SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:SWX • US8448951025
82.4 USD
-0.24 (-0.29%)
Last: Jan 30, 2026, 01:05 PM
Taking everything into account, SWX scores 4 out of 10 in our fundamental rating. 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. SWX is quite expensive at the moment. It does show a decent growth rate. SWX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- SWX had positive earnings in the past year.
- In the past year SWX had a positive cash flow from operations.
- SWX had positive earnings in 4 of the past 5 years.
- SWX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of SWX (4.49%) is better than 78.57% of its industry peers.
- The Return On Equity of SWX (11.81%) is better than 64.29% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.42%, SWX is doing worse than 71.43% of the companies in the same industry.
- 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
- SWX's Profit Margin of 11.59% is fine compared to the rest of the industry. SWX outperforms 64.29% of its industry peers.
- SWX's Profit Margin has declined in the last couple of years.
- SWX's Operating Margin of 12.83% is on the low side compared to the rest of the industry. SWX is outperformed by 85.71% of its industry peers.
- 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.
- 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
- SWX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- SWX has more shares outstanding than it did 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
- SWX has an Altman-Z score of 1.30. This is a bad value and indicates that SWX is not financially healthy and even has some risk of bankruptcy.
- SWX's Altman-Z score of 1.30 is fine compared to the rest of the industry. SWX outperforms 71.43% of its industry peers.
- A Debt/Equity ratio of 0.89 indicates that 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 | 1.3 |
ROIC/WACC0.65
WACC6.8%
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.
- 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.
- With an excellent Quick ratio value of 1.43, SWX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| 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.
- SWX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.15%.
- 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
- SWX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.21% yearly.
- SWX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.97% yearly.
EPS Next Y16.03%
EPS Next 2Y15.05%
EPS Next 3Y16.1%
EPS Next 5Y15.21%
Revenue Next Year-30.6%
Revenue Next 2Y-33.63%
Revenue Next 3Y-22.76%
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 22.70 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.
- The average S&P500 Price/Earnings ratio is at 28.39. SWX is valued slightly cheaper when compared to this.
- SWX is valuated rather expensively with a Price/Forward Earnings ratio of 19.70.
- Based on the Price/Forward Earnings ratio, SWX is valued a bit more expensive than 71.43% of the companies in the same industry.
- SWX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.7 | ||
| Fwd PE | 19.7 |
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 | 9.98 |
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)1.42
PEG (5Y)N/A
EPS Next 2Y15.05%
EPS Next 3Y16.1%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.96%, SWX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.95, SWX is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, SWX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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
- 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 2Y15.05%
EPS Next 3Y16.1%
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 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 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%.