM Energy Company since February 01, 2015 and has been its President since October 2012. Mr. Ottoson served as the Chief Ope ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD6.00M) is above average for companies of similar size in the German market ($USD1.29M).

Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Javan Ottoson
President5.33yrsUS$6.00m0.19% $1.1m
A. Pursell
Executive VP & CFO11.75yrsUS$2.66m0.098% $538.6k
Herbert Vogel
Executive VP & COO5.83yrsUS$3.16m0.070% $381.5k
David Copeland
Executive VP9.42yrsUS$1.64m0.14% $756.3k
Lehman Newton
Senior Vice President of Operations13yrsUS$1.31m0.063% $347.3k
Patrick Lytle
Controller & Principal Accounting Officer1.58yrsno data0.0045% $24.7k
Jennifer Samuels
Vice President of Investor Relations5.08yrsno datano data
David Whitcomb
Vice President of Marketing11.83yrsUS$919.15k0.058% $317.4k
Candace Lyon
Vice President of Human Resources2.42yrsno datano data
Kenneth Knott
Senior Vice President of Business Development & Land5.83yrsUS$1.05m0.048% $262.6k

5.8yrs

Average Tenure

57yo

Average Age

Experienced Management: SJL's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Javan Ottoson
President5.33yrsUS$6.00m0.19% $1.1m
Rose Robeson
Independent Director5.92yrsUS$236.00k0.038% $210.0k
Ramiro Peru
Independent Director5.83yrsUS$216.00k0.066% $359.6k
William Sullivan
Independent Chairman of the Boardno dataUS$301.02k0.12% $645.6k
Loren Leiker
Independent Director7.75yrsUS$216.00k0.069% $379.5k
Larry Bickle
Independent Director25.42yrsUS$216.00k0.16% $868.5k
Julio Quintana
Independent Director13.92yrsUS$234.40k0.093% $512.0k
Stephen Brand
Independent Director9.25yrsUS$231.00k0.048% $263.2k
Carla Bailo
Independent Director1.67yrsUS$216.00k0.014% $75.3k

6.8yrs

Average Tenure

62yo

Average Age

Experienced Board: SJL's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SJL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SM Energy Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SM Energy Company
  • Ticker: SJL
  • Exchange: DB
  • Founded: 1908
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$620.308m
  • Listing Market Cap: US$548.104m
  • Shares outstanding: 112.99m
  • Website: https://www.sm-energy.com

Number of Employees


Location

  • SM Energy Company
  • 1775 Sherman Street
  • Suite 1200
  • Denver
  • Colorado
  • 80203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1992
SJLDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1992
0KZALSE (London Stock Exchange)YesCommon StockGBUSDDec 1992

Biography

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of crude oil and condensate, natural gas, and natural gas liquids in the state of Texas. As of December 31, 2019, the company had 462.0 million barrels of oil equivalent of estimated proved reserves; and working interests in 807 gross productive oil wells and 519 gross productive gas wells in the Midland Basin and South Texas. The company was formerly known as St. Mary Land & Exploration Company and changed its name to SM Energy Company in May 2010. SM Energy Company was founded in 1908 and is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/07 02:50
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.