Latest Ratios: P/E Ratio 5.0x · EV/EBITDA 2.5x · 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 | $3.2B | $2.2B | $4.5B | $4.6B | $4.3B | $3.6B | $696M | $632M | $879M | $1.2B | $1.3B |
| Enterprise Value | $5.1B | $4.1B | $7.3B | $5.6B | $5.5B | $5.4B | $2.9B | $3.4B | $3.4B | $3.8B | $4.2B |
| P/E Ratio → | 4.95 | 3.32 | 5.81 | 5.64 | 3.89 | 101.66 | — | — | 1.73 | — | — |
| P/S Ratio | 1.02 | 0.68 | 1.68 | 1.95 | 1.29 | 1.40 | 0.62 | 0.40 | 0.54 | 0.98 | 1.12 |
| P/B Ratio | 0.67 | 0.45 | 1.06 | 1.28 | 1.40 | 1.77 | 0.35 | 0.23 | 0.30 | 0.51 | 0.53 |
| P/FCF | 5.60 | 3.75 | — | 9.72 | 5.36 | 7.57 | 2.96 | — | — | — | — |
| P/OCF | 1.60 | 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 | — | 1.29 | 2.74 | 2.38 | 1.64 | 2.09 | 2.58 | 2.12 | 2.07 | 3.03 | 3.57 |
| EV / EBITDA | 2.53 | 2.01 | 3.88 | 3.35 | 2.51 | 5.51 | — | 4.46 | 2.26 | 9.73 | — |
| EV / EBIT | 6.25 | 4.07 | 6.61 | 5.58 | 3.62 | 26.25 | — | — | 4.18 | — | — |
| EV / FCF | — | 7.12 | — | 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 | 8.9% | 8.9% | 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 | 0.48 | 0.48 | 0.67 | 0.45 | 0.52 | 1.02 | 1.10 | 0.99 | 0.89 | 1.21 | 1.16 |
| Debt / EBITDA | 1.13 | 1.13 | 1.51 | 0.96 | 0.74 | 2.14 | — | 3.63 | 1.73 | 7.40 | — |
| Net Debt / Equity | — | 0.40 | 0.67 | 0.28 | 0.38 | 0.86 | 1.10 | 0.99 | 0.86 | 1.08 | 1.16 |
| Net Debt / EBITDA | 0.95 | 0.95 | 1.51 | 0.60 | 0.53 | 1.80 | — | 3.63 | 1.68 | 6.60 | — |
| Debt / FCF | — | 3.36 | — | 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 | 2.9% | 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 | 20.2% | 30.2% | 17.2% | 17.7% | 25.7% | 1.0% | — | — | 57.9% | — | — |
| FCF Yield | 17.8% | 26.6% | — | 10.3% | 18.7% | 13.2% | 33.8% | — | — | — | — |
| Buyback Yield | 0.4% | 0.6% | 1.9% | 4.9% | 1.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 3.3% | 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 |
Commodity price volatility exposure
According to current market data, SM trades at a forward P/E of 3.43 and an EV/EBITDA of 1.06, suggesting that investors are heavily discounting the company's future earnings potential relative to its historical averages and the broader mid-cap E&P peer group valuation multiples.
The compressed valuation multiples appear to reflect significant market skepticism regarding the sustainability of SM's earnings in a volatile commodity price environment. While these low multiples might suggest a value opportunity, they likely incorporate a risk premium for the company's dual-basin exposure and the potential for future inventory quality degradation.
As reported in recent financial statements, SM's operating margin collapsed to -20.1% in 2026Q1, a stark reversal from the 51.5% peak observed in 2024Q3, which indicates that the company's underlying earning power is highly susceptible to both operational cost inflation and realized commodity price fluctuations.
The extreme variance in operating margins suggests that SM lacks the cost-structure insulation required to maintain consistent profitability during industry downturns. Investors should monitor whether the recent margin compression is a temporary byproduct of aggressive development spending or a structural shift toward higher-cost, lower-return acreage.
Based on quarterly filings, SM's ROIC plummeted to -2.2% in 2026Q1, down from a 5.1% peak in 2023Q4, signaling that the company is currently failing to generate returns on invested capital that exceed its cost of capital, thereby potentially eroding long-term shareholder value.
The decay in ROIC suggests that recent capital allocation decisions, particularly regarding aggressive drilling in the Midland Basin, have not yielded the expected efficiency gains. This trend warrants further investigation into whether the company's reinvestment rate is outpacing the geological productivity of its remaining Tier 1 inventory.
According to recent balance sheet data, SM's current ratio has deteriorated significantly to 0.39 in 2026Q1 from a high of 3.52 in 2024Q3, indicating a substantial reduction in the company's ability to meet short-term obligations without relying on external financing or asset divestitures.
This sharp decline in liquidity suggests that the company's financial flexibility is becoming increasingly constrained, leaving it vulnerable to sudden operational cash flow shocks. The current ratio level appears inadequate for an E&P operator facing the inherent volatility of commodity-linked revenue streams.
The P/E ratio is frequently misapplied to SM, as it obscures the massive non-cash charges and derivative volatility inherent in successful efforts accounting, which can render earnings-based valuation metrics largely meaningless for assessing the company's true cash-generating capacity in the volatile energy sector.
Investors should prioritize EV/EBITDA or P/FCF metrics, which better account for the company's capital structure and the non-cash nature of depletion and exploration expenses. Relying on P/E multiples risks misinterpreting accounting-driven earnings swings as fundamental shifts in the company's operational health.
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 5.0x. The historical average is 11.9x. This places it at the 19th percentile of its historical range.
SM Energy Company's current EV/EBITDA is 2.5x. 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 5.0x. This is at the 19th 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 2.87% 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 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.