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SOUTHWESTERN ENERGY CO (SWN) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:SWN - US8454671095 - Common Stock

7.11 USD
-0.04 (-0.56%)
Last: 9/30/2024, 8:04:00 PM
7.09 USD
-0.02 (-0.28%)
After Hours: 9/30/2024, 8:04:00 PM
Fundamental Rating

3

Overall SWN gets a fundamental rating of 3 out of 10. We evaluated SWN against 208 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of SWN while its profitability can be described as average. SWN is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • SWN had positive earnings in the past year.
  • In the past year SWN had a positive cash flow from operations.
  • In multiple years SWN reported negative net income over the last 5 years.
  • Each year in the past 5 years SWN had a positive operating cash flow.
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

  • SWN has a Return On Assets of -27.98%. This is amonst the worse of the industry: SWN underperforms 96.17% of its industry peers.
  • SWN's Return On Equity of -73.20% is on the low side compared to the rest of the industry. SWN is outperformed by 91.39% of its industry peers.
  • SWN has a worse Return On Invested Capital (1.63%) than 78.95% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for SWN is significantly above the industry average of 21.83%.
  • 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's Operating Margin of 2.91% is on the low side compared to the rest of the industry. SWN is outperformed by 77.99% of its industry peers.
  • SWN's Operating Margin has declined in the last couple of years.
  • SWN has a Gross Margin of 60.89%. This is in the better half of the industry: SWN outperforms 66.99% of its industry peers.
  • SWN's Gross Margin has been stable in the last couple of years.
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. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SWN is creating value.
  • The number of shares outstanding for SWN remains at a similar level compared to 1 year ago.
  • SWN has a better debt/assets ratio than last year.
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.
  • SWN's Altman-Z score of 0.85 is on the low side compared to the rest of the industry. SWN is outperformed by 63.16% of its industry peers.
  • A Debt/Equity ratio of 1.01 is on the high side and indicates that SWN has dependencies on debt financing.
  • SWN has a Debt to Equity ratio of 1.01. This is in the lower half of the industry: SWN underperforms 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

  • A Current Ratio of 0.53 indicates that SWN may have some problems paying its short term obligations.
  • SWN has a Current ratio of 0.53. This is amonst the worse of the industry: SWN underperforms 85.65% of its industry peers.
  • A Quick Ratio of 0.53 indicates that SWN may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.53, SWN is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
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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5

3. Growth

3.1 Past

  • The earnings per share for SWN have decreased strongly by -50.00% in the last year.
  • SWN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.06% yearly.
  • The Revenue for SWN has decreased by -50.17% in the past year. This is quite bad
  • SWN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.05% yearly.
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

  • The Earnings Per Share is expected to grow by 30.94% on average over the next years. This is a very strong growth
  • 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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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. Valuation

4.1 Price/Earnings Ratio

  • SWN is valuated correctly with a Price/Earnings ratio of 14.51.
  • The rest of the industry has a similar Price/Earnings ratio as SWN.
  • When comparing the Price/Earnings ratio of SWN to the average of the S&P500 Index (27.47), we can say SWN is valued slightly cheaper.
  • 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.
  • The average S&P500 Price/Forward Earnings ratio is at 24.26. SWN is valued rather cheaply when compared to this.
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 5 10 15 20 25

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

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

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0

5. Dividend

5.1 Amount

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

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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 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.


What is the profitability of SWN stock?

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


What is the expected EPS growth for SOUTHWESTERN ENERGY CO (SWN) stock?

The Earnings per Share (EPS) of SOUTHWESTERN ENERGY CO (SWN) is expected to decline by -9.6% in the next year.


Is the dividend of SOUTHWESTERN ENERGY CO sustainable?

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