SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWX - US8448951025 - Common Stock
79.215 USD
+0.2 (+0.25%)
Overall SWX gets a fundamental rating of 4 out of 10. We evaluated SWX against 14 industry peers in the Gas Utilities industry. SWX has only an average score on both its financial health and profitability. While showing a medium growth rate, SWX is valued expensive at the moment.
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.
SWX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 4.49%, SWX belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
SWX has a better Return On Equity (11.81%) than 64.29% of its industry peers.
The Return On Invested Capital of SWX (4.42%) is worse than 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWX is significantly below the industry average of 8.77%.
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.
In the last couple of years the Profit Margin of SWX has declined.
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.
The Gross Margin of SWX (85.13%) is better than 92.86% of its industry peers.
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
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.
SWX's Altman-Z score of 1.27 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.
Looking at the Debt to Equity ratio, with a value of 0.89, SWX is in the better half of 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/WACC0.67
WACC6.64%
2.3 Liquidity
A Current Ratio of 1.55 indicates that SWX should not have too much problems paying its short term obligations.
The Current ratio of SWX (1.55) is better 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.
Looking at the last year, SWX shows a very negative growth in Revenue. The Revenue has decreased by -23.15% in the last year.
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 13.29% yearly.
SWX is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -10.39% yearly.
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
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
Based on the Price/Earnings ratio of 21.82, the valuation of SWX can be described as rather expensive.
Based on the Price/Earnings ratio, SWX is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.41. SWX is around the same levels.
Based on the Price/Forward Earnings ratio of 19.00, the valuation of SWX can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SWX is valued a bit more expensive than 64.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SWX to the average of the S&P500 Index (35.40), we can say SWX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.82 | ||
| Fwd PE | 19 |
4.2 Price Multiples
SWX's Enterprise Value to EBITDA ratio is in line with the industry average.
| 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 2Y14.86%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.01%, SWX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.71, SWX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.32, SWX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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
38.44% of the earnings are spent on dividend by SWX. This is a low number and sustainable payout ratio.
The dividend of SWX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.44%
EPS Next 2Y14.86%
EPS Next 3Y14.5%
NYSE:SWX (12/5/2025, 1:39:22 PM)
79.215
+0.2 (+0.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.59%
Inst Owner Change-0.6%
Ins Owners0.49%
Ins Owner Change1.93%
Market Cap5.72B
Revenue(TTM)4.00B
Net Income(TTM)463.92M
Analysts85
Price Target86.99 (9.82%)
Short Float %2.85%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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)1.53%
PT rev (3m)5.03%
EPS NQ rev (1m)6.64%
EPS NQ rev (3m)-10.47%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)-12.38%
Revenue NQ rev (3m)-23.66%
Revenue NY rev (1m)-1.93%
Revenue NY rev (3m)-12.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.82 | ||
| Fwd PE | 19 | ||
| P/S | 1.43 | ||
| P/FCF | N/A | ||
| P/OCF | 8.46 | ||
| P/B | 1.46 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 9.68 |
EPS(TTM)3.63
EY4.58%
EPS(NY)4.17
Fwd EY5.26%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)9.36
OCFY11.82%
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
WACC6.64%
ROIC/WACC0.67
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 21.82 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.