SM Energy Profit Margin vs. Gross Profit

SM Stock  USD 40.18  1.63  3.90%   
Based on the key profitability measurements obtained from SM Energy's financial statements, SM Energy Co is performing exceptionally good at this time. It has a great risk to showcase excellent profitability results in January. Profitability indicators assess SM Energy's ability to earn profits and add value for shareholders.

SM Energy Net Profit Margin

0.36

At this time, SM Energy's Price To Sales Ratio is very stable compared to the past year. As of the 9th of December 2024, EV To Sales is likely to grow to 3.32, while Sales General And Administrative To Revenue is likely to drop 0.05. At this time, SM Energy's Change To Netincome is very stable compared to the past year. As of the 9th of December 2024, Net Income Per Share is likely to grow to 7.24, while Total Other Income Expense Net is likely to drop (76.3 M).
For SM Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SM Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SM Energy Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SM Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SM Energy Co over time as well as its relative position and ranking within its peers.
  
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Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of SM Energy. If investors know SM Energy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about SM Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.112
Dividend Share
0.74
Earnings Share
7.14
Revenue Per Share
20.3
Quarterly Revenue Growth
(0.04)
The market value of SM Energy is measured differently than its book value, which is the value of SM Energy that is recorded on the company's balance sheet. Investors also form their own opinion of SM Energy's value that differs from its market value or its book value, called intrinsic value, which is SM Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because SM Energy's market value can be influenced by many factors that don't directly affect SM Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between SM Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if SM Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SM Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

SM Energy Gross Profit vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining SM Energy's current stock value. Our valuation model uses many indicators to compare SM Energy value to that of its competitors to determine the firm's financial worth.
SM Energy Co is currently regarded as top stock in profit margin category among its peers. It is rated below average in gross profit category among its peers fabricating about  7,836,016,352  of Gross Profit per Profit Margin. At this time, SM Energy's Net Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value SM Energy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

SM Energy Gross Profit vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

SM Energy

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.35 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

SM Energy

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
2.78 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

SM Energy Gross Profit Comparison

SM Energy is currently under evaluation in gross profit category among its peers.

SM Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in SM Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SM Energy will eventually generate negative long term returns. The profitability progress is the general direction of SM Energy's change in net profit over the period of time. It can combine multiple indicators of SM Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-2.6 M-2.7 M
Operating Income986.9 MB
Income Before Tax914.2 M959.9 M
Total Other Income Expense Net-72.7 M-76.3 M
Net Income817.9 M858.8 M
Income Tax Expense96.3 M101.1 M
Net Income Applicable To Common SharesB1.1 B
Net Income From Continuing Ops817.9 M858.8 M
Non Operating Income Net Other-72.9 M-69.2 M
Interest Income19.9 M18.9 M
Net Interest Income-71.8 M-75.4 M
Change To Netincome854.6 M897.4 M
Net Income Per Share 6.89  7.24 
Income Quality 1.92  2.71 
Net Income Per E B T 0.89  0.77 

SM Energy Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on SM Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of SM Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the SM Energy's important profitability drivers and their relationship over time.

Use SM Energy in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if SM Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SM Energy will appreciate offsetting losses from the drop in the long position's value.

SM Energy Pair Trading

SM Energy Co Pair Trading Analysis

The ability to find closely correlated positions to SM Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SM Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back SM Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling SM Energy Co to buy it.
The correlation of SM Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as SM Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SM Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for SM Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your SM Energy position

In addition to having SM Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Single Stock ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Single Stock ETFs theme has 99 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Single Stock ETFs Theme or any other thematic opportunities.
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You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project SM Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SM Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include SM Energy's income statement, its balance sheet, and the statement of cash flows.
Potential SM Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although SM Energy investors may work on each financial statement separately, they are all related. The changes in SM Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on SM Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.