SOUTHWESTERN ENERGY CO (SWN)
US8454671095 - Common Stock
SWN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 214 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SWN was profitable.
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
The Return On Assets of SWN (12.98%) is better than 74.18% of its industry peers.
Looking at the Return On Equity, with a value of 26.44%, SWN is in the better half of the industry, outperforming 73.24% of the companies in the same industry.
The Return On Invested Capital of SWN (5.67%) is worse than 66.67% of its industry peers.
SWN had an Average Return On Invested Capital over the past 3 years of 30.62%. This is significantly below the industry average of 45.80%.
The 3 year average ROIC (30.62%) for SWN is well above the current ROIC(5.67%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.98% | ||
| ROE | 26.44% | ||
| ROIC | 5.67% |
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 of 23.87% is fine compared to the rest of the industry. SWN outperforms 61.97% of its industry peers.
In the last couple of years the Profit Margin of SWN has grown nicely.
SWN has a worse Operating Margin (11.28%) than 69.48% of its industry peers.
In the last couple of years the Operating Margin of SWN has declined.
With a decent Gross Margin value of 64.26%, SWN is doing good in the industry, outperforming 67.14% of the companies in the same industry.
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 | 11.28% | ||
| PM (TTM) | 23.87% | ||
| GM | 64.26% |
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.
Compared to 1 year ago, SWN has about the same amount of shares outstanding.
SWN has more shares outstanding than it did 5 years ago.
SWN has a better debt/assets ratio than last year.
2.2 Solvency
SWN has an Altman-Z score of 1.40. This is a bad value and indicates that SWN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SWN (1.40) is comparable to the rest of the industry.
SWN has a debt to FCF ratio of 11.41. This is a negative value and a sign of low solvency as SWN would need 11.41 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.41, SWN is doing worse than 61.97% of the companies in the same industry.
SWN has a Debt/Equity ratio of 0.67. This is a neutral value indicating SWN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, SWN is doing worse than 62.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 11.41 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.81
WACC7.02%
2.3 Liquidity
SWN has a Current Ratio of 0.82. 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 0.82. This is in the lower half of the industry: SWN underperforms 71.83% of its industry peers.
SWN has a Quick Ratio of 0.82. 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's Quick ratio of 0.82 is on the low side compared to the rest of the industry. SWN is outperformed by 62.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for SWN have decreased strongly by -48.85% in the last year.
SWN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.06% yearly.
SWN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -56.53%.
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)-48.85%
EPS 3Y23.01%
EPS 5Y-8.06%
EPS growth Q2Q-34.62%
Revenue 1Y (TTM)-56.53%
Revenue growth 3Y41.38%
Revenue growth 5Y11.05%
Revenue growth Q2Q-49.94%
3.2 Future
SWN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.05% yearly.
SWN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.69% yearly.
EPS Next Y-7.87%
EPS Next 2Y40.44%
EPS Next 3Y34.93%
EPS Next 5Y37.05%
Revenue Next Year-16.59%
Revenue Next 2Y2%
Revenue Next 3Y-3.53%
Revenue Next 5Y8.69%
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
SWN is valuated reasonably with a Price/Earnings ratio of 10.90.
SWN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SWN to the average of the S&P500 Index (24.95), we can say SWN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.83, the valuation of SWN can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as SWN.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.40, SWN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 11.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SWN.
Based on the Price/Free Cash Flow ratio, SWN is valued a bit more expensive than the industry average as 60.56% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.25 | ||
| EV/EBITDA | 5.91 |
4.3 Compensation for Growth
SWN's earnings are expected to grow with 34.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.44%
EPS Next 3Y34.93%
5. Dividend
5.1 Amount
No dividends for SWN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SOUTHWESTERN ENERGY CO
NYSE:SWN (4/23/2024, 8:40:00 AM)
7.305
-0.1 (-1.28%)
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 Cap8.05B
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)
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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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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 | 10.9 | ||
| Fwd PE | 11.83 | ||
| 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 | 12.98% | ||
| ROE | 26.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.28% | ||
| PM (TTM) | 23.87% | ||
| GM | 64.26% | ||
| 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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| 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)
Growth
EPS 1Y (TTM)-48.85%
EPS 3Y23.01%
EPS 5Y
EPS growth Q2Q
EPS Next Y-7.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-56.53%
Revenue growth 3Y41.38%
Revenue growth 5Y
Revenue growth 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