Analyst Scoreboard: 10 Ratings For SM Energy

SM Energy SM has been analyzed by 10 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $54.6, along with a high estimate of $63.00 and a low estimate of $46.00. This upward trend is evident, with the current average reflecting a 1.83% increase from the previous average price target of $53.62.

Analyzing Analyst Ratings: A Detailed Breakdown

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: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of SM Energy compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for SM Energy's future value. Examining the current and prior targets provides insight into analysts' changing 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.

Delving into SM Energy's Background

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.

Key Indicators: SM Energy's Financial Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, SM Energy faced challenges, resulting in a decline of approximately -1.96% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Energy sector.

Net Margin: SM Energy's net margin is impressive, surpassing industry averages. With a net margin of 23.45%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): SM Energy's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.59%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): SM Energy's ROA excels beyond industry benchmarks, reaching 2.05%. This signifies efficient management of assets and strong financial health.

Debt Management: SM Energy's debt-to-equity ratio is below the industry average at 0.43, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Core of Analyst Ratings: What Every Investor Should Know

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 also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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