Summit Midstream Corporation Common Stock (SMC)

FairStock Score: 67/100 — STEADY

Key Financials

AI Analysis

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

As a value investor, I begin with durable earning power and balance-sheet safety. Summit Midstream owns gathering systems and pipelines across several U.S. shale basins. That can be a decent business when volumes are steady, but the reported returns do not yet prove a wide moat. On 2026-10-13 the shares closed at $32.29, giving a $453.5 million market cap. FairStock's calculations show a P/B of 0.83, EV/EBITDA of 7.96, and a trailing FCF yield of 9.9% on $44.8 million of free cash flow. Those are not demanding multiples, and the Piotroski F-Score of 8/9 points to improving financial signals. The trouble is the income statement. The company lost money in each of the last three fiscal years: in fiscal year 2023, ended 2023-12-31, net loss was $51.5 million; in fiscal year 2024, ended 2024-12-31, net loss was $122.2 million; and in fiscal year 2025, ended 2025-12-31, net loss was $5.9 million. FairStock's trailing P/E is -30.46, return on equity is -2.92%, and ROCE is only 2.37%, which is thin for a capital-intensive midstream operator. Leverage is high, with D/E of 1.35, and an Altman Z-Score of 0.16 signals financial risk. Still, filed results show fiscal Q2 2026, the quarter ended 2026-06-30, produced revenue of $155.0 million, net income of $1.6 million, and diluted EPS of $0.11, a small but real profit. In fiscal Q1 2026, the quarter ended 2026-03-31, the company had a net loss of $5.3 million. If the recent profit and free cash flow persist while debt is managed, the asset-value discount may narrow. If not, the cheapness could be a trap. Margin of safety depends on proof, not hope.

In plain English: Summit Midstream owns and runs pipelines and gathering systems that move oil and natural gas for producers. The business has started making small profits and produces cash, but it has lost money in each of the last three full years and carries a lot of debt. At $32.29, the stock looks somewhat cheap compared with its accounting value and cash flow, but the weak profit record means that cheapness is not a sure thing.

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Data as of 2026-10-13 close · note generated 2026-10-15 · 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