SDSandRidge Energy, Inc.
Is the business good?
The checks split: earnings fully cash-backed (2.0×), but margins compressing.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 14% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SD?
SandRidge Energy, Inc. earns 14% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 4.6 points above what the capital costs: growth creates value
- Operating margin
- 41%
Operating margin · Oil & Gas E&P median 25% · 12 months to Q2 2026
- Cash conversion
- 2.04×
Cash conversion · 2.31× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.1%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −238% |
| FY2021 | 68% |
| FY2022 | 69% |
| FY2023 | 43% |
| FY2024 | 27% |
| FY2025 | 39% |
Details›
- Operating margin12 months to Q2 2026
- 41%
- Net margin12 months to Q2 2026
- 46%
- Free cash flow margin
- 24%
- Revenue, trailing twelve months
- $180M
- Free cash flow, trailing twelve months
- $42M
- Net income, trailing twelve months
- $83M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 14%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.