Fact based stock research
SM Energy (NYSE:SM)
US78454L1008
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
SM Energy stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 98 (better than 98% compared with investment alternatives), SM Energy (Oil & Gas Production, USA) shares have much better financial characteristics than comparable stocks. Shares of SM Energy are a good value (attractively priced) with a consolidated Value Rank of 72 (better than 72% of alternatives), show above-average growth (Growth Rank of 86), and are safely financed (Safety Rank of 70), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 98, is a strong buy recommendation based on SM Energy's financial characteristics. As the company SM Energy's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 72), above-average growth (Obermatt Growth Rank of 86), and indicate that the company is safely financed (Obermatt Safety Rank of 70), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of SM Energy. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Oil & Gas Production |
| Index | Low Emissions, Oil & Gas |
| Size class | Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: SM Energy
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 26 |
|
33 |
|
65 |
|
72 |
|
| GROWTH | ||||||||
| GROWTH | 88 |
|
79 |
|
79 |
|
86 |
|
| SAFETY | ||||||||
| SAFETY | 6 |
|
11 |
|
60 |
|
70 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
1 |
|
31 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
11 |
|
71 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 98 (better than 98% compared with investment alternatives), SM Energy (Oil & Gas Production, USA) shares have much better financial characteristics than comparable stocks. Shares of SM Energy are a good value (attractively priced) with a consolidated Value Rank of 72 (better than 72% of alternatives), show above-average growth (Growth Rank of 86), and are safely financed (Safety Rank of 70), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 98, is a strong buy recommendation based on SM Energy's financial characteristics. As the company SM Energy's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 72), above-average growth (Obermatt Growth Rank of 86), and indicate that the company is safely financed (Obermatt Safety Rank of 70), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of SM Energy. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 26 |
|
33 |
|
65 |
|
72 |
|
| GROWTH | ||||||||
| GROWTH | 88 |
|
79 |
|
79 |
|
86 |
|
| SAFETY | ||||||||
| SAFETY | 6 |
|
11 |
|
60 |
|
70 |
|
| COMBINED | ||||||||
| COMBINED | 18 |
|
25 |
|
90 |
|
98 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 72 (better than 72% compared with alternatives), SM Energy shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for SM Energy. Price-to-Sales (P/S) is 71, which means that the stock price compared with what market professionals expect for future sales is lower than for 71% of comparable companies, indicating a good value regarding SM Energy's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 95% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 76. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 36% of all competitors have even lower dividend yields than SM Energy (a Dividend Yield Rank of 36). 64% alternative investments in the same business provide a higher dividend yield. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 72, is a buy recommendation based on SM Energy's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 59 |
|
46 |
|
53 |
|
71 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 3 |
|
40 |
|
78 |
|
95 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 10 |
|
34 |
|
57 |
|
76 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 49 |
|
53 |
|
42 |
|
36 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 26 |
|
33 |
|
65 |
|
72 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 86 (better than 86% compared with alternatives) for 2024, SM Energy shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for SM Energy. Sales Growth has a value of 72 which means that currently professionals expect the company to grow more than 72% of its competitors. Profit Growth with a value of 80 and Capital Growth with a rank of 64 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 46, which means that stock returns have recently been below 54% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 86, is a buy recommendation for growth and momentum investors. SM Energy has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for SM Energy, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 76 |
|
8 |
|
56 |
|
72 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 18 |
|
85 |
|
77 |
|
80 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
60 |
|
57 |
|
64 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 100 |
|
93 |
|
73 |
|
46 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 88 |
|
79 |
|
79 |
|
86 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company SM Energy has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of SM Energy is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for SM Energy. Refinancing is at 98, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 98% of its competitors. Liquidity is also good at 56, meaning the company generates more profit to service its debt than 56% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 41, which means the company has an above-average debt-to-equity ratio. It has more debt than 59% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), SM Energy has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and SM Energy could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with SM Energy and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 31 |
|
37 |
|
38 |
|
41 |
|
| REFINANCING | ||||||||
| REFINANCING | 1 |
|
21 |
|
84 |
|
98 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 6 |
|
25 |
|
43 |
|
56 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 6 |
|
11 |
|
60 |
|
70 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
36 |
|
17 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
7 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
33 |
|
69 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
10 |
|
23 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
1 |
|
31 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for SM Energy from December 19, 2024.
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