Sm Energy Co Stock Beneish M Score

SM Stock  USD 50.29  0.13  0.26%   
This module uses fundamental data of SM Energy to approximate the value of its Beneish M Score. SM Energy M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out SM Energy Piotroski F Score and SM Energy Altman Z Score analysis.
  
At this time, SM Energy's Long Term Debt Total is very stable compared to the past year. As of the 17th of April 2024, Net Debt To EBITDA is likely to grow to 1.06, while Net Debt is likely to drop about 911.8 M. At this time, SM Energy's Operating Cash Flow Per Share is very stable compared to the past year. As of the 17th of April 2024, PB Ratio is likely to grow to 2.18, while Stock Based Compensation To Revenue is likely to drop 0.01.
At this time, it appears that SM Energy is a possible manipulator. The earnings manipulation may begin if SM Energy's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by SM Energy executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of SM Energy's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.19
Beneish M Score - Possible Manipulator
Elasticity of Receivables

0.55

Focus
Asset Quality

3.26

Focus
Expense Coverage

0.71

Focus
Gross Margin Strengs

1.19

Focus
Accruals Factor

0.71

Focus
Depreciation Resistance

1.12

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

0.94

Focus

SM Energy Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if SM Energy's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables134.6 M231.2 M
Way Down
Very volatile
Total Revenue2.5 B2.4 B
Sufficiently Up
Slightly volatile
Total Assets6.7 B6.4 B
Sufficiently Up
Slightly volatile
Total Current Assets962.3 M916.4 M
Sufficiently Up
Slightly volatile
Non Current Assets Total5.7 B5.5 B
Sufficiently Up
Slightly volatile
Property Plant Equipment3.5 B5.6 B
Way Down
Slightly volatile
Depreciation And Amortization379.8 M690.5 M
Way Down
Slightly volatile
Selling General Administrative89.7 M121.1 M
Way Down
Very volatile
Total Current Liabilities665.5 M633.8 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total1.4 B2.1 B
Way Down
Very volatile
Net Debt911.8 M959.2 M
Notably Down
Pretty Stable
Short Term Debt14.7 M15.4 M
Notably Down
Pretty Stable
Long Term Debt1.3 B1.6 B
Significantly Down
Slightly volatile
Total Cash From Operating Activities1.7 B1.6 B
Sufficiently Up
Slightly volatile
Long Term Investments15.1 M17 M
Fairly Down
Slightly volatile

SM Energy Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between SM Energy's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards SM Energy in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find SM Energy's degree of accounting gimmicks and manipulations.

About SM Energy Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Current Deferred Revenue

(14.65 Million)

SM Energy reported last year Current Deferred Revenue of (15.43 Million)

SM Energy Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as SM Energy. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables184.7M162.5M247.2M233.3M231.2M134.6M
Total Revenue1.6B1.1B2.6B3.3B2.4B2.5B
Total Assets6.3B5.0B5.2B5.7B6.4B6.7B
Total Current Assets252.6M203.7M613.2M737.2M916.4M962.3M
Net Debt2.7B2.2B1.7B1.1B959.2M911.8M
Short Term Debt19.2M11.9M6.5M10.1M15.4M14.7M
Long Term Debt2.7B2.2B2.1B1.6B1.6B1.3B
Operating Income58.6M(218.5M)1.1B1.6B986.9M1.0B
Investments(1.0B)(555.6M)(667.2M)(880.3M)(1.2B)(1.2B)
Gross Profit Margin0.17(0.044)0.510.630.470.56

About SM Energy Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze SM Energy Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of SM Energy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of SM Energy Co based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

SM Energy Investors Sentiment

The influence of SM Energy's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in SM Energy. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to SM Energy's public news can be used to forecast risks associated with an investment in SM Energy. The trend in average sentiment can be used to explain how an investor holding SM Energy can time the market purely based on public headlines and social activities around SM Energy Co. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
SM Energy's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for SM Energy's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average SM Energy's news discussions. The higher the estimated score, the more favorable is the investor's outlook on SM Energy.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards SM Energy in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, SM Energy's short interest history, or implied volatility extrapolated from SM Energy options trading.

Currently Active Assets on Macroaxis

When determining whether SM Energy is a strong investment it is important to analyze SM Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact SM Energy's future performance. For an informed investment choice regarding SM Energy Stock, refer to the following important reports:
Check out SM Energy Piotroski F Score and SM Energy Altman Z Score analysis.
You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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When running SM Energy's price analysis, check to measure SM Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy SM Energy is operating at the current time. Most of SM Energy's value examination focuses on studying past and present price action to predict the probability of SM Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SM Energy's price. Additionally, you may evaluate how the addition of SM Energy to your portfolios can decrease your overall portfolio volatility.
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Is SM Energy's industry 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
0.013
Dividend Share
0.63
Earnings Share
6.86
Revenue Per Share
19.117
Quarterly Revenue Growth
(0.09)
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.