SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - NYSE:SWX - US8448951025 - Common Stock
78.54 USD
-0.56 (-0.71%)
78.54 USD
0 (0%)
Overall SWX gets a fundamental rating of 3 out of 10. We evaluated SWX against 14 industry peers in the Gas Utilities industry. SWX may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, SWX is valued expensive at the moment.
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 1.59% is on the low side compared to the rest of the industry. SWX is outperformed by 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 5.27%, SWX is doing worse than 85.71% of the companies in the same industry.
SWX has a worse Return On Invested Capital (3.98%) than 85.71% of its industry peers.
SWX had an Average Return On Invested Capital over the past 3 years of 3.49%. This is below the industry average of 6.32%.
The 3 year average ROIC (3.49%) for SWX is below the current ROIC(3.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.27% | ||
| ROIC | 3.98% |
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 has a worse Profit Margin (4.06%) than 78.57% of its industry peers.
In the last couple of years the Profit Margin of SWX has declined.
With a Operating Margin value of 11.29%, 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 Gross Margin of 86.06%. 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 | 11.29% | ||
| PM (TTM) | 4.06% | ||
| GM | 86.06% |
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.
Compared to 1 year ago, SWX has more shares outstanding
Compared to 5 years ago, SWX has more shares outstanding
Compared to 1 year ago, SWX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that SWX is in the distress zone and has some risk of bankruptcy.
SWX has a Altman-Z score (1.02) which is comparable to the rest of the industry.
SWX has a debt to FCF ratio of 333.07. This is a negative value and a sign of low solvency as SWX would need 333.07 years to pay back of all of its debts.
SWX's Debt to FCF ratio of 333.07 is in line compared to the rest of the industry. SWX outperforms 50.00% of its industry peers.
SWX has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
SWX has a Debt to Equity ratio (1.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 333.07 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.6
WACC6.63%
2.3 Liquidity
SWX has a Current Ratio of 1.01. 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 Current ratio of 1.01 is amongst the best of the industry. SWX outperforms 85.71% of its industry peers.
A Quick Ratio of 0.94 indicates that SWX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.94, SWX belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.77% 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.
The Revenue for SWX has decreased by -10.07% in the past year. This is quite bad
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)25.77%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%70.97%
Revenue 1Y (TTM)-10.07%
Revenue growth 3Y11.58%
Revenue growth 5Y10.38%
Sales Q2Q%119.64%
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 8.85% on average per year.
Based on estimates for the next years, SWX will show a very negative growth in Revenue. The Revenue will decrease by -10.55% on average per year.
EPS Next Y17.28%
EPS Next 2Y15.05%
EPS Next 3Y14.75%
EPS Next 5Y8.85%
Revenue Next Year-2.68%
Revenue Next 2Y0.39%
Revenue Next 3Y1.29%
Revenue Next 5Y-10.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 21.46, which indicates a rather expensive current valuation of SWX.
Compared to the rest of the industry, the Price/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.
The average S&P500 Price/Earnings ratio is at 27.30. SWX is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.78, 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 78.57% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. SWX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 18.78 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SWX.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SWX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 401.91 | ||
| EV/EBITDA | 9.84 |
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 14.75% in the coming years.
PEG (NY)1.24
PEG (5Y)N/A
EPS Next 2Y15.05%
EPS Next 3Y14.75%
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.
SWX's Dividend Yield is slightly below the industry average, which is at 3.96.
Compared to an average S&P500 Dividend Yield of 2.45, SWX pays a bit more dividend than the S&P500 average.
| 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 91.92% of its income as dividend. This is not a sustainable payout ratio.
SWX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP91.92%
EPS Next 2Y15.05%
EPS Next 3Y14.75%
78.54
-0.56 (-0.71%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners92.6%
Inst Owner Change2.33%
Ins Owners0.45%
Ins Owner Change-0.51%
Market Cap5.65B
Analysts85.45
Price Target85.68 (9.09%)
Short Float %2.88%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Yearly Dividend2.48
Dividend Growth(5Y)2.9%
DP91.92%
Div Incr Years0
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.63%
Min EPS beat(2)8.85%
Max EPS beat(2)20.4%
EPS beat(4)3
Avg EPS beat(4)0.15%
Min EPS beat(4)-40.99%
Max EPS beat(4)20.4%
EPS beat(8)5
Avg EPS beat(8)12.19%
EPS beat(12)7
Avg EPS beat(12)8.55%
EPS beat(16)7
Avg EPS beat(16)-4.11%
Revenue beat(2)0
Avg Revenue beat(2)-9.75%
Min Revenue beat(2)-14.2%
Max Revenue beat(2)-5.29%
Revenue beat(4)0
Avg Revenue beat(4)-7.5%
Min Revenue beat(4)-14.2%
Max Revenue beat(4)-3.9%
Revenue beat(8)3
Avg Revenue beat(8)-7.84%
Revenue beat(12)7
Avg Revenue beat(12)-0.49%
Revenue beat(16)11
Avg Revenue beat(16)1.53%
PT rev (1m)3.07%
PT rev (3m)6.15%
EPS NQ rev (1m)-50.25%
EPS NQ rev (3m)5051.52%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.92%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 18.78 | ||
| P/S | 1.19 | ||
| P/FCF | 401.91 | ||
| P/OCF | 6.12 | ||
| P/B | 1.54 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 9.84 |
EPS(TTM)3.66
EY4.66%
EPS(NY)4.18
Fwd EY5.33%
FCF(TTM)0.2
FCFY0.25%
OCF(TTM)12.82
OCFY16.33%
SpS66.22
BVpS51.05
TBVpS40.12
PEG (NY)1.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.27% | ||
| ROCE | 4.98% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.12% | ||
| ROICexgc | 4.44% | ||
| OM | 11.29% | ||
| PM (TTM) | 4.06% | ||
| GM | 86.06% | ||
| FCFM | 0.3% |
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%
ROICexcg growth 3Y8.4%
ROICexcg 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-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 333.07 | ||
| Debt/EBITDA | 4.69 | ||
| Cap/Depr | 200.1% | ||
| Cap/Sales | 19.07% | ||
| Interest Coverage | 1.94 | ||
| Cash Conversion | 93% | ||
| Profit Quality | 7.26% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 1.02 |
F-Score6
WACC6.63%
ROIC/WACC0.6
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)25.77%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%70.97%
EPS Next Y17.28%
EPS Next 2Y15.05%
EPS Next 3Y14.75%
EPS Next 5Y8.85%
Revenue 1Y (TTM)-10.07%
Revenue growth 3Y11.58%
Revenue growth 5Y10.38%
Sales Q2Q%119.64%
Revenue Next Year-2.68%
Revenue Next 2Y0.39%
Revenue Next 3Y1.29%
Revenue Next 5Y-10.55%
EBIT growth 1Y22.42%
EBIT growth 3Y9.39%
EBIT growth 5Y5.41%
EBIT Next Year116.53%
EBIT Next 3Y31.56%
EBIT Next 5Y16.69%
FCF growth 1Y101.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y491.63%
OCF growth 3Y130.03%
OCF growth 5Y22.06%