SM Energy Company (SM) AI Stock Analysis

SM Energy Company operates as an independent energy company focused on the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids primarily in Texas. With a strategic presence in the prolific Midland Basin and South Texas regions, the company held substantial working interests in 825 gross productive oil wells and 483 gross productive gas wells as of February 24, 2022, alongside an estimated 492.0 million barrels of oil equivalent in proved reserves. Headquartered in Denver, Colorado, SM Energy traces its founding to 1908 and was formerly known as St. Mary Land & Exploration Company before rebranding in May 2010.

SM Energy generated revenue of $3.15B in FY2025, up 18.1% from $2.67B in FY2024. Over the five years from FY2020 to FY2025, revenue expanded at a compound annual growth rate of 22.9%. Annual net income totaled $648.0M in FY2025 with a net margin of 20.5% and EPS of $5.42. Performance accelerated sharply in the latest quarter ending June 30, 2026, where quarterly revenue grew 176.1% year-over-year and quarterly earnings grew 153.9% year-over-year, lifting trailing twelve months revenue to $4.96B and trailing twelve months EPS to $5.64.

As of June 30, 2026, SM Energy held $620.0M in cash and short-term investments against total debt of $7.04B, resulting in net debt of $6.42B. Shareholders' equity stood at $7.81B, supporting a debt-to-equity ratio of 0.90, while the current ratio was 0.62. In FY2025, the company generated $2.01B in operating cash flow and $573.0M in free cash flow. Capital allocation in FY2025 included $1.44B in capital expenditures, $92.0M in dividends paid, and $13.0M in share buybacks.

SM trades at a trailing price-to-earnings multiple of 7.0x and a forward P/E of 4.4x, both well below the median of its US-listed Energy peers, which stand at 15.0x and 12.7x, respectively. Its enterprise value-to-EBITDA ratio of 2.4x is also lower than the peer median of 8.0x. The company's price-to-book ratio is 0.6x and its PEG ratio is 0.16. Over the trailing 1-year period, the stock gained 88.9%, outperforming the S&P 500 (SPY) return of 16.8%, while its 5-year return of 50.2% trailed SPY's 83.0%.

SM Energy pays a quarterly dividend with a forward annual rate of $0.88 per share, representing a dividend yield of 2.23%. The company has paid consecutive dividends for 34 years and maintains a payout ratio of 14.6%. Its last ex-dividend date was September 4, 2026.

Wall Street coverage includes 9 Strong Buy, 2 Buy, 5 Hold, 0 Sell, and 1 Strong Sell ratings. The mean price target of $44.56 implies an upside of 12.8% over the last close of $39.50. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $7.76B and EPS of $7.82, representing 44.2% EPS growth. The company beat EPS estimates in 3 of the last 4 quarters, with its next earnings report scheduled for November 3, 2026.

This page is an AI-written research summary of SM Energy Company (SM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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