SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWX - US8448951025 - Common Stock
81.73 USD
+1.65 (+2.06%)
81.73 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SWX. SWX was compared to 14 industry peers in the Gas Utilities industry. SWX has only an average score on both its financial health and profitability. While showing a medium growth rate, SWX is valued expensive at the moment. SWX also has an excellent dividend rating.
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
The Return On Assets of SWX (4.49%) is better than 78.57% of its industry peers.
SWX has a better Return On Equity (11.81%) than 64.29% of its industry peers.
SWX's Return On Invested Capital of 4.42% is on the low side compared to the rest of the industry. SWX is outperformed by 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SWX is below the industry average of 6.25%.
The last Return On Invested Capital (4.42%) for SWX is above the 3 year average (3.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.49% | ||
| ROE | 11.81% | ||
| ROIC | 4.42% |
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 (11.59%) is better than 64.29% of its industry peers.
In the last couple of years the Profit Margin of SWX has declined.
With a Operating Margin value of 12.83%, SWX is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
SWX's Operating Margin has declined in the last couple of years.
SWX has a better Gross Margin (85.13%) than 92.86% of its industry peers.
SWX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.83% | ||
| PM (TTM) | 11.59% | ||
| GM | 85.13% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWX is destroying value.
The number of shares outstanding for SWX has been increased compared to 1 year ago.
Compared to 5 years ago, SWX has more shares outstanding
SWX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that SWX is in the distress zone and has some risk of bankruptcy.
SWX's Altman-Z score of 1.29 is fine compared to the rest of the industry. SWX outperforms 71.43% of its industry peers.
SWX has a Debt/Equity ratio of 0.89. This is a neutral value indicating SWX is somewhat dependend on debt financing.
SWX has a better Debt to Equity ratio (0.89) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.65
WACC6.75%
2.3 Liquidity
A Current Ratio of 1.55 indicates that SWX should not have too much problems paying its short term obligations.
SWX has a better Current ratio (1.55) than 100.00% of its industry peers.
SWX has a Quick Ratio of 1.43. This is a normal value and indicates that SWX is financially healthy and should not expect problems in meeting its short term obligations.
SWX has a Quick ratio of 1.43. This is amongst the best in the industry. SWX outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.17% over the past year.
Measured over the past years, SWX shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.36% on average per year.
The Revenue for SWX has decreased by -23.15% in the past year. This is quite bad
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)-23.15%
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 Y16.78%
EPS Next 2Y14.53%
EPS Next 3Y14.5%
EPS Next 5Y13.29%
Revenue Next Year-15.09%
Revenue Next 2Y-18.44%
Revenue Next 3Y-5.33%
Revenue Next 5Y-10.39%
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
SWX is valuated rather expensively with a Price/Earnings ratio of 22.52.
SWX's Price/Earnings ratio is a bit more expensive when compared to the industry. SWX is more expensive than 71.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.55. SWX is around the same levels.
SWX is valuated rather expensively with a Price/Forward Earnings ratio of 19.72.
71.43% of the companies in the same industry are cheaper than SWX, based on the Price/Forward Earnings ratio.
SWX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 19.72 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SWX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.9 |
4.3 Compensation for Growth
SWX's 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 14.50% in the coming years.
PEG (NY)1.34
PEG (5Y)N/A
EPS Next 2Y14.53%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
SWX has a Yearly Dividend Yield of 3.10%.
SWX's Dividend Yield is slightly below the industry average, which is at 3.84.
SWX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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 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
38.44% of the earnings are spent on dividend by SWX. This is a low number and sustainable payout ratio.
SWX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.44%
EPS Next 2Y14.53%
EPS Next 3Y14.5%
81.73
+1.65 (+2.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.13%
Inst Owner Change-0.6%
Ins Owners0.48%
Ins Owner Change1.92%
Market Cap5.90B
Revenue(TTM)4.00B
Net Income(TTM)463.92M
Analysts85
Price Target87.14 (6.62%)
Short Float %2.85%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Yearly Dividend2.48
Dividend Growth(5Y)2.9%
DP38.44%
Div Incr Years0
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.82%
Min EPS beat(2)20.4%
Max EPS beat(2)21.24%
EPS beat(4)4
Avg EPS beat(4)15.71%
Min EPS beat(4)8.85%
Max EPS beat(4)21.24%
EPS beat(8)5
Avg EPS beat(8)-2.39%
EPS beat(12)8
Avg EPS beat(12)20.19%
EPS beat(16)8
Avg EPS beat(16)1.11%
Revenue beat(2)0
Avg Revenue beat(2)-35.72%
Min Revenue beat(2)-66.15%
Max Revenue beat(2)-5.29%
Revenue beat(4)0
Avg Revenue beat(4)-23.06%
Min Revenue beat(4)-66.15%
Max Revenue beat(4)-5.29%
Revenue beat(8)2
Avg Revenue beat(8)-17.01%
Revenue beat(12)6
Avg Revenue beat(12)-6.38%
Revenue beat(16)10
Avg Revenue beat(16)-2.93%
PT rev (1m)2.11%
PT rev (3m)1.7%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)9.03%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-25.55%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-11.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 19.72 | ||
| P/S | 1.47 | ||
| P/FCF | N/A | ||
| P/OCF | 8.73 | ||
| P/B | 1.5 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 9.9 |
EPS(TTM)3.63
EY4.44%
EPS(NY)4.15
Fwd EY5.07%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)9.36
OCFY11.46%
SpS55.47
BVpS54.43
TBVpS54.27
PEG (NY)1.34
PEG (5Y)N/A
Graham Number66.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.49% | ||
| ROE | 11.81% | ||
| ROCE | 5.4% | ||
| ROIC | 4.42% | ||
| ROICexc | 4.81% | ||
| ROICexgc | 4.82% | ||
| OM | 12.83% | ||
| PM (TTM) | 11.59% | ||
| GM | 85.13% | ||
| FCFM | N/A |
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-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.02 | ||
| Cap/Depr | 225.54% | ||
| Cap/Sales | 20.14% | ||
| Interest Coverage | 1.93 | ||
| Cash Conversion | 77.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 1.29 |
F-Score7
WACC6.75%
ROIC/WACC0.65
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 Y16.78%
EPS Next 2Y14.53%
EPS Next 3Y14.5%
EPS Next 5Y13.29%
Revenue 1Y (TTM)-23.15%
Revenue growth 3Y11.58%
Revenue growth 5Y10.38%
Sales Q2Q%-70.63%
Revenue Next Year-15.09%
Revenue Next 2Y-18.44%
Revenue Next 3Y-5.33%
Revenue Next 5Y-10.39%
EBIT growth 1Y16.52%
EBIT growth 3Y9.39%
EBIT growth 5Y5.41%
EBIT Next Year110.64%
EBIT Next 3Y35.1%
EBIT Next 5Y16.69%
FCF growth 1Y78.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y123.43%
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 4 / 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 5 / 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 22.52 and the Price/Book (PB) ratio is 1.5.
How financially healthy is SOUTHWEST GAS HOLDINGS INC?
The financial health rating of SOUTHWEST GAS HOLDINGS INC (SWX) is 4 / 10.