On the stock market since 1992, it operates in the world of energy. It has 1,241 employees. Now — the numbers.
This is an established company with proven profits.
No real growth (5% a year).
The gap is $2.5B. In times of high interest rates, a gap like that can squeeze a company.
Executives buying with their own money is usually read as confidence in the company’s future.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly above the class average — a step short of the very top.
Clearly below the class average.
Clearly above the class average — a step short of the very top.
This grade is a blend: the profit side is strong, the sales tempo slow.
The stock has been running stronger than the market lately.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
The stock trades 31% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 21% — still a thick cushion, though costs have been eating into it lately.
It met or beat analyst expectations in 7 of the last 8 quarters — consistency is a promise kept.
Over the last 12 months, company executives reported 38 buys and 27 sells. Management buying with its own money is usually read as a good sign.
Over the last 3 years, sales fell about 2% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 32/100.
On our five-subject report card, SM sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: SM is an established business that has proven its profits for years. The real debate here isn’t the price — it’s whether the company can keep up this pace.