SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - NYSE:SWX - US8448951025 - Common Stock
79.84 USD
+1.01 (+1.28%)
79.84 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to SWX. SWX was compared to 14 industry peers in the Gas Utilities industry. SWX may be in some trouble as it scores bad on both profitability and health. SWX is quite expensive at the moment. It does show a decent growth rate.
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 worse Return On Assets (1.59%) than 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 5.27%, SWX is doing worse than 85.71% of the companies in the same industry.
With a Return On Invested Capital value of 3.98%, SWX is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
SWX had an Average Return On Invested Capital over the past 3 years of 3.49%. This is below the industry average of 6.32%.
The 3 year average ROIC (3.49%) for SWX is below the current ROIC(3.98%), indicating increased profibility in the last year.
| 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
SWX has a Profit Margin of 4.06%. This is in the lower half of the industry: SWX underperforms 78.57% of its industry peers.
SWX's Profit Margin has declined in the last couple of years.
SWX has a worse Operating Margin (11.29%) than 85.71% of its industry peers.
SWX's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 86.06%, SWX belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Gross Margin of SWX has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWX is destroying value.
SWX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SWX has been increased compared to 5 years ago.
SWX has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 1.02, SWX is in line with its industry, outperforming 42.86% of the companies in the same industry.
SWX has a debt to FCF ratio of 333.07. This is a negative value and a sign of low solvency as SWX would need 333.07 years to pay back of all of its debts.
SWX has a Debt to FCF ratio (333.07) which 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.
The Debt to Equity ratio of SWX (1.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 333.07 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.6
WACC6.68%
2.3 Liquidity
A Current Ratio of 1.01 indicates that SWX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.01, SWX belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that SWX may have some problems paying its short term obligations.
SWX has a better Quick ratio (0.94) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
SWX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.17%, which is quite impressive.
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 decrease in Revenue. In the last year, the revenue decreased by -5.92%.
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)25.17%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-5.92%
Revenue growth 3Y11.58%
Revenue growth 5Y10.38%
Sales Q2Q%-70.63%
3.2 Future
SWX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.29% yearly.
The Revenue is expected to decrease by -10.39% on average over the next years. This is quite bad
EPS Next Y16.7%
EPS Next 2Y14.86%
EPS Next 3Y14.5%
EPS Next 5Y13.29%
Revenue Next Year-14.82%
Revenue Next 2Y-18.21%
Revenue Next 3Y-5.33%
Revenue Next 5Y-10.39%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.99, which indicates a rather expensive current valuation of SWX.
Based on the Price/Earnings ratio, SWX is valued a bit more expensive than 64.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.83. SWX is around the same levels.
A Price/Forward Earnings ratio of 19.15 indicates a rather expensive valuation of SWX.
SWX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SWX is more expensive than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, SWX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 19.15 |
4.2 Price Multiples
SWX's Enterprise Value to EBITDA is on the same level as the industry average.
SWX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 408.57 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SWX's earnings are expected to grow with 14.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)N/A
EPS Next 2Y14.86%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
SWX has a Yearly Dividend Yield of 3.15%.
Compared to an average industry Dividend Yield of 3.89, SWX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.39, SWX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
The dividend of SWX has a limited annual growth rate of 2.90%.
SWX has paid a dividend for at least 10 years, which is a reliable track record.
SWX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.9%
Div Incr Years0
Div Non Decr Years32
5.3 Sustainability
91.92% of the earnings are spent on dividend by SWX. This is not a sustainable payout ratio.
SWX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP91.92%
EPS Next 2Y14.86%
EPS Next 3Y14.5%
79.84
+1.01 (+1.28%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.59%
Inst Owner Change-0.69%
Ins Owners0.49%
Ins Owner Change2.29%
Market Cap5.75B
Revenue(TTM)5.11B
Net Income(TTM)193.73M
Analysts85
Price Target85.34 (6.89%)
Short Float %1.82%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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)-0.4%
PT rev (3m)4.15%
EPS NQ rev (1m)-15.22%
EPS NQ rev (3m)66.23%
EPS NY rev (1m)0.91%
EPS NY rev (3m)-0.87%
Revenue NQ rev (1m)-22.7%
Revenue NQ rev (3m)-22.7%
Revenue NY rev (1m)-9.8%
Revenue NY rev (3m)-11.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 19.15 | ||
| P/S | 1.21 | ||
| P/FCF | 408.57 | ||
| P/OCF | 6.23 | ||
| P/B | 1.56 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 9.82 |
EPS(TTM)3.63
EY4.55%
EPS(NY)4.17
Fwd EY5.22%
FCF(TTM)0.2
FCFY0.24%
OCF(TTM)12.82
OCFY16.06%
SpS66.22
BVpS51.05
TBVpS40.12
PEG (NY)1.32
PEG (5Y)N/A
Graham Number64.57
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%
ROICexgc growth 3Y8.4%
ROICexgc 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
WACC6.68%
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)25.17%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%-33.33%
EPS Next Y16.7%
EPS Next 2Y14.86%
EPS Next 3Y14.5%
EPS Next 5Y13.29%
Revenue 1Y (TTM)-5.92%
Revenue growth 3Y11.58%
Revenue growth 5Y10.38%
Sales Q2Q%-70.63%
Revenue Next Year-14.82%
Revenue Next 2Y-18.21%
Revenue Next 3Y-5.33%
Revenue Next 5Y-10.39%
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%
SOUTHWEST GAS HOLDINGS INC / SWX FAQ
What is the ChartMill fundamental rating of SOUTHWEST GAS HOLDINGS INC (SWX) stock?
ChartMill assigns a fundamental rating of 3 / 10 to SWX.
What is the valuation status of SOUTHWEST GAS HOLDINGS INC (SWX) stock?
ChartMill assigns a valuation rating of 2 / 10 to SOUTHWEST GAS HOLDINGS INC (SWX). This can be considered as Overvalued.
What is the profitability of SWX stock?
SOUTHWEST GAS HOLDINGS INC (SWX) has a profitability rating of 3 / 10.
What are the PE and PB ratios of SOUTHWEST GAS HOLDINGS INC (SWX) stock?
The Price/Earnings (PE) ratio for SOUTHWEST GAS HOLDINGS INC (SWX) is 21.99 and the Price/Book (PB) ratio is 1.56.
How financially healthy is SOUTHWEST GAS HOLDINGS INC?
The financial health rating of SOUTHWEST GAS HOLDINGS INC (SWX) is 3 / 10.