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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

We assign a fundamental rating of 3 out of 10 to SWN. SWN was compared to 207 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 has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year SWN was profitable.
  • SWN had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: SWN reported negative net income in multiple years.
  • In the past 5 years SWN always reported a positive cash flow from operatings.
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

  • The Return On Assets of SWN (-27.98%) is worse than 96.17% of its industry peers.
  • Looking at the Return On Equity, with a value of -73.20%, SWN is doing worse than 91.39% of the companies in the same industry.
  • 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 21.94%.
  • 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 worse Operating Margin (2.91%) than 77.99% of its industry peers.
  • SWN's Operating Margin has declined in the last couple of years.
  • 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.
  • 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

More info and screens

1

2. Health

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.
  • Compared to 1 year ago, SWN has an improved debt to assets ratio.
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.
  • 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.
  • 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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5

3. Growth

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

  • 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.
  • SWN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.96% yearly.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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.
  • 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 27.32, which is the current average of the S&P500 Index.
  • SWN is valuated cheaply with a Price/Forward Earnings ratio of 6.21.
  • Based on the Price/Forward Earnings ratio, SWN is valued a bit cheaper than the industry average as 79.90% of the companies are valued more expensively.
  • SWN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.30.
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

  • 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%

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0

5. Dividend

5.1 Amount

  • No dividends for SWN!.
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%.