SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWX - US8448951025 - Common Stock
85.9 USD
+2.37 (+2.84%)
85.9 USD
0 (0%)
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 an average financial health and profitability rating. SWX is quite expensive at the moment. It does show a decent growth rate. Finally SWX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- SWX had positive earnings in the past year.
- 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 has a better Return On Assets (4.49%) than 78.57% of its industry peers.
- With a decent Return On Equity value of 11.81%, SWX is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- SWX has a worse Return On Invested Capital (4.42%) than 71.43% 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 6.27%.
- The last Return On Invested Capital (4.42%) for SWX is above the 3 year average (3.49%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 11.59%. This is in the better half 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 has a worse Operating Margin (12.83%) than 85.71% of its industry peers.
- In the last couple of years the Operating Margin of SWX has declined.
- Looking at the Gross Margin, with a value of 85.13%, SWX belongs to the top 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.
- Compared to 5 years ago, SWX has more shares outstanding
- SWX has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.30, we must say that SWX is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of SWX (1.30) is better than 71.43% of its industry peers.
- A Debt/Equity ratio of 0.89 indicates that 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 | 1.3 |
ROIC/WACC0.65
WACC6.78%
2.3 Liquidity
- A Current Ratio of 1.55 indicates that SWX should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.55, SWX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 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
- 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.
- 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
- The Earnings Per Share is expected to grow by 15.21% on average over the next years. This is quite good.
- The Revenue is expected to decrease by -9.97% on average over the next years.
EPS Next Y15.95%
EPS Next 2Y14.97%
EPS Next 3Y16.1%
EPS Next 5Y15.21%
Revenue Next Year-21.43%
Revenue Next 2Y-25.94%
Revenue Next 3Y-13.47%
Revenue Next 5Y-9.97%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 23.66, 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 78.57% of the companies in the same industry.
- SWX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 20.57, SWX is valued on the expensive side.
- 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.
- SWX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 20.57 |
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 | 10.05 |
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 16.10% in the coming years.
PEG (NY)1.48
PEG (5Y)N/A
EPS Next 2Y14.97%
EPS Next 3Y16.1%
5. Dividend
5.1 Amount
- SWX has a Yearly Dividend Yield of 3.07%.
- Compared to an average industry Dividend Yield of 3.88, SWX is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.92, SWX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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 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
- 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 2Y14.97%
EPS Next 3Y16.1%
85.9
+2.37 (+2.84%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-24 2026-02-24/amc
Inst Owners86.21%
Inst Owner Change0.01%
Ins Owners0.49%
Ins Owner Change2.5%
Market Cap6.20B
Revenue(TTM)4.00B
Net Income(TTM)463.92M
Analysts85
Price Target91.22 (6.19%)
Short Float %2.32%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend2.48
Dividend Growth(5Y)2.9%
DP38.44%
Div Incr Years0
Div Non Decr Years32
Ex-Date02-17 2026-02-17 (0.62)
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)4.68%
PT rev (3m)6.46%
EPS NQ rev (1m)-2.8%
EPS NQ rev (3m)5.98%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-25.55%
Revenue NY rev (1m)-7.46%
Revenue NY rev (3m)-18.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 20.57 | ||
| P/S | 1.55 | ||
| P/FCF | N/A | ||
| P/OCF | 9.17 | ||
| P/B | 1.58 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 10.05 |
EPS(TTM)3.63
EY4.23%
EPS(NY)4.18
Fwd EY4.86%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)9.36
OCFY10.9%
SpS55.47
BVpS54.43
TBVpS54.27
PEG (NY)1.48
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 | 1.3 |
F-Score7
WACC6.78%
ROIC/WACC0.65
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 Y15.95%
EPS Next 2Y14.97%
EPS Next 3Y16.1%
EPS Next 5Y15.21%
Revenue 1Y (TTM)-23.15%
Revenue growth 3Y11.58%
Revenue growth 5Y10.38%
Sales Q2Q%-70.63%
Revenue Next Year-21.43%
Revenue Next 2Y-25.94%
Revenue Next 3Y-13.47%
Revenue Next 5Y-9.97%
EBIT growth 1Y16.52%
EBIT growth 3Y9.39%
EBIT growth 5Y5.41%
EBIT Next Year104.96%
EBIT Next 3Y30.85%
EBIT Next 5Y21.45%
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 for SWX stock?
ChartMill assigns a valuation rating of 1 / 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 is the financial health of SOUTHWEST GAS HOLDINGS INC (SWX) stock?
The financial health rating of SOUTHWEST GAS HOLDINGS INC (SWX) is 4 / 10.
Is the dividend of SOUTHWEST GAS HOLDINGS INC sustainable?
The dividend rating of SOUTHWEST GAS HOLDINGS INC (SWX) is 7 / 10 and the dividend payout ratio is 38.44%.