SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWX - US8448951025 - Common Stock
80.02 USD
-0.64 (-0.79%)
80.02 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SWX. 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 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
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.
Each year in the past 5 years SWX had a positive operating cash flow.
1.2 Ratios
SWX has a better Return On Assets (4.49%) than 78.57% of its industry peers.
SWX has a Return On Equity of 11.81%. This is in the better half of the industry: SWX outperforms 64.29% of its industry peers.
The Return On Invested Capital of SWX (4.42%) is worse 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 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 has a better Profit Margin (11.59%) 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 85.71% of its industry peers.
In the last couple of years the Operating Margin of SWX has declined.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWX is destroying value.
The number of shares outstanding for SWX has been increased compared to 1 year ago.
SWX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SWX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that SWX is in the distress zone and has some risk of bankruptcy.
SWX has a Altman-Z score of 1.28. This is in the better half 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.
SWX has a Debt to Equity ratio of 0.89. This is in the better half of the industry: SWX outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.66
WACC6.7%
2.3 Liquidity
SWX has a Current Ratio of 1.55. 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 Current ratio value of 1.55, SWX belongs to the best 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.
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
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.
The Revenue for SWX has decreased by -23.15% in the past year. This is quite bad
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 13.29% 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 -10.39% on average per year.
EPS Next Y15.95%
EPS Next 2Y14.97%
EPS Next 3Y16.1%
EPS Next 5Y13.29%
Revenue Next Year-21.43%
Revenue Next 2Y-25.94%
Revenue Next 3Y-13.47%
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.
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 22.04, 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 64.29% of the companies listed in the same industry.
SWX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 19.16, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, SWX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.04 | ||
| Fwd PE | 19.16 |
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 | 9.76 |
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's earnings are expected to grow with 16.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y14.97%
EPS Next 3Y16.1%
5. Dividend
5.1 Amount
SWX has a Yearly Dividend Yield of 3.05%.
SWX's Dividend Yield is slightly below the industry average, which is at 3.83.
SWX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| 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.
The dividend of SWX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.44%
EPS Next 2Y14.97%
EPS Next 3Y16.1%
80.02
-0.64 (-0.79%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners86.13%
Inst Owner Change-0.6%
Ins Owners0.48%
Ins Owner Change2.5%
Market Cap5.78B
Revenue(TTM)4.00B
Net Income(TTM)463.92M
Analysts85
Price Target91.22 (14%)
Short Float %2.32%
Short Ratio4.04
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)4.86%
PT rev (3m)6.46%
EPS NQ rev (1m)-2.23%
EPS NQ rev (3m)5.98%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-25.55%
Revenue NY rev (1m)-7.75%
Revenue NY rev (3m)-18.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.04 | ||
| Fwd PE | 19.16 | ||
| P/S | 1.44 | ||
| P/FCF | N/A | ||
| P/OCF | 8.54 | ||
| P/B | 1.47 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 9.76 |
EPS(TTM)3.63
EY4.54%
EPS(NY)4.18
Fwd EY5.22%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)9.36
OCFY11.7%
SpS55.47
BVpS54.43
TBVpS54.27
PEG (NY)1.38
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 | 1.28 |
F-Score7
WACC6.7%
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 Y15.95%
EPS Next 2Y14.97%
EPS Next 3Y16.1%
EPS Next 5Y13.29%
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-10.39%
EBIT growth 1Y16.52%
EBIT growth 3Y9.39%
EBIT growth 5Y5.41%
EBIT Next Year104.96%
EBIT Next 3Y30.85%
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 for 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 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%.