📊 SM Key Takeaways
Is SM Energy Co (SM) a Good Investment?
SM Energy is fundamentally distressed with negative operating and net income, coupled with a critically low current ratio of 0.39x indicating severe liquidity crisis. While strong free cash flow generation (640M, 43.3% margin) provides temporary relief, stagnant revenue growth, persistent operating losses, and inability to cover interest from operations present unacceptable risks.
SM Energy Co Key Strengths (SM)
- Strong free cash flow generation ($640M) despite GAAP losses, suggesting operational cash production value
- Moderate leverage with debt-to-equity ratio of 0.23x and manageable long-term debt relative to asset base
- Substantial asset foundation ($19.1B) with meaningful equity cushion ($6.9B)
SM Stock Risks: SM Energy Co Investment Risks
- Critical liquidity crisis: current ratio of 0.39x means current liabilities far exceed liquid current assets, creating near-term solvency risk
- Persistent unprofitability with operating margin of -20.1% and net margin of -22.7%, destroying shareholder value
- Negative returns: ROE of -4.9% and ROA of -1.7% indicate capital destruction not creation
- Anemic revenue growth of only 0.5% YoY with no signs of operational improvement
- Interest coverage ratio of -2.6x: unable to cover interest obligations from operating income
- Energy sector cyclicality adds risk; fundamental recovery timeline remains uncertain
Key Metrics to Watch
- Current ratio trend - must show sustained improvement toward 1.0x+ to resolve insolvency risk
- Operating income recovery - path to profitability is existential for investment viability
- Operating cash flow sustainability - critical to verify cash generation can continue supporting operations
- Revenue growth acceleration - must exceed 0.5% threshold to demonstrate operational stabilization
SM Energy Co (SM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 43.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
SM Profit Margin, ROE & Profitability Analysis
SM vs Energy Sector: How SM Energy Co Compares
How SM Energy Co compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is SM Energy Co Stock Overvalued? SM Valuation Analysis 2026
Based on fundamental analysis, SM Energy Co has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
SM Energy Co Balance Sheet: SM Debt, Cash & Liquidity
SM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: SM Energy Co's revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.86 reflects profitable operations.
SM Revenue Growth, EPS Growth & YoY Performance
SM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $840.0M | $182.0M | $1.59 |
| Q3 2025 | $642.4M | $131.2M | $1.35 |
| Q2 2025 | $633.5M | $131.2M | $1.76 |
| Q1 2025 | $559.6M | $131.2M | $1.13 |
| Q3 2024 | $639.7M | $131.2M | $1.88 |
| Q2 2024 | $546.6M | $131.2M | $1.25 |
| Q1 2024 | $559.6M | $131.2M | $1.13 |
| Q3 2023 | $639.7M | $48.8M | $1.88 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
SM Energy Co Dividends, Buybacks & Capital Allocation
SM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for SM Energy Co (CIK: 0000893538)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SM
What is the AI rating for SM?
SM Energy Co (SM) has an AI grade of C with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SM's key strengths?
Claude: Strong free cash flow generation ($640M) despite GAAP losses, suggesting operational cash production value. Moderate leverage with debt-to-equity ratio of 0.23x and manageable long-term debt relative to asset base.
What are the risks of investing in SM?
Claude: Critical liquidity crisis: current ratio of 0.39x means current liabilities far exceed liquid current assets, creating near-term solvency risk. Persistent unprofitability with operating margin of -20.1% and net margin of -22.7%, destroying shareholder value.
What is SM's revenue and growth?
SM Energy Co reported revenue of $1.5B.
Does SM pay dividends?
SM Energy Co pays dividends, with $82.0M distributed to shareholders in the trailing twelve months.
Where can I find SM SEC filings?
Official SEC filings for SM Energy Co (CIK: 0000893538) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SM's EPS?
SM Energy Co has a diluted EPS of $-1.68.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SM's fundamental grade?
Based on our AI fundamental analysis in May 2026, SM Energy Co has a C grade with 85% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SM stock overvalued or undervalued?
Valuation metrics for SM: ROE of -4.9% (sector avg: 14%), net margin of -22.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is SM's AI grade for 2026?
Our dual AI analysis gives SM Energy Co a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SM's free cash flow?
SM Energy Co's operating cash flow is $640.0M, with capital expenditures of N/A. FCF margin is 43.3%.
How does SM compare to other Energy stocks?
Vs Energy sector averages: Net margin -22.7% (avg: 12%), ROE -4.9% (avg: 14%), current ratio 0.39 (avg: 1.3).