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

  • In the past year SWN was profitable.
  • 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.
  • 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

  • SWN has a worse Return On Assets (-27.98%) than 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.
  • With a Return On Invested Capital value of 1.63%, SWN is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
  • Measured over the past 3 years, the Average Return On Invested Capital for SWN is significantly above the industry average of 22.30%.
  • 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

  • SWN's Profit Margin has improved in the last couple of years.
  • 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.
  • SWN's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 60.89%, SWN is in the better half of the industry, outperforming 66.99% of the companies in the same industry.
  • 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. SWN Health Analysis

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 has a Altman-Z score of 0.85. This is in the lower half of the industry: SWN underperforms 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.
  • Looking at the Debt to Equity ratio, with a value of 1.01, SWN is doing worse than 73.68% of the companies in the same industry.
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.
  • SWN's Current ratio of 0.53 is on the low side compared to the rest of the industry. SWN is outperformed by 85.65% of its industry peers.
  • A Quick Ratio of 0.53 indicates that SWN may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.53, SWN is doing worse than 81.82% of the companies in the same industry.
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

  • SWN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.00%.
  • The Earnings Per Share has been decreasing by -8.06% on average over the past years.
  • SWN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -50.17%.
  • Measured over the past years, SWN shows a quite strong growth in Revenue. The Revenue has been growing by 11.05% on average per year.
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

  • Based on estimates for the next years, SWN will show a very strong growth in Earnings Per Share. The EPS will grow by 30.94% on average per year.
  • 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. SWN Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 14.51, the valuation of SWN can be described as correct.
  • 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 (25.23), we can say SWN is valued slightly cheaper.
  • SWN is valuated cheaply with a Price/Forward Earnings ratio of 6.21.
  • SWN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SWN is cheaper than 79.90% of the companies in the same industry.
  • SWN is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
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 is on the same level as 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.


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%.