SM Energy Stock Review 09/27/2024
A Mid-Cap Growth at a Reasonable Price stock - Is this Stock a Buy?
We found SM Energy is an excellent GARP candidate stock when we screened for mid-caps exhibiting growth at reasonable price characteristics a few days ago. In this article, we will take a deeper look into the company, review its fundamentals, its prospects, and determine whether the stock is a good value or not.
SM Energy, or SM 0.00%↑ , is an independent oil and gas exploration, drilling and production company located in Denver, CO with operations mainly in Texas. The company has been in business since 1908 when it was founded as St Mary Land & Exploration. The company leases land with mineral rights from private landowners to explore and develop. It pays monthly royalties to the property owners sourced from the sale of the oil or oil equivalents it produces from the leaseholds.
The company stock has been on a tear recently, rising 307% in the last 5 years. In the last 1 year, the stock has been essentially flat - losing 2.09%. Please note that the company pays annual dividend yielding 2.01% on a quarterly basis.
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With a market capitalization of $4.55 Billion and an average trading volume of close to 2 million shares per day, it is a fairly liquid stock so entry and exit from the stock should not be much of an issue. It has 114 million shares outstanding.
The question is, does the stock have anything more to give to the shareholders? Is all the growth priced in and are the shares fairly valued?
Let’s find out.
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