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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 : 7/10

vs
industry
vs
history
Equity to Asset 0.35
SM's Equity to Asset is ranked lower than
76% of the 469 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.54 vs. SM: 0.35 )
Ranked among companies with meaningful Equity to Asset only.
SM' s 10-Year Equity to Asset Range
Min: 0.19  Med: 0.48 Max: 0.83
Current: 0.35
0.19
0.83
Interest Coverage 11.83
SM's Interest Coverage is ranked lower than
58% of the 315 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 23.88 vs. SM: 11.83 )
Ranked among companies with meaningful Interest Coverage only.
SM' s 10-Year Interest Coverage Range
Min: 1.5  Med: 14.00 Max: 687.91
Current: 11.83
1.5
687.91
F-Score: 6
Z-Score: 1.57
M-Score: -2.67
WACC vs ROIC
10.01%
11.97%
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 : 7/10

vs
industry
vs
history
Operating margin (%) 38.64
SM's Operating margin (%) is ranked higher than
89% of the 482 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -7.49 vs. SM: 38.64 )
Ranked among companies with meaningful Operating margin (%) only.
SM' s 10-Year Operating margin (%) Range
Min: -15.72  Med: 28.60 Max: 46.22
Current: 38.64
-15.72
46.22
Net-margin (%) 20.51
SM's Net-margin (%) is ranked higher than
82% of the 483 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -12.32 vs. SM: 20.51 )
Ranked among companies with meaningful Net-margin (%) only.
SM' s 10-Year Net-margin (%) Range
Min: -11.94  Med: 17.73 Max: 28.43
Current: 20.51
-11.94
28.43
ROE (%) 20.66
SM's ROE (%) is ranked higher than
96% of the 527 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -8.18 vs. SM: 20.66 )
Ranked among companies with meaningful ROE (%) only.
SM' s 10-Year ROE (%) Range
Min: -9.3  Med: 16.07 Max: 34.21
Current: 20.66
-9.3
34.21
ROA (%) 7.17
SM's ROA (%) is ranked higher than
90% of the 555 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -5.04 vs. SM: 7.17 )
Ranked among companies with meaningful ROA (%) only.
SM' s 10-Year ROA (%) Range
Min: -4.44  Med: 8.49 Max: 20.14
Current: 7.17
-4.44
20.14
ROC (Joel Greenblatt) (%) 15.09
SM's ROC (Joel Greenblatt) (%) is ranked higher than
91% of the 541 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -6.88 vs. SM: 15.09 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
SM' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -8.21  Med: 16.26 Max: 38.3
Current: 15.09
-8.21
38.3
Revenue Growth (3Y)(%) 16.00
SM's Revenue Growth (3Y)(%) is ranked higher than
68% of the 344 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 6.50 vs. SM: 16.00 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
SM' s 10-Year Revenue Growth (3Y)(%) Range
Min: -0.4  Med: 20.20 Max: 47.3
Current: 16
-0.4
47.3
EBITDA Growth (3Y)(%) 28.90
SM's EBITDA Growth (3Y)(%) is ranked higher than
76% of the 304 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -0.70 vs. SM: 28.90 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
SM' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -26.3  Med: 21.40 Max: 92.3
Current: 28.9
-26.3
92.3
EPS Growth (3Y)(%) 45.30
SM's EPS Growth (3Y)(%) is ranked higher than
83% of the 267 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.50 vs. SM: 45.30 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
SM' s 10-Year EPS Growth (3Y)(%) Range
Min: 0  Med: 16.75 Max: 66.7
Current: 45.3
0
66.7
» SM's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2014

SM Guru Trades in Q3 2014

Ray Dalio 18,483 sh (New)
Jim Simons 93,700 sh (New)
First Pacific Advisors 962,100 sh (+58.03%)
FPA Capital Fund 448,500 sh (+48.76%)
Ron Baron 516,248 sh (+1.96%)
Pioneer Investments 279,462 sh (unchged)
Chuck Royce 32,342 sh (unchged)
Paul Singer 490,600 sh (unchged)
Steven Cohen Sold Out
John Burbank Sold Out
Columbia Wanger 1,015,000 sh (-2.78%)
Paul Tudor Jones 3,900 sh (-25.00%)
» More
Q4 2014

SM Guru Trades in Q4 2014

David Dreman 1,120 sh (New)
Paul Tudor Jones 27,906 sh (+615.54%)
FPA Capital Fund 806,700 sh (+79.87%)
First Pacific Advisors 1,683,100 sh (+74.94%)
Paul Singer 490,600 sh (unchged)
Pioneer Investments Sold Out
Chuck Royce Sold Out
Jim Simons Sold Out
Ray Dalio Sold Out
Columbia Wanger 1,004,400 sh (-1.04%)
Ron Baron 47,848 sh (-90.73%)
» More
Q1 2015

SM Guru Trades in Q1 2015

Kyle Bass 12,285 sh (New)
Arnold Schneider 168,345 sh (New)
Steven Cohen 389,500 sh (New)
Sarah Ketterer 565,082 sh (New)
Kyle Bass 12,285 sh (New)
Ray Dalio 4,157 sh (New)
David Dreman 2,525 sh (+125.45%)
Ron Baron 53,048 sh (+10.87%)
Columbia Wanger 1,026,400 sh (+2.19%)
Paul Singer 490,600 sh (unchged)
Paul Singer 490,600 sh (unchged)
Paul Tudor Jones Sold Out
FPA Capital Fund 516,591 sh (-35.96%)
First Pacific Advisors 963,991 sh (-42.73%)
» More
Q2 2015

SM Guru Trades in Q2 2015

FPA Capital Fund 281,191 sh (-45.57%)
» More
» Details

Insider Trades

Latest Guru Trades with SM

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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

Baron Funds Comments on SM Energy Co. - Dec 10, 2013

SM Energy Co. (NYSE:SM) is an independent exploration and production company focused on core plays in the Williston Basin and the Eagle Ford Shale. The company's shares outperformed during the quarter due to continued better than expected production growth from its core plays, which led to higher than expected second quarter results and rising consensus estimates. Furthermore, SM's emerging play investments appear to be yielding positive results, leading to the potential for greater long-term growth visibility.

From Ron Baron's Baron Funds third quarter 2013 commentary.


Check out Ron Baron latest stock trades

Top Ranked Articles about SM Energy Co

Baron Funds Comments on SM Energy Co
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. Read more...
FPA Capital Fund Comments on SM Energy
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. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 5.97
SM's P/E(ttm) is ranked higher than
80% of the 189 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 11.00 vs. SM: 5.97 )
Ranked among companies with meaningful P/E(ttm) only.
SM' s 10-Year P/E(ttm) Range
Min: 3.14  Med: 16.42 Max: 95.09
Current: 5.97
3.14
95.09
Forward P/E 40.98
SM's Forward P/E is ranked lower than
57% of the 213 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 24.10 vs. SM: 40.98 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 6.00
SM's PE(NRI) is ranked higher than
81% of the 193 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 11.70 vs. SM: 6.00 )
Ranked among companies with meaningful PE(NRI) only.
SM' s 10-Year PE(NRI) Range
Min: 3.14  Med: 16.67 Max: 95.33
Current: 6
3.14
95.33
P/B 1.16
SM's P/B is ranked lower than
62% of the 512 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.79 vs. SM: 1.16 )
Ranked among companies with meaningful P/B only.
SM' s 10-Year P/B Range
Min: 0.67  Med: 2.74 Max: 7.29
Current: 1.16
0.67
7.29
P/S 1.21
SM's P/S is ranked higher than
67% of the 443 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.63 vs. SM: 1.21 )
Ranked among companies with meaningful P/S only.
SM' s 10-Year P/S Range
Min: 0.64  Med: 2.59 Max: 5
Current: 1.21
0.64
5
POCF 1.98
SM's POCF is ranked higher than
77% of the 327 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 3.43 vs. SM: 1.98 )
Ranked among companies with meaningful POCF only.
SM' s 10-Year POCF Range
Min: 1.1  Med: 4.66 Max: 9.96
Current: 1.98
1.1
9.96
EV-to-EBIT 6.83
SM's EV-to-EBIT is ranked higher than
75% of the 230 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 9.75 vs. SM: 6.83 )
Ranked among companies with meaningful EV-to-EBIT only.
SM' s 10-Year EV-to-EBIT Range
Min: -398.1  Med: 9.75 Max: 103.7
Current: 6.83
-398.1
103.7
PEG 0.13
SM's PEG is ranked higher than
87% of the 70 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.78 vs. SM: 0.13 )
Ranked among companies with meaningful PEG only.
SM' s 10-Year PEG Range
Min: 0.13  Med: 0.38 Max: 2.41
Current: 0.13
0.13
2.41
Shiller P/E 13.70
SM's Shiller P/E is ranked higher than
59% of the 144 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 14.07 vs. SM: 13.70 )
Ranked among companies with meaningful Shiller P/E only.
SM' s 10-Year Shiller P/E Range
Min: 6.5  Med: 26.56 Max: 70.67
Current: 13.7
6.5
70.67
Current Ratio 1.01
SM's Current Ratio is ranked lower than
62% of the 537 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.25 vs. SM: 1.01 )
Ranked among companies with meaningful Current Ratio only.
SM' s 10-Year Current Ratio Range
Min: 0.54  Med: 1.04 Max: 3.05
Current: 1.01
0.54
3.05
Quick Ratio 1.01
SM's Quick Ratio is ranked lower than
60% of the 537 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.21 vs. SM: 1.01 )
Ranked among companies with meaningful Quick Ratio only.
SM' s 10-Year Quick Ratio Range
Min: 0.54  Med: 1.04 Max: 3.05
Current: 1.01
0.54
3.05
Days Sales Outstanding 41.78
SM's Days Sales Outstanding is ranked lower than
56% of the 437 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 39.73 vs. SM: 41.78 )
Ranked among companies with meaningful Days Sales Outstanding only.
SM' s 10-Year Days Sales Outstanding Range
Min: 26.08  Med: 65.98 Max: 131.06
Current: 41.78
26.08
131.06

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.26
SM's Dividend Yield is ranked lower than
98% of the 377 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 5.05 vs. SM: 0.26 )
Ranked among companies with meaningful Dividend Yield only.
SM' s 10-Year Dividend Yield Range
Min: 0.11  Med: 0.23 Max: 0.86
Current: 0.26
0.11
0.86
Dividend Payout 0.02
SM's Dividend Payout is ranked higher than
99% of the 160 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.82 vs. SM: 0.02 )
Ranked among companies with meaningful Dividend Payout only.
SM' s 10-Year Dividend Payout Range
Min: 0.01  Med: 0.10 Max: 3.33
Current: 0.02
0.01
3.33
Yield on cost (5-Year) 0.26
SM's Yield on cost (5-Year) is ranked lower than
98% of the 383 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 5.74 vs. SM: 0.26 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
SM' s 10-Year Yield on cost (5-Year) Range
Min: 0.11  Med: 0.23 Max: 0.86
Current: 0.26
0.11
0.86
Share Buyback Rate -0.20
SM's Share Buyback Rate is ranked higher than
83% of the 402 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -7.40 vs. SM: -0.20 )
Ranked among companies with meaningful Share Buyback Rate only.
SM' s 10-Year Share Buyback Rate Range
Min: 2.5  Med: -2.30 Max: -9.7
Current: -0.2

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.17
SM's Price/Tangible Book is ranked lower than
56% of the 478 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.83 vs. SM: 1.17 )
Ranked among companies with meaningful Price/Tangible Book only.
SM' s 10-Year Price/Tangible Book Range
Min: 0.76  Med: 2.43 Max: 7.57
Current: 1.17
0.76
7.57
Earnings Yield (Greenblatt) (%) 14.64
SM's Earnings Yield (Greenblatt) (%) is ranked higher than
89% of the 538 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -3.70 vs. SM: 14.64 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
SM' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 1  Med: 9.60 Max: 26.2
Current: 14.64
1
26.2
Forward Rate of Return (Yacktman) (%) -3.23
SM's Forward Rate of Return (Yacktman) (%) is ranked higher than
50% of the 189 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -6.36 vs. SM: -3.23 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
SM' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -11  Med: 4.60 Max: 38
Current: -3.23
-11
38

Business Description

Industry: Oil & Gas - E&P » Oil & Gas E&P
Compare:OJSCY, APC, APA, HRTPY, SGTZY » 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
EnerCom, Inc. to Host 100+ E&P, Oilfield Service and MLP Companies at The Oil & Gas Conference(R) 20 Jul 14 2015 
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 
FPA Capital's Top Stock Increases of Q3 Oct 14 2014 

More From Other Websites
Edited Transcript of SM earnings conference call or presentation 29-Jul-15 2:00pm GMT Jul 29 2015
SM Energy Posts Earnings in Q2, Betters Estimates; Falls Y/Y - Analyst Blog Jul 29 2015
SM Energy Co Earnings Call scheduled for 10:00 am ET today Jul 29 2015
SM Energy upgraded by Raymond James Jul 29 2015
SM ENERGY CO Files SEC form 8-K, Results of Operations and Financial Condition, Financial Statements... Jul 29 2015
SM Energy reports 2Q loss Jul 28 2015
SM Energy reports 2Q loss Jul 28 2015
SM Energy Reports Second Quarter of 2015 Results - Execution and Well Performance Drive Production... Jul 28 2015
SM Energy Reports Second Quarter of 2015 Results - Execution and Well Performance Drive Production... Jul 28 2015
Q2 2015 SM Energy Co Earnings Release - After Market Close Jul 28 2015
Why SM Energy (SM) Might Surprise This Earnings Season - Tale of the Tape Jul 27 2015
EcomCenters: Riding the Wave of Growth in the BPO Sector Jul 26 2015
Crude Oil Prices Hold above $50 per Barrel for the Third Day Jul 22 2015
SM Clinches Top Awards from Alpha Southeast Asia Magazine Jul 21 2015
US Rig Counts Decrease Again: What’s the Impact? Jul 20 2015
SM Energy Schedules Second Quarter 2015 Earnings Conference Call Jul 15 2015
SM Energy Schedules Second Quarter 2015 Earnings Conference Call Jul 15 2015
EnerCom, Inc. to Host 100+ E&P, Oilfield Service and MLP Companies at The Oil & Gas Conference(R)... Jul 14 2015
What’s the Impact of the Third Weekly US Rig Rise in a Row? Jul 14 2015

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