NYSE:SM

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. More Details


Snowflake Analysis

Fair value with moderate growth potential.


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: SM is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: SM's weekly volatility has decreased from 24% to 17% over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

36.4%

SM

8.6%

US Oil and Gas

2.1%

US Market


1 Year Return

-46.6%

SM

-31.2%

US Oil and Gas

19.8%

US Market

Return vs Industry: SM underperformed the US Oil and Gas industry which returned -31.1% over the past year.

Return vs Market: SM underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

SMIndustryMarket
7 Day36.4%8.6%2.1%
30 Day207.9%29.6%8.1%
90 Day79.3%8.3%6.0%
1 Year-45.9%-46.6%-26.5%-31.2%22.5%19.8%
3 Year-76.7%-77.3%-32.8%-42.0%46.5%36.8%
5 Year-82.6%-83.2%-21.8%-37.3%96.9%75.3%

Long-Term 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

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 ($4.68) is trading below our estimate of fair value ($57.2)

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 is good value based on its PB Ratio (0.2x) compared to the US Oil and Gas industry average (1x).


Next Steps

Future Growth

How is SM Energy forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

72.3%

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 (2.2%).

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 (6.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: SM's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has SM Energy performed over the past 5 years?

17.2%

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, but has reduced losses over the past 5 years at a rate of 17.2% 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 (-29.6%).


Return on Equity

High ROE: SM has a negative Return on Equity (-32.1%), as it is currently unprofitable.


Next Steps

Financial Health

How is SM Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SM's short term assets ($274.9M) do not cover its short term liabilities ($377.3M).

Long Term Liabilities: SM's short term assets ($274.9M) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: SM's debt to equity ratio (107.7%) is considered high.

Reducing Debt: SM's debt to equity ratio has reduced from 116.2% to 107.7% 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 20.9% per year.


Next Steps

Dividend

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

0.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SM's dividend (0.43%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: SM's dividend (0.43%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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 (59 yo)

no data

Tenure

US$3,164,984

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 ($USD3.16M) is above average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: Herb's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Herbert Vogel
Presidentno dataUS$3.16m0.15%
$ 820.3k
A. Pursell
Executive VP & CFO12.17yrsUS$2.66m0.17%
$ 916.5k
Lehman Newton
Senior Vice President of Operationsno dataUS$1.31m0.085%
$ 454.8k
David Copeland
Executive VP9.83yrsUS$1.64m0.18%
$ 941.3k
Patrick Lytle
Controller & Principal Accounting Officer2yrsno data0.017%
$ 90.4k
Jennifer Samuels
Vice President of Investor Relations5.5yrsno datano data
David Whitcomb
Vice President of Marketing12.25yrsUS$919.15k0.070%
$ 377.3k
Candace Lyon
Vice President of Human Resources2.83yrsno datano data
Kenneth Knott
Senior Vice President of Business Development & Land6.25yrsUS$1.05m0.065%
$ 350.5k

6.3yrs

Average Tenure

57yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Herbert Vogel
Presidentno dataUS$3.16m0.15%
$ 820.3k
Rose Robeson
Independent Director6.33yrsUS$236.00k0.061%
$ 329.1k
Ramiro Peru
Independent Director6.25yrsUS$216.00k0.088%
$ 473.4k
William Sullivan
Independent Chairman of the Boardno dataUS$301.02k0.16%
$ 850.6k
Loren Leiker
Independent Director8.17yrsUS$216.00k0.092%
$ 492.6k
Larry Bickle
Independent Director25.83yrsUS$216.00k0.18%
$ 964.4k
Julio Quintana
Independent Director14.33yrsUS$234.40k0.12%
$ 620.5k
Javan Ottoson
Director6.17yrsUS$6.00m0.33%
$ 1.8m
Stephen Brand
Independent Director9.67yrsUS$231.00k0.071%
$ 380.4k
Carla Bailo
Independent Director2.08yrsUS$216.00k0.063%
$ 338.2k

7.3yrs

Average Tenure

62yo

Average Age

Experienced Board: SM's board of directors are considered experienced (7.3 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 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: SM
  • Exchange: NYSE
  • Founded: 1908
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$536.201m
  • Shares outstanding: 114.57m
  • 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 Texa...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:51
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
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.