📊 SM Key Takeaways
Is SM Energy Co (SM) a Good Investment?
SM Energy demonstrates exceptional profitability margins (31.7% operating, 20.5% net) and outstanding free cash flow generation (63.8% FCF margin), supported by conservative leverage (0.33x debt/equity). However, fundamental growth is stalled (0.5% revenue growth), EPS is declining (-15.4% YoY), and the current ratio of 0.69x signals liquidity pressure that warrants monitoring despite strong cash generation.
Why Buy SM Energy Co Stock? SM Key Strengths
- Exceptional cash generation with $2.0B operating cash flow and 63.8% FCF margin on $3.2B revenue
- Highly profitable with 31.7% operating margin and 20.5% net margin demonstrating operational efficiency
- Conservative capital structure with 0.33x debt/equity ratio and healthy 5.8x interest coverage providing financial flexibility
SM Stock Risks: SM Energy Co Investment Risks
- Severe revenue growth stagnation at 0.5% YoY indicates inability to expand in commodity markets
- Diluted EPS declining 15.4% YoY despite positive net income signals shareholder value erosion or operational headwinds
- Liquidity stress with current ratio of 0.69x below critical 1.0x threshold poses short-term cash flow risks
- Cyclical commodity exposure creates earnings and cash flow volatility dependent on oil/gas price cycles
Key Metrics to Watch
- Revenue growth trajectory and ability to stabilize amid commodity price weakness
- Current ratio improvement toward 1.0x+ to validate working capital management
- Free cash flow consistency and capital allocation strategy (dividends/buybacks/debt reduction)
SM Energy Co (SM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 63.8% 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 appears fundamentally strong 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $546.6M | $48.8M | $1.25 |
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 rating of HOLD with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SM's key strengths?
Claude: Exceptional cash generation with $2.0B operating cash flow and 63.8% FCF margin on $3.2B revenue. Highly profitable with 31.7% operating margin and 20.5% net margin demonstrating operational efficiency.
What are the risks of investing in SM?
Claude: Severe revenue growth stagnation at 0.5% YoY indicates inability to expand in commodity markets. Diluted EPS declining 15.4% YoY despite positive net income signals shareholder value erosion or operational headwinds.
What is SM's revenue and growth?
SM Energy Co reported revenue of $3.2B.
Does SM pay dividends?
SM Energy Co pays dividends, with $92.0M 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 $5.64.
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 rating reflects both perspectives for balanced insights.
Is SM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, SM Energy Co has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SM stock overvalued or undervalued?
Valuation metrics for SM: ROE of 13.5% (sector avg: 14%), net margin of 20.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy SM stock in 2026?
Our dual AI analysis gives SM Energy Co a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is SM's free cash flow?
SM Energy Co's operating cash flow is $2.0B, with capital expenditures of N/A. FCF margin is 63.8%.
How does SM compare to other Energy stocks?
Vs Energy sector averages: Net margin 20.5% (avg: 12%), ROE 13.5% (avg: 14%), current ratio 0.69 (avg: 1.3).