SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWX - US8448951025 - Common Stock
79.865 USD
+0.78 (+0.99%)
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. SWX is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Of the past 5 years SWX 4 years were profitable.
Each year in the past 5 years SWX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.49%, SWX is doing good in the industry, outperforming 78.57% of the companies in the same industry.
SWX has a better Return On Equity (11.81%) than 64.29% of its industry peers.
With a Return On Invested Capital value of 4.42%, SWX is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for SWX is below the industry average of 6.25%.
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
The Profit Margin of SWX (11.59%) is better than 64.29% of its industry peers.
SWX's Profit Margin has declined in the last couple of years.
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
SWX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SWX has been increased compared to 1 year ago.
The number of shares outstanding for SWX has been increased compared to 5 years ago.
SWX has a better debt/assets ratio than last year.
2.2 Solvency
SWX has an Altman-Z score of 1.27. This is a bad value and indicates that SWX is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.27, SWX is doing good in 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.
With a decent Debt to Equity ratio value of 0.89, SWX is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC0.66
WACC6.69%
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.
The Current ratio of SWX (1.55) is better than 100.00% of its industry peers.
A Quick Ratio of 1.43 indicates that SWX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.43, SWX belongs to the top 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.
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.
SWX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.15%.
SWX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.38% yearly.
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
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
The Price/Earnings ratio is 22.00, which indicates a rather expensive current valuation of SWX.
SWX's Price/Earnings ratio is a bit more expensive when compared to the industry. SWX is more expensive than 64.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.49. SWX is around the same levels.
SWX is valuated rather expensively with a Price/Forward Earnings ratio of 19.27.
Based on the Price/Forward Earnings ratio, SWX is valued a bit more expensive than 64.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.69. SWX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 19.27 |
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 | 9.68 |
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 14.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)N/A
EPS Next 2Y14.53%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
SWX has a Yearly Dividend Yield of 3.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.83, SWX is paying slightly less dividend.
SWX's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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 2Y14.53%
EPS Next 3Y14.5%
NYSE:SWX (12/8/2025, 3:51:01 PM)
79.865
+0.78 (+0.99%)
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 Change1.93%
Market Cap5.76B
Revenue(TTM)4.00B
Net Income(TTM)463.92M
Analysts85
Price Target87.14 (9.11%)
Short Float %2.85%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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)3.17%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)-2.57%
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)-12.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 19.27 | ||
| P/S | 1.44 | ||
| P/FCF | N/A | ||
| P/OCF | 8.53 | ||
| P/B | 1.47 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 9.68 |
EPS(TTM)3.63
EY4.55%
EPS(NY)4.15
Fwd EY5.19%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)9.36
OCFY11.73%
SpS55.47
BVpS54.43
TBVpS54.27
PEG (NY)1.31
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 | 1.27 |
F-Score7
WACC6.69%
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 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 and the Price/Book (PB) ratio is 1.47.
How financially healthy is SOUTHWEST GAS HOLDINGS INC?
The financial health rating of SOUTHWEST GAS HOLDINGS INC (SWX) is 4 / 10.