SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - NYSE:SWX - US8448951025 - Common Stock
81.3 USD
-0.13 (-0.16%)
81.3 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. SWX has an average financial health and profitability rating. SWX is quite expensive at the moment. 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.
SWX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SWX had a positive operating cash flow.
1.2 Ratios
SWX has a Return On Assets of 4.49%. This is in the better half of the industry: SWX outperforms 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 11.81%, SWX is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital 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
The Profit Margin of SWX (11.59%) is better than 64.29% of its industry peers.
SWX's Profit Margin has declined in the last couple of years.
The Operating Margin of SWX (12.83%) is worse than 78.57% of its industry peers.
In the last couple of years the Operating Margin of SWX has declined.
SWX has a Gross Margin of 85.13%. This is amongst the best in the industry. SWX outperforms 92.86% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWX is destroying value.
SWX has more shares outstanding than it did 1 year ago.
SWX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SWX has an improved debt to assets ratio.
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.
With a Altman-Z score value of 1.29, SWX perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
A Debt/Equity ratio of 0.89 indicates that SWX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, SWX is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.66
WACC6.71%
2.3 Liquidity
A Current Ratio of 1.55 indicates that SWX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.55, SWX belongs to the top 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.
With an excellent Quick ratio value of 1.43, SWX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| 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.
The Earnings Per Share has been decreasing by -4.36% on average over the past years.
The Revenue for SWX has decreased by -23.15% in the past year. This is quite bad
Measured over the past years, SWX shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.
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
The Earnings Per Share is expected to grow by 13.29% on average over the next years. This is quite good.
SWX is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -10.39% yearly.
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.
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
A Price/Earnings ratio of 22.40 indicates a rather expensive valuation of SWX.
64.29% of the companies in the same industry are cheaper than SWX, based on the Price/Earnings ratio.
SWX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.50, which indicates a rather expensive current valuation of SWX.
SWX's Price/Forward Earnings ratio is in line with the industry average.
SWX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.4 | ||
| Fwd PE | 19.5 |
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 | 9.86 |
4.3 Compensation for Growth
The 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.
SWX's Dividend Yield is slightly below the industry average, which is at 3.81.
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.9%
Div Incr Years0
Div Non Decr Years32
5.3 Sustainability
38.44% of the earnings are spent on dividend by SWX. This is a low number and sustainable payout ratio.
The dividend of SWX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.44%
EPS Next 2Y14.86%
EPS Next 3Y14.5%
81.3
-0.13 (-0.16%)
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 Cap5.85B
Revenue(TTM)4.00B
Net Income(TTM)463.92M
Analysts85
Price Target85.34 (4.97%)
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 | 22.4 | ||
| Fwd PE | 19.5 | ||
| P/S | 1.46 | ||
| P/FCF | N/A | ||
| P/OCF | 8.66 | ||
| P/B | 1.49 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 9.86 |
EPS(TTM)3.63
EY4.46%
EPS(NY)4.17
Fwd EY5.13%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)9.39
OCFY11.55%
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
WACC6.71%
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 22.4 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.