SMSM Energy Company
Is the business good?
The checks split: earnings fully cash-backed (2.2×), but margins compressing.
Operating profit is fully backed by cash.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 11% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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 25% · 12 months to Q2 2026
- Cash conversion
- 2.20×
Cash conversion · 2.21× a year ago · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.