SOUTHWEST GAS HOLDINGS INC (SWX) Stock Fundamental Analysis
USA - NYSE:SWX - US8448951025 - Common Stock
78.4 USD
-0.6 (-0.76%)
78.4 USD
0 (0%)
SWX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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 quite expensive at the moment. 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
Looking at the Return On Assets, with a value of 1.59%, SWX is doing worse than 85.71% of the companies in the same industry.
The Return On Equity of SWX (5.27%) is worse than 85.71% of its industry peers.
SWX has a Return On Invested Capital of 3.98%. This is amonst the worse of the industry: SWX underperforms 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWX 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
Looking at the Profit Margin, with a value of 4.06%, SWX is doing worse than 78.57% of the companies in the same industry.
In the last couple of years the Profit Margin of SWX has declined.
SWX's Operating Margin of 11.29% is on the low side compared to the rest of the industry. SWX is outperformed by 85.71% of its industry peers.
In the last couple of years the Operating Margin of SWX has declined.
SWX's Gross Margin of 86.06% is amongst the best of the industry. SWX outperforms 92.86% of its industry peers.
SWX's Gross Margin has declined in the last couple of years.
| 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
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
Compared to 5 years ago, SWX has more shares outstanding
The debt/assets ratio for SWX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that SWX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.02, SWX is in line with its industry, outperforming 42.86% of the companies in the same industry.
SWX has a debt to FCF ratio of 333.07. This is a negative value and a sign of low solvency as SWX would need 333.07 years to pay back of all of its debts.
The Debt to FCF ratio of SWX (333.07) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.27 is on the high side and indicates that SWX has dependencies on debt financing.
SWX's Debt to Equity ratio of 1.27 is in line compared to the rest of the industry. SWX outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.27 | ||
| Debt/FCF | 333.07 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.6
WACC6.66%
2.3 Liquidity
SWX has a Current Ratio of 1.01. This is a normal value and indicates that SWX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SWX (1.01) is better than 85.71% of its industry peers.
A Quick Ratio of 0.94 indicates that SWX may have some problems paying its short term obligations.
With an excellent Quick ratio value of 0.94, SWX belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
SWX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.77%, 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.
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
Based on estimates for the next years, SWX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.85% on average per year.
The Revenue is expected to decrease by -10.55% on average over the next years. This is quite bad
EPS Next Y17.28%
EPS Next 2Y15.05%
EPS Next 3Y14.75%
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
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 21.42, SWX is valued on the expensive side.
71.43% of the companies in the same industry are cheaper than SWX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.38. SWX is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.74 indicates a rather expensive 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.
SWX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.42 | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SWX.
The rest of the industry has a similar Price/Free Cash Flow ratio as SWX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 401.2 | ||
| EV/EBITDA | 9.83 |
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 14.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.24
PEG (5Y)N/A
EPS Next 2Y15.05%
EPS Next 3Y14.75%
5. Dividend
5.1 Amount
SWX has a Yearly Dividend Yield of 3.14%.
Compared to an average industry Dividend Yield of 3.95, SWX is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, SWX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
The dividend of SWX has a limited annual growth rate of 2.90%.
SWX has paid a dividend for at least 10 years, which is 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
91.92% of the earnings are spent on dividend by SWX. 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 2Y15.05%
EPS Next 3Y14.75%
78.4
-0.6 (-0.76%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners92.6%
Inst Owner Change2.33%
Ins Owners0.45%
Ins Owner Change2.25%
Market Cap5.64B
Analysts85.45
Price Target85.68 (9.29%)
Short Float %1.73%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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)4.56%
PT rev (3m)7.69%
EPS NQ rev (1m)96.08%
EPS NQ rev (3m)28.03%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-2.05%
Revenue NY rev (3m)-2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.42 | ||
| Fwd PE | 18.74 | ||
| P/S | 1.18 | ||
| P/FCF | 401.2 | ||
| P/OCF | 6.11 | ||
| P/B | 1.54 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 9.83 |
EPS(TTM)3.66
EY4.67%
EPS(NY)4.18
Fwd EY5.34%
FCF(TTM)0.2
FCFY0.25%
OCF(TTM)12.82
OCFY16.36%
SpS66.22
BVpS51.05
TBVpS40.12
PEG (NY)1.24
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 | 1.02 |
F-Score6
WACC6.66%
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 Y17.28%
EPS Next 2Y15.05%
EPS Next 3Y14.75%
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 Year116.53%
EBIT Next 3Y31.56%
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%