SOUTHWESTERN ENERGY CO (SWN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWN - US8454671095 - Common Stock
7.11 USD
-0.04 (-0.56%)
7.09 USD
-0.02 (-0.28%)
We assign a fundamental rating of 3 out of 10 to SWN. SWN was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. While SWN is still in line with the averages on profitability rating, there are concerns on its financial health. SWN has a correct valuation and a medium growth rate.
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.
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.
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.
The Return On Equity of SWN (-73.20%) is worse than 91.39% of its industry peers.
SWN has a Return On Invested Capital of 1.63%. This is in the lower half of the industry: SWN underperforms 78.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWN is significantly above the industry average of 21.28%.
The last Return On Invested Capital (1.63%) for SWN is well below the 3 year average (30.62%), which needs to be investigated, but indicates that SWN had better years and this may not be a problem.
| Industry Rank | Sector 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%
1.3 Margins
In the last couple of years the Profit Margin of SWN has grown nicely.
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.
The Gross Margin of SWN (60.89%) is better than 66.99% of its industry peers.
SWN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
SWN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SWN has about the same amount of shares outstanding.
The debt/assets ratio for SWN has been reduced compared to a year ago.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.85 |
ROIC/WACC0.25
WACC6.62%
2.3 Liquidity
A Current Ratio of 0.53 indicates that SWN may have some problems paying its short term obligations.
SWN has a worse Current ratio (0.53) than 85.65% of its industry peers.
SWN has a Quick 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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
SWN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.00%.
Measured over the past years, SWN shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.06% on average per year.
Looking at the last year, SWN shows a very negative growth in Revenue. The Revenue has decreased by -50.17% in the last year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.51, SWN is valued correctly.
SWN's Price/Earnings is on the same level as the industry average.
SWN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 6.21 indicates a rather cheap valuation of SWN.
Based on the Price/Forward Earnings ratio, SWN is valued a bit cheaper than 79.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SWN to the average of the S&P500 Index (23.88), we can say SWN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 6.21 |
4.2 Price Multiples
SWN's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.1 |
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%
5. Dividend
5.1 Amount
No dividends for SWN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.11
-0.04 (-0.56%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%.