Stock

SM Energy Company

Oil & Gas Exploration & Production · Energy

Also trades as: 0KZA.L GBP 0.40 (+3.94%)

Price

$40.11

+1.69 (+4.40%)

Market Cap

$9.54B

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Oct 24, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality

Strong

23/30

Growth

Mixed

7/20

Cash Flow

Good

6/10

Stability

Good

5/10

Valuation

Strong

8/10

Ownership

Weak

2/15

Dividends

Good

3/5

54 of 100 counted points = Winston Score 54.

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Share count falling — buybacks

−7.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 123.7M (2021) → 115.0M (2025)

§Winston Score History

The full picture

SM Energy is an oil and natural gas company. It finds oil and gas underground, pulls it out of the earth, and sells it. Its main products are crude oil, natural gas, and natural gas liquids. The company operates in two key areas in the United States: the Permian Basin in West Texas and the Midland Basin, plus assets in South Texas.

SM Energy makes money by selling the oil and gas it produces directly to refiners, pipelines, and energy traders. It is a mid-sized U.S. producer with a market cap around $7.4 billion, competing against much larger companies like ExxonMobil and Pioneer. Its competitive position depends heavily on keeping its drilling costs low and its acreage productive. The biggest risk the company faces is falling oil and gas prices, which it does not control — when commodity prices drop, revenue and profits can fall sharply even if the company is doing everything right operationally.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+218.4% YoY

YoY Growth Rate

Revenue accelerating

Reported EPS Growth

+154.5% YoY

Quarterly reporting periods ended:

30 Jun 2025: $1.76

30 Jun 2026: $4.48

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS increased year over year

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

1.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$676M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

SM Energy Company grew revenue 218% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

77.8%

Premium pricing power — 77.8% gross margin

Profit after running costs

Operating Margin

59.8%

Excellent — 59.8% operating margin

Return on the money invested

ROCE

9.8%

Below par — 9.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+77.5%

Fast-growing sales (+77.5% YoY)

Profit growth

EPS YoY

-45.4%

Earnings shrinking (-45.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

270%

Turns 270% of profit into real cash

Spare cash per sale

FCF Margin

-0.7%

Burning cash (-0.7%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.90

Moderate — manageable debt (0.90)

Covers its interest

Interest Cover

2.54x

Tight — interest eats into profit (2.5x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

10.4x

Attractive valuation — P/E 10.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+5.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (10.4 → 5.0)

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Dividends

Dividend

Dividend Yield

2.50%

Moderate income — 2.50% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+7.5%

Dividend growing modestly (7.5% YoY)

Payout Ratio

18%

no trend

Pays out a modest share of profit and keeps the rest to reinvest. Room to keep paying through a weak year.

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