SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWX - US8448951025 - Common Stock
81.14 USD
+0.29 (+0.36%)
81.14 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. SWX has an average financial health and profitability rating. SWX is valied quite expensively at the moment, while it does show a decent growth rate. Finally SWX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SWX was profitable.
SWX had a positive operating cash flow in the past year.
Of the past 5 years SWX 4 years were profitable.
SWX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SWX's Return On Assets of 4.49% is fine compared to the rest of the industry. SWX outperforms 78.57% of its industry peers.
SWX has a better Return On Equity (11.81%) than 64.29% of its industry peers.
SWX has a Return On Invested Capital of 4.42%. This is in the lower half of the industry: SWX underperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
Looking at the Profit Margin, with a value of 11.59%, SWX is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
SWX's Profit Margin has declined in the last couple of years.
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.
In the last couple of years the Operating Margin of SWX has declined.
SWX has a Gross Margin of 85.13%. This is amongst the best in the industry. SWX outperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Looking at the Altman-Z score, with a value of 1.29, SWX is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
SWX has a Debt/Equity ratio of 0.89. This is a neutral value indicating SWX is somewhat dependend on debt financing.
SWX's Debt to Equity ratio of 0.89 is fine compared to the rest of the industry. SWX outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.66
WACC6.74%
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.
The Quick ratio of SWX (1.43) is better than 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.
The Earnings Per Share has been decreasing by -4.36% on average over the past years.
Looking at the last year, SWX shows a very negative growth in Revenue. The Revenue has decreased by -23.15% in the last year.
The Revenue has been growing by 10.38% on average over the past years. This is quite good.
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
Based on estimates for the next years, SWX will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.21% on average per year.
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
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 22.35 indicates a rather expensive valuation of SWX.
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.
When comparing the Price/Earnings ratio of SWX to the average of the S&P500 Index (27.19), we can say SWX is valued inline with the index average.
The Price/Forward Earnings ratio is 19.43, which indicates a rather expensive current valuation of SWX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWX indicates a slightly more expensive valuation: SWX is more expensive than 71.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, SWX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.35 | ||
| Fwd PE | 19.43 |
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 | 9.85 |
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 16.10% in the coming years.
PEG (NY)1.4
PEG (5Y)N/A
EPS Next 2Y14.97%
EPS Next 3Y16.1%
5. Dividend
5.1 Amount
SWX has a Yearly Dividend Yield of 3.07%.
SWX's Dividend Yield is slightly below the industry average, which is at 3.88.
Compared to an average S&P500 Dividend Yield of 1.92, SWX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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 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
SWX pays out 38.44% of its income as dividend. This is a 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%
81.14
+0.29 (+0.36%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.21%
Inst Owner Change0.01%
Ins Owners0.49%
Ins Owner Change2.5%
Market Cap5.86B
Revenue(TTM)4.00B
Net Income(TTM)463.92M
Analysts85
Price Target91.22 (12.42%)
Short Float %2.32%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)4.68%
PT rev (3m)6.46%
EPS NQ rev (1m)-2.8%
EPS NQ rev (3m)5.98%
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 | 22.35 | ||
| Fwd PE | 19.43 | ||
| P/S | 1.46 | ||
| P/FCF | N/A | ||
| P/OCF | 8.66 | ||
| P/B | 1.49 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 9.85 |
EPS(TTM)3.63
EY4.47%
EPS(NY)4.18
Fwd EY5.15%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)9.36
OCFY11.54%
SpS55.47
BVpS54.43
TBVpS54.27
PEG (NY)1.4
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
WACC6.74%
ROIC/WACC0.66
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%.