SM Energy Company

Valuation Analysis

About the Company

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids in the United States. The company holds working interests in oil and gas producing wells in the Midland Basin, South Texas, Uinta Basin, and DJ Basin. The company was formerly known as St. Mary Land & Exploration Company and changed its name to SM Energy Company in May 2010. SM Energy Company was founded in 1908 and is headquartered in Denver, Colorado.

SM Energy Company Stock at a Glance

SM Energy Company (SM) is currently trading at $31.15 with a market capitalization of $7.5B. The trailing P/E ratio stands at 13.14x, with a forward P/E of 3.91x. The 52-week range spans from $17.45 to $35.88; the current price is 13.2% below the yearly high. Year-over-year revenue growth stands at +73.0%. The net profit margin stands at 3.62%.

💰 Dividend

SM Energy Company pays an annual dividend of $0.88 per share, representing a yield of 2.83%. The payout ratio stands at 43.04%.

📊 Analyst Rating

14 analysts rate SM Energy Company (SM) on consensus: Buy. The average price target is $40.79, implying +30.93% from the current price. Analyst price targets range from $30.00 to $61.00.

SM Energy Company: The Investment Case in Detail

SM Energy Company (SM) operates in the Energy — specifically Oil & Gas E&P — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Top-line momentum is unusually strong with revenue expanding 73% year-over-year, a pace that puts the company well above the market average and signals genuine demand traction rather than mere cyclical tailwind. With a gross margin near 87.7%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Wall Street consensus sits at Buy with an average price target implying roughly 30.93% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

With a net margin of just 3.62%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss.

Valuation in Context

With a PEG ratio of 0.55, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 7.69x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 3.91x is meaningfully below the trailing 13.14x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 30.93% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (6.27%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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