Is SM Energy Co (SM) Halal?
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
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-Equity | 59.3 |
| Current Ratio | 0.7 |
| Total Assets | $9.3B |
Price & Trading
| Last Close | $32.68 |
| 50-Day MA | $23.28 |
| 200-Day MA | $23.47 |
| Avg Volume | 6.7M |
| Beta | 1.0 |
|
52-Week Range
$17.45
| |
About SM Energy Co (SM)
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.