SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - NYSE:SWX - US8448951025 - Common Stock
78.65 USD
-0.68 (-0.86%)
78.65 USD
0 (0%)
Overall SWX gets a fundamental rating of 3 out of 10. We evaluated SWX against 14 industry peers in the Gas Utilities industry. SWX has a bad profitability rating. Also its financial health evaluation is rather negative. SWX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SWX had positive earnings in the past year.
In the past year SWX had a positive cash flow from operations.
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
With a Return On Assets value of 1.59%, SWX is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
SWX's Return On Equity of 5.27% is on the low side compared to the rest of the industry. SWX is outperformed by 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.98%, SWX is doing worse than 85.71% of the companies in the same industry.
SWX had an Average Return On Invested Capital over the past 3 years of 3.49%. This is below the industry average of 6.32%.
The last Return On Invested Capital (3.98%) for SWX is above the 3 year average (3.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.27% | ||
| ROIC | 3.98% |
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
SWX has a worse Profit Margin (4.06%) than 78.57% of its industry peers.
In the last couple of years the Profit Margin of SWX has declined.
SWX has a Operating Margin of 11.29%. This is amonst the worse of the industry: SWX underperforms 85.71% of its industry peers.
SWX's Operating Margin has declined in the last couple of years.
SWX has a better Gross Margin (86.06%) than 92.86% of its industry peers.
In the last couple of years the Gross Margin of SWX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.29% | ||
| PM (TTM) | 4.06% | ||
| GM | 86.06% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWX is destroying value.
Compared to 1 year ago, SWX has more shares outstanding
Compared to 5 years ago, SWX has more shares outstanding
SWX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.03, we must say that SWX is in the distress zone and has some risk of bankruptcy.
SWX's Altman-Z score of 1.03 is in line compared to the rest of the industry. SWX outperforms 42.86% of its industry peers.
The Debt to FCF ratio of SWX is 333.07, which is on the high side as it means it would take SWX, 333.07 years of fcf income to pay off all of its debts.
SWX has a Debt to FCF ratio (333.07) which is in line with its industry peers.
SWX has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.27, SWX perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 333.07 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.6
WACC6.63%
2.3 Liquidity
A Current Ratio of 1.01 indicates that SWX should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.01, SWX belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that SWX may have some problems paying its short term obligations.
The Quick ratio of SWX (0.94) is better than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.77% over the past year.
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.
SWX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.07%.
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)25.77%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%70.97%
Revenue 1Y (TTM)-10.07%
Revenue growth 3Y11.58%
Revenue growth 5Y10.38%
Sales Q2Q%119.64%
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 8.85% yearly.
SWX is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -10.55% yearly.
EPS Next Y15.61%
EPS Next 2Y15.01%
EPS Next 3Y15.39%
EPS Next 5Y8.85%
Revenue Next Year-3.71%
Revenue Next 2Y-6.83%
Revenue Next 3Y1.29%
Revenue Next 5Y-10.55%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SWX is valuated rather expensively with a Price/Earnings ratio of 21.49.
Based on the Price/Earnings ratio, SWX is valued a bit more expensive than 71.43% of the companies in the same industry.
SWX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.02.
With a Price/Forward Earnings ratio of 18.82, SWX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SWX is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, SWX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.49 | ||
| Fwd PE | 18.82 |
4.2 Price Multiples
SWX's Enterprise Value to EBITDA is on the same level as the industry average.
SWX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 402.48 | ||
| EV/EBITDA | 9.85 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as SWX's earnings are expected to grow with 15.39% in the coming years.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y15.01%
EPS Next 3Y15.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.13%, SWX has a reasonable but not impressive dividend return.
SWX's Dividend Yield is slightly below the industry average, which is at 3.88.
Compared to an average S&P500 Dividend Yield of 2.44, SWX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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 91.92% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SWX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP91.92%
EPS Next 2Y15.01%
EPS Next 3Y15.39%
78.65
-0.68 (-0.86%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners94.59%
Inst Owner Change0%
Ins Owners0.49%
Ins Owner Change2.42%
Market Cap5.66B
Analysts85.45
Price Target85.68 (8.94%)
Short Float %1.8%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend2.48
Dividend Growth(5Y)2.9%
DP91.92%
Div Incr Years0
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.63%
Min EPS beat(2)8.85%
Max EPS beat(2)20.4%
EPS beat(4)3
Avg EPS beat(4)0.15%
Min EPS beat(4)-40.99%
Max EPS beat(4)20.4%
EPS beat(8)5
Avg EPS beat(8)12.19%
EPS beat(12)7
Avg EPS beat(12)8.55%
EPS beat(16)7
Avg EPS beat(16)-4.11%
Revenue beat(2)0
Avg Revenue beat(2)-9.75%
Min Revenue beat(2)-14.2%
Max Revenue beat(2)-5.29%
Revenue beat(4)0
Avg Revenue beat(4)-7.5%
Min Revenue beat(4)-14.2%
Max Revenue beat(4)-3.9%
Revenue beat(8)3
Avg Revenue beat(8)-7.84%
Revenue beat(12)7
Avg Revenue beat(12)-0.49%
Revenue beat(16)11
Avg Revenue beat(16)1.53%
PT rev (1m)3.45%
PT rev (3m)6.78%
EPS NQ rev (1m)294.12%
EPS NQ rev (3m)32.23%
EPS NY rev (1m)-1.42%
EPS NY rev (3m)-1.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.49 | ||
| Fwd PE | 18.82 | ||
| P/S | 1.19 | ||
| P/FCF | 402.48 | ||
| P/OCF | 6.13 | ||
| P/B | 1.54 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 9.85 |
EPS(TTM)3.66
EY4.65%
EPS(NY)4.18
Fwd EY5.31%
FCF(TTM)0.2
FCFY0.25%
OCF(TTM)12.82
OCFY16.31%
SpS66.22
BVpS51.05
TBVpS40.12
PEG (NY)1.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 5.27% | ||
| ROCE | 4.98% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.12% | ||
| ROICexgc | 4.44% | ||
| OM | 11.29% | ||
| PM (TTM) | 4.06% | ||
| GM | 86.06% | ||
| FCFM | 0.3% |
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%
ROICexcg growth 3Y8.4%
ROICexcg 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-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 333.07 | ||
| Debt/EBITDA | 4.69 | ||
| Cap/Depr | 200.1% | ||
| Cap/Sales | 19.07% | ||
| Interest Coverage | 1.94 | ||
| Cash Conversion | 93% | ||
| Profit Quality | 7.26% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 1.03 |
F-Score6
WACC6.63%
ROIC/WACC0.6
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)25.77%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%70.97%
EPS Next Y15.61%
EPS Next 2Y15.01%
EPS Next 3Y15.39%
EPS Next 5Y8.85%
Revenue 1Y (TTM)-10.07%
Revenue growth 3Y11.58%
Revenue growth 5Y10.38%
Sales Q2Q%119.64%
Revenue Next Year-3.71%
Revenue Next 2Y-6.83%
Revenue Next 3Y1.29%
Revenue Next 5Y-10.55%
EBIT growth 1Y22.42%
EBIT growth 3Y9.39%
EBIT growth 5Y5.41%
EBIT Next Year120.99%
EBIT Next 3Y35.1%
EBIT Next 5Y16.69%
FCF growth 1Y101.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y491.63%
OCF growth 3Y130.03%
OCF growth 5Y22.06%