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%)
Overall SWN gets a fundamental rating of 3 out of 10. We evaluated SWN against 207 industry peers in the Oil, Gas & Consumable Fuels industry. SWN has a medium profitability rating, but doesn't score so well on its financial health evaluation. SWN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year SWN was profitable.
- SWN had a positive operating cash flow in the past year.
- 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.
1.2 Ratios
- With a Return On Assets value of -27.98%, SWN is not doing good in the industry: 96.17% of the companies in the same industry are doing better.
- 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.
- SWN's Return On Invested Capital of 1.63% is on the low side compared to the rest of the industry. SWN is outperformed by 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 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
- SWN's Profit Margin has improved in the last couple of years.
- The Operating Margin of SWN (2.91%) is worse than 77.99% of its industry peers.
- SWN's Operating Margin has declined in the last couple of years.
- SWN has a better Gross Margin (60.89%) 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SWN is creating value.
- SWN has about the same amout of shares outstanding than it did 1 year ago.
- The debt/assets ratio for SWN has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.85, we must say that SWN is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.85, SWN is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
- SWN has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.01, SWN is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
| 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'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 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%.
- 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
- 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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 14.51, SWN is valued correctly.
- SWN's Price/Earnings ratio is in line with the industry average.
- SWN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, 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.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SWN indicates a somewhat cheap valuation: SWN is cheaper than 79.90% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of SWN to the average of the S&P500 Index (25.83), we can say SWN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 6.21 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.1 |
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%
5. Dividend
5.1 Amount
- SWN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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%.