SandRidge Energy Inc. Common Stock (SD)

Slow Grower

FairStock Score: 75/100 — HIGH CONVICTION

Key Financials

Current Price	$15.27
Market Cap	$563M
P/E Ratio	7.45
ROE	15.3%
Dividend Yield	3.51%
Sector	Energy

Strengths

Generates $13 million in annual free cash flow (2.3% yield on market cap)
Solid return on equity of 14.4% above cost of capital
Conservative balance sheet with debt-to-equity of just 0.00, providing financial flexibility
Attractive 3.1% dividend yield providing steady income returns
FairStock composite score of 75/100 places it in the top tier across value, quality, and momentum factors

Concerns

Altman Z-Score of 1.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

SandRidge Energy Inc. Common Stock is a micro-cap energy company valued at $563 million. Revenue stands at $156 million. From a quality standpoint, SandRidge shows distressed Altman Z-Score of 1.8 warrants caution and adequate 14% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 8.0x, with offers a 37% margin of safety vs Graham Number of $24. Growth dynamics show revenue growing at 1.1% and profit growth of 23.1%. The 3.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 75/100 reflects strong fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates SandRidge's consistent 14% ROE at just 8x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $13 million in annual free cash flow (2.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer