SM FCF Yield Analysis
Updated 35h ago·SEC filings & market data
Key Takeaway
FCF yield measures the free cash flow a company generates relative to its market value, so 6.3% means it produces $0.063 of cash flow per dollar of equity price.
Sector Performance
72th percentileSM
6.4%
Sector Median
4.2%
Sector Avg
9.3%
Prior Period
6.1%(Aug 2026)
Deep Analysis
FCF yield measures the free cash flow a company generates relative to its market value, so 6.3% means it produces $0.063 of cash flow per dollar of equity price.
That level sits above the sector median of 4.2%, placing SM in the 72nd percentile among peers. The metric is decreasing: the latest quarter fell 12.5% quarter over quarter, and the year-over-year change is not available, with historical values sliding from 8.1% to 7.2% to 6.3% over the last three periods. The combination of a still-above-median yield but a clear downward trend suggests cash generation is eroding even while current valuation remains relatively attractive versus peers. For an investor, this implies a moderate risk that the yield advantage shrinks further if the trend continues, but the current level still offers a cushion above the market norm. This metric supports the overall NEUTRAL verdict: the above-median level argues for holding, while the decreasing trend cautions against adding exposure.
Frequently Asked Questions
What does the FCF Yield tell investors about SM?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are SM's closest peers by FCF Yield?
The closest peers by FCF Yield include: RARE (-18.7%), CG (-19.3%), RXRX (-20.3%), PLUG (-22.0%), NTLA (-22.5%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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6.4%
Sector Median
4.2%
Sector Avg
9.3%
How SM's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.