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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
14.5%
Sector: 6.7%
Dividend Analysis audit
INCOME
3.99%
Trailing Yield
$3.99
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
31%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, SANDRIDGE ENERGY INC (SD) receives a "Hold" rating with a composite score of 53.2/100, ranked #896 out of 4446 stocks. Key factor scores: Quality 50/100, Value 74/100, Momentum 64/100. This is quantitative analysis only — not investment advice.
SANDRIDGE ENERGY INC (SD) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does SANDRIDGE ENERGY INC Do?
SandRidge Energy, Inc. engages in the acquisition, development, and production of oil and natural gas primarily in the United States Mid-Continent. As of December 31, 2021, it had an interest in 817.0 net producing wells; and operated approximately 368,000 net leasehold acres in Oklahoma and Kansas, as well as total estimated proved reserves of 71.3 million barrels of oil equivalent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma. SANDRIDGE ENERGY INC (SD) is classified as a small-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Grayson Pranin and employs approximately 100 people, headquartered in Oklahoma City, Oklahoma. With a market capitalization of $558M, SD is one of the notable companies in the Energy sector.
SANDRIDGE ENERGY INC (SD) Stock Rating — Hold (April 2026)
As of April 2026, SANDRIDGE ENERGY INC receives a Hold rating with a composite score of 53.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.SD ranks #896 out of 4,446 stocks in our coverage universe. Within the Energy sector, SANDRIDGE ENERGY INC ranks #81 of 128 stocks, placing it in the lower half of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
SD Stock Price and 52-Week Range
SANDRIDGE ENERGY INC (SD) currently trades at $15.38. The 52-week high for SD is $18.16, which means the stock is currently trading -15.3% from its annual peak. The 52-week low is $8.81, putting the stock 74.6% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is SD Overvalued or Undervalued? — Valuation Analysis
SANDRIDGE ENERGY INC (SD) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 7.88x, compared to the Energy sector average of 19.63x — a discount of 60%. The price-to-book ratio stands at 1.14x, versus the sector average of 1.64x. The price-to-sales ratio is 3.97x, compared to 0.47x for the average Energy stock. On an enterprise value basis, SD trades at 10.76x EV/EBITDA, versus 3.50x for the sector.
Based on these multiples, SANDRIDGE ENERGY INC appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
SANDRIDGE ENERGY INC Profitability — ROE, Margins, and Quality Score
SANDRIDGE ENERGY INC (SD) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 14.5%, compared to the Energy sector average of 6.7%, which is within a healthy range. Return on assets (ROA) comes in at 11.5% versus the sector average of 3.7%.
On a margin basis, SANDRIDGE ENERGY INC reports gross margins of 73.0%, compared to 52.7% for the sector. The operating margin is 37.1% (sector: 10.7%). Net profit margin stands at 53.0%, versus 6.4% for the average Energy stock. Revenue growth is running at 53.3% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
SD Debt, Balance Sheet, and Financial Health
SANDRIDGE ENERGY INC has a debt-to-equity ratio of 26.0%, compared to the Energy sector average of 55.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.17x, indicating strong short-term liquidity. Total debt on the balance sheet is $0. Cash and equivalents stand at $101M.
SD has a beta of 0.71, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for SANDRIDGE ENERGY INC is 66/100, reflecting average volatility within the normal range for its sector.
SANDRIDGE ENERGY INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, SANDRIDGE ENERGY INC reported revenue of $147M and earnings per share (EPS) of $1.91. Net income for the quarter was $74M. Gross margin was 73.0%. Operating income came in at $54M.
In FY 2025, SANDRIDGE ENERGY INC reported revenue of $156M and earnings per share (EPS) of $1.91. Net income for the quarter was $70M. Revenue grew 24.8% year-over-year compared to FY 2024. Operating income came in at $61M.
In Q3 2025, SANDRIDGE ENERGY INC reported revenue of $40M and earnings per share (EPS) of $0.44. Net income for the quarter was $16M. Revenue grew 32.5% year-over-year compared to Q3 2024. Operating income came in at $15M.
In Q2 2025, SANDRIDGE ENERGY INC reported revenue of $35M and earnings per share (EPS) of $0.53. Net income for the quarter was $20M. Revenue grew 32.9% year-over-year compared to Q2 2024. Operating income came in at $19M.
Over the past 8 quarters, SANDRIDGE ENERGY INC has demonstrated a growth trajectory, with revenue expanding from $26M to $147M. Investors analyzing SD stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
SD Dividend Yield and Income Analysis
SANDRIDGE ENERGY INC (SD) currently pays a dividend yield of 4.0%. At this yield, a $10,000 investment in SD stock would generate approximately $$399.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning SD offers above-average income for its sector. With a net margin of 53.0%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
SD Momentum and Technical Analysis Profile
SANDRIDGE ENERGY INC (SD) has a momentum factor score of 64/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 22/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 23/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
SD vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing SD against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SD vs S&P 500 (SPY) comparison to assess how SANDRIDGE ENERGY INC stacks up against the broader market across all factor dimensions.
SD Next Earnings Date
No upcoming earnings date has been announced for SANDRIDGE ENERGY INC (SD) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy SD? — Investment Thesis Summary
SANDRIDGE ENERGY INC presents a balanced picture with arguments on both sides. The value score of 74/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 64/100, suggesting the trend favors buyers. Low volatility (stability score 66/100) reduces downside risk.
In summary, SANDRIDGE ENERGY INC (SD) earns a Hold rating with a composite score of 53.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SD stock.
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Institutional Research Dossier
SANDRIDGE ENERGY INC (SD) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We initiate coverage on SandRidge Energy (SD) with a Buy rating. This rating is predicated on the company's compelling valuation relative to its peers, strong profitability metrics, and a debt-free balance sheet, offering significant financial flexibility. While the company's free cash flow generation is currently negative, its high margins and revenue growth suggest potential for improvement, making it an attractive investment opportunity at its current price.
The primary driver of our Buy rating is the significant undervaluation indicated by its low P/E and EV/EBITDA multiples compared to the energy sector. SandRidge's superior profitability, as evidenced by its higher ROE, gross margin, operating margin, and net margin, further supports this valuation. However, investors should closely monitor the company's capital allocation strategy and free cash flow generation to ensure sustainable value creation.
Business Strategy & Overview
SandRidge Energy, Inc. operates as an independent oil and natural gas company, focusing on the acquisition, development, and production of assets primarily in the United States Mid-Continent region, specifically Oklahoma and Kansas. The company's business model centers around extracting hydrocarbons from its leasehold acreage, selling the produced oil and natural gas into the market. As of the end of 2021, SandRidge had interests in 817 net producing wells and operated approximately 368,000 net leasehold acres, with estimated proved reserves of 71.3 million barrels of oil equivalent. This asset base forms the foundation of its revenue generation.
The company's strategic positioning within the Mid-Continent region is crucial. This area is known for its mature oil and gas fields, offering a balance between established infrastructure and potential for enhanced recovery techniques. SandRidge's strategy likely involves optimizing production from existing wells, exploring infill drilling opportunities, and potentially acquiring additional acreage to expand its reserve base. The company's success hinges on its ability to efficiently manage its operations, control costs, and adapt to fluctuating commodity prices.
Given the company's relatively small size compared to major integrated oil and gas companies, SandRidge likely focuses on niche opportunities and operational efficiencies to maintain profitability. This may involve employing advanced drilling and completion techniques, such as horizontal drilling and hydraulic fracturing, to maximize production from its existing wells. Furthermore, the company's hedging strategy, if any, plays a critical role in mitigating the impact of commodity price volatility on its revenue stream.
The absence of a detailed product pipeline suggests that SandRidge's near-term strategy is primarily focused on optimizing its existing asset base rather than pursuing large-scale exploration or development projects. This approach aligns with its current financial profile and risk appetite. However, the company's long-term growth prospects will depend on its ability to identify and capitalize on new opportunities, whether through acquisitions, exploration, or technological advancements. The competitive landscape in the Mid-Continent region is characterized by a mix of large and small players, requiring SandRidge to maintain a competitive edge through operational excellence and strategic decision-making.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
53.3%
Sector: -1.2%
-4656% VS SCTR
Economic Moat Analysis
SandRidge Energy's economic moat appears to be non-existent. The company operates in the highly competitive oil and gas industry, where commodity prices are the primary determinant of profitability. Without significant cost advantages, proprietary technology, or substantial barriers to entry, SandRidge lacks a sustainable competitive advantage that would protect its market share and profitability over the long term.
The absence of a moat is further underscored by the company's reliance on commodity prices. As a price taker in the market, SandRidge has limited control over its revenue stream. Fluctuations in oil and natural gas prices directly impact its profitability, making it vulnerable to market cycles and external factors beyond its control. This lack of pricing power diminishes its ability to generate consistent returns and maintain a competitive edge.
While SandRidge operates in a specific geographic region (Mid-Continent), this does not constitute a significant barrier to entry. Other oil and gas companies can readily acquire or lease acreage in the same area, increasing competition and limiting SandRidge's ability to differentiate itself. The company's operational expertise and efficiency may provide a temporary advantage, but these factors are easily replicable by competitors.
Furthermore, SandRidge does not possess any significant intangible assets, such as patents or proprietary technology, that would create a sustainable competitive advantage. Its assets primarily consist of leasehold acreage and producing wells, which are readily available to other companies in the industry. The lack of differentiation in its products and services further reinforces the absence of a moat. In conclusion, SandRidge Energy operates in a commodity-driven industry with limited barriers to entry, resulting in a lack of a sustainable economic moat.
Financial Health & Profitability
SandRidge Energy's financial health presents a mixed picture. The company boasts impressive profitability metrics, with a TTM net income of $70.20 million on revenue of $156.36 million, translating to a net margin of 53.0%. This significantly outperforms the sector average of 6.3%. Similarly, its gross margin (73.0%) and operating margin (37.1%) are substantially higher than the sector averages of 55.1% and 10.6%, respectively. The company's ROE of 14.5% also exceeds the sector average of 6.9%, indicating efficient use of equity.
However, the company's free cash flow (FCF) is negative at -$22.15 million. This is a concern, as it suggests that the company is not generating enough cash from its operations to cover its capital expenditures and other cash outflows. While the company has a healthy cash balance of $101.20 million, sustained negative FCF could erode this balance over time. The absence of debt on the balance sheet is a significant positive, providing financial flexibility and reducing the risk of financial distress. The current ratio of 2.17 indicates strong liquidity, suggesting that the company has ample current assets to cover its current liabilities.
Analyzing the quarterly financial history reveals a trend of fluctuating revenue and net income. While revenue has generally increased year-over-year, the quarterly figures show some volatility. For example, revenue in Q3 FY2025 was $39.82 million, compared to $30.06 million in Q3 FY2024. Net income also shows similar fluctuations, with Q3 FY2025 net income at $15.95 million, compared to $25.48 million in Q3 FY2024. These fluctuations are likely due to changes in commodity prices and production levels.
The company's revenue growth of 53.3% significantly surpasses the sector average of -1.7%, indicating strong performance in terms of revenue generation. However, the negative free cash flow remains a concern that needs to be addressed. Overall, SandRidge Energy's financial health is characterized by strong profitability and a debt-free balance sheet, but the negative free cash flow warrants close monitoring. The company's ability to sustain its high margins and revenue growth will be crucial for improving its FCF and ensuring long-term financial stability.
Valuation Assessment
SandRidge Energy's valuation appears compelling based on several key metrics. The company's P/E ratio of 8.8x is significantly lower than the energy sector average of 19.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, its EV/EBITDA multiple of 2.5x is also lower than the sector average of 3.5x, further supporting the undervaluation thesis. These multiples indicate that investors are not fully recognizing the company's earnings potential and asset value.
However, the negative free cash flow (FCF) complicates the valuation picture. While the company's earnings multiples are attractive, the lack of positive FCF raises concerns about its ability to generate sustainable cash flow and fund future growth. A traditional discounted cash flow (DCF) analysis would be challenging given the negative FCF, requiring assumptions about future FCF improvement. The company's high margins and revenue growth suggest potential for FCF improvement, but this is not guaranteed.
Compared to its historical performance, SandRidge's current valuation is attractive. The company's strong profitability metrics, such as ROE, gross margin, operating margin, and net margin, are not fully reflected in its current stock price. This suggests that the market may be undervaluing the company's earnings power and growth potential. However, investors should closely monitor the company's FCF generation to ensure that it improves over time.
Considering the company's strong profitability, debt-free balance sheet, and high revenue growth, the current valuation appears to be a bargain. The low P/E and EV/EBITDA multiples suggest that the stock is undervalued relative to its peers and its own earnings potential. However, the negative FCF is a risk factor that needs to be carefully considered. Overall, SandRidge Energy's valuation is attractive, but investors should closely monitor its FCF generation and capital allocation strategy to ensure sustainable value creation.
Risk & Uncertainty
SandRidge Energy faces several specific risks that could impact its business and financial performance. The most significant risk is its exposure to commodity price volatility. As an oil and gas producer, the company's revenue and profitability are directly tied to the prices of oil and natural gas. Fluctuations in these prices can significantly impact its earnings and cash flow. A sustained decline in commodity prices could render some of its wells uneconomical, leading to reduced production and lower revenue.
Another risk is the company's concentration in the Mid-Continent region. While this geographic focus allows for operational efficiencies, it also exposes the company to regional economic and regulatory risks. Changes in state or federal regulations related to oil and gas production, such as environmental regulations or drilling restrictions, could negatively impact its operations. Furthermore, regional economic downturns could reduce demand for oil and gas, affecting its revenue.
The company's negative free cash flow (FCF) is also a significant risk. While the company has a healthy cash balance, sustained negative FCF could erode this balance over time, limiting its ability to invest in future growth opportunities or weather economic downturns. The company needs to improve its FCF generation to ensure long-term financial stability. This could involve reducing capital expenditures, increasing production, or improving operational efficiencies.
Finally, competition from other oil and gas producers in the Mid-Continent region poses a risk to SandRidge's market share and profitability. The company operates in a competitive industry with numerous players, both large and small. Increased competition could lead to lower prices and reduced production, impacting its revenue and earnings. The company needs to maintain a competitive edge through operational excellence and strategic decision-making to mitigate this risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWSandRidge's rock-bottom valuation, as evidenced by its P/E and EV/EBITDA multiples, offers substantial upside potential as the market recognizes its superior profitability metrics compared to its peers.
BULL VIEWThe company's debt-free balance sheet provides significant financial flexibility to pursue strategic acquisitions or capital investments, positioning it for future growth and value creation.
BULL VIEWWith a high revenue growth rate and strong margins, SandRidge is well-positioned to capitalize on favorable commodity price trends and generate significant shareholder value.
The Bear Case
BEAR VIEWSandRidge's negative free cash flow raises serious concerns about its long-term financial sustainability and ability to fund future growth without relying on external financing.
BEAR VIEWThe company's concentration in the Mid-Continent region exposes it to significant regulatory and environmental risks, potentially leading to increased costs and reduced production.
BEAR VIEWAs a small player in a highly competitive industry, SandRidge lacks a sustainable economic moat and is vulnerable to commodity price volatility and competition from larger, better-capitalized companies.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score SD and 4,400+ other equities.
SANDRIDGE ENERGY INC exhibits a 215% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
11.5%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
73.0%
Sector: 52.7%
Operating Margin
Core business profitability
37.1%
Sector: 10.7%
Net Margin
Bottom-line profitability
53.0%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta+111%
Income Projection audit
A $10,000 investment would generate approximately $399 annually in dividends at the current trailing rate.
