SMNEUTRAL

SM Debt-to-Equity Ratio Analysis

0.90x

Updated 35h ago·SEC filings & market data

Key Takeaway

The debt-to-equity ratio measures a company’s total debt against its shareholders’ equity, so SM’s 0.90x means it carries $0.90 of debt for every $1.00 of equity.

Sector Performance

59th percentile

0.90x

Sector Median

0.74x

Sector Avg

2.52x

Prior Period

1.16x(Jul 2026)

↑ Improving

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Deep Analysis

The debt-to-equity ratio measures a company’s total debt against its shareholders’ equity, so SM’s 0.90x means it carries $0.90 of debt for every $1.00 of equity.

This sits above the sector median of 0.73x, placing SM at the 60th percentile among peers, indicating higher leverage than most comparable companies. The year-over-year change is not available, but the quarter-over-quarter change of -22.4% shows a clear reduction in debt relative to equity, with the ratio falling from 1.16x to 0.90x. The combination of an above-median level with a sharp recent decline points to moderate leverage that is actively being paid down, which lowers near-term financial risk. This trend supports a neutral stance: leverage is not extreme, and improving debt levels offset the higher peer comparison. Overall, this metric does not contradict the NEUTRAL verdict; it aligns with a balanced risk profile.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about SM?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

Who are SM's closest peers by Debt-to-Equity Ratio?

The closest peers by Debt-to-Equity Ratio include: W (-1.00x), MSCI (-2.37x), SBAC (-2.75x), LCID (-3.08x), TDG (-3.41x).

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Learn More About Debt-to-Equity Ratio

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Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.

Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.