NYSE:SWXGas Utilities
Southwest Gas Holdings (SWX): Margin Surge Reinforces Bullish View Despite Premium Valuation
Southwest Gas Holdings (SWX) delivered a sharp improvement in profitability this year, with net profit margins rising to 9.6% from last year’s 3.4% and annual earnings growth hitting 46.2%. That performance stands out after five years of declining earnings. Shares now trade at $78.83, a significant premium to the estimated fair value of $40.31 based on discounted cash flow. With the company expected to grow earnings at 13.4% per year and revenue at 3.5% per year, both well below broader US...