Latest Ratios: P/E Ratio 6.1x · EV/EBITDA 5.3x · 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 | $8.2B | $2.2B | $4.5B | $4.6B | $4.3B | $3.6B | $696M | $632M | $879M | $1.2B | $1.3B |
| Enterprise Value | $10.7B | $4.6B | $7.3B | $5.6B | $5.5B | $5.4B | $2.9B | $3.4B | $3.4B | $3.8B | $4.2B |
| P/E Ratio → | 6.08 | 3.32 | 5.81 | 5.64 | 3.89 | 101.66 | — | — | 1.73 | — | — |
| P/S Ratio | 2.61 | 0.68 | 1.68 | 1.95 | 1.29 | 1.40 | 0.62 | 0.40 | 0.54 | 0.98 | 1.12 |
| P/B Ratio | 0.82 | 0.45 | 1.06 | 1.28 | 1.40 | 1.77 | 0.35 | 0.23 | 0.30 | 0.51 | 0.53 |
| P/FCF | 14.36 | 3.75 | — | 9.72 | 5.36 | 7.57 | 2.96 | — | — | — | — |
| P/OCF | 4.09 | 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 | 2.58 | 2.12 | 2.07 | 3.03 | 3.57 |
| EV / EBITDA | 5.28 | 2.28 | 3.88 | 3.35 | 2.51 | 5.51 | — | 4.46 | 2.26 | 9.73 | — |
| EV / EBIT | 13.03 | 4.62 | 6.61 | 5.58 | 3.62 | 26.25 | — | — | 4.18 | — | — |
| EV / FCF | — | 8.09 | — | 11.82 | 6.80 | 11.26 | 12.37 | — | — | — | — |
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% | -16.5% | -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 | 1.10 | 0.99 | 0.89 | 1.21 | 1.16 |
| Debt / EBITDA | 1.41 | 1.41 | 1.51 | 0.96 | 0.74 | 2.14 | — | 3.63 | 1.73 | 7.40 | — |
| Net Debt / Equity | — | 0.52 | 0.67 | 0.28 | 0.38 | 0.86 | 1.10 | 0.99 | 0.86 | 1.08 | 1.16 |
| Net Debt / EBITDA | 1.22 | 1.22 | 1.51 | 0.60 | 0.53 | 1.80 | — | 3.63 | 1.68 | 6.60 | — |
| Debt / FCF | — | 4.34 | — | 2.10 | 1.44 | 3.68 | 9.41 | — | — | — | — |
| 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 | 2.3% | 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 | 16.4% | 30.2% | 17.2% | 17.7% | 25.7% | 1.0% | — | — | 57.9% | — | — |
| FCF Yield | 7.0% | 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 | 2.5% | 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 6.1x. The historical average is 11.9x. This places it at the 33th percentile of its historical range.
SM Energy Company's current EV/EBITDA is 5.3x. 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 6.1x. This is at the 33th 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 2.33% 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 price volatility and leverage
Metrics are mathematically derived from official filings.
Deep Cyclical Discount or Value Trap?
SM trades at 5.6x trailing earnings and 0.76x book, but forward EV/EBITDA of 2.23x implies the market prices in a sharp earnings decline, per recent filings.
The trailing P/E of 5.63 and forward P/E of 4.73 suggest the market expects earnings to remain elevated, yet the forward EV/EBITDA of 2.23x versus trailing 4.98x indicates a projected drop in EBITDA. This disconnect may reflect commodity price assumptions embedded in consensus estimates. Compared to peers like MTDR at 8.58x P/E and CIVI at 3.24x, SM's multiples sit in the middle, but the low P/B of 0.76 suggests the market values its asset base conservatively, possibly due to perceived reserve replacement risk.
Margin Volatility Masks Underlying Earning Power
Gross margin swung from 18.9% in 2025Q4 to 77.8% in 2026Q2, while net margin hit 42.8%, per reported figures, reflecting extreme commodity price sensitivity.
The 2026Q2 net margin of 42.8% is unsustainably high relative to the 10-quarter average, and the 2025Q4 net margin of 15.2% exceeded operating margin, suggesting non-operating gains. The wide dispersion in margins—from -22.7% to 42.8%—indicates that SM's profitability is highly geared to oil and gas prices, with limited cost flexibility. Investors should normalize margins across a full commodity cycle rather than extrapolate the latest quarter's performance.
Returns on Capital: Cyclical Spike or Structural Shift?
ROIC jumped to 7.8% in 2026Q2 from -2.1% in 2026Q1, but the 10-quarter average is only 3.0%, per financial statements, suggesting returns are not yet consistently compounding.
The dramatic swing in ROIC—from negative to 7.8%—mirrors the volatility in commodity prices and operating margins. While the 2026Q2 ROIC of 7.8% is above the cost of capital, the historical average of 3.0% indicates that SM has not consistently generated economic profits. The improvement is driven by margin expansion rather than asset efficiency, as asset turnover remains low at 0.13. This suggests that returns are cyclical and may revert once commodity prices normalize.
Working Capital Stretched by Payables Extension
DPO surged to 374 days in 2026Q2 from 59 days in 2025Q4, while DSO stayed at 35 days, per balance sheet data, indicating aggressive use of supplier credit.
The extension of days payable outstanding to 374 days is extraordinary and may indicate either a strategic shift in payment terms or a data anomaly. This has artificially boosted cash flow in the quarter, as evidenced by the positive FCF margin of 17.4% despite a low current ratio of 0.62. The negative CCC (not calculable due to missing DIO) suggests that SM is financing operations through suppliers, which could strain relationships if sustained. Investors should monitor whether this payables extension is a one-time event or a structural change.
Leverage Doubles Amid Expansion
Debt-to-equity rose to 0.90 in 2026Q2 from 0.48 in 2025Q4, with D/EBITDA at 3.37x, per reported figures, signaling increased financial risk.
The doubling of leverage coincides with a surge in total assets and PPE, suggesting a major acquisition or capital expenditure program. Interest coverage of 13.51x in 2026Q2 is comfortable, but the 2026Q1 coverage of -2.63x highlights how quickly earnings can deteriorate. The D/EBITDA of 3.37x is below the 5.0x typical covenant threshold, but the volatility in EBITDA makes this metric unreliable. If commodity prices fall, SM could face refinancing risk given the elevated debt load.
Liquidity Tightens Despite Cash Build
Current ratio fell to 0.62 in 2026Q2 from 0.69 in 2025Q4, even as cash rose to $620M, per balance sheet data, indicating short-term obligations outpace liquid assets.
The current ratio below 1.0 suggests that SM may struggle to meet short-term obligations without rolling over debt or drawing on credit lines. The quick ratio is identical to the current ratio, implying minimal inventory, which is typical for an E&P company. However, the 2024Q3 current ratio of 3.52 shows that liquidity can improve dramatically, likely due to commodity price spikes. The reliance on short-term debt and payables makes SM vulnerable to a credit crunch or a sudden drop in cash flows.
Misapplied Metric: EV/EBITDA in Cyclical Downturns
EV/EBITDA is commonly used for E&P firms, but SM's volatile EBITDA—swinging from -$298M to $1.5B—makes this multiple misleading, per income statement data.
The EV/EBITDA multiple is distorted by the cyclicality of commodity prices and the lumpy nature of exploration costs. In 2026Q1, EBITDA was negative, rendering the multiple meaningless, while in 2026Q2 it appears artificially low at 2.23x forward. A more appropriate metric is EV/2P reserves or EV/ daily production, which better captures the underlying asset value. Investors should also adjust for hedging gains/losses and non-recurring items to get a normalized earnings power.