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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
SM Energy Co's 10-Year RORE % for the quarter that ended in Mar. 2026 was 53.98%.
The industry rank for SM Energy Co's 10-Year RORE % or its related term are showing as below:
SM's 10-Year RORE % is ranked better than 88.74% of 737
companies
in the Oil & Gas industry
Industry Median: -2.51
vs SM: 53.98
SM Energy Co (NYSE:SM) 10-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
SM Energy Co 10-Year RORE % Related Terms
SM Energy Co 10-Year RORE % Historical Data
* Premium members only.
The historical data trend for SM Energy Co's 10-Year RORE % 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 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, SM Energy Co's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where SM Energy Co's 10-Year RORE % 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 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 10-year before.
SM Energy Co (SM) has a 10-Year RORE % of 53.98 as of Mar. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on SM Energy Co and its competitors. According to the industry distribution chart, SM Energy Co ranks #83 out of 737 companies in the Oil & Gas industry, placing it in the top 11.3%.
Is SM Energy Co's 10-Year RORE % too high?
SM Energy Co's current 10-Year RORE % is 53.98. Based on the distribution chart, SM Energy Co ranks #83 out of 737 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, SM Energy Co has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SM Energy Co's 10-Year RORE % compare to CHRD and RRC?
According to the Oil & Gas industry distribution chart, SM Energy Co ranks #83 out of 737 companies for 10-Year RORE %. This places SM Energy Co in the top 11% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year RORE % for an Oil & Gas company?
A good 10-Year RORE % depends on the Oil & Gas industry context. However, 10-Year RORE % 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on SM Energy Co and its competitors. SM Energy Co's current 10-Year RORE % is 53.98. 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 (SM) is currently considered Possible Value Trap. The stock's GF Value™ is $52.26, compared to a current price of $31.63 — trading 39.5% below its estimated fair value. The current 10-Year RORE % is 53.98. SM Energy Co's overall GF Score™ is 73/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For SM Energy Co (SM), the current 10-Year RORE % is 53.98 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 (SM) Overvalued in 2026?
Based on GuruFocus' analysis, SM Energy Co stock appears to be undervalued.
The current stock price of $31.63 is trading 39.5% below its estimated GF Value™ of $52.26.
GuruFocus considers SM Energy Co to be Possible Value Trap.
Key valuation signals for SM:
10-Year RORE %: 53.98
GF Value™: $52.26 vs. price of $31.63 (39.5% below fair value)
No single metric tells the full story. See the SM 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.
73GF Score
Get the complete analysis for SM
10-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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