Latest Ratios: P/E Ratio 7.6x · EV/EBITDA 2.9x · ROE 14.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.2B | $2.2B | $4.5B | $4.6B | $4.3B | $3.6B | $696M | $632M | $879M | $1.2B | $1.3B |
| Enterprise Value | $9.7B | $4.6B | $7.3B | $5.6B | $5.5B | $5.4B | $2.9B | $3.4B | $3.4B | $3.8B | $4.2B |
| P/E Ratio → | 7.62 | 3.32 | 5.81 | 5.64 | 3.89 | 101.66 | — | — | 1.73 | — | — |
| P/S Ratio | 1.04 | 0.68 | 1.68 | 1.95 | 1.29 | 1.40 | 0.62 | 0.40 | 0.54 | 0.98 | 1.12 |
| P/B Ratio | 0.72 | 0.45 | 1.06 | 1.28 | 1.40 | 1.77 | 0.35 | 0.23 | 0.30 | 0.51 | 0.53 |
| P/FCF | 26.30 | 3.75 | — | 9.72 | 5.36 | 7.57 | 2.96 | — | — | — | — |
| P/OCF | 3.57 | 1.07 | 2.51 | 2.93 | 2.56 | 3.14 | 0.88 | 0.77 | 1.22 | 2.39 | 2.39 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.47 | 2.74 | 2.38 | 1.64 | 2.09 | 2.61 | 2.15 | 2.07 | 3.03 | 3.57 |
| EV / EBITDA | 2.87 | 2.28 | 3.88 | 3.35 | 2.51 | 5.51 | — | 4.33 | 2.26 | 9.73 | — |
| EV / EBIT | 11.75 | 4.62 | 6.61 | 5.58 | 3.62 | 26.25 | — | — | 4.18 | — | — |
| EV / FCF | — | 8.09 | — | 11.82 | 6.80 | 11.26 | 12.47 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 31.9% | 31.9% | 45.9% | 47.0% | 63.4% | 50.7% | -4.4% | 16.5% | 29.7% | 15.5% | -17.6% |
| Operating Margin | 26.1% | 26.1% | 40.3% | 41.7% | 47.2% | 8.0% | -94.9% | -4.4% | 51.0% | -13.0% | -89.6% |
| Net Profit Margin | 20.5% | 20.5% | 28.8% | 34.6% | 33.2% | 1.4% | -67.9% | -11.8% | 31.0% | -12.8% | -64.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.3% | 14.3% | 19.6% | 24.4% | 43.2% | 1.8% | -32.1% | -6.6% | 19.1% | -6.6% | -34.8% |
| ROA | 7.3% | 7.3% | 10.3% | 13.5% | 20.3% | 0.7% | -13.6% | -3.0% | 8.1% | -2.6% | -12.6% |
| ROIC | 8.6% | 8.6% | 13.8% | 16.7% | 29.3% | 3.9% | -16.4% | -1.0% | 12.0% | -2.4% | -16.3% |
| ROCE | 10.4% | 10.4% | 15.9% | 18.2% | 33.4% | 4.8% | -20.9% | -1.2% | 14.5% | -2.8% | -18.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.59 | 0.59 | 0.67 | 0.45 | 0.52 | 1.02 | 1.11 | 1.01 | 0.89 | 1.21 | 1.16 |
| Debt / EBITDA | 1.41 | 1.41 | 1.51 | 0.96 | 0.74 | 2.14 | — | 3.52 | 1.73 | 7.40 | — |
| Net Debt / Equity | — | 0.52 | 0.67 | 0.28 | 0.38 | 0.86 | 1.11 | 1.01 | 0.86 | 1.08 | 1.16 |
| Net Debt / EBITDA | 1.22 | 1.22 | 1.51 | 0.60 | 0.53 | 1.80 | — | 3.52 | 1.68 | 6.60 | — |
| Debt / FCF | — | 4.34 | — | 2.10 | 1.44 | 3.68 | 9.51 | — | — | — | — |
| Interest Coverage | 5.80 | 5.80 | 7.87 | 10.98 | 12.60 | 1.29 | -4.84 | -0.45 | 5.05 | -0.92 | -6.57 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.69 | 0.69 | 0.55 | 1.45 | 1.23 | 0.69 | 0.35 | 0.54 | 0.92 | 0.98 | 0.54 |
| Quick Ratio | 0.69 | 0.69 | 0.55 | 1.45 | 1.23 | 0.69 | 0.30 | 0.42 | 0.55 | 0.87 | 0.41 |
| Cash Ratio | 0.31 | 0.31 | — | 0.97 | 0.74 | 0.37 | 0.00 | 0.00 | 0.17 | 0.56 | 0.02 |
| Asset Turnover | — | 0.34 | 0.31 | 0.37 | 0.59 | 0.50 | 0.23 | 0.25 | 0.26 | 0.20 | 0.18 |
| Inventory Turnover | — | — | — | — | — | — | 37.70 | 24.00 | 6.58 | 16.57 | 25.46 |
| Days Sales Outstanding | — | 38.31 | 49.32 | 35.69 | 25.45 | 34.73 | 52.65 | 42.52 | 37.28 | 46.38 | 46.99 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.7% | 4.3% | 1.9% | 1.6% | 0.5% | 0.1% | 0.3% | 1.8% | 1.3% | 0.9% | 0.6% |
| Payout Ratio | 14.2% | 14.2% | 11.0% | 8.8% | 1.8% | 6.6% | — | — | 2.2% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 13.1% | 30.2% | 17.2% | 17.7% | 25.7% | 1.0% | — | — | 57.9% | — | — |
| FCF Yield | 3.8% | 26.6% | — | 10.3% | 18.7% | 13.2% | 33.8% | — | — | — | — |
| Buyback Yield | 0.2% | 0.6% | 1.9% | 4.9% | 1.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.9% | 4.9% | 3.8% | 6.5% | 1.8% | 0.1% | 0.3% | 1.8% | 1.3% | 0.9% | 0.6% |
| Shares Outstanding | — | $115M | $116M | $119M | $124M | $124M | $114M | $113M | $114M | $111M | $77M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying SM stock.
SM Energy Company's current P/E ratio is 7.6x. The historical average is 11.9x. This places it at the 57th percentile of its historical range.
SM Energy Company's current EV/EBITDA is 2.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.4x.
SM Energy Company's return on equity (ROE) is 14.3%. The historical average is 10.2%.
Based on historical data, SM Energy Company is trading at a P/E of 7.6x. This is at the 57th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
SM Energy Company's current dividend yield is 2.67% with a payout ratio of 14.2%.
SM Energy Company has 31.9% gross margin and 26.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
SM Energy Company's Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Commodity-driven earnings and leverage volatility
Metrics are mathematically derived from official filings.
Deep Discount Pricing Reflects Cyclical Skepticism
Based on the reported trailing P/E of 5.25 and EV/EBITDA of 4.73, SM Energy trades well below the peer group median multiple, suggesting the market is pricing in earnings that may not persist through the commodity cycle.
The trailing P/E of 5.25 and forward P/E of 3.70 imply the market expects earnings to decline further, which is consistent with the sharp swing from a $335.0M net loss in 2026Q1 to $1.1B net income in 2026Q2. The P/B of 0.71 indicates the stock trades below book value, but book value itself was inflated by acquisition-related share issuance, so the discount may partly reflect doubts about the quality of reported equity. Relative to peers such as MGY at 13.44x P/E and MTDR at 8.19x, SM's multiple suggests investors are applying a meaningful cyclical and balance-sheet risk discount.
Margins Swing Too Widely to Anchor Earning Power
According to reported quarterly figures, SM Energy's operating margin ranged from negative 20.1% in 2026Q1 to 59.8% in 2026Q2, a spread that suggests reported profitability is driven far more by commodity pricing than by operating improvement.
Gross margin moved from 18.9% in 2025Q4 to 77.8% in 2026Q2, a range too wide to infer a stable baseline from any single quarter. Net margin of 4.3% in 2026Q3 against 42.8% in 2026Q2 indicates that non-operating and mark-to-market items are contributing heavily to reported bottom-line results. Investors should treat the 2024 to 2025 operating margin band of roughly 0.6% to 51.5% as a more conservative reference point than any peak quarter.
Returns Compressed After Acquisition Step-Up
Based on EDBL's reported figures, ROIC fell from 5.0% in 2024Q3 to 1.3% in 2026Q3, a decline that appears linked to the near-tripling of total assets from $6.7B to $19.0B rather than to a collapse in operating economics.
The ROIC trend suggests that capital deployed through acquisitions has not yet generated returns comparable to the legacy asset base, which is consistent with a larger invested capital denominator. ROE of 1.2% in 2026Q3 versus 20.8% at MGY highlights a significant return gap against the strongest peer, though part of this gap reflects timing of acquisition integration. Whether returns recover depends on whether acquired reserves and production can be sustained at current cost levels, which warrants further investigation.
Debt Service Strain Tracks Deal-Timing Swings
As reported in financial statements, interest coverage fell to 2.06 in 2026Q3 from 13.51 in 2026Q2 while debt-to-EBITDA reached 8.01, suggesting debt service comfort has deteriorated sharply following the recent deal-driven debt increase.
Total debt rising from $1.6B to $8.0B before easing to $6.6B indicates leverage has been highly sensitive to acquisition timing and commodity-driven EBITDA swings. A debt-to-EBITDA of 8.01 in the latest quarter, compared with roughly 3 to 7 across 2024 and 2025, suggests the balance sheet is more stretched than the headline D/E of 0.85 implies. Investors should monitor refinancing exposure and covenant headroom, as the reported data does not disclose these terms.
Thin Liquidity Buffer Against Price Shocks
According to recent SEC filings, SM Energy's cash fell from $1.7B in 2024Q3 to $442.0M in 2026Q3, leaving a current ratio of 0.57 that suggests limited short-term cushion if commodity prices weaken.
A current ratio below 1.0 in most recent quarters, against a 2024Q3 reading of 3.52 that reflected a large cash position, indicates the company has shifted from a liquidity-rich position to one that depends more on operating cash generation and credit access. The quick ratio equaling the current ratio is consistent with a balance sheet that carries little inventory, so liquidity depends on receivables and cash rather than inventory conversion. Under a severe price decline, the reported figures suggest the company would rely heavily on cash flow and existing facilities, which warrants further scrutiny.
Low Multiples May Mask Cyclical Peak Earnings
The most commonly misapplied metric here is trailing P/E, which at 5.25 may appear cheap but is distorted by non-recurring commodity spikes and mark-to-market swings in reported net income.
Trailing P/E is frequently used as a value signal for upstream producers, yet it obscures the fact that reported net income in 2026Q2 reflected a commodity-driven peak and a 2026Q1 loss, making any single trailing figure unrepresentative. A more appropriate lens is EV/EBITDA or EV/DACF normalized across a full commodity cycle, combined with leverage-adjusted metrics such as debt-to-EBITDA, since the company's leverage has moved from roughly 3 to 8 times EBITDA. Investors should weigh whether the low multiple reflects genuine mispricing or an accurate market assessment of earnings durability.