SOUTHWESTERN ENERGY CO (SWN)
US8454671095 - Common Stock
Overall SWN gets a fundamental rating of 3 out of 10. We evaluated SWN against 204 industry peers in the Oil, Gas & Consumable Fuels industry. While SWN is still in line with the averages on profitability rating, there are concerns on its financial health. SWN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SWN had positive earnings in the past year.
In the past year SWN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SWN reported negative net income in multiple years.
SWN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -27.98%, SWN is doing worse than 96.17% of the companies in the same industry.
SWN has a Return On Equity of -73.20%. This is amonst the worse of the industry: SWN underperforms 91.39% of its industry peers.
With a Return On Invested Capital value of 1.63%, SWN is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for SWN is significantly above the industry average of 22.91%.
The last Return On Invested Capital (1.63%) for SWN is well below the 3 year average (30.62%), which needs to be investigated, but indicates that SWN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -27.98% | ||
| ROE | -73.2% | ||
| ROIC | 1.63% |
ROA(3y)9.03%
ROA(5y)-3.99%
ROE(3y)22.74%
ROE(5y)-106.1%
ROIC(3y)30.62%
ROIC(5y)19.24%
1.3 Margins
SWN's Profit Margin has improved in the last couple of years.
SWN has a worse Operating Margin (2.91%) than 77.99% of its industry peers.
SWN's Operating Margin has declined in the last couple of years.
SWN's Gross Margin of 60.89% is fine compared to the rest of the industry. SWN outperforms 66.99% of its industry peers.
In the last couple of years the Gross Margin of SWN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.91% | ||
| PM (TTM) | N/A | ||
| GM | 60.89% |
OM growth 3Y153.44%
OM growth 5Y-15.13%
PM growth 3YN/A
PM growth 5Y11.5%
GM growth 3Y2.88%
GM growth 5Y-1.18%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SWN is creating value.
The number of shares outstanding for SWN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SWN has more shares outstanding
SWN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.85, we must say that SWN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SWN (0.85) is worse than 63.16% of its industry peers.
SWN has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
SWN has a Debt to Equity ratio of 1.01. This is in the lower half of the industry: SWN underperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.85 |
ROIC/WACC0.25
WACC6.62%
2.3 Liquidity
SWN has a Current Ratio of 0.53. This is a bad value and indicates that SWN is not financially healthy enough and could expect problems in meeting its short term obligations.
SWN has a Current ratio of 0.53. This is amonst the worse of the industry: SWN underperforms 85.65% of its industry peers.
A Quick Ratio of 0.53 indicates that SWN may have some problems paying its short term obligations.
SWN has a worse Quick ratio (0.53) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
SWN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.00%.
Measured over the past years, SWN shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.06% on average per year.
Looking at the last year, SWN shows a very negative growth in Revenue. The Revenue has decreased by -50.17% in the last year.
The Revenue has been growing by 11.05% on average over the past years. This is quite good.
EPS 1Y (TTM)-50%
EPS 3Y23.01%
EPS 5Y-8.06%
EPS Q2Q%11.11%
Revenue 1Y (TTM)-50.17%
Revenue growth 3Y41.38%
Revenue growth 5Y11.05%
Sales Q2Q%-14.66%
3.2 Future
SWN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.94% yearly.
The Revenue is expected to grow by 9.96% on average over the next years. This is quite good.
EPS Next Y-9.6%
EPS Next 2Y30.7%
EPS Next 3Y23.18%
EPS Next 5Y30.94%
Revenue Next Year-22.08%
Revenue Next 2Y-2.82%
Revenue Next 3Y2.04%
Revenue Next 5Y9.96%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.51, the valuation of SWN can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as SWN.
Compared to an average S&P500 Price/Earnings ratio of 31.46, SWN is valued rather cheaply.
A Price/Forward Earnings ratio of 6.21 indicates a rather cheap valuation of SWN.
79.90% of the companies in the same industry are more expensive than SWN, based on the Price/Forward Earnings ratio.
SWN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 6.21 |
4.2 Price Multiples
SWN's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.1 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SWN's earnings are expected to grow with 23.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.7%
EPS Next 3Y23.18%
5. Dividend
5.1 Amount
SWN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SOUTHWESTERN ENERGY CO
NYSE:SWN (9/30/2024, 8:04:00 PM)
After market: 7.09 -0.02 (-0.28%)7.11
-0.04 (-0.56%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.84B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 6.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -27.98% | ||
| ROE | -73.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.91% | ||
| PM (TTM) | N/A | ||
| GM | 60.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-50%
EPS 3Y23.01%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-50.17%
Revenue growth 3Y41.38%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y