Summit Midstream Corp.
Summit Midstream Corp. Fundamental Analysis
Summit Midstream Corp. (SMC) shows weak financial fundamentals with a PE ratio of 40.33, profit margin of 1.59%, and ROE of 1.44%. The company generates $0.6B in annual revenue with weak year-over-year growth of -6.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -0.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SMC's fundamental strength across five key dimensions:
Efficiency Score
WeakSMC struggles to generate sufficient returns from assets.
Valuation Score
ModerateSMC shows balanced valuation metrics.
Growth Score
WeakSMC faces weak or negative growth trends.
Financial Health Score
WeakSMC carries high financial risk with limited liquidity.
Profitability Score
WeakSMC struggles to sustain strong margins.
Key Financial Metrics
Is SMC Expensive or Cheap?
P/E Ratio
SMC trades at 40.33 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SMC's PEG of 0.78 indicates potential undervaluation.
Price to Book
The market values Summit Midstream Corp. at 0.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.31 times EBITDA. This is generally considered low.
How Well Does SMC Make Money?
Net Profit Margin
For every $100 in sales, Summit Midstream Corp. keeps $1.59 as profit after all expenses.
Operating Margin
Core operations generate 15.77 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.44 in profit for every $100 of shareholder equity.
ROA
Summit Midstream Corp. generates $0.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Summit Midstream Corp. produces operating cash flow of $136.98M, showing steady but balanced cash generation.
Free Cash Flow
Summit Midstream Corp. generates weak or negative free cash flow of $-4.02M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.32 in free cash annually.
FCF Yield
SMC converts -1.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SMC Stacks Against Its Sector Peers
| Metric | SMC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.33 | 21.17 | Worse (Expensive) |
| ROE | 1.44% | 943.00% | Weak |
| Net Margin | 1.59% | -75302.00% (disorted) | Weak |
| Debt/Equity | 1.93 | -0.48 (disorted) | Distorted |
| Current Ratio | 0.55 | 6.33 | Weak Liquidity |
| ROA | 0.37% | -10948340.00% (disorted) | Weak |
SMC outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Summit Midstream Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-49.96%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
72.48%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-80.22%
Industry Style: Cyclical, Value, Commodity
Declining