FCF Yield
Higher than 70% of Energy sector peers
Updated 70h ago
Sector Performance
70th percentileSM
8.5%
Sector Median
5.7%
Sector Avg
-12.7%
Deep Analysis
Free cash flow (FCF) yield measures the cash a company generates per dollar of its stock price, expressed as a percentage.
A current FCF yield of 8.5% means SM Energy generates $8.50 in free cash for every $100 of market value, a relatively high return for investors. This exceeds the sector median of 5.7% and places the company in the 70th percentile among energy peers, indicating above-average cash generation efficiency. The year-over-year change is not available, but the quarter-over-quarter change shows a steep decline of -68.0%, dropping from 26.6% to 8.5%. While the current yield remains attractive compared to peers, the sharp quarterly drop signals that cash flow has recently weakened, increasing caution. This combination of a high but rapidly falling FCF yield suggests a potential risk that the attractive level may not persist, though it does not outright contradict the overall NEUTRAL verdict. The metric supports a balanced view—strong relative performance tempered by a negative short-term trend.
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.
How does SM's FCF Yield compare to its sector?
SM's FCF Yield of 8.5% compares to a Energy sector median of 5.7%, placing it in the 70th percentile.
Who are SM's closest peers by FCF Yield?
The closest Energy peers by FCF Yield include: ARRY (5.7%), BKR (5.6%), ET (5.9%), LNG (5.2%), RRC (6.2%).
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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8.5%
Sector Median
5.7%
Sector Avg
-12.7%
How SM's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.