SM Energy Company (SM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-47.6%

$19.83

vs $37.86 price

Levered DCF

$33.83

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.36

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	3.31×	5.78×	5.62×	3.83×	98.27×	-0.91×	-3.39×	1.7×
P/B	0.45×	1.05×	1.27×	1.38×	1.7×	0.35×	0.23×	0.3×
P/S	0.68×	1.67×	1.94×	1.27×	1.35×	0.62×	0.4×	0.53×
EV / EBITDA	2.1×	3.8×	3.3×	2.56×	5.39×	57×	4.34×	2.29×
Gross margin	31.9%	45.9%	47.0%	63.4%	50.7%	-4.4%	16.5%	29.7%
Operating margin	26.1%	40.3%	41.7%	47.2%	8.0%	-94.9%	-4.4%	51.0%
Net margin	20.5%	28.8%	34.6%	33.2%	1.4%	-67.9%	-11.8%	31.0%
Current ratio	0.69×	0.55×	1.45×	1.23×	0.69×	0.35×	0.54×	0.92×
Debt / equity	0.59×	0.67×	0.45×	0.52×	1.02×	1.11×	1.01×	0.89×
Interest coverage	4.75×	7.65×	10.77×	13.12×	1.3×	-6.52×	-0.44×	5.2×
Dividend yield	4.3%	1.9%	1.6%	0.5%	0.1%	0.3%	1.8%	1.3%
Payout ratio	14.2%	11.0%	8.8%	1.8%	6.6%	-0.3%	-6.0%	2.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	13.5%	18.2%	22.6%	36.0%	1.8%	-37.9%	-6.8%	17.4%
Return on invested capital	178.8%	11.0%	15.3%	24.5%	3.8%	-19.4%	-1.0%	11.1%
Return on assets	7.0%	9.0%	12.8%	19.5%	0.7%	-15.4%	-3.0%	8.0%
Free cash flow yield	26.6%	-36.7%	10.3%	18.9%	13.7%	33.8%	-32.1%	-71.1%
Earnings yield	30.1%	17.3%	17.8%	26.1%	1.0%	-109.9%	-29.6%	58.7%
Enterprise value	$4.6B	$7.3B	$5.6B	$5.4B	$5.3B	$2.9B	$3.4B	$3.4B
Net debt / EBITDA	1.12×	1.48×	0.59×	0.55×	1.81×	43.48×	3.53×	1.7×
Cash conversion cycle (days)	25	29	4	12	28	43	43	75