SOUTHWESTERN ENERGY CO (SWN)

US8454671095 - Common Stock

6.86  -0.1 (-1.44%)

After market: 6.88 +0.02 (+0.29%)

Fundamental Rating

4

Taking everything into account, SWN scores 4 out of 10 in our fundamental rating. SWN was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of SWN while its profitability can be described as average. SWN has a decent growth rate and is not valued too expensively.



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.
In multiple years SWN reported negative net income over the last 5 years.
SWN had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

SWN has a worse Return On Assets (-18.44%) than 95.26% of its industry peers.
SWN has a worse Return On Equity (-43.91%) than 90.05% of its industry peers.
With a Return On Invested Capital value of 1.65%, SWN is not doing good in the industry: 80.57% 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 in line with the industry average of 30.73%.
The last Return On Invested Capital (1.65%) 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 RankSector Rank
ROA -18.44%
ROE -43.91%
ROIC 1.65%
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.
The Operating Margin of SWN (3.01%) is worse than 79.62% of its industry peers.
In the last couple of years the Operating Margin of SWN has declined.
The Gross Margin of SWN (61.31%) is better than 65.40% of its industry peers.
SWN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 3.01%
PM (TTM) N/A
GM 61.31%
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

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.
SWN has about the same amout of shares outstanding than it did 1 year ago.
SWN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SWN has an improved debt to assets ratio.

2.2 Solvency

SWN has an Altman-Z score of 0.95. This is a bad value and indicates that SWN is not financially healthy and even has some risk of bankruptcy.
SWN's Altman-Z score of 0.95 is on the low side compared to the rest of the industry. SWN is outperformed by 60.19% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that SWN is somewhat dependend on debt financing.
SWN has a Debt to Equity ratio of 0.83. This is in the lower half of the industry: SWN underperforms 68.72% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF N/A
Altman-Z 0.95
ROIC/WACC0.25
WACC6.66%

2.3 Liquidity

SWN has a Current Ratio of 0.62. 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 worse Current ratio (0.62) than 82.46% of its industry peers.
A Quick Ratio of 0.62 indicates that SWN may have some problems paying its short term obligations.
SWN's Quick ratio of 0.62 is on the low side compared to the rest of the industry. SWN is outperformed by 77.73% of its industry peers.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.62

5

3. Growth

3.1 Past

SWN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -60.66%.
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.
The Revenue for SWN has decreased by -58.94% in the past year. This is quite bad
SWN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.05% yearly.
EPS 1Y (TTM)-60.66%
EPS 3Y23.01%
EPS 5Y-8.06%
EPS Q2Q%-61.29%
Revenue 1Y (TTM)-58.94%
Revenue growth 3Y41.38%
Revenue growth 5Y11.05%
Sales Q2Q%-33.1%

3.2 Future

The Earnings Per Share is expected to grow by 30.94% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.96% on average over the next years. This is quite good.
EPS Next Y-32.38%
EPS Next 2Y30.38%
EPS Next 3Y31.81%
EPS Next 5Y30.94%
Revenue Next Year-22.53%
Revenue Next 2Y-2.13%
Revenue Next 3Y-0.04%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

SWN is valuated correctly with a Price/Earnings ratio of 14.29.
The rest of the industry has a similar Price/Earnings ratio as SWN.
Compared to an average S&P500 Price/Earnings ratio of 29.53, SWN is valued rather cheaply.
A Price/Forward Earnings ratio of 6.02 indicates a rather cheap valuation of SWN.
Based on the Price/Forward Earnings ratio, SWN is valued cheaply inside the industry as 84.83% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SWN to the average of the S&P500 Index (20.94), we can say SWN is valued rather cheaply.
Industry RankSector Rank
PE 14.29
Fwd PE 6.02

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWN is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 8.14

4.3 Compensation for Growth

SWN's earnings are expected to grow with 31.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.38%
EPS Next 3Y31.81%

0

5. Dividend

5.1 Amount

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

SOUTHWESTERN ENERGY CO

NYSE:SWN (7/16/2024, 7:04:00 PM)

After market: 6.88 +0.02 (+0.29%)

6.86

-0.1 (-1.44%)

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 Cap7.57B
Analysts
Price Target
Dividend
Industry RankSector 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)
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Avg EPS beat(4)
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EPS beat(8)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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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 RankSector Rank
PE 14.29
Fwd PE 6.02
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 RankSector Rank
ROA -18.44%
ROE -43.91%
ROCE
ROIC
ROICexc
ROICexgc
OM 3.01%
PM (TTM) N/A
GM 61.31%
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 Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.62
Quick Ratio 0.62
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)-60.66%
EPS 3Y23.01%
EPS 5Y
EPS Q2Q%
EPS Next Y-32.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-58.94%
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