SOUTHWEST GAS HOLDINGS INC (SWX) Fundamental Analysis & Valuation

NYSE:SWX • US8448951025

Current stock price

93.33 USD
+1.43 (+1.56%)
Last:

This SWX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. SWX Profitability Analysis

1.1 Basic Checks

  • In the past year SWX was profitable.
  • SWX had a positive operating cash flow in the past year.
  • 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.
SWX Yearly Net Income VS EBIT VS OCF VS FCFSWX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.22%, SWX is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
  • SWX has a better Return On Equity (11.10%) than 66.67% of its industry peers.
  • SWX has a Return On Invested Capital of 4.09%. This is amonst the worse of the industry: SWX underperforms 80.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SWX is below the industry average of 6.19%.
  • The last Return On Invested Capital (4.09%) for SWX is above the 3 year average (3.18%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.22%
ROE 11.1%
ROIC 4.09%
ROA(3y)2.38%
ROA(5y)1.43%
ROE(3y)7.11%
ROE(5y)4.3%
ROIC(3y)3.18%
ROIC(5y)3.01%
SWX Yearly ROA, ROE, ROICSWX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10

1.3 Margins

  • SWX has a Profit Margin of 13.68%. This is in the better half of the industry: SWX outperforms 73.33% of its industry peers.
  • SWX's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 15.29%, SWX is doing worse than 80.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SWX has grown nicely.
  • SWX has a Gross Margin of 84.52%. This is amongst the best in the industry. SWX outperforms 93.33% of its industry peers.
  • In the last couple of years the Gross Margin of SWX has declined.
Industry RankSector Rank
OM 15.29%
PM (TTM) 13.68%
GM 84.52%
OM growth 3Y41.12%
OM growth 5Y13.75%
PM growth 3YN/A
PM growth 5Y26.34%
GM growth 3Y-3.94%
GM growth 5Y-3.66%
SWX Yearly Profit, Operating, Gross MarginsSWX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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4

2. SWX Health Analysis

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.
  • Compared to 5 years ago, SWX has more shares outstanding
  • SWX has a better debt/assets ratio than last year.
SWX Yearly Shares OutstandingSWX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
SWX Yearly Total Debt VS Total AssetsSWX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • SWX has an Altman-Z score of 1.25. 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 1.25 is fine compared to the rest of the industry. SWX outperforms 66.67% of its industry peers.
  • SWX has a Debt/Equity ratio of 0.87. This is a neutral value indicating SWX is somewhat dependend on debt financing.
  • SWX's Debt to Equity ratio of 0.87 is fine compared to the rest of the industry. SWX outperforms 80.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF N/A
Altman-Z 1.25
ROIC/WACC0.54
WACC7.55%
SWX Yearly LT Debt VS Equity VS FCFSWX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

2.3 Liquidity

  • SWX has a Current Ratio of 1.28. 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 1.28 is amongst the best of the industry. SWX outperforms 100.00% of its industry peers.
  • A Quick Ratio of 1.18 indicates that SWX should not have too much problems paying its short term obligations.
  • The Quick ratio of SWX (1.18) is better than 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.28
Quick Ratio 1.18
SWX Yearly Current Assets VS Current LiabilitesSWX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. SWX Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 13.92% 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.
  • The Revenue for SWX has decreased by -37.12% in the past year. This is quite bad
  • Measured over the past years, SWX shows a decrease in Revenue. The Revenue has been decreasing by -4.52% on average per year.
EPS 1Y (TTM)13.92%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%-2.16%
Revenue 1Y (TTM)-37.12%
Revenue growth 3Y-12.39%
Revenue growth 5Y-4.52%
Sales Q2Q%-62.15%

3.2 Future

  • The Earnings Per Share is expected to grow by 15.80% on average over the next years. This is quite good.
  • Based on estimates for the next years, SWX will show a very negative growth in Revenue. The Revenue will decrease by -10.16% on average per year.
EPS Next Y16.03%
EPS Next 2Y15.63%
EPS Next 3Y16.78%
EPS Next 5Y15.8%
Revenue Next Year-30.6%
Revenue Next 2Y-33.86%
Revenue Next 3Y-23.43%
Revenue Next 5Y-10.16%

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.
  • 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.
SWX Yearly Revenue VS EstimatesSWX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B 5B
SWX Yearly EPS VS EstimatesSWX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

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2

4. SWX Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.92, which means the current valuation is very expensive for SWX.
  • Compared to the rest of the industry, the Price/Earnings ratio of SWX indicates a rather expensive valuation: SWX more expensive than 86.67% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.54. SWX is around the same levels.
  • Based on the Price/Forward Earnings ratio of 22.09, the valuation of SWX can be described as rather expensive.
  • SWX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SWX is more expensive than 73.33% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of SWX to the average of the S&P500 Index (21.68), we can say SWX is valued inline with the index average.
Industry RankSector Rank
PE 25.92
Fwd PE 22.09
SWX Price Earnings VS Forward Price EarningsSWX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as SWX.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.65
SWX Per share dataSWX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

4.3 Compensation for Growth

  • SWX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • SWX has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as SWX's earnings are expected to grow with 16.78% in the coming years.
PEG (NY)1.62
PEG (5Y)N/A
EPS Next 2Y15.63%
EPS Next 3Y16.78%

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6

5. SWX Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.85%, SWX has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 3.69, SWX is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.82, SWX pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.85%

5.2 History

  • The dividend of SWX has a limited annual growth rate of 2.08%.
  • SWX has been paying a dividend for at least 10 years, so it has 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)2.08%
Div Incr Years0
Div Non Decr Years33
SWX Yearly Dividends per shareSWX Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 40.59% of the earnings are spent on dividend by SWX. This is a bit on the high side, but may be sustainable.
  • The dividend of SWX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.59%
EPS Next 2Y15.63%
EPS Next 3Y16.78%
SWX Yearly Income VS Free CF VS DividendSWX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M -400M -600M
SWX Dividend Payout.SWX Dividend Payout, showing the Payout Ratio.SWX Dividend Payout.PayoutRetained Earnings

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SWX Fundamentals: All Metrics, Ratios and Statistics

SOUTHWEST GAS HOLDINGS INC

NYSE:SWX (4/30/2026, 10:24:45 AM)

93.33

+1.43 (+1.56%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Industry Strength61.49
Industry Growth56.52
Earnings (Last)02-25
Earnings (Next)05-12
Inst Owners90.31%
Inst Owner Change-0.21%
Ins Owners0.35%
Ins Owner Change6.58%
Market Cap6.75B
Revenue(TTM)3.21B
Net Income(TTM)439.83M
Analysts88.33
Price Target94.28 (1.02%)
Short Float %1.9%
Short Ratio2.56
Dividend
Industry RankSector Rank
Dividend Yield 2.85%
Yearly Dividend2.48
Dividend Growth(5Y)2.08%
DP40.59%
Div Incr Years0
Div Non Decr Years33
Ex-Date05-15
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.89%
Min EPS beat(2)0.55%
Max EPS beat(2)21.24%
EPS beat(4)4
Avg EPS beat(4)12.76%
Min EPS beat(4)0.55%
Max EPS beat(4)21.24%
EPS beat(8)5
Avg EPS beat(8)-2.33%
EPS beat(12)9
Avg EPS beat(12)22.52%
EPS beat(16)9
Avg EPS beat(16)2.86%
Revenue beat(2)0
Avg Revenue beat(2)-55.34%
Min Revenue beat(2)-66.15%
Max Revenue beat(2)-44.54%
Revenue beat(4)0
Avg Revenue beat(4)-32.54%
Min Revenue beat(4)-66.15%
Max Revenue beat(4)-5.29%
Revenue beat(8)1
Avg Revenue beat(8)-23.15%
Revenue beat(12)5
Avg Revenue beat(12)-11.57%
Revenue beat(16)9
Avg Revenue beat(16)-6.09%
PT rev (1m)0%
PT rev (3m)3.35%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)7.16%
EPS NY rev (1m)0%
EPS NY rev (3m)1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-20.86%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)-0.69%
Valuation
Industry RankSector Rank
PE 25.92
Fwd PE 22.09
P/S 2.1
P/FCF N/A
P/OCF 12.14
P/B 1.7
P/tB 1.71
EV/EBITDA 11.65
EPS(TTM)3.6
EY3.86%
EPS(NY)4.22
Fwd EY4.53%
FCF(TTM)-3.48
FCFYN/A
OCF(TTM)7.68
OCFY8.23%
SpS44.42
BVpS54.74
TBVpS54.59
PEG (NY)1.62
PEG (5Y)N/A
Graham Number66.589 (-28.65%)
Profitability
Industry RankSector Rank
ROA 4.22%
ROE 11.1%
ROCE 5.17%
ROIC 4.09%
ROICexc 4.35%
ROICexgc 4.36%
OM 15.29%
PM (TTM) 13.68%
GM 84.52%
FCFM N/A
ROA(3y)2.38%
ROA(5y)1.43%
ROE(3y)7.11%
ROE(5y)4.3%
ROIC(3y)3.18%
ROIC(5y)3.01%
ROICexc(3y)3.31%
ROICexc(5y)3.11%
ROICexgc(3y)3.45%
ROICexgc(5y)3.39%
ROCE(3y)4.18%
ROCE(5y)4.15%
ROICexgc growth 3Y7.29%
ROICexgc growth 5Y-1.95%
ROICexc growth 3Y11.31%
ROICexc growth 5Y-0.69%
OM growth 3Y41.12%
OM growth 5Y13.75%
PM growth 3YN/A
PM growth 5Y26.34%
GM growth 3Y-3.94%
GM growth 5Y-3.66%
F-Score6
Asset Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF N/A
Debt/EBITDA 4.18
Cap/Depr 244.27%
Cap/Sales 25.13%
Interest Coverage 2.05
Cash Conversion 67.63%
Profit Quality N/A
Current Ratio 1.28
Quick Ratio 1.18
Altman-Z 1.25
F-Score6
WACC7.55%
ROIC/WACC0.54
Cap/Depr(3y)219.3%
Cap/Depr(5y)206.69%
Cap/Sales(3y)38.09%
Cap/Sales(5y)30.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.92%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%-2.16%
EPS Next Y16.03%
EPS Next 2Y15.63%
EPS Next 3Y16.78%
EPS Next 5Y15.8%
Revenue 1Y (TTM)-37.12%
Revenue growth 3Y-12.39%
Revenue growth 5Y-4.52%
Sales Q2Q%-62.15%
Revenue Next Year-30.6%
Revenue Next 2Y-33.86%
Revenue Next 3Y-23.43%
Revenue Next 5Y-10.16%
EBIT growth 1Y1.61%
EBIT growth 3Y3.21%
EBIT growth 5Y2.3%
EBIT Next Year75.31%
EBIT Next 3Y26.87%
EBIT Next 5Y26.63%
FCF growth 1Y-161.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-58.98%
OCF growth 3Y13.17%
OCF growth 5Y-2.34%

SOUTHWEST GAS HOLDINGS INC / SWX Fundamental Analysis 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.


How profitable is SOUTHWEST GAS HOLDINGS INC (SWX) stock?

SOUTHWEST GAS HOLDINGS INC (SWX) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for SWX stock?

The Price/Earnings (PE) ratio for SOUTHWEST GAS HOLDINGS INC (SWX) is 25.92 and the Price/Book (PB) ratio is 1.7.


Can you provide the financial health for SWX stock?

The financial health rating of SOUTHWEST GAS HOLDINGS INC (SWX) is 4 / 10.