SM Energy Company Common Stock (SM)

FairStock Score: 66/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-26 close of $40.15, SM Energy screens cheap on several FairStock calculations: P/E 7.12, P/B 1.22, EV/EBITDA 4.83, and a Graham Number of $64.61, implying a 37.92% margin of safety. The Piotroski F-Score is a perfect 9/9, trailing free cash flow is $743.0M, and the FCF yield is 7.8%. Those are attractive marks for an independent E&P. But I must remember FairStock's Lynch category: cyclical—Oil & Gas E&P, because earnings follow the economic cycle. There is no durable moat in selling a commodity. Filed results show the swing: in fiscal Q2 2026 (quarter ended 2026-06-30), revenue was $2.2B and net income was $1.1B; in fiscal Q1 2026, revenue was $1.5B and net loss was $335.0M. For fiscal 2025, revenue was $3.1B, net income $648.0M, and diluted EPS $5.64, down from fiscal 2024 net income of $770.0M and EPS of $6.67. FairStock's ROE is 16.13%, ROCE is 6.90%, D/E is 0.95, and its Altman Z-Score of 1.02 is a yellow flag. The shares sit near the 52-week high of $41.56. FairStock's overall score is 66/100, respectable but not a table-pounding bargain. Cheapness is real, but it may reflect cyclical peak earnings rather than a bargain with certainty.

In plain English: SM Energy is an oil and gas producer that develops and sells oil, natural gas, and natural gas liquids in U.S. basins. Its latest reported quarter was very profitable, but results have swung sharply from a large loss in the prior quarter, so the business is tied closely to energy prices. At $40.15, the stock looks inexpensive relative to recent profits and cash flow, but that low price comes with commodity-cycle risk.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer