SM

SM EnergyNYSE:SM Stock Report

Market Cap

US$2.6b

7D

5.9%

1Y

961.9%

Updated

22 Sep, 2021

Data

Company Financials +
SM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends0/6

SM Overview

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

SM Energy Competitors

Pioneer Natural Resources

NYSE:PXD

US$36.1b

Hess

NYSE:HES

US$20.7b

Devon Energy

NYSE:DVN

US$19.3b

Continental Resources

NYSE:CLR

US$14.8b

Price History & Performance

Summary of all time highs, changes and price drops for SM Energy
Historical stock prices
Current Share PriceUS$21.45
52 Week HighUS$1.34
52 Week LowUS$26.87
Beta6.19
1 Month Change40.56%
3 Month Change-11.40%
1 Year Change961.88%
3 Year Change-32.16%
5 Year Change-34.30%
Change since IPO680.00%

Recent News & Updates

Sep 11

SM Energy: Profit From Soaring Natural Gas Prices

SM Energy Company is an exploration & production (E&P) company in the Oil & Gas sector. Approximately 25% of SM's revenue stream comes from Natural Gas and NGL sales. Given the roll-off profile of its hedges, the company could see upwards of $100MM in additional gas segment profits in 2022 from current prices.

Aug 03

SM Energy: Buy This Value-With-Momentum Energy Stock At A Discount

SM Energy is a value Energy sector stock with great momentum that has increased 194.03% YTD (top Energy sector pick by Seeking Alpha quant ratings). Despite its significant run YTD, the stock remains undervalued based on where the forward Oil curve is and further gains are expected as its uneconomical hedges roll-off. SM Energy has a very high 90 day Implied Volatility (IV) and significant discounts to spot prices can be obtained via writing covered puts.

Jul 31
New Forecasts: Here's What Analysts Think The Future Holds For SM Energy Company (NYSE:SM)

New Forecasts: Here's What Analysts Think The Future Holds For SM Energy Company (NYSE:SM)

Celebrations may be in order for SM Energy Company ( NYSE:SM ) shareholders, with the analysts delivering a significant...

Shareholder Returns

SMUS Oil and GasUS Market
7D5.9%-0.9%-1.8%
1Y961.9%55.1%31.5%

Return vs Industry: SM exceeded the US Oil and Gas industry which returned 52.7% over the past year.

Return vs Market: SM exceeded the US Market which returned 33% over the past year.

Price Volatility

Is SM's price volatile compared to industry and market?
SM volatility
SM Beta6.19
Industry Beta1.81
Market Beta1

Stable Share Price: SM is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SM's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
1908503Herb Vogelhttps://sm-energy.com

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the state of Texas. As of December 31, 2020, it had 404.6 million barrels of oil equivalent of estimated proved reserves; and working interests in 801 gross productive oil wells and 498 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.

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SM ($21.45) is trading below our estimate of fair value ($80.95)

Significantly Below Fair Value: SM is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SM's PB Ratio (1.7x) is in line with the US Oil and Gas industry average.


Future Growth

How is SM Energy forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

57.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: SM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SM's is expected to become profitable in the next 3 years.

Revenue vs Market: SM's revenue (4.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: SM's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SM's Return on Equity is forecast to be high in 3 years time


Past Performance

How has SM Energy performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SM is currently unprofitable.

Growing Profit Margin: SM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SM is unprofitable, and losses have increased over the past 5 years at a rate of 1.3% per year.

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

Earnings vs Industry: SM is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-19.4%).


Return on Equity

High ROE: SM has a negative Return on Equity (-47.52%), as it is currently unprofitable.


Financial Health

How is SM Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SM's short term assets ($269.4M) do not cover its short term liabilities ($1.1B).

Long Term Liabilities: SM's short term assets ($269.4M) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: SM's debt to equity ratio (141.2%) is considered high.

Reducing Debt: SM's debt to equity ratio has reduced from 192.4% to 141.2% 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 SM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SM is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 34% per year.


Dividend

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

0.093%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SM's dividend (0.093%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: SM's dividend (0.093%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: SM is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Herb Vogel (60 yo)

0.83

Tenure

US$2,325,155

Compensation

Mr. Herbert S. Vogel, also known as Herb, serves as Chief Executive Officer and Director at SM Energy Company since November 2, 2020. He has been President at SM Energy Company since July 21, 2020 and serv...


CEO Compensation Analysis

Compensation vs Market: Herb's total compensation ($USD2.33M) is below average for companies of similar size in the US market ($USD5.25M).

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


Leadership Team

Experienced Management: SM's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: SM's board of directors are considered experienced (7.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: SM Energy Company
  • Ticker: SM
  • Exchange: NYSE
  • Founded: 1908
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$2.600b
  • Shares outstanding: 121.22m
  • Website: https://sm-energy.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:12
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.