Is SM Energy Co (SM) Halal?

NYSE Energy United States $7.8B
✗ NOT HALAL
Confidence: 90/100
SM Energy Co (SM) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 44.9% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. SM Energy Co operates in the Energy sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 44.9%
/ 30%
0.0%
/ 30%
5.8%
/ 30%
1.19%
/ 5%
✗ NOT HALAL
DJIM 44.9%
/ 33%
0.0%
/ 33%
5.8%
/ 33%
1.19%
/ 5%
✗ NOT HALAL
MSCI 32.4%
/ 33%
0.0%
/ 33%
4.2%
/ 33%
1.19%
/ 5%
✓ HALAL
S&P 44.9%
/ 33%
0.0%
/ 33%
5.8%
/ 33%
1.19%
/ 5%
✗ NOT HALAL
FTSE 32.4%
/ 33%
0.0%
/ 33%
4.2%
/ 50%
1.19%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
5.8
Forward: 5.8
EPS
$5.64
Dividend Yield
251.0%
Payout: 17.7%
P/B Ratio
0.8
EV/EBITDA
4.7
EV: $10.3B
Revenue
$3.1B
Growth: -17.1%
Beta
1.0
Average volatility
Current Ratio
0.7

Profitability

Gross Margin 90.4%
Operating Margin 26.9%
Net Margin 21.4%
Return on Equity (ROE) 14.3%
Return on Assets (ROA) 7.0%

Cash Flow & Balance Sheet

Operating Cash Flow$2.0B
Free Cash Flow$539M
Total Debt$2.7B
Debt-to-Equity59.3
Current Ratio0.7
Total Assets$9.3B

Price & Trading

Last Close$32.68
50-Day MA$23.28
200-Day MA$23.47
Avg Volume6.7M
Beta1.0
52-Week Range
$17.45
$33.17

About SM Energy Co (SM)

CEO
Ms. Elizabeth Anne McDonald
Employees
1,241
Sector
Energy
Industry
Oil & Gas E&P
Country
United States
Exchange
NYSE
Market Cap
$7.8B
Currency
USD

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids in the United States. The company holds working interests in oil and gas producing wells in the Midland Basin, South Texas, Uinta Basin, and DJ Basin. The company was formerly known as St. Mary Land & Exploration Company and changed its name to SM Energy Company in May 2010. SM Energy Company was founded in 1908 and is headquartered in Denver, Colorado.

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Frequently Asked Questions

Is SM Energy Co (SM) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), SM Energy Co is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is SM Energy Co's debt ratio?

SM Energy Co's debt ratio is 44.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 32.4%.

What are SM Energy Co's key financial metrics?

SM Energy Co has a market capitalization of $7.8B, trailing P/E ratio of 5.8, and revenue of $3.1B. The company maintains a gross margin of 90.4% and a net margin of 21.4%. Return on equity stands at 14.3%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.