SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
NYSE:SWX - New York Stock Exchange, Inc. - US8448951025 - Common Stock - Currency: USD
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. SWX does not seem to be growing, but still is valued expensively.
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.
Of the past 5 years SWX 4 years were profitable.
In the past 5 years SWX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SWX (1.51%) is worse than 78.57% of its industry peers.
With a Return On Equity value of 5.19%, SWX is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
SWX's Return On Invested Capital of 3.21% is on the low side compared to the rest of the industry. SWX is outperformed by 85.71% of its industry peers.
SWX had an Average Return On Invested Capital over the past 3 years of 3.03%. This is below the industry average of 7.81%.
The last Return On Invested Capital (3.21%) for SWX is above the 3 year average (3.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 5.19% | ||
| ROIC | 3.21% |
ROA(3y)0.43%
ROA(5y)1.32%
ROE(3y)1.57%
ROE(5y)4.39%
ROIC(3y)3.03%
ROIC(5y)3.46%
1.3 Margins
SWX has a worse Profit Margin (3.44%) than 71.43% of its industry peers.
SWX's Profit Margin has declined in the last couple of years.
SWX's Operating Margin of 8.46% is on the low side compared to the rest of the industry. SWX is outperformed by 85.71% of its industry peers.
In the last couple of years the Operating Margin of SWX has declined.
SWX has a better Gross Margin (74.49%) than 71.43% of its industry peers.
In the last couple of years the Gross Margin of SWX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.46% | ||
| PM (TTM) | 3.44% | ||
| GM | 74.49% |
OM growth 3Y-11.1%
OM growth 5Y-6.2%
PM growth 3Y-26.67%
PM growth 5Y-15.19%
GM growth 3Y-4.96%
GM growth 5Y-2.07%
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.
Compared to 1 year ago, SWX has more shares outstanding
SWX has more shares outstanding than it did 5 years ago.
SWX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that SWX is in the distress zone and has some risk of bankruptcy.
SWX's Altman-Z score of 1.01 is in line compared to the rest of the industry. SWX outperforms 50.00% of its industry peers.
The Debt to FCF ratio of SWX is 9.27, which is on the high side as it means it would take SWX, 9.27 years of fcf income to pay off all of its debts.
SWX has a Debt to FCF ratio of 9.27. This is amongst the best in the industry. SWX outperforms 92.86% of its industry peers.
SWX has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
SWX's Debt to Equity ratio of 1.46 is on the low side compared to the rest of the industry. SWX is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 9.27 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.49
WACC6.5%
2.3 Liquidity
A Current Ratio of 0.85 indicates that SWX may have some problems paying its short term obligations.
SWX's Current ratio of 0.85 is fine compared to the rest of the industry. SWX outperforms 78.57% of its industry peers.
SWX has a Quick Ratio of 0.85. This is a bad value and indicates that SWX is not financially healthy enough and could expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 0.85, SWX belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for SWX have decreased strongly by -15.20% in the last year.
SWX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.63% yearly.
The Revenue has decreased by -5.06% in the past year.
The Revenue has been growing by 13.54% on average over the past years. This is quite good.
EPS 1Y (TTM)-15.2%
EPS 3Y-6.37%
EPS 5Y-1.63%
EPS Q2Q%-10%
Revenue 1Y (TTM)-5.06%
Revenue growth 3Y18.1%
Revenue growth 5Y13.54%
Sales Q2Q%-7.72%
3.2 Future
Based on estimates for the next years, SWX will show a small growth in Earnings Per Share. The EPS will grow by 6.76% 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 -11.04% on average per year.
EPS Next Y-10.35%
EPS Next 2Y2.89%
EPS Next 3Y6.57%
EPS Next 5Y6.76%
Revenue Next Year-2.96%
Revenue Next 2Y-0.64%
Revenue Next 3Y2.44%
Revenue Next 5Y-11.04%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.42, which means the current valuation is very expensive for SWX.
Based on the Price/Earnings ratio, SWX is valued expensively inside the industry as 85.71% of the companies are valued cheaper.
SWX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.58.
A Price/Forward Earnings ratio of 21.35 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 78.57% of the companies in the same industry.
SWX is valuated cheaply when we compare the Price/Forward Earnings ratio to 95.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.42 | ||
| Fwd PE | 21.35 |
4.2 Price Multiples
SWX's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SWX is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.04 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.89%
EPS Next 3Y6.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.31%, SWX has a reasonable but not impressive dividend return.
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 2.28, SWX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
5.2 History
The dividend of SWX has a limited annual growth rate of 4.90%.
SWX has paid a dividend for at least 10 years, which is 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)4.9%
Div Incr Years17
Div Non Decr Years32
5.3 Sustainability
SWX pays out 99.11% 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.
DP99.11%
EPS Next 2Y2.89%
EPS Next 3Y6.57%
SOUTHWEST GAS HOLDINGS INC
NYSE:SWX (2/5/2025, 7:18:34 PM)
After market: 76.62 0 (0%)76.62
+0.71 (+0.94%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.24%
Inst Owner Change-0.15%
Ins Owners0.47%
Ins Owner Change-2.34%
Market Cap5.50B
Analysts74
Price Target79.56 (3.84%)
Short Float %2.36%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Yearly Dividend2.52
Dividend Growth(5Y)4.9%
DP99.11%
Div Incr Years17
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-38.81%
Min EPS beat(2)-40.99%
Max EPS beat(2)-36.63%
EPS beat(4)1
Avg EPS beat(4)-20.49%
Min EPS beat(4)-40.99%
Max EPS beat(4)0.07%
EPS beat(8)4
Avg EPS beat(8)22.43%
EPS beat(12)4
Avg EPS beat(12)-3.75%
EPS beat(16)6
Avg EPS beat(16)-5.93%
Revenue beat(2)0
Avg Revenue beat(2)-30.86%
Min Revenue beat(2)-57.81%
Max Revenue beat(2)-3.9%
Revenue beat(4)2
Avg Revenue beat(4)-10.96%
Min Revenue beat(4)-57.81%
Max Revenue beat(4)13.33%
Revenue beat(8)6
Avg Revenue beat(8)1.96%
Revenue beat(12)10
Avg Revenue beat(12)3.78%
Revenue beat(16)13
Avg Revenue beat(16)3.03%
PT rev (1m)0.78%
PT rev (3m)3.08%
EPS NQ rev (1m)-6.84%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)-11.98%
Revenue NQ rev (3m)-13.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.42 | ||
| Fwd PE | 21.35 | ||
| P/S | 1.06 | ||
| P/FCF | 10.04 | ||
| P/OCF | 3.75 | ||
| P/B | 1.59 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 10.75 |
EPS(TTM)2.9
EY3.78%
EPS(NY)3.59
Fwd EY4.68%
FCF(TTM)7.63
FCFY9.96%
OCF(TTM)20.42
OCFY26.65%
SpS72.62
BVpS48.17
TBVpS37.19
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.51% | ||
| ROE | 5.19% | ||
| ROCE | 4.33% | ||
| ROIC | 3.21% | ||
| ROICexc | 3.35% | ||
| ROICexgc | 3.62% | ||
| OM | 8.46% | ||
| PM (TTM) | 3.44% | ||
| GM | 74.49% | ||
| FCFM | 10.51% |
ROA(3y)0.43%
ROA(5y)1.32%
ROE(3y)1.57%
ROE(5y)4.39%
ROIC(3y)3.03%
ROIC(5y)3.46%
ROICexc(3y)3.07%
ROICexc(5y)3.52%
ROICexgc(3y)3.54%
ROICexgc(5y)3.92%
ROCE(3y)4.35%
ROCE(5y)4.74%
ROICexcg growth 3Y-4.4%
ROICexcg growth 5Y-3.07%
ROICexc growth 3Y-5.96%
ROICexc growth 5Y-3.67%
OM growth 3Y-11.1%
OM growth 5Y-6.2%
PM growth 3Y-26.67%
PM growth 5Y-15.19%
GM growth 3Y-4.96%
GM growth 5Y-2.07%
F-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 9.27 | ||
| Debt/EBITDA | 5.77 | ||
| Cap/Depr | 211.59% | ||
| Cap/Sales | 17.62% | ||
| Interest Coverage | 1.52 | ||
| Cash Conversion | 167.5% | ||
| Profit Quality | 305.4% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.01 |
F-Score5
WACC6.5%
ROIC/WACC0.49
Cap/Depr(3y)191.15%
Cap/Depr(5y)226.27%
Cap/Sales(3y)17.61%
Cap/Sales(5y)21.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.2%
EPS 3Y-6.37%
EPS 5Y-1.63%
EPS Q2Q%-10%
EPS Next Y-10.35%
EPS Next 2Y2.89%
EPS Next 3Y6.57%
EPS Next 5Y6.76%
Revenue 1Y (TTM)-5.06%
Revenue growth 3Y18.1%
Revenue growth 5Y13.54%
Sales Q2Q%-7.72%
Revenue Next Year-2.96%
Revenue Next 2Y-0.64%
Revenue Next 3Y2.44%
Revenue Next 5Y-11.04%
EBIT growth 1Y-14.93%
EBIT growth 3Y4.99%
EBIT growth 5Y6.5%
EBIT Next Year93.94%
EBIT Next 3Y34.97%
EBIT Next 5Y15.94%
FCF growth 1Y219.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y303.37%
OCF growth 3Y-5.22%
OCF growth 5Y0.16%