SOUTHWESTERN ENERGY CO (SWN) Stock Fundamental Analysis
USA - NYSE:SWN - US8454671095 - Common Stock
7.11 USD
-0.04 (-0.56%)
7.09 USD
-0.02 (-0.28%)
We assign a fundamental rating of 3 out of 10 to SWN. SWN was compared to 210 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 has a decent growth rate and is not valued too expensively.
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.
In multiple years SWN reported negative net income over the last 5 years.
Each year in the past 5 years SWN had a positive operating cash flow.
1.2 Ratios
SWN has a Return On Assets of -27.98%. This is amonst the worse of the industry: SWN underperforms 96.17% of its industry peers.
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.
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 21.93%.
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
In the last couple of years the Profit Margin of SWN has grown nicely.
The Operating Margin of SWN (2.91%) is worse than 77.99% of its industry peers.
In the last couple of years the Operating Margin of SWN has declined.
SWN has a better Gross Margin (60.89%) than 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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 0.85. This is a bad value and indicates that SWN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.85, SWN is doing worse than 63.16% of the companies in the same industry.
SWN has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.01, SWN is doing worse than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.85 |
ROIC/WACC0.25
WACC6.62%
2.3 Liquidity
A Current Ratio of 0.53 indicates that SWN may have some problems paying its short term obligations.
SWN's Current ratio of 0.53 is on the low side compared to the rest of the industry. SWN is outperformed by 85.65% of its industry peers.
SWN has a Quick 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.
Looking at the Quick ratio, with a value of 0.53, SWN is doing worse than 81.82% of the companies in the same industry.
| 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.
SWN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -50.17%.
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)-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.
SWN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.96% yearly.
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
With a Price/Earnings ratio of 14.51, SWN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SWN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.11, SWN is valued a bit cheaper.
A Price/Forward Earnings ratio of 6.21 indicates a rather cheap valuation of SWN.
Based on the Price/Forward Earnings ratio, SWN is valued a bit cheaper than the industry average as 79.90% of the companies are valued more expensively.
SWN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 6.21 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.1 |
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%
5. Dividend
5.1 Amount
SWN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.11
-0.04 (-0.56%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.51%
Inst Owner Change-99.99%
Ins Owners1.11%
Ins Owner Change0%
Market Cap7.84B
Revenue(TTM)5.63B
Net Income(TTM)-2756000000
Analysts69
Price Target7.65 (7.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Graham NumberN/A
Profitability
| Industry Rank | Sector 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%
ROICexgc growth 3Y164.08%
ROICexgc 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 Rank | Sector 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%
SOUTHWESTERN ENERGY CO / SWN FAQ
What is the ChartMill fundamental rating of SOUTHWESTERN ENERGY CO (SWN) stock?
ChartMill assigns a fundamental rating of 3 / 10 to SWN.
What is the valuation status of SOUTHWESTERN ENERGY CO (SWN) stock?
ChartMill assigns a valuation rating of 4 / 10 to SOUTHWESTERN ENERGY CO (SWN). This can be considered as Fairly Valued.
How profitable is SOUTHWESTERN ENERGY CO (SWN) stock?
SOUTHWESTERN ENERGY CO (SWN) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for SWN stock?
The Price/Earnings (PE) ratio for SOUTHWESTERN ENERGY CO (SWN) is 14.51 and the Price/Book (PB) ratio is 2.08.
How sustainable is the dividend of SOUTHWESTERN ENERGY CO (SWN) stock?
The dividend rating of SOUTHWESTERN ENERGY CO (SWN) is 0 / 10 and the dividend payout ratio is 0%.