SOUTHWEST GAS HOLDINGS INC (SWX) Fundamental Analysis & Valuation

NYSE:SWX • US8448951025

Current stock price

83.58 USD
-2.64 (-3.06%)
At close:
83.58 USD
0 (0%)
After Hours:

This SWX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. SWX Profitability Analysis

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.
  • SWX had a positive operating cash flow in each of the past 5 years.
SWX Yearly Net Income VS EBIT VS OCF VS FCFSWX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B

1.2 Ratios

  • SWX has a better Return On Assets (4.22%) than 73.33% of its industry peers.
  • SWX's Return On Equity of 11.10% is fine compared to the rest of the industry. SWX outperforms 66.67% of its industry peers.
  • SWX has a worse Return On Invested Capital (4.09%) than 80.00% of its industry peers.
  • SWX had an Average Return On Invested Capital over the past 3 years of 3.18%. This is below the industry average of 6.13%.
  • The last Return On Invested Capital (4.09%) for SWX is above the 3 year average (3.18%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.22%
ROE 11.1%
ROIC 4.09%
ROA(3y)2.38%
ROA(5y)1.43%
ROE(3y)7.11%
ROE(5y)4.3%
ROIC(3y)3.18%
ROIC(5y)3.01%
SWX Yearly ROA, ROE, ROICSWX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10

1.3 Margins

  • SWX has a Profit Margin of 13.68%. This is in the better half of the industry: SWX outperforms 73.33% of its industry peers.
  • SWX's Profit Margin has improved in the last couple of years.
  • The Operating Margin of SWX (15.29%) is worse than 80.00% of its industry peers.
  • SWX's Operating Margin has improved in the last couple of years.
  • SWX's Gross Margin of 84.52% is amongst the best of the industry. SWX outperforms 93.33% of its industry peers.
  • In the last couple of years the Gross Margin of SWX has declined.
Industry RankSector Rank
OM 15.29%
PM (TTM) 13.68%
GM 84.52%
OM growth 3Y41.12%
OM growth 5Y13.75%
PM growth 3YN/A
PM growth 5Y26.34%
GM growth 3Y-3.94%
GM growth 5Y-3.66%
SWX Yearly Profit, Operating, Gross MarginsSWX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. SWX Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWX is destroying value.
  • The number of shares outstanding for SWX has been increased compared to 1 year ago.
  • SWX has more shares outstanding than it did 5 years ago.
  • SWX has a better debt/assets ratio than last year.
SWX Yearly Shares OutstandingSWX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
SWX Yearly Total Debt VS Total AssetsSWX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • SWX has an Altman-Z score of 1.21. 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 (1.21) is better than 66.67% of its industry peers.
  • SWX has a Debt/Equity ratio of 0.87. This is a neutral value indicating SWX is somewhat dependend on debt financing.
  • SWX has a Debt to Equity ratio of 0.87. This is in the better half of the industry: SWX outperforms 80.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF N/A
Altman-Z 1.21
ROIC/WACC0.56
WACC7.35%
SWX Yearly LT Debt VS Equity VS FCFSWX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

2.3 Liquidity

  • SWX has a Current Ratio of 1.28. 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 Current ratio of 1.28 is amongst the best of the industry. SWX outperforms 100.00% of its industry peers.
  • SWX has a Quick Ratio of 1.18. This is a normal value and indicates that SWX is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.18, SWX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.28
Quick Ratio 1.18
SWX Yearly Current Assets VS Current LiabilitesSWX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. SWX Growth Analysis

3.1 Past

  • SWX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.92%, which is quite good.
  • 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.
  • The Revenue for SWX has decreased by -37.12% in the past year. This is quite bad
  • Measured over the past years, SWX shows a decrease in Revenue. The Revenue has been decreasing by -4.52% on average per year.
EPS 1Y (TTM)13.92%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%-2.16%
Revenue 1Y (TTM)-37.12%
Revenue growth 3Y-12.39%
Revenue growth 5Y-4.52%
Sales Q2Q%-62.15%

3.2 Future

  • The Earnings Per Share is expected to grow by 15.80% 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 -10.16% yearly.
EPS Next Y16.03%
EPS Next 2Y15.63%
EPS Next 3Y16.78%
EPS Next 5Y15.8%
Revenue Next Year-30.6%
Revenue Next 2Y-33.54%
Revenue Next 3Y-22.72%
Revenue Next 5Y-10.16%

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.
SWX Yearly Revenue VS EstimatesSWX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B 5B
SWX Yearly EPS VS EstimatesSWX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

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2

4. SWX Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 23.22 indicates a rather expensive valuation of SWX.
  • Based on the Price/Earnings ratio, SWX is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
  • When comparing the Price/Earnings ratio of SWX to the average of the S&P500 Index (25.23), we can say SWX is valued inline with the index average.
  • SWX is valuated rather expensively with a Price/Forward Earnings ratio of 19.78.
  • 80.00% of the companies in the same industry are cheaper than SWX, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of SWX to the average of the S&P500 Index (23.28), we can say SWX is valued inline with the index average.
Industry RankSector Rank
PE 23.22
Fwd PE 19.78
SWX Price Earnings VS Forward Price EarningsSWX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWX is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.14
SWX Per share dataSWX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40 50

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 has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as SWX's earnings are expected to grow with 16.78% in the coming years.
PEG (NY)1.45
PEG (5Y)N/A
EPS Next 2Y15.63%
EPS Next 3Y16.78%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. SWX Dividend Analysis

5.1 Amount

  • SWX has a Yearly Dividend Yield of 2.84%.
  • SWX's Dividend Yield is slightly below the industry average, which is at 3.59.
  • Compared to an average S&P500 Dividend Yield of 1.91, SWX pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.84%

5.2 History

  • The dividend of SWX has a limited annual growth rate of 2.08%.
  • 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)2.08%
Div Incr Years0
Div Non Decr Years32
SWX Yearly Dividends per shareSWX Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • SWX pays out 40.59% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • SWX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.59%
EPS Next 2Y15.63%
EPS Next 3Y16.78%
SWX Yearly Income VS Free CF VS DividendSWX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M -400M -600M
SWX Dividend Payout.SWX Dividend Payout, showing the Payout Ratio.SWX Dividend Payout.PayoutRetained Earnings

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SWX Fundamentals: All Metrics, Ratios and Statistics

SOUTHWEST GAS HOLDINGS INC

NYSE:SWX (3/20/2026, 7:25:44 PM)

After market: 83.58 0 (0%)

83.58

-2.64 (-3.06%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)02-25
Earnings (Next)05-11
Inst Owners85.2%
Inst Owner Change-1.67%
Ins Owners0.35%
Ins Owner Change6.58%
Market Cap6.04B
Revenue(TTM)3.21B
Net Income(TTM)439.83M
Analysts88.33
Price Target94.28 (12.8%)
Short Float %1.55%
Short Ratio1.52
Dividend
Industry RankSector Rank
Dividend Yield 2.84%
Yearly Dividend2.48
Dividend Growth(5Y)2.08%
DP40.59%
Div Incr Years0
Div Non Decr Years32
Ex-Date02-17
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.89%
Min EPS beat(2)0.55%
Max EPS beat(2)21.24%
EPS beat(4)4
Avg EPS beat(4)12.76%
Min EPS beat(4)0.55%
Max EPS beat(4)21.24%
EPS beat(8)5
Avg EPS beat(8)-2.33%
EPS beat(12)9
Avg EPS beat(12)22.52%
EPS beat(16)9
Avg EPS beat(16)2.86%
Revenue beat(2)0
Avg Revenue beat(2)-55.34%
Min Revenue beat(2)-66.15%
Max Revenue beat(2)-44.54%
Revenue beat(4)0
Avg Revenue beat(4)-32.54%
Min Revenue beat(4)-66.15%
Max Revenue beat(4)-5.29%
Revenue beat(8)1
Avg Revenue beat(8)-23.15%
Revenue beat(12)5
Avg Revenue beat(12)-11.57%
Revenue beat(16)9
Avg Revenue beat(16)-6.09%
PT rev (1m)0.78%
PT rev (3m)8.19%
EPS NQ rev (1m)6.56%
EPS NQ rev (3m)7.51%
EPS NY rev (1m)0.54%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)-20.86%
Revenue NQ rev (3m)-20.86%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-33.61%
Valuation
Industry RankSector Rank
PE 23.22
Fwd PE 19.78
P/S 1.88
P/FCF N/A
P/OCF 10.86
P/B 1.52
P/tB 1.53
EV/EBITDA 11.14
EPS(TTM)3.6
EY4.31%
EPS(NY)4.22
Fwd EY5.05%
FCF(TTM)-3.48
FCFYN/A
OCF(TTM)7.69
OCFY9.21%
SpS44.48
BVpS54.81
TBVpS54.66
PEG (NY)1.45
PEG (5Y)N/A
Graham Number66.63
Profitability
Industry RankSector Rank
ROA 4.22%
ROE 11.1%
ROCE 5.17%
ROIC 4.09%
ROICexc 4.35%
ROICexgc 4.36%
OM 15.29%
PM (TTM) 13.68%
GM 84.52%
FCFM N/A
ROA(3y)2.38%
ROA(5y)1.43%
ROE(3y)7.11%
ROE(5y)4.3%
ROIC(3y)3.18%
ROIC(5y)3.01%
ROICexc(3y)3.31%
ROICexc(5y)3.11%
ROICexgc(3y)3.45%
ROICexgc(5y)3.39%
ROCE(3y)4.18%
ROCE(5y)4.15%
ROICexgc growth 3Y7.29%
ROICexgc growth 5Y-1.95%
ROICexc growth 3Y11.31%
ROICexc growth 5Y-0.69%
OM growth 3Y41.12%
OM growth 5Y13.75%
PM growth 3YN/A
PM growth 5Y26.34%
GM growth 3Y-3.94%
GM growth 5Y-3.66%
F-Score6
Asset Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF N/A
Debt/EBITDA 4.18
Cap/Depr 244.27%
Cap/Sales 25.13%
Interest Coverage 2.05
Cash Conversion 67.63%
Profit Quality N/A
Current Ratio 1.28
Quick Ratio 1.18
Altman-Z 1.21
F-Score6
WACC7.35%
ROIC/WACC0.56
Cap/Depr(3y)219.3%
Cap/Depr(5y)206.69%
Cap/Sales(3y)38.09%
Cap/Sales(5y)30.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.92%
EPS 3Y-4.78%
EPS 5Y-4.36%
EPS Q2Q%-2.16%
EPS Next Y16.03%
EPS Next 2Y15.63%
EPS Next 3Y16.78%
EPS Next 5Y15.8%
Revenue 1Y (TTM)-37.12%
Revenue growth 3Y-12.39%
Revenue growth 5Y-4.52%
Sales Q2Q%-62.15%
Revenue Next Year-30.6%
Revenue Next 2Y-33.54%
Revenue Next 3Y-22.72%
Revenue Next 5Y-10.16%
EBIT growth 1Y1.61%
EBIT growth 3Y3.21%
EBIT growth 5Y2.3%
EBIT Next Year75.31%
EBIT Next 3Y26.87%
EBIT Next 5Y26.63%
FCF growth 1Y-161.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-58.98%
OCF growth 3Y13.17%
OCF growth 5Y-2.34%

SOUTHWEST GAS HOLDINGS INC / SWX Fundamental Analysis 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 for 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 6 / 10.


What is the financial health of SOUTHWEST GAS HOLDINGS INC (SWX) stock?

The financial health rating of SOUTHWEST GAS HOLDINGS INC (SWX) is 4 / 10.


Is the dividend of SOUTHWEST GAS HOLDINGS INC sustainable?

The dividend rating of SOUTHWEST GAS HOLDINGS INC (SWX) is 6 / 10 and the dividend payout ratio is 40.59%.