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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. SM Energy Co's annualized net income for the quarter that ended in Mar. 2026 was $-1,340 Mil. SM Energy Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $5,839 Mil. Therefore, SM Energy Co's annualized ROE % for the quarter that ended in Mar. 2026 was -22.95%.
The historical rank and industry rank for SM Energy Co's ROE % or its related term are showing as below:
LTS:0KZA'
s ROE % Range Over the Past 10 Years
Min: -34.84 Med: 8.06 Max: 43.19
Current: 2.57
During the past 13 years, SM Energy Co's highest ROE % was 43.19%. The lowest was -34.84%. And the median was 8.06%.
LTS:0KZA's ROE % is ranked worse than 59.52% of 956
companies
in the Oil & Gas industry
Industry Median: 5.885
vs LTS:0KZA: 2.57
SM Energy Co (LTS:0KZA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
SM Energy Co ROE % Related Terms
SM Energy Co ROE % Historical Data
* Premium members only.
The historical data trend for SM Energy Co's ROE % can be seen below:
* 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.
For the Oil & Gas E&P subindustry, SM Energy Co's ROE %, along with its competitors' market caps and ROE % 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.
SM Energy Co ROE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, SM Energy Co's ROE % distribution charts can be found below:
* The bar in red indicates where SM Energy Co's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
SM Energy Co (LTS:0KZA) has a ROE % of -22.95% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on SM Energy Co and its competitors. According to the industry distribution chart, SM Energy Co ranks #569 out of 956 companies in the Oil & Gas industry, placing it in the top 59.5%.
Is SM Energy Co's ROE % too high?
SM Energy Co's current ROE % is -22.95%. Based on the distribution chart, SM Energy Co ranks #569 out of 956 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, SM Energy Co has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SM Energy Co's ROE % compare to CHRD and RRC?
According to the Oil & Gas industry distribution chart, SM Energy Co ranks #569 out of 956 companies for ROE %. This places SM Energy Co in the lower half of its industry. The industry median ROE % is 5.89. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Oil & Gas company?
The median ROE % among Oil & Gas companies is 5.89, based on 956 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on SM Energy Co and its competitors. For the Oil & Gas industry, the median ROE % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SM Energy Co's current ROE % is -22.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SM Energy Co stock overvalued right now?
Based on GuruFocus' analysis, SM Energy Co (LTS:0KZA) is currently considered Possible Value Trap. The stock's GF Value™ is $51.24, compared to a current price of $31.10 — trading 39.3% below its estimated fair value. The current ROE % is -22.95%. SM Energy Co's overall GF Score™ is 68/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For SM Energy Co (LTS:0KZA), the current ROE % is -22.95% as of Mar. 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 SM Energy Co (LTS:0KZA) Overvalued in 2026?
Based on GuruFocus' analysis, SM Energy Co stock appears to be undervalued.
The current stock price of $31.10 is trading 39.3% below its estimated GF Value™ of $51.24.
GuruFocus considers SM Energy Co to be Possible Value Trap.
Key valuation signals for LTS:0KZA:
ROE %: -22.95%
GF Value™: $51.24 vs. price of $31.10 (39.3% below fair value)
No single metric tells the full story. See the LTS:0KZA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SM Energy Co is an independent energy company engaged in the acquisition, exploration, development, and production of oil, gas, and NGLs in Texas and Utah. The Company operates in the oil and gas extraction industry, focused on exploration and production activities, onshore in the United States. Its portfolio is comprised of assets in the Midland Basin of West Texas, the Maverick Basin of South Texas, and the Uinta Basin of northeastern Utah.
68GF Score
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