SOUTHWESTERN ENERGY CO (SWN) Fundamental Analysis & Valuation

NYSE:SWN • US8454671095

Current stock price

7.11 USD
-0.04 (-0.56%)
At close:
7.09 USD
-0.02 (-0.28%)
After Hours:

This SWN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. SWN Profitability Analysis

1.1 Basic Checks

  • SWN had positive earnings in the past year.
  • In the past year SWN had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: SWN reported negative net income in multiple years.
  • SWN had a positive operating cash flow in each of the past 5 years.
SWN Yearly Net Income VS EBIT VS OCF VS FCFSWN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B 6B

1.2 Ratios

  • Looking at the Return On Assets, with a value of -27.98%, SWN is doing worse than 96.17% of the companies in the same industry.
  • SWN has a Return On Equity of -73.20%. This is amonst the worse of the industry: SWN underperforms 91.39% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.63%, SWN is doing worse than 78.95% of the companies in the same industry.
  • SWN had an Average Return On Invested Capital over the past 3 years of 30.62%. This is significantly above the industry average of 23.14%.
  • The 3 year average ROIC (30.62%) for SWN is well above the current ROIC(1.63%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -27.98%
ROE -73.2%
ROIC 1.63%
ROA(3y)9.03%
ROA(5y)-3.99%
ROE(3y)22.74%
ROE(5y)-106.1%
ROIC(3y)30.62%
ROIC(5y)19.24%
SWN Yearly ROA, ROE, ROICSWN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 -200 -400 -600

1.3 Margins

  • In the last couple of years the Profit Margin of SWN has grown nicely.
  • SWN has a Operating Margin of 2.91%. This is in the lower half of the industry: SWN underperforms 77.99% of its industry peers.
  • In the last couple of years the Operating Margin of SWN has declined.
  • With a decent Gross Margin value of 60.89%, SWN is doing good in the industry, outperforming 66.99% of the companies in the same industry.
  • In the last couple of years the Gross Margin of SWN has remained more or less at the same level.
Industry RankSector Rank
OM 2.91%
PM (TTM) N/A
GM 60.89%
OM growth 3Y153.44%
OM growth 5Y-15.13%
PM growth 3YN/A
PM growth 5Y11.5%
GM growth 3Y2.88%
GM growth 5Y-1.18%
SWN Yearly Profit, Operating, Gross MarginsSWN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

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1

2. SWN Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SWN is creating value.
  • The number of shares outstanding for SWN remains at a similar level compared to 1 year ago.
  • The debt/assets ratio for SWN has been reduced compared to a year ago.
SWN Yearly Shares OutstandingSWN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
SWN Yearly Total Debt VS Total AssetsSWN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

  • SWN has an Altman-Z score of 0.85. This is a bad value and indicates that SWN is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of SWN (0.85) is worse than 63.16% of its industry peers.
  • SWN has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
  • SWN has a worse Debt to Equity ratio (1.01) than 73.68% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.01
Debt/FCF N/A
Altman-Z 0.85
ROIC/WACC0.25
WACC6.62%
SWN Yearly LT Debt VS Equity VS FCFSWN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B

2.3 Liquidity

  • SWN has a Current Ratio of 0.53. This is a bad value and indicates that SWN is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Current ratio of SWN (0.53) is worse than 85.65% of its industry peers.
  • A Quick Ratio of 0.53 indicates that SWN may have some problems paying its short term obligations.
  • The Quick ratio of SWN (0.53) is worse than 81.82% of its industry peers.
Industry RankSector Rank
Current Ratio 0.53
Quick Ratio 0.53
SWN Yearly Current Assets VS Current LiabilitesSWN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. SWN Growth Analysis

3.1 Past

  • The earnings per share for SWN have decreased strongly by -50.00% in the last year.
  • The Earnings Per Share has been decreasing by -8.06% on average over the past years.
  • The Revenue for SWN has decreased by -50.17% in the past year. This is quite bad
  • The Revenue has been growing by 11.05% on average over the past years. This is quite good.
EPS 1Y (TTM)-50%
EPS 3Y23.01%
EPS 5Y-8.06%
EPS Q2Q%11.11%
Revenue 1Y (TTM)-50.17%
Revenue growth 3Y41.38%
Revenue growth 5Y11.05%
Sales Q2Q%-14.66%

3.2 Future

  • SWN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.94% yearly.
  • The Revenue is expected to grow by 9.96% on average over the next years. This is quite good.
EPS Next Y-9.6%
EPS Next 2Y30.7%
EPS Next 3Y23.18%
EPS Next 5Y30.94%
Revenue Next Year-22.08%
Revenue Next 2Y-2.82%
Revenue Next 3Y2.04%
Revenue Next 5Y9.96%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
SWN Yearly Revenue VS EstimatesSWN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B
SWN Yearly EPS VS EstimatesSWN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1 1.5

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4

4. SWN Valuation Analysis

4.1 Price/Earnings Ratio

  • SWN is valuated correctly with a Price/Earnings ratio of 14.51.
  • SWN's Price/Earnings is on the same level as the industry average.
  • SWN is valuated rather cheaply when we compare the Price/Earnings ratio to 25.35, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 6.21 indicates a rather cheap valuation of SWN.
  • 79.90% of the companies in the same industry are more expensive than SWN, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.61, SWN is valued rather cheaply.
Industry RankSector Rank
PE 14.51
Fwd PE 6.21
SWN Price Earnings VS Forward Price EarningsSWN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • SWN's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.1
SWN Per share dataSWN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4 5

4.3 Compensation for Growth

  • SWN's earnings are expected to grow with 23.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.7%
EPS Next 3Y23.18%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SWN Dividend Analysis

5.1 Amount

  • SWN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

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SWN Fundamentals: All Metrics, Ratios and Statistics

SOUTHWESTERN ENERGY CO

NYSE:SWN (9/30/2024, 8:04:00 PM)

After market: 7.09 -0.02 (-0.28%)

7.11

-0.04 (-0.56%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)08-01
Earnings (Next)10-31
Inst Owners88.51%
Inst Owner Change0%
Ins Owners1.11%
Ins Owner Change0%
Market Cap7.84B
Revenue(TTM)5.63B
Net Income(TTM)-2.76B
Analysts69
Price Target7.65 (7.59%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.07%
Min EPS beat(2)-11.93%
Max EPS beat(2)-6.21%
EPS beat(4)2
Avg EPS beat(4)13.41%
Min EPS beat(4)-11.93%
Max EPS beat(4)43.58%
EPS beat(8)5
Avg EPS beat(8)13.94%
EPS beat(12)8
Avg EPS beat(12)10.61%
EPS beat(16)11
Avg EPS beat(16)25.9%
Revenue beat(2)1
Avg Revenue beat(2)4.49%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)10.88%
Revenue beat(4)3
Avg Revenue beat(4)13.11%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)28.77%
Revenue beat(8)6
Avg Revenue beat(8)36.32%
Revenue beat(12)10
Avg Revenue beat(12)57.96%
Revenue beat(16)13
Avg Revenue beat(16)46.5%
PT rev (1m)-6.5%
PT rev (3m)-10.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.15%
EPS NY rev (1m)0%
EPS NY rev (3m)33.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.01%
Revenue NY rev (1m)-2.25%
Revenue NY rev (3m)0.58%
Valuation
Industry RankSector Rank
PE 14.51
Fwd PE 6.21
P/S 1.39
P/FCF N/A
P/OCF 4.5
P/B 2.08
P/tB 2.08
EV/EBITDA 9.1
EPS(TTM)0.49
EY6.89%
EPS(NY)1.14
Fwd EY16.1%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)1.58
OCFY22.2%
SpS5.11
BVpS3.41
TBVpS3.41
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -27.98%
ROE -73.2%
ROCE 2.07%
ROIC 1.63%
ROICexc 1.64%
ROICexgc 1.64%
OM 2.91%
PM (TTM) N/A
GM 60.89%
FCFM N/A
ROA(3y)9.03%
ROA(5y)-3.99%
ROE(3y)22.74%
ROE(5y)-106.1%
ROIC(3y)30.62%
ROIC(5y)19.24%
ROICexc(3y)30.76%
ROICexc(5y)19.32%
ROICexgc(3y)30.89%
ROICexgc(5y)19.41%
ROCE(3y)38.76%
ROCE(5y)24.35%
ROICexgc growth 3Y164.08%
ROICexgc growth 5Y-19.13%
ROICexc growth 3Y164.83%
ROICexc growth 5Y-19.18%
OM growth 3Y153.44%
OM growth 5Y-15.13%
PM growth 3YN/A
PM growth 5Y11.5%
GM growth 3Y2.88%
GM growth 5Y-1.18%
F-Score2
Asset Turnover0.57
Health
Industry RankSector Rank
Debt/Equity 1.01
Debt/FCF N/A
Debt/EBITDA 2.87
Cap/Depr 161.53%
Cap/Sales 33.08%
Interest Coverage 250
Cash Conversion 132.09%
Profit Quality N/A
Current Ratio 0.53
Quick Ratio 0.53
Altman-Z 0.85
F-Score2
WACC6.62%
ROIC/WACC0.25
Cap/Depr(3y)178.4%
Cap/Depr(5y)203.9%
Cap/Sales(3y)20.95%
Cap/Sales(5y)27.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-50%
EPS 3Y23.01%
EPS 5Y-8.06%
EPS Q2Q%11.11%
EPS Next Y-9.6%
EPS Next 2Y30.7%
EPS Next 3Y23.18%
EPS Next 5Y30.94%
Revenue 1Y (TTM)-50.17%
Revenue growth 3Y41.38%
Revenue growth 5Y11.05%
Sales Q2Q%-14.66%
Revenue Next Year-22.08%
Revenue Next 2Y-2.82%
Revenue Next 3Y2.04%
Revenue Next 5Y9.96%
EBIT growth 1Y-96.33%
EBIT growth 3Y258.31%
EBIT growth 5Y-5.76%
EBIT Next Year112.9%
EBIT Next 3Y48.03%
EBIT Next 5Y45.93%
FCF growth 1Y-122.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-18.83%
OCF growth 3Y68.28%
OCF growth 5Y15.52%

SOUTHWESTERN ENERGY CO / SWN Fundamental Analysis FAQ

What is the ChartMill fundamental rating of SOUTHWESTERN ENERGY CO (SWN) stock?

ChartMill assigns a fundamental rating of 3 / 10 to SWN.


What is the valuation status for SWN stock?

ChartMill assigns a valuation rating of 4 / 10 to SOUTHWESTERN ENERGY CO (SWN). This can be considered as Fairly Valued.


How profitable is SOUTHWESTERN ENERGY CO (SWN) stock?

SOUTHWESTERN ENERGY CO (SWN) has a profitability rating of 4 / 10.


Can you provide the financial health for SWN stock?

The financial health rating of SOUTHWESTERN ENERGY CO (SWN) is 1 / 10.


Can you provide the dividend sustainability for SWN stock?

The dividend rating of SOUTHWESTERN ENERGY CO (SWN) is 0 / 10 and the dividend payout ratio is 0%.