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Summit Midstream has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Summit Midstream Corp displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Summit Midstream's Interest Coverage for the quarter that ended in Jun. 2026 was 0.93.
Summit Midstream's debt to revenue ratio for the quarter that ended in Jun. 2026 was 2.00.
As of today, Summit Midstream's Altman Z-Score is 0.45.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Summit Midstream has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Summit Midstream Financial Strength Related Terms
SMC vs KNOP, WHK, IMPP: Financial Strength Comparison
For the Oil & Gas Midstream subindustry, Summit Midstream's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Summit Midstream Financial Strength vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Summit Midstream's Financial Strength distribution charts can be found below:
* The bar in red indicates where Summit Midstream's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Summit Midstream Corps earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
2. Debt to revenue ratio. The lower, the better.
Summit Midstream's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Summit Midstream has a Z-score of 0.45, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.45 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Summit Midstream (SMC) has a Financial Strength of 3 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Summit Midstream and its competitors. This is near median its historical median of 3.00. Over the past decade, Summit Midstream's Financial Strength has ranged from 3.00 to 6.00.
Is Summit Midstream's Financial Strength too high?
Summit Midstream's current Financial Strength of 3 is near median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 6.00. Overall, Summit Midstream has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Summit Midstream's Financial Strength compare to KNOP and WHK?
Summit Midstream's Financial Strength of 3 can be compared against companies in the Oil & Gas industry. Historically, Summit Midstream's own Financial Strength has ranged from 3.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Oil & Gas company?
A good Financial Strength depends on the Oil & Gas industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Summit Midstream and its competitors. Summit Midstream's current Financial Strength is 3, which is near median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Summit Midstream stock overvalued right now?
Based on GuruFocus' analysis, Summit Midstream (SMC) is currently considered Modestly Overvalued. The stock's GF Value™ is $29.42, compared to a current price of $34.92 — trading 18.7% above its estimated fair value. The current Financial Strength is 3, which is near median its 10-year median of 3.00. Summit Midstream's overall GF Score™ is 65/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Summit Midstream (SMC), the current Financial Strength is 3 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Summit Midstream (SMC) Overvalued in 2026?
Based on GuruFocus' analysis, Summit Midstream stock appears to be overvalued.
The current stock price of $34.92 is trading 18.7% above its estimated GF Value™ of $29.42.
GuruFocus considers Summit Midstream to be Modestly Overvalued.
Key valuation signals for SMC:
Financial Strength: 3 (near median its 10-year median of 3.00)
GF Value™: $29.42 vs. price of $34.92 (18.7% above fair value)
No single metric tells the full story. See the SMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Summit Midstream Corp is a value-driven corporation focused on developing, owning and operating midstream energy infrastructure assets strategically located in unconventional resource basins, shale formations, in the continental U.S. It currently operates natural gas, crude oil and produced water gathering systems in various unconventional resource basins including the Williston Basin, DJ Basin, Barnett Shale, Piceance Basin, Permian Basin, and the Arkoma Basin. The company's reportable segments are: Rockies, Permian, Mid-Con, Piceance, and Northeast. Maximum revenue is generated from the Mid-Con segment. Summit generates revenue mainly from natural gas, NGLs, and condensate sales, and the provision of gathering and related services.
65GF Score
Get the complete analysis for SMC
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