SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - NYSE:SWX - US8448951025 - Common Stock
79.49 USD
-0.14 (-0.18%)
79.49 USD
0 (0%)
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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years SWX always reported a positive cash flow from operatings.
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's Return On Equity of 11.81% is fine compared to the rest of the industry. SWX outperforms 71.43% of its industry peers.
The Return On Invested Capital of SWX (4.42%) is worse than 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SWX is significantly below the industry average of 8.93%.
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.
In the last couple of years the Profit Margin of SWX has declined.
The Operating Margin of SWX (12.83%) is worse than 78.57% of its industry peers.
In the last couple of years the Operating Margin of SWX has declined.
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.
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.
SWX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SWX has been increased compared to 5 years ago.
The debt/assets ratio for SWX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.27, 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 1.27, SWX is in line with its industry, outperforming 57.14% 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.
The Debt to Equity ratio of SWX (0.89) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC0.66
WACC6.68%
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.
A Quick Ratio of 1.43 indicates that SWX should not have too much problems paying 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
SWX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.17%, which is quite impressive.
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.
Measured over the past years, SWX shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.
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 13.29% 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 -10.39% on average per year.
EPS Next Y16.7%
EPS Next 2Y14.86%
EPS Next 3Y14.5%
EPS Next 5Y13.29%
Revenue Next Year-14.82%
Revenue Next 2Y-18.21%
Revenue Next 3Y-5.33%
Revenue Next 5Y-10.39%
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
Based on the Price/Earnings ratio of 21.90, the valuation of SWX can be described as rather expensive.
64.29% of the companies in the same industry are cheaper than SWX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.51. SWX is around the same levels.
Based on the Price/Forward Earnings ratio of 19.07, the valuation of SWX can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as SWX.
SWX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 19.07 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SWX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.7 |
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 14.50% in the coming years.
PEG (NY)1.31
PEG (5Y)N/A
EPS Next 2Y14.86%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
SWX has a Yearly Dividend Yield of 3.05%.
SWX's Dividend Yield is slightly below the industry average, which is at 3.78.
Compared to an average S&P500 Dividend Yield of 2.44, SWX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.9%
Div Incr Years0
Div Non Decr Years32
5.3 Sustainability
38.44% of the earnings are spent on dividend by SWX. This is a low number and sustainable payout ratio.
SWX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.44%
EPS Next 2Y14.86%
EPS Next 3Y14.5%
79.49
-0.14 (-0.18%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.59%
Inst Owner Change-0.62%
Ins Owners0.49%
Ins Owner Change3.04%
Market Cap5.72B
Revenue(TTM)4.00B
Net Income(TTM)463.92M
Analysts85
Price Target85.34 (7.36%)
Short Float %1.93%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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)-0.4%
PT rev (3m)4.15%
EPS NQ rev (1m)4.44%
EPS NQ rev (3m)-9.36%
EPS NY rev (1m)0.94%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)-25.55%
Revenue NQ rev (3m)-23.66%
Revenue NY rev (1m)-11.54%
Revenue NY rev (3m)-13.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 19.07 | ||
| P/S | 1.43 | ||
| P/FCF | N/A | ||
| P/OCF | 8.46 | ||
| P/B | 1.46 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 9.7 |
EPS(TTM)3.63
EY4.57%
EPS(NY)4.17
Fwd EY5.25%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)9.39
OCFY11.81%
SpS55.63
BVpS54.58
TBVpS54.43
PEG (NY)1.31
PEG (5Y)N/A
Graham Number66.77
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
WACC6.68%
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 Y16.7%
EPS Next 2Y14.86%
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-14.82%
Revenue Next 2Y-18.21%
Revenue Next 3Y-5.33%
Revenue Next 5Y-10.39%
EBIT growth 1Y16.52%
EBIT growth 3Y9.39%
EBIT growth 5Y5.41%
EBIT Next Year120.99%
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 21.9 and the Price/Book (PB) ratio is 1.46.
How financially healthy is SOUTHWEST GAS HOLDINGS INC?
The financial health rating of SOUTHWEST GAS HOLDINGS INC (SWX) is 4 / 10.