SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWX - US8448951025 - Common Stock
86.27 USD
+0.37 (+0.43%)
86.27 USD
0 (0%)
Overall SWX gets a fundamental rating of 4 out of 10. We evaluated SWX against 14 industry peers in the Gas Utilities industry. Both the profitability and the financial health of SWX get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, SWX is valued expensive at the moment. Finally SWX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- SWX had positive earnings in the past year.
- SWX had a positive operating cash flow in the past year.
- SWX had positive earnings in 4 of the past 5 years.
- In the past 5 years SWX always reported a positive cash flow from operatings.
1.2 Ratios
- SWX has a Return On Assets of 4.49%. This is in the better half of the industry: SWX outperforms 78.57% of its industry peers.
- SWX has a Return On Equity of 11.81%. This is in the better half of the industry: SWX outperforms 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 6.27%.
- The 3 year average ROIC (3.49%) for SWX is below the current ROIC(4.42%), indicating increased profibility in the last year.
| 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
- With a decent Profit Margin value of 11.59%, SWX is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- In the last couple of years the Profit Margin of SWX has declined.
- Looking at the Operating Margin, with a value of 12.83%, SWX is doing worse than 85.71% of the companies in the same industry.
- SWX's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 85.13%, 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 | 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.
- 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 1.32, we must say that SWX is in the distress zone and has some risk of bankruptcy.
- SWX has a Altman-Z score of 1.32. This is in the better half 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.
- The Debt to Equity ratio of SWX (0.89) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.65
WACC6.84%
2.3 Liquidity
- SWX has a Current Ratio of 1.55. This is a normal value and indicates that SWX is financially healthy and should not expect problems in meeting its short term obligations.
- With an excellent Current ratio value of 1.55, SWX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- 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's Quick ratio of 1.43 is amongst the best of 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.
- SWX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.36% yearly.
- Looking at the last year, SWX shows a very negative growth in Revenue. The Revenue has decreased by -23.15% in the last year.
- 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
- The Earnings Per Share is expected to grow by 15.21% on average over the next years. This is quite good.
- Based on estimates for the next years, SWX will show a decrease in Revenue. The Revenue will decrease by -9.97% on average per year.
EPS Next Y15.95%
EPS Next 2Y14.97%
EPS Next 3Y16.1%
EPS Next 5Y15.21%
Revenue Next Year-21.43%
Revenue Next 2Y-25.94%
Revenue Next 3Y-13.47%
Revenue Next 5Y-9.97%
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
- With a Price/Earnings ratio of 23.77, SWX is valued on the expensive side.
- SWX's Price/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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- SWX is valuated rather expensively with a Price/Forward Earnings ratio of 20.65.
- 85.71% 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 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 20.65 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.28 |
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 16.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)N/A
EPS Next 2Y14.97%
EPS Next 3Y16.1%
5. Dividend
5.1 Amount
- SWX has a Yearly Dividend Yield of 2.89%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.79, SWX is paying slightly less dividend.
- SWX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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 2Y14.97%
EPS Next 3Y16.1%
86.27
+0.37 (+0.43%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-24 2026-02-24/amc
Inst Owners86.21%
Inst Owner Change-0.02%
Ins Owners0.49%
Ins Owner Change0.94%
Market Cap6.23B
Revenue(TTM)4.00B
Net Income(TTM)463.92M
Analysts85
Price Target91.22 (5.74%)
Short Float %2.32%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend2.48
Dividend Growth(5Y)2.9%
DP38.44%
Div Incr Years0
Div Non Decr Years32
Ex-Date02-17 2026-02-17 (0.62)
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)4.68%
PT rev (3m)6.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.11%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-25.55%
Revenue NY rev (1m)-7.46%
Revenue NY rev (3m)-18.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 20.65 | ||
| P/S | 1.56 | ||
| P/FCF | N/A | ||
| P/OCF | 9.21 | ||
| P/B | 1.59 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 10.28 |
EPS(TTM)3.63
EY4.21%
EPS(NY)4.18
Fwd EY4.84%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)9.36
OCFY10.86%
SpS55.47
BVpS54.43
TBVpS54.27
PEG (NY)1.49
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 | 1.32 |
F-Score7
WACC6.84%
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 Y15.95%
EPS Next 2Y14.97%
EPS Next 3Y16.1%
EPS Next 5Y15.21%
Revenue 1Y (TTM)-23.15%
Revenue growth 3Y11.58%
Revenue growth 5Y10.38%
Sales Q2Q%-70.63%
Revenue Next Year-21.43%
Revenue Next 2Y-25.94%
Revenue Next 3Y-13.47%
Revenue Next 5Y-9.97%
EBIT growth 1Y16.52%
EBIT growth 3Y9.39%
EBIT growth 5Y5.41%
EBIT Next Year104.96%
EBIT Next 3Y30.85%
EBIT Next 5Y21.45%
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 for SWX stock?
ChartMill assigns a valuation rating of 1 / 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 is the financial health of SOUTHWEST GAS HOLDINGS INC (SWX) stock?
The financial health rating of SOUTHWEST GAS HOLDINGS INC (SWX) is 4 / 10.
Is the dividend of SOUTHWEST GAS HOLDINGS INC sustainable?
The dividend rating of SOUTHWEST GAS HOLDINGS INC (SWX) is 7 / 10 and the dividend payout ratio is 38.44%.