SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - NYSE:SWX - US8448951025 - Common Stock
77.07 USD
-1.58 (-2.01%)
Overall SWX gets a fundamental rating of 3 out of 10. We evaluated SWX against 14 industry peers in the Gas Utilities industry. SWX has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, SWX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SWX was profitable.
In the past year SWX had a positive cash flow from operations.
SWX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SWX had a positive operating cash flow.
1.2 Ratios
SWX has a Return On Assets of 1.59%. This is amonst the worse of the industry: SWX underperforms 85.71% of its industry peers.
With a Return On Equity value of 5.27%, SWX is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
SWX's Return On Invested Capital of 3.98% is on the low side compared to the rest of the industry. SWX is outperformed by 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWX is below the industry average of 6.32%.
The last Return On Invested Capital (3.98%) for SWX is above the 3 year average (3.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.27% | ||
| ROIC | 3.98% |
ROA(3y)0.46%
ROA(5y)1.12%
ROE(3y)1.2%
ROE(5y)3.81%
ROIC(3y)3.49%
ROIC(5y)3.49%
1.3 Margins
The Profit Margin of SWX (4.06%) is worse than 78.57% of its industry peers.
SWX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.29%, SWX is doing worse than 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of SWX has declined.
Looking at the Gross Margin, with a value of 86.06%, SWX belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
SWX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.29% | ||
| PM (TTM) | 4.06% | ||
| GM | 86.06% |
OM growth 3Y-1.96%
OM growth 5Y-4.51%
PM growth 3Y-10.67%
PM growth 5Y-10.72%
GM growth 3Y-4.25%
GM growth 5Y-2.43%
2. Health
2.1 Basic Checks
SWX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SWX has been increased compared to 1 year ago.
The number of shares outstanding for SWX has been increased compared to 5 years ago.
Compared to 1 year ago, SWX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that SWX is in the distress zone and has some risk of bankruptcy.
SWX has a Altman-Z score (1.02) which is in line with its industry peers.
The Debt to FCF ratio of SWX is 333.07, which is on the high side as it means it would take SWX, 333.07 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SWX (333.07) is comparable to the rest of the industry.
SWX has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
SWX has a Debt to Equity ratio of 1.27. This is comparable to the rest of the industry: SWX outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 333.07 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.6
WACC6.63%
2.3 Liquidity
A Current Ratio of 1.01 indicates that SWX should not have too much problems paying its short term obligations.
The Current ratio of SWX (1.01) is better than 85.71% of its industry peers.
A Quick Ratio of 0.94 indicates that SWX may have some problems paying its short term obligations.
SWX's Quick ratio of 0.94 is amongst the best of the industry. SWX outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.77% over the past year.
SWX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.36% yearly.
SWX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.07%.
Measured over the past years, SWX shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.
EPS 1Y (TTM)25.77%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%70.97%
Revenue 1Y (TTM)-10.07%
Revenue growth 3Y11.58%
Revenue growth 5Y10.38%
Sales Q2Q%119.64%
3.2 Future
Based on estimates for the next years, SWX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.85% on average per year.
Based on estimates for the next years, SWX will show a very negative growth in Revenue. The Revenue will decrease by -10.55% on average per year.
EPS Next Y15.61%
EPS Next 2Y15.01%
EPS Next 3Y15.39%
EPS Next 5Y8.85%
Revenue Next Year-3.71%
Revenue Next 2Y-6.83%
Revenue Next 3Y1.29%
Revenue Next 5Y-10.55%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.06 indicates a rather expensive valuation of SWX.
Based on the Price/Earnings ratio, SWX is valued a bit more expensive than 71.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.02. SWX is valued slightly cheaper when compared to this.
SWX is valuated rather expensively with a Price/Forward Earnings ratio of 18.44.
Based on the Price/Forward Earnings ratio, SWX is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
SWX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.06 | ||
| Fwd PE | 18.44 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SWX.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SWX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 394.39 | ||
| EV/EBITDA | 9.8 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as SWX's earnings are expected to grow with 15.39% in the coming years.
PEG (NY)1.35
PEG (5Y)N/A
EPS Next 2Y15.01%
EPS Next 3Y15.39%
5. Dividend
5.1 Amount
SWX has a Yearly Dividend Yield of 3.13%.
Compared to an average industry Dividend Yield of 3.87, SWX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, SWX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of SWX has a limited annual growth rate of 2.90%.
SWX has been paying a dividend for at least 10 years, so it has a reliable track record.
SWX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.9%
Div Incr Years0
Div Non Decr Years32
5.3 Sustainability
SWX pays out 91.92% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SWX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP91.92%
EPS Next 2Y15.01%
EPS Next 3Y15.39%
NYSE:SWX (10/13/2025, 3:28:48 PM)
77.07
-1.58 (-2.01%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.59%
Inst Owner Change-0.01%
Ins Owners0.49%
Ins Owner Change2.42%
Market Cap5.55B
Analysts85.45
Price Target85.68 (11.17%)
Short Float %1.8%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend2.48
Dividend Growth(5Y)2.9%
DP91.92%
Div Incr Years0
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.63%
Min EPS beat(2)8.85%
Max EPS beat(2)20.4%
EPS beat(4)3
Avg EPS beat(4)0.15%
Min EPS beat(4)-40.99%
Max EPS beat(4)20.4%
EPS beat(8)5
Avg EPS beat(8)12.19%
EPS beat(12)7
Avg EPS beat(12)8.55%
EPS beat(16)7
Avg EPS beat(16)-4.11%
Revenue beat(2)0
Avg Revenue beat(2)-9.75%
Min Revenue beat(2)-14.2%
Max Revenue beat(2)-5.29%
Revenue beat(4)0
Avg Revenue beat(4)-7.5%
Min Revenue beat(4)-14.2%
Max Revenue beat(4)-3.9%
Revenue beat(8)3
Avg Revenue beat(8)-7.84%
Revenue beat(12)7
Avg Revenue beat(12)-0.49%
Revenue beat(16)11
Avg Revenue beat(16)1.53%
PT rev (1m)1.45%
PT rev (3m)6.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)78.67%
EPS NY rev (1m)-1.42%
EPS NY rev (3m)-1.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.06 | ||
| Fwd PE | 18.44 | ||
| P/S | 1.16 | ||
| P/FCF | 394.39 | ||
| P/OCF | 6.01 | ||
| P/B | 1.51 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 9.8 |
EPS(TTM)3.66
EY4.75%
EPS(NY)4.18
Fwd EY5.42%
FCF(TTM)0.2
FCFY0.25%
OCF(TTM)12.82
OCFY16.64%
SpS66.22
BVpS51.05
TBVpS40.12
PEG (NY)1.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.27% | ||
| ROCE | 4.98% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.12% | ||
| ROICexgc | 4.44% | ||
| OM | 11.29% | ||
| PM (TTM) | 4.06% | ||
| GM | 86.06% | ||
| FCFM | 0.3% |
ROA(3y)0.46%
ROA(5y)1.12%
ROE(3y)1.2%
ROE(5y)3.81%
ROIC(3y)3.49%
ROIC(5y)3.49%
ROICexc(3y)3.55%
ROICexc(5y)3.57%
ROICexgc(3y)3.98%
ROICexgc(5y)4.01%
ROCE(3y)4.65%
ROCE(5y)4.64%
ROICexcg growth 3Y8.4%
ROICexcg growth 5Y-1.3%
ROICexc growth 3Y12.21%
ROICexc growth 5Y-2.13%
OM growth 3Y-1.96%
OM growth 5Y-4.51%
PM growth 3Y-10.67%
PM growth 5Y-10.72%
GM growth 3Y-4.25%
GM growth 5Y-2.43%
F-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 333.07 | ||
| Debt/EBITDA | 4.69 | ||
| Cap/Depr | 200.1% | ||
| Cap/Sales | 19.07% | ||
| Interest Coverage | 1.94 | ||
| Cash Conversion | 93% | ||
| Profit Quality | 7.26% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 1.02 |
F-Score6
WACC6.63%
ROIC/WACC0.6
Cap/Depr(3y)198.77%
Cap/Depr(5y)207.54%
Cap/Sales(3y)17.3%
Cap/Sales(5y)19.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.77%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%70.97%
EPS Next Y15.61%
EPS Next 2Y15.01%
EPS Next 3Y15.39%
EPS Next 5Y8.85%
Revenue 1Y (TTM)-10.07%
Revenue growth 3Y11.58%
Revenue growth 5Y10.38%
Sales Q2Q%119.64%
Revenue Next Year-3.71%
Revenue Next 2Y-6.83%
Revenue Next 3Y1.29%
Revenue Next 5Y-10.55%
EBIT growth 1Y22.42%
EBIT growth 3Y9.39%
EBIT growth 5Y5.41%
EBIT Next Year120.99%
EBIT Next 3Y35.1%
EBIT Next 5Y16.69%
FCF growth 1Y101.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y491.63%
OCF growth 3Y130.03%
OCF growth 5Y22.06%