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SOUTHWESTERN ENERGY CO (SWN) Stock Fundamental Analysis

USA - NYSE:SWN - US8454671095 - Common Stock

7.11 USD
-0.04 (-0.56%)
Last: 9/30/2024, 8:04:00 PM
7.09 USD
-0.02 (-0.28%)
After Hours: 9/30/2024, 8:04:00 PM
Fundamental Rating

3

SWN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 211 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.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

SWN had positive earnings in the past year.
SWN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SWN reported negative net income in multiple years.
Each year in the past 5 years SWN had a positive operating cash flow.
SWN Yearly Net Income VS EBIT VS OCF VS FCFSWN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B -4B 6B

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's Return On Equity of -73.20% is on the low side compared to the rest of the industry. SWN is outperformed by 91.39% of its industry peers.
The Return On Invested Capital of SWN (1.63%) is worse than 78.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWN is significantly above the industry average of 21.55%.
The 3 year average ROIC (30.62%) for SWN is well above the current ROIC(1.63%). The reason for the recent decline needs to be investigated.
Industry RankSector 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%
SWN Yearly ROA, ROE, ROICSWN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -200 -400 -600

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.
The Gross Margin of SWN (60.89%) is better than 66.99% of its industry peers.
SWN's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
SWN Yearly Profit, Operating, Gross MarginsSWN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

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1

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.
The number of shares outstanding for SWN has been increased compared to 5 years ago.
Compared to 1 year ago, SWN has an improved debt to assets ratio.
SWN Yearly Shares OutstandingSWN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
SWN Yearly Total Debt VS Total AssetsSWN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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.
With a Altman-Z score value of 0.85, SWN is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.01 is on the high side and indicates that SWN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.01, SWN is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.01
Debt/FCF N/A
Altman-Z 0.85
ROIC/WACC0.25
WACC6.62%
SWN Yearly LT Debt VS Equity VS FCFSWN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B

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.
The Current ratio of SWN (0.53) is worse than 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 RankSector Rank
Current Ratio 0.53
Quick Ratio 0.53
SWN Yearly Current Assets VS Current LiabilitesSWN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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5

3. Growth

3.1 Past

The earnings per share for SWN have decreased strongly by -50.00% in the last year.
The Earnings Per Share has been decreasing by -8.06% on average over the past years.
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

Based on estimates for the next years, SWN will show a very strong growth in Earnings Per Share. The EPS will grow by 30.94% on average per year.
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

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 stable.
SWN Yearly Revenue VS EstimatesSWN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B
SWN Yearly EPS VS EstimatesSWN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1 1.5 2

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.51, which indicates a correct valuation of SWN.
Compared to the rest of the industry, the Price/Earnings ratio of SWN is on the same level as its industry peers.
SWN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.76.
A Price/Forward Earnings ratio of 6.21 indicates a rather cheap valuation of SWN.
SWN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SWN is cheaper than 79.90% of the companies in the same industry.
SWN is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.51
Fwd PE 6.21
SWN Price Earnings VS Forward Price EarningsSWN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as SWN.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.1
SWN Per share dataSWN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4 5

4.3 Compensation for Growth

SWN's earnings are expected to grow with 23.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.7%
EPS Next 3Y23.18%

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0

5. Dividend

5.1 Amount

No dividends for SWN!.
Industry RankSector Rank
Dividend Yield N/A

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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)08-01 2024-08-01/amc
Earnings (Next)10-31 2024-10-31/amc
Inst Owners88.51%
Inst Owner Change0%
Ins Owners1.11%
Ins Owner Change0%
Market Cap7.84B
Analysts69
Price Target7.65 (7.59%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.07%
Min EPS beat(2)-11.93%
Max EPS beat(2)-6.21%
EPS beat(4)2
Avg EPS beat(4)13.41%
Min EPS beat(4)-11.93%
Max EPS beat(4)43.58%
EPS beat(8)5
Avg EPS beat(8)13.94%
EPS beat(12)8
Avg EPS beat(12)10.61%
EPS beat(16)11
Avg EPS beat(16)25.9%
Revenue beat(2)1
Avg Revenue beat(2)4.49%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)10.88%
Revenue beat(4)3
Avg Revenue beat(4)13.11%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)28.77%
Revenue beat(8)6
Avg Revenue beat(8)36.32%
Revenue beat(12)10
Avg Revenue beat(12)57.96%
Revenue beat(16)13
Avg Revenue beat(16)46.5%
PT rev (1m)-6.5%
PT rev (3m)-10.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.15%
EPS NY rev (1m)0%
EPS NY rev (3m)33.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.01%
Revenue NY rev (1m)-2.25%
Revenue NY rev (3m)0.58%
Valuation
Industry RankSector Rank
PE 14.51
Fwd PE 6.21
P/S 1.39
P/FCF N/A
P/OCF 4.5
P/B 2.08
P/tB 2.08
EV/EBITDA 9.1
EPS(TTM)0.49
EY6.89%
EPS(NY)1.14
Fwd EY16.1%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)1.58
OCFY22.2%
SpS5.11
BVpS3.41
TBVpS3.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -27.98%
ROE -73.2%
ROCE 2.07%
ROIC 1.63%
ROICexc 1.64%
ROICexgc 1.64%
OM 2.91%
PM (TTM) N/A
GM 60.89%
FCFM N/A
ROA(3y)9.03%
ROA(5y)-3.99%
ROE(3y)22.74%
ROE(5y)-106.1%
ROIC(3y)30.62%
ROIC(5y)19.24%
ROICexc(3y)30.76%
ROICexc(5y)19.32%
ROICexgc(3y)30.89%
ROICexgc(5y)19.41%
ROCE(3y)38.76%
ROCE(5y)24.35%
ROICexcg growth 3Y164.08%
ROICexcg growth 5Y-19.13%
ROICexc growth 3Y164.83%
ROICexc growth 5Y-19.18%
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%
F-Score2
Asset Turnover0.57
Health
Industry RankSector Rank
Debt/Equity 1.01
Debt/FCF N/A
Debt/EBITDA 2.87
Cap/Depr 161.53%
Cap/Sales 33.08%
Interest Coverage 250
Cash Conversion 132.09%
Profit Quality N/A
Current Ratio 0.53
Quick Ratio 0.53
Altman-Z 0.85
F-Score2
WACC6.62%
ROIC/WACC0.25
Cap/Depr(3y)178.4%
Cap/Depr(5y)203.9%
Cap/Sales(3y)20.95%
Cap/Sales(5y)27.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-50%
EPS 3Y23.01%
EPS 5Y-8.06%
EPS Q2Q%11.11%
EPS Next Y-9.6%
EPS Next 2Y30.7%
EPS Next 3Y23.18%
EPS Next 5Y30.94%
Revenue 1Y (TTM)-50.17%
Revenue growth 3Y41.38%
Revenue growth 5Y11.05%
Sales Q2Q%-14.66%
Revenue Next Year-22.08%
Revenue Next 2Y-2.82%
Revenue Next 3Y2.04%
Revenue Next 5Y9.96%
EBIT growth 1Y-96.33%
EBIT growth 3Y258.31%
EBIT growth 5Y-5.76%
EBIT Next Year112.9%
EBIT Next 3Y48.03%
EBIT Next 5Y45.93%
FCF growth 1Y-122.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-18.83%
OCF growth 3Y68.28%
OCF growth 5Y15.52%