SM Energy SM
United StatesEnergy · Oil & Gas E&PUSD
43.82 USD (+24.3%)
17 analysts
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SM Energy Company is an independent oil and natural gas exploration and production (E&P) company, with operations focused on the Midland (Texas) and Powder River (Wyoming) basins in the United States.
Key points
from its scores- ✓Good share-price trend9.3
- ✓Attractive valuation9.0
- ✓High-quality business7.5
- !Modest dividend5.9
AI analysis
bottom line, main risk, context and newsValuation is attractive and the balance sheet is solid, but the market is already pricing in a high oil price scenario that could reverse quickly.
SM Energy shows very solid fundamentals: operating margin of 60.3%, ROIC of 19.6%, and an attractive valuation (P/E 6.25, EV/EBITDA 4.74, FCF yield 17.6%). However, the explosive revenue and earnings growth (176% and 154%) is clearly cyclical and likely unsustainable, which justifies a slight discount on the growth score. The balance sheet is manageable (ND/EBITDA 2.13) and momentum is strong (74th percentile in 52 weeks).
The main risk is a decline in oil and gas prices, which would reverse record growth and compress margins, especially if the geopolitical risk premium from the Strait of Hormuz deflates.
Context and risks
SM Energy is a US-focused oil and gas exploration and production (E&P) company centered on the Midland and Powder River basins. Its risk profile is dominated by commodity price volatility, not by specific regulatory, geopolitical, or business model risks that are not already reflected in its beta and market context. There are no pending litigations, investigations, or dependence on renewable government concessions that would add additional qualitative risk.
Is SM Energy stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 51% below the Energy median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 6.2 | 15.7 | −60% |
| EV / EBITDA | 4.7 | 8.0 | −41% |
| Price / book | 1.1 | 2.2 | −52% |
| Price / sales | 1.7 | 1.9 | −12% |
Sector: median of the 102 Energy companies analysed. In bold, the multiples used for the comparison.
Valuation score: 9.0 out of 10 (median for Energy: 5.9).
Average analyst target: 43.82 USD, +24.3% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 6.2 (sector 6.8), Growth 7.2 (sector 7.2).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Energy medianValuation
- P/E
- 6.2
- Forward P/E
- 4.4
- EV / EBITDA
- 4.7
- Price / book
- 1.1
- Price / sales
- 1.7
- PEG
- 0.59
- Market cap
- 8.4B USD
- Enterprise value
- 15.2B USD
Profitability
- ROE
- 16.1%
- ROA
- 6.9%
- ROIC (approx.)
- 19.6%
- Gross margin
- 86.5%
- Operating margin
- 60.3%
- Net margin
- 20.2%
- Free cash flow
- 1.5B USD
- FCF yield
- 17.6%
- Cash conversion
- 46%
Solvency
- Total debt
- 7.4B USD
- Net debt
- 6.8B USD
- Cash
- 620.0M USD
- EBITDA
- 3.2B USD
- Net debt / EBITDA
- 2.13
- Debt / equity
- 95.14
- Current ratio
- 0.61
- Quick ratio
- 0.52
Growth
- Revenue growth
- +176.1%
- Earnings growth
- +153.9%
- EPS (TTM)
- 5.64 USD
- EPS (forward)
- 8.08 USD
Dividend
- Dividend yield
- 2.5%
- Payout
- 18.4%
Risk and market
- Beta
- 0.96
- Analyst consensus
- Buy (17)
- Target price
- 43.82 USD
- 52-week range
- 17.45 – 41.56
Recent news
All SM news →Compare it with its sector
All 102 in Energy →Frequently asked questions about SM Energy
Is SM Energy stock cheap or expensive?
On P/E and EV / EBITDA, it trades 51% below the Energy median on average. Valuation score: 9.0 out of 10 (median for Energy: 5.9). Average analyst target: 43.82 USD, +24.3% versus the price. This is not investment advice.
What score does SM Energy get on MeridIAn Screener?
It scores 7.4 out of 10, rank 72 of 2,130 (better than 97% of the companies analysed). Its strongest category is Momentum (9.3) and its weakest, Dividend (5.9). Analysis of 08/10/2026.
What is SM Energy's P/E ratio?
Its P/E is 6.2: the share price equals 6.2 times earnings per share over the last 12 months. The Energy median is 15.7. Based on the earnings analysts expect, the forward P/E is 4.4.
How much is SM Energy worth on the stock market?
Its market capitalisation is 8.4B USD and its enterprise value, debt included, is 15.2B USD.
How much debt does SM Energy have?
Its net debt (debt minus cash) is 6.8B USD. That is 2.13 times its EBITDA; the Energy median is 1.23.
Does SM Energy pay a dividend?
Yes: its dividend yield is 2.50% and it pays out 18% of its earnings.
How has SM Energy stock performed over the last year?
It has risen 62.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 17.45 and 41.56 USD. Past performance does not guarantee future results.
What do analysts think of SM Energy?
17 analysts cover it; their average recommendation is “Buy” and their average target is 43.82 USD (+24.3% versus the price). It is an estimate, not market data.