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Also traded in: Germany

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Equity to Asset 0.33
SM's Equity to Asset is ranked lower than
69% of the 439 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.50 vs. SM: 0.33 )
Ranked among companies with meaningful Equity to Asset only.
SM' s Equity to Asset Range Over the Past 10 Years
Min: 0.19  Med: 0.48 Max: 0.83
Current: 0.33
0.19
0.83
F-Score: 5
Z-Score: 1.30
M-Score: -2.90
WACC vs ROIC
9.73%
-10.34%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) -37.17
SM's Operating margin (%) is ranked higher than
55% of the 443 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -48.82 vs. SM: -37.17 )
Ranked among companies with meaningful Operating margin (%) only.
SM' s Operating margin (%) Range Over the Past 10 Years
Min: -15.72  Med: 27.49 Max: 46.22
Current: -37.17
-15.72
46.22
Net-margin (%) -28.76
SM's Net-margin (%) is ranked higher than
61% of the 443 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -68.69 vs. SM: -28.76 )
Ranked among companies with meaningful Net-margin (%) only.
SM' s Net-margin (%) Range Over the Past 10 Years
Min: -11.94  Med: 15.73 Max: 26.41
Current: -28.76
-11.94
26.41
ROE (%) -20.82
SM's ROE (%) is ranked higher than
54% of the 461 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -23.99 vs. SM: -20.82 )
Ranked among companies with meaningful ROE (%) only.
SM' s ROE (%) Range Over the Past 10 Years
Min: -9.3  Med: 17.02 Max: 34.21
Current: -20.82
-9.3
34.21
ROA (%) -7.18
SM's ROA (%) is ranked higher than
62% of the 500 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -14.42 vs. SM: -7.18 )
Ranked among companies with meaningful ROA (%) only.
SM' s ROA (%) Range Over the Past 10 Years
Min: -3.93  Med: 7.15 Max: 13.72
Current: -7.18
-3.93
13.72
ROC (Joel Greenblatt) (%) -10.89
SM's ROC (Joel Greenblatt) (%) is ranked higher than
62% of the 484 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -22.77 vs. SM: -10.89 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
SM' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: -5.85  Med: 14.40 Max: 26.47
Current: -10.89
-5.85
26.47
Revenue Growth (3Y)(%) 16.00
SM's Revenue Growth (3Y)(%) is ranked higher than
81% of the 365 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -5.10 vs. SM: 16.00 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
SM' s Revenue Growth (3Y)(%) Range Over the Past 10 Years
Min: -0.5  Med: 20.65 Max: 47.3
Current: 16
-0.5
47.3
EBITDA Growth (3Y)(%) 28.90
SM's EBITDA Growth (3Y)(%) is ranked higher than
79% of the 250 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -6.50 vs. SM: 28.90 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
SM' s EBITDA Growth (3Y)(%) Range Over the Past 10 Years
Min: -26.3  Med: 21.90 Max: 91.6
Current: 28.9
-26.3
91.6
EPS Growth (3Y)(%) 45.30
SM's EPS Growth (3Y)(%) is ranked higher than
75% of the 261 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.10 vs. SM: 45.30 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
SM' s EPS Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: 16.85 Max: 67.3
Current: 45.3
0
67.3
» SM's 10-Y Financials

Financials (Next Earnings Date: 2016-05-03)


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2015

SM Guru Trades in Q2 2015

Jim Simons 301,500 sh (New)
Paul Tudor Jones 5,200 sh (New)
Kyle Bass 376,894 sh (+2967.92%)
Sarah Ketterer 1,237,196 sh (+118.94%)
Ron Baron 59,648 sh (+12.44%)
Steven Cohen 423,200 sh (+8.65%)
Paul Singer 490,600 sh (unchged)
David Dreman Sold Out
Ray Dalio Sold Out
Columbia Wanger 946,288 sh (-7.81%)
First Pacific Advisors 553,691 sh (-42.56%)
FPA Capital Fund 281,191 sh (-45.57%)
Arnold Schneider 73,654 sh (-56.25%)
» More
Q3 2015

SM Guru Trades in Q3 2015

Jeremy Grantham 25,500 sh (New)
FPA Capital Fund 737,691 sh (+162.35%)
First Pacific Advisors 1,203,451 sh (+117.35%)
Sarah Ketterer 2,114,322 sh (+70.90%)
Jim Simons 439,100 sh (+45.64%)
Ron Baron 62,548 sh (+4.86%)
Columbia Wanger 947,443 sh (+0.12%)
Kyle Bass Sold Out
Paul Tudor Jones Sold Out
Arnold Schneider Sold Out
Paul Singer 460,600 sh (-6.11%)
Steven Cohen 255,000 sh (-39.74%)
» More
Q4 2015

SM Guru Trades in Q4 2015

Arnold Schneider 1,067,618 sh (New)
Sarah Ketterer 3,835,774 sh (+81.42%)
Jim Simons 583,200 sh (+32.82%)
First Pacific Advisors 1,581,231 sh (+31.39%)
FPA Capital Fund 821,881 sh (+11.41%)
Jeremy Grantham 25,500 sh (unchged)
Paul Singer 460,600 sh (unchged)
Steven Cohen Sold Out
Ron Baron Sold Out
Columbia Wanger 243,390 sh (-74.31%)
» More
Q1 2016

SM Guru Trades in Q1 2016

FPA Capital Fund 789,698 sh (-3.92%)
» More
» Details

Insider Trades

Latest Guru Trades with SM

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Guru Investment Theses on SM Energy Co

Baron Funds Comments on SM Energy Co - Mar 20, 2015

SM Energy Co. (SM) is an independent E&P company with operations that are primarily focused on shale oil fields in South Texas and North Dakota. The company’s shares fell by 50% during the quarter amid the rout in oil and gas prices. Despite the fact that SM has one of the stronger balance sheets in the sector and that changes in its well completion practices are yielding higher per well productivity and returns, the shares seemed to succumb to a tsunami of selling in the quarter.We sold our investment position.

From Ron Baron (Trades, Portfolio)’s Baron Growth Fund Q4 2014 Quarterly Report.



Check out Ron Baron latest stock trades

FPA Capital Fund Comments on SM Energy - Oct 28, 2014

Another energy company that declined substantially during the last few months is SM Energy (SM). Again, the strategy initially purchased SM Energy in late 2008/early 2009 at substantially lower prices than even its currently depressed price. SM is an exploration & production company that derives approximately 75% of its production from Texas (primarily the Eagle Ford Shale area), 15% from the Rocky Mountain region (primarily Bakken/Three Forks area in North Dakota), and the remainder split between the Permian Basin in west Texas and the Mid-Continent in Oklahoma.

Revenues from oil represented roughly 55% of the total June quarter revenues, with natural gas and natural gas liquids (NGLs) generating 28% and 17% of the revenues. SM Energy is currently earning roughly $20 per share of ebitda and is trading close to 4x enterprise value to ebitda, versus Athlon Energy that just announced its being acquired at roughly 15x ebitda. Granted, the recent decline in oil prices will negatively impact SM’s near-term revenues and profit. However, assuming no growth in production from the June quarter level and no additional hedges were put in place this quarter (SM will report Q32014 results on October 29th), SM has roughly 50% of its 2015 oil and gas production hedged out at approximately $90/barrel and $4.00/mcf.

Besides reducing the risk to shareholder profits from lower commodity prices by hedging out some of its future production, SM also boasts among the lowest finding & development (F&D) cost for US shale oil producers. We estimate SM’s F&D costs at about $13/barrel, which allows the company to have a much lower break-even cost than many highly levered U.S. shale producers. SM’s strong balance sheet gives the company the option to purchase good oil & gas assets from potentially distressed sellers, should oil prices fall below $75/barrel.

Both RDC and SM are representative of our investments in energy companies. That is, our investments are in companies with strong balance sheets, seasoned management teams, and good prospects to generate strong financial results despite oil prices declining $20/barrel from its recent level of approximately $105. There has been too much capital spending on tertiary U.S. shale oil projects over the past few years. High oil prices and cheap capital seduced many investors into businesses that they do not understand, nor do many of these companies have the capital to weather the inevitable down cycles.

From FPA Capital Fund (Trades, Portfolio) Q3 2014 Commentary.

Check out FPA Capital Fund latest stock trades

Top Ranked Articles about SM Energy Co

Arnold Schneider Buys 9 New Stakes in 4th Quarter Guru's top new investment is in oil and gas company
Arnold Schneider (Trades, Portfolio), president, CIO and principal of Schneider Capital Management Corp., made nine new buys in the fourth quarter. That was two more new buys than he made in the third quarter. Read more...
FPA Capital Fund Buys Apollo Education The stake increased by 52% in the 4th quarter
FPA Capital Fund (Trades, Portfolio) has a concentrated portfolio and invests primarily in undervalued small- to mid-cap companies. It manages a portfolio composed of 24 stocks with a total value of $611 million. Following are the stakes the firm increased during the fourth quarter. Read more...

Ratios

vs
industry
vs
history
P/B 1.15
SM's P/B is ranked lower than
56% of the 427 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.92 vs. SM: 1.15 )
Ranked among companies with meaningful P/B only.
SM' s P/B Range Over the Past 10 Years
Min: 0.26  Med: 2.71 Max: 7.28
Current: 1.15
0.26
7.28
P/S 1.14
SM's P/S is ranked higher than
64% of the 414 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.69 vs. SM: 1.14 )
Ranked among companies with meaningful P/S only.
SM' s P/S Range Over the Past 10 Years
Min: 0.3  Med: 2.50 Max: 4.68
Current: 1.14
0.3
4.68
POCF 1.81
SM's POCF is ranked higher than
79% of the 301 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 4.17 vs. SM: 1.81 )
Ranked among companies with meaningful POCF only.
SM' s POCF Range Over the Past 10 Years
Min: 0.48  Med: 4.28 Max: 9.96
Current: 1.81
0.48
9.96
EV-to-EBIT 9.92
SM's EV-to-EBIT is ranked lower than
51% of the 147 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 9.17 vs. SM: 9.92 )
Ranked among companies with meaningful EV-to-EBIT only.
SM' s EV-to-EBIT Range Over the Past 10 Years
Min: -275.7  Med: 9.60 Max: 103.4
Current: 9.92
-275.7
103.4
EV-to-EBITDA 3.40
SM's EV-to-EBITDA is ranked higher than
79% of the 218 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 8.41 vs. SM: 3.40 )
Ranked among companies with meaningful EV-to-EBITDA only.
SM' s EV-to-EBITDA Range Over the Past 10 Years
Min: -548.4  Med: 5.75 Max: 15.9
Current: 3.4
-548.4
15.9
PEG 0.21
SM's PEG is ranked higher than
91% of the 32 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.63 vs. SM: 0.21 )
Ranked among companies with meaningful PEG only.
SM' s PEG Range Over the Past 10 Years
Min: 0.11  Med: 0.36 Max: 1.68
Current: 0.21
0.11
1.68
Shiller P/E 13.05
SM's Shiller P/E is ranked lower than
52% of the 95 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 11.54 vs. SM: 13.05 )
Ranked among companies with meaningful Shiller P/E only.
SM' s Shiller P/E Range Over the Past 10 Years
Min: 3.45  Med: 29.77 Max: 52.05
Current: 13.05
3.45
52.05
Current Ratio 1.11
SM's Current Ratio is ranked lower than
56% of the 484 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.32 vs. SM: 1.11 )
Ranked among companies with meaningful Current Ratio only.
SM' s Current Ratio Range Over the Past 10 Years
Min: 0.54  Med: 1.03 Max: 3.05
Current: 1.11
0.54
3.05
Quick Ratio 1.11
SM's Quick Ratio is ranked lower than
53% of the 484 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.23 vs. SM: 1.11 )
Ranked among companies with meaningful Quick Ratio only.
SM' s Quick Ratio Range Over the Past 10 Years
Min: 0.54  Med: 1.03 Max: 3.05
Current: 1.11
0.54
3.05
Days Sales Outstanding 28.61
SM's Days Sales Outstanding is ranked higher than
73% of the 393 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 41.39 vs. SM: 28.61 )
Ranked among companies with meaningful Days Sales Outstanding only.
SM' s Days Sales Outstanding Range Over the Past 10 Years
Min: 26.08  Med: 47.59 Max: 81.53
Current: 28.61
26.08
81.53

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.32
SM's Dividend Yield is ranked lower than
95% of the 322 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 4.84 vs. SM: 0.32 )
Ranked among companies with meaningful Dividend Yield only.
SM' s Dividend Yield Range Over the Past 10 Years
Min: 0.11  Med: 0.24 Max: 1.21
Current: 0.32
0.11
1.21
Forward Dividend Yield 0.32
SM's Forward Dividend Yield is ranked lower than
93% of the 248 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 3.14 vs. SM: 0.32 )
Ranked among companies with meaningful Forward Dividend Yield only.
N/A
Yield on cost (5-Year) 0.32
SM's Yield on cost (5-Year) is ranked lower than
95% of the 397 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 4.89 vs. SM: 0.32 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
SM' s Yield on cost (5-Year) Range Over the Past 10 Years
Min: 0.11  Med: 0.24 Max: 1.21
Current: 0.32
0.11
1.21
3-Year Average Share Buyback Ratio -0.20
SM's 3-Year Average Share Buyback Ratio is ranked higher than
82% of the 387 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -7.90 vs. SM: -0.20 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
SM' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -9.7  Med: -2.00 Max: 2.5
Current: -0.2
-9.7
2.5

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.15
SM's Price/Tangible Book is ranked lower than
51% of the 404 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.02 vs. SM: 1.15 )
Ranked among companies with meaningful Price/Tangible Book only.
SM' s Price/Tangible Book Range Over the Past 10 Years
Min: 0.76  Med: 2.43 Max: 7.56
Current: 1.15
0.76
7.56
Price/Median PS Value 0.46
SM's Price/Median PS Value is ranked higher than
60% of the 359 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.57 vs. SM: 0.46 )
Ranked among companies with meaningful Price/Median PS Value only.
SM' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.29  Med: 1.16 Max: 2.1
Current: 0.46
0.29
2.1
Price/Peter Lynch Fair Value 0.43
SM's Price/Peter Lynch Fair Value is ranked higher than
88% of the 17 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.84 vs. SM: 0.43 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
SM' s Price/Peter Lynch Fair Value Range Over the Past 10 Years
Min: 0.16  Med: 0.68 Max: 309.5
Current: 0.43
0.16
309.5
Price/Graham Number 0.63
SM's Price/Graham Number is ranked lower than
51% of the 158 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.56 vs. SM: 0.63 )
Ranked among companies with meaningful Price/Graham Number only.
SM' s Price/Graham Number Range Over the Past 10 Years
Min: 0.45  Med: 1.47 Max: 5.49
Current: 0.63
0.45
5.49
Earnings Yield (Greenblatt) (%) 10.10
SM's Earnings Yield (Greenblatt) (%) is ranked higher than
85% of the 497 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -13.70 vs. SM: 10.10 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
SM' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 1  Med: 9.70 Max: 26.1
Current: 10.1
1
26.1
Forward Rate of Return (Yacktman) (%) -9.34
SM's Forward Rate of Return (Yacktman) (%) is ranked higher than
50% of the 173 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -12.64 vs. SM: -9.34 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
SM' s Forward Rate of Return (Yacktman) (%) Range Over the Past 10 Years
Min: -95.9  Med: -3.40 Max: 37.2
Current: -9.34
-95.9
37.2

More Statistics

Revenue(Mil) $1557
EPS $ -6.60
Beta1.88
Short Percentage of Float31.16%
52-Week Range $6.99 - 60.28
Shares Outstanding(Mil)68.08

Analyst Estimate

Dec16 Dec17 Dec18
Revenue(Mil) 1,226 1,377 1,825
EPS($) -3.33 -2.89 -0.60
EPS without NRI($) -3.33 -2.89 -0.60

Business Description

Industry: Oil & Gas - E&P » Oil & Gas E&P
Compare:TSX:PEY, NYSE:PE, TSX:VET, LSE:TLW, NYSE:CNX, NAS:GPOR » details
Traded in other countries:SJL.Germany,
SM Energy Company is incorporated in Delaware in 1915. It is an energy company engaged in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids (NGLs) in onshore North America. The Company's assets include positions in the Eagle Ford shale and Bakken/Three Forks resource plays, as well as meaningful positions in the Granite Wash, Haynesville shale, and Woodford shale resource plays. Its portfolio is comprised of properties with established production and reserves, prospective drilling opportunities, and unconventional resource prospects. The Company faces competition from a substantial number of major and independent oil and gas companies, which in some cases have larger technical staffs and greater financial and operational resources than the Company does. The Company's business is regulated by numerous federal, state, and local laws and governmental regulations.
» More Articles for SM

Headlines

Articles On GuruFocus.com
Causeway Capital Global Value Fund Commentary, Performance Review for February Mar 16 2016 
Arnold Schneider Buys 9 New Stakes in 4th Quarter Feb 22 2016 
FPA Capital Fund Sells Portions of 13 Stakes in Second Quarter Jul 13 2015 
Arnold Schneider's Undervalued stocks trading with low P/E Jun 22 2015 
Arnold Schneider Adds Seven Stakes to Portfolio in First Quarter May 20 2015 
Baron Funds Comments on SM Energy Co Mar 20 2015 
FPA Capital Fund Comments on SM Energy Oct 28 2014 
FPA Capital Fund Q3 2014 Commentary Oct 28 2014 
FPA Capital Fund's Q3 2013 Shareholder Letter Oct 28 2014 
Steven Romick's FPA Capital Q3 Commentary Oct 25 2014 

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