SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWX - US8448951025 - Common Stock
80.08 USD
+0.08 (+0.1%)
80.08 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 an average financial health and profitability rating. While showing a medium growth rate, SWX is valued expensive at the moment. SWX also has an excellent dividend rating.
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.
Each year in the past 5 years SWX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.49%, SWX is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
The Return On Equity of SWX (11.81%) is better than 64.29% of its industry peers.
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 6.25%.
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
With a decent Profit Margin value of 11.59%, SWX is doing good in the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Profit Margin of SWX has declined.
With a Operating Margin value of 12.83%, SWX is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
SWX's Operating Margin has declined in the last couple of years.
SWX's Gross Margin of 85.13% is amongst the best of the industry. SWX outperforms 92.86% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 1.28, we must say that SWX is in the distress zone and has some risk of bankruptcy.
SWX's Altman-Z score of 1.28 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.
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 | 1.28 |
ROIC/WACC0.66
WACC6.73%
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.
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.
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.
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.
The Revenue for SWX has decreased by -23.15% in the past year. This is quite bad
SWX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.38% yearly.
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.
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 Y16.78%
EPS Next 2Y14.53%
EPS Next 3Y14.5%
EPS Next 5Y13.29%
Revenue Next Year-15.09%
Revenue Next 2Y-18.44%
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
With a Price/Earnings ratio of 22.06, SWX is valued on the expensive side.
64.29% of the companies in the same industry are cheaper than SWX, based on the Price/Earnings ratio.
SWX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.56.
SWX is valuated rather expensively with a Price/Forward Earnings ratio of 19.32.
71.43% of the companies in the same industry are cheaper than SWX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, SWX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 19.32 |
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 | 9.76 |
4.3 Compensation for Growth
SWX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 2Y14.53%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
SWX has a Yearly Dividend Yield of 3.10%.
Compared to an average industry Dividend Yield of 3.84, SWX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.87, SWX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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
SWX pays out 38.44% of its income as dividend. This is a sustainable payout ratio.
The dividend of SWX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.44%
EPS Next 2Y14.53%
EPS Next 3Y14.5%
80.08
+0.08 (+0.1%)
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 Change1.92%
Market Cap5.78B
Revenue(TTM)4.00B
Net Income(TTM)463.92M
Analysts85
Price Target87.14 (8.82%)
Short Float %2.85%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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)2.11%
PT rev (3m)1.7%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)9.03%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-25.55%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-11.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 19.32 | ||
| P/S | 1.44 | ||
| P/FCF | N/A | ||
| P/OCF | 8.55 | ||
| P/B | 1.47 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 9.76 |
EPS(TTM)3.63
EY4.53%
EPS(NY)4.15
Fwd EY5.18%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)9.36
OCFY11.69%
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 | 1.28 |
F-Score7
WACC6.73%
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 Y16.78%
EPS Next 2Y14.53%
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-15.09%
Revenue Next 2Y-18.44%
Revenue Next 3Y-5.33%
Revenue Next 5Y-10.39%
EBIT growth 1Y16.52%
EBIT growth 3Y9.39%
EBIT growth 5Y5.41%
EBIT Next Year110.64%
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 22.06 and the Price/Book (PB) ratio is 1.47.
How financially healthy is SOUTHWEST GAS HOLDINGS INC?
The financial health rating of SOUTHWEST GAS HOLDINGS INC (SWX) is 4 / 10.