SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - NYSE:SWX - US8448951025 - Common Stock
81.43 USD
-0.24 (-0.29%)
81.43 USD
0 (0%)
Taking everything into account, SWX scores 4 out of 10 in our fundamental rating. SWX was compared to 14 industry peers in the Gas Utilities industry. Both the profitability and the financial health of SWX get a neutral evaluation. Nothing too spectacular is happening here. SWX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SWX was profitable.
SWX had a positive operating cash flow in the past year.
Of the past 5 years SWX 4 years were profitable.
In the past 5 years SWX always reported a positive cash flow from operatings.
1.2 Ratios
SWX has a better Return On Assets (4.49%) than 78.57% of its industry peers.
SWX has a better Return On Equity (11.81%) than 71.43% of its industry peers.
SWX has a Return On Invested Capital of 4.42%. This is in the lower half of the industry: SWX underperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWX is significantly below the industry average of 8.93%.
The 3 year average ROIC (3.49%) for SWX is below the current ROIC(4.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.49% | ||
| ROE | 11.81% | ||
| ROIC | 4.42% |
ROA(3y)0.46%
ROA(5y)1.12%
ROE(3y)1.2%
ROE(5y)3.81%
ROIC(3y)3.49%
ROIC(5y)3.49%
1.3 Margins
Looking at the Profit Margin, with a value of 11.59%, SWX is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
SWX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.83%, SWX is doing worse than 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of SWX has declined.
Looking at the Gross Margin, with a value of 85.13%, SWX belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Gross Margin of SWX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.83% | ||
| PM (TTM) | 11.59% | ||
| GM | 85.13% |
OM growth 3Y-1.96%
OM growth 5Y-4.51%
PM growth 3Y-10.67%
PM growth 5Y-10.72%
GM growth 3Y-4.25%
GM growth 5Y-2.43%
2. Health
2.1 Basic Checks
SWX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SWX has more shares outstanding
The number of shares outstanding for SWX has been increased compared to 5 years ago.
The debt/assets ratio for SWX has been reduced compared to a year ago.
2.2 Solvency
SWX has an Altman-Z score of 1.29. This is a bad value and indicates that SWX is not financially healthy and even has some risk of bankruptcy.
SWX has a Altman-Z score (1.29) which is comparable to the rest of the industry.
SWX has a Debt/Equity ratio of 0.89. This is a neutral value indicating SWX is somewhat dependend on debt financing.
SWX has a better Debt to Equity ratio (0.89) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.66
WACC6.68%
2.3 Liquidity
SWX has a Current Ratio of 1.55. This is a normal value and indicates that SWX is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.55, SWX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SWX has a Quick Ratio of 1.43. This is a normal value and indicates that SWX is financially healthy and should not expect problems in meeting its short term obligations.
SWX's Quick ratio of 1.43 is amongst the best of the industry. SWX outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
SWX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.17%, which is quite impressive.
Measured over the past years, SWX shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.36% on average per year.
Looking at the last year, SWX shows a very negative growth in Revenue. The Revenue has decreased by -23.15% in the last year.
SWX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.38% yearly.
EPS 1Y (TTM)25.17%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-23.15%
Revenue growth 3Y11.58%
Revenue growth 5Y10.38%
Sales Q2Q%-70.63%
3.2 Future
SWX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.29% yearly.
Based on estimates for the next years, SWX will show a very negative growth in Revenue. The Revenue will decrease by -10.39% on average per year.
EPS Next Y16.7%
EPS Next 2Y14.86%
EPS Next 3Y14.5%
EPS Next 5Y13.29%
Revenue Next Year-14.82%
Revenue Next 2Y-18.21%
Revenue Next 3Y-5.33%
Revenue Next 5Y-10.39%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.43, which indicates a rather expensive current valuation of SWX.
64.29% of the companies in the same industry are cheaper than SWX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SWX to the average of the S&P500 Index (25.91), we can say SWX is valued inline with the index average.
SWX is valuated rather expensively with a Price/Forward Earnings ratio of 19.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.57. SWX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.43 | ||
| Fwd PE | 19.53 |
4.2 Price Multiples
SWX's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.88 |
4.3 Compensation for Growth
SWX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SWX's earnings are expected to grow with 14.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.34
PEG (5Y)N/A
EPS Next 2Y14.86%
EPS Next 3Y14.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.04%, SWX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.82, SWX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, SWX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of SWX has a limited annual growth rate of 2.90%.
SWX has been paying a dividend for at least 10 years, so it has a reliable track record.
SWX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.9%
Div Incr Years0
Div Non Decr Years32
5.3 Sustainability
SWX pays out 38.44% of its income as dividend. This is a sustainable payout ratio.
SWX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.44%
EPS Next 2Y14.86%
EPS Next 3Y14.5%
81.43
-0.24 (-0.29%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.59%
Inst Owner Change0.98%
Ins Owners0.49%
Ins Owner Change2.29%
Market Cap5.86B
Revenue(TTM)4.00B
Net Income(TTM)463.92M
Analysts85
Price Target85.34 (4.8%)
Short Float %1.82%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend2.48
Dividend Growth(5Y)2.9%
DP38.44%
Div Incr Years0
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.82%
Min EPS beat(2)20.4%
Max EPS beat(2)21.24%
EPS beat(4)4
Avg EPS beat(4)15.71%
Min EPS beat(4)8.85%
Max EPS beat(4)21.24%
EPS beat(8)5
Avg EPS beat(8)-2.39%
EPS beat(12)8
Avg EPS beat(12)20.19%
EPS beat(16)8
Avg EPS beat(16)1.11%
Revenue beat(2)0
Avg Revenue beat(2)-35.72%
Min Revenue beat(2)-66.15%
Max Revenue beat(2)-5.29%
Revenue beat(4)0
Avg Revenue beat(4)-23.06%
Min Revenue beat(4)-66.15%
Max Revenue beat(4)-5.29%
Revenue beat(8)2
Avg Revenue beat(8)-17.01%
Revenue beat(12)6
Avg Revenue beat(12)-6.38%
Revenue beat(16)10
Avg Revenue beat(16)-2.93%
PT rev (1m)-0.4%
PT rev (3m)4.15%
EPS NQ rev (1m)-26.87%
EPS NQ rev (3m)43.4%
EPS NY rev (1m)0.94%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)-16.04%
Revenue NQ rev (3m)-16.04%
Revenue NY rev (1m)-11.54%
Revenue NY rev (3m)-13.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.43 | ||
| Fwd PE | 19.53 | ||
| P/S | 1.46 | ||
| P/FCF | N/A | ||
| P/OCF | 8.67 | ||
| P/B | 1.49 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 9.88 |
EPS(TTM)3.63
EY4.46%
EPS(NY)4.17
Fwd EY5.12%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)9.39
OCFY11.53%
SpS55.63
BVpS54.58
TBVpS54.43
PEG (NY)1.34
PEG (5Y)N/A
Graham Number66.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.49% | ||
| ROE | 11.81% | ||
| ROCE | 5.4% | ||
| ROIC | 4.42% | ||
| ROICexc | 4.81% | ||
| ROICexgc | 4.82% | ||
| OM | 12.83% | ||
| PM (TTM) | 11.59% | ||
| GM | 85.13% | ||
| FCFM | N/A |
ROA(3y)0.46%
ROA(5y)1.12%
ROE(3y)1.2%
ROE(5y)3.81%
ROIC(3y)3.49%
ROIC(5y)3.49%
ROICexc(3y)3.55%
ROICexc(5y)3.57%
ROICexgc(3y)3.98%
ROICexgc(5y)4.01%
ROCE(3y)4.65%
ROCE(5y)4.64%
ROICexgc growth 3Y8.4%
ROICexgc growth 5Y-1.3%
ROICexc growth 3Y12.21%
ROICexc growth 5Y-2.13%
OM growth 3Y-1.96%
OM growth 5Y-4.51%
PM growth 3Y-10.67%
PM growth 5Y-10.72%
GM growth 3Y-4.25%
GM growth 5Y-2.43%
F-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.02 | ||
| Cap/Depr | 225.54% | ||
| Cap/Sales | 20.14% | ||
| Interest Coverage | 1.93 | ||
| Cash Conversion | 77.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 1.29 |
F-Score7
WACC6.68%
ROIC/WACC0.66
Cap/Depr(3y)198.77%
Cap/Depr(5y)207.54%
Cap/Sales(3y)17.3%
Cap/Sales(5y)19.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.17%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%-33.33%
EPS Next Y16.7%
EPS Next 2Y14.86%
EPS Next 3Y14.5%
EPS Next 5Y13.29%
Revenue 1Y (TTM)-23.15%
Revenue growth 3Y11.58%
Revenue growth 5Y10.38%
Sales Q2Q%-70.63%
Revenue Next Year-14.82%
Revenue Next 2Y-18.21%
Revenue Next 3Y-5.33%
Revenue Next 5Y-10.39%
EBIT growth 1Y16.52%
EBIT growth 3Y9.39%
EBIT growth 5Y5.41%
EBIT Next Year120.99%
EBIT Next 3Y35.1%
EBIT Next 5Y16.69%
FCF growth 1Y78.57%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y123.43%
OCF growth 3Y130.03%
OCF growth 5Y22.06%
SOUTHWEST GAS HOLDINGS INC / SWX FAQ
What is the ChartMill fundamental rating of SOUTHWEST GAS HOLDINGS INC (SWX) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SWX.
What is the valuation status of SOUTHWEST GAS HOLDINGS INC (SWX) stock?
ChartMill assigns a valuation rating of 2 / 10 to SOUTHWEST GAS HOLDINGS INC (SWX). This can be considered as Overvalued.
What is the profitability of SWX stock?
SOUTHWEST GAS HOLDINGS INC (SWX) has a profitability rating of 5 / 10.
What are the PE and PB ratios of SOUTHWEST GAS HOLDINGS INC (SWX) stock?
The Price/Earnings (PE) ratio for SOUTHWEST GAS HOLDINGS INC (SWX) is 22.43 and the Price/Book (PB) ratio is 1.49.
How financially healthy is SOUTHWEST GAS HOLDINGS INC?
The financial health rating of SOUTHWEST GAS HOLDINGS INC (SWX) is 4 / 10.