SOUTHWEST GAS HOLDINGS INC (SWX)
US8448951025 - Common Stock
We assign a fundamental rating of 3 out of 10 to SWX. SWX was compared to 14 industry peers in the Gas Utilities industry. Both the profitability and financial health of SWX have multiple concerns. While showing a medium growth rate, SWX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year SWX was profitable.
In the past year SWX had a positive cash flow from operations.
Of the past 5 years SWX 4 years were profitable.
Each year in the past 5 years SWX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.27%, SWX is doing worse than 71.43% of the companies in the same industry.
SWX has a Return On Equity of 4.56%. This is in the lower half of the industry: SWX underperforms 71.43% of its industry peers.
SWX has a Return On Invested Capital of 3.57%. This is in the lower half of the industry: SWX underperforms 78.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SWX is below the industry average of 5.94%.
The last Return On Invested Capital (3.57%) for SWX is above the 3 year average (3.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 4.56% | ||
| ROIC | 3.57% |
ROA(3y)0.43%
ROA(5y)1.32%
ROE(3y)1.57%
ROE(5y)4.39%
ROIC(3y)3.03%
ROIC(5y)3.46%
1.3 Margins
SWX's Profit Margin of 2.78% is on the low side compared to the rest of the industry. SWX is outperformed by 71.43% of its industry peers.
SWX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.01%, SWX is doing worse than 71.43% of the companies in the same industry.
SWX's Operating Margin has declined in the last couple of years.
SWX has a better Gross Margin (76.94%) than 92.86% of its industry peers.
SWX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.01% | ||
| PM (TTM) | 2.78% | ||
| GM | 76.94% |
OM growth 3Y-11.1%
OM growth 5Y-6.2%
PM growth 3Y-26.67%
PM growth 5Y-15.19%
GM growth 3Y-4.96%
GM growth 5Y-2.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWX is destroying value.
The number of shares outstanding for SWX has been increased compared to 1 year ago.
The number of shares outstanding for SWX has been increased compared to 5 years ago.
SWX has a better debt/assets ratio than last year.
2.2 Solvency
SWX has an Altman-Z score of 1.08. This is a bad value and indicates that SWX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SWX (1.08) is comparable to the rest of the industry.
SWX has a Debt/Equity ratio of 1.58. This is a high value indicating a heavy dependency on external financing.
SWX has a worse Debt to Equity ratio (1.58) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.08 |
ROIC/WACC0.54
WACC6.64%
2.3 Liquidity
SWX has a Current Ratio of 1.12. This is a normal value and indicates that SWX is financially healthy and should not expect problems in meeting its short term obligations.
SWX has a Current ratio of 1.12. This is amongst the best in the industry. SWX outperforms 92.86% of its industry peers.
SWX has a Quick Ratio of 1.12. 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 1.12 is amongst the best of the industry. SWX outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
SWX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.06%, which is quite good.
SWX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.63% yearly.
The Revenue has grown by 9.56% in the past year. This is quite good.
Measured over the past years, SWX shows a quite strong growth in Revenue. The Revenue has been growing by 13.54% on average per year.
EPS 1Y (TTM)10.06%
EPS 3Y-6.37%
EPS 5Y-1.63%
EPS growth Q2Q-2.59%
Revenue 1Y (TTM)9.56%
Revenue growth 3Y18.1%
Revenue growth 5Y13.54%
Revenue growth Q2Q-3.76%
3.2 Future
SWX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.69% yearly.
Based on estimates for the next years, SWX will show a very negative growth in Revenue. The Revenue will decrease by -18.98% on average per year.
EPS Next Y-4.59%
EPS Next 2Y4.75%
EPS Next 3Y9.77%
EPS Next 5Y0.69%
Revenue Next Year-5.24%
Revenue Next 2Y-0.48%
Revenue Next 3Y4.12%
Revenue Next 5Y-18.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.12, SWX is valued on the expensive side.
Based on the Price/Earnings ratio, SWX is valued a bit more expensive than the industry average as 78.57% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of SWX to the average of the S&P500 Index (24.92), we can say SWX is valued inline with the index average.
The Price/Forward Earnings ratio is 23.19, which indicates a rather expensive current valuation of SWX.
SWX's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SWX is more expensive than 78.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, SWX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.12 | ||
| Fwd PE | 23.19 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SWX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.75%
EPS Next 3Y9.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.27%, SWX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.77, SWX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.43, SWX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
5.2 History
The dividend of SWX has a limited annual growth rate of 4.90%.
SWX has been paying a dividend for at least 10 years, so it has a reliable track record.
SWX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.9%
Div Incr Years17
Div Non Decr Years19
5.3 Sustainability
SWX pays out 115.70% of its income as dividend. This is not a sustainable payout ratio.
SWX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP115.7%
EPS Next 2Y4.75%
EPS Next 3Y9.77%
SOUTHWEST GAS HOLDINGS INC
NYSE:SWX (4/26/2024, 7:04:00 PM)
After market: 75 0 (0%)75
-0.95 (-1.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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)
Max EPS beat(4)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 | 22.12 | ||
| Fwd PE | 23.19 | ||
| 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 | 1.27% | ||
| ROE | 4.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.01% | ||
| PM (TTM) | 2.78% | ||
| GM | 76.94% | ||
| 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 Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| 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)10.06%
EPS 3Y-6.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.56%
Revenue growth 3Y18.1%
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