Assessing SM Energy: Insights From 4 Financial Analysts

Throughout the last three months, 4 analysts have evaluated SM Energy SM, offering a diverse set of opinions from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $47.5, a high estimate of $51.00, and a low estimate of $44.00. This current average has decreased by 10.38% from the previous average price target of $53.00.

Deciphering Analyst Ratings: An In-Depth Analysis

The analysis of recent analyst actions sheds light on the perception of SM Energy by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to SM Energy. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of SM Energy compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for SM Energy's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of SM Energy's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on SM Energy analyst ratings.

Get to Know SM Energy Better

SM Energy Co is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil and condensate, natural gas, and natural gas liquids. Operating primarily out of the United States, the company actively participates in joint ventures, prospects/leaseholds, and drill-to-earn opportunities. The majority of the company's revenue is derived from some of the United States' premier drilling locations. Drilling location interests have been traditionally obtained through oil and gas leases from third parties. SM Energy relies on its fleet of geologists, geophysicists, landmen, and engineers to help extract the full potential out of all properties held.

SM Energy: Delving into Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Decline in Revenue: Over the 3 months period, SM Energy faced challenges, resulting in a decline of approximately -22.7% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: SM Energy's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 34.76% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): SM Energy's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 6.63%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): SM Energy's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.68% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: SM Energy's debt-to-equity ratio is below the industry average at 0.46, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.