Is the business good?
How good a business is SM?
SM Energy Company earns 18% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
18%
Return on invested capital · cost of capital 9.0% · 8.9 points above what the capital costs: growth creates value
- Operating margin
- 30%
Operating margin · Oil & Gas E&P median 30% · 12 months to Q2 2026
- Cash conversion
- 0.78×
Cash conversion · 0.74× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +109%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −95% |
| FY2021 | 8.0% |
| FY2022 | 47% |
| FY2023 | 42% |
| FY2024 | 40% |
| FY2025 | 32% |
Details›
- Gross margin12 months to Q2 2026
- 74%
- Operating margin12 months to Q2 2026
- 30%
- Net margin12 months to Q2 2026
- 18%
- Free cash flow margin
- 14%
- Revenue, trailing twelve months
- $5.50B
- Free cash flow, trailing twelve months
- $777M
- Net income, trailing twelve months
- $1.00B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 18%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.