DB:SW5

Stock Analysis Report

Southwestern Energy

Executive Summary

Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas and oil in the United States.

Rewards

PE ratio (1x) is below the German market (20.4x)

Earnings grew by 119.2% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -48.5% per year for the next 3 years

High level of non-cash earnings

Has a high level of debt

Highly volatile share price over past 3 months



Snowflake Analysis

Solid track record and fair value.


Similar Companies

Share Price & News

How has Southwestern Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SW5's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

SW5

3.3%

DE Oil and Gas

-0.3%

DE Market


1 Year Return

-54.7%

SW5

72.4%

DE Oil and Gas

14.9%

DE Market

Return vs Industry: SW5 underperformed the German Oil and Gas industry which returned 72.4% over the past year.

Return vs Market: SW5 underperformed the German Market which returned 14.9% over the past year.


Shareholder returns

SW5IndustryMarket
7 Day-0.4%3.3%-0.3%
30 Day-15.2%12.4%-0.1%
90 Day0.8%30.6%7.1%
1 Year-54.7%-54.7%78.4%72.4%18.5%14.9%
3 Year-85.0%-85.0%67.2%51.2%20.0%9.5%
5 Year-92.5%-92.5%282.5%218.5%38.0%19.3%

Price Volatility Vs. Market

How volatile is Southwestern Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Southwestern Energy undervalued compared to its fair value and its price relative to the market?

1.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SW5's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SW5's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SW5 is good value based on its PE Ratio (1x) compared to the Oil and Gas industry average (10.4x).

PE vs Market: SW5 is good value based on its PE Ratio (1x) compared to the German market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: SW5's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SW5 is good value based on its PB Ratio (0.4x) compared to the DE Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Southwestern Energy forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-48.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SW5's earnings are forecast to decline over the next 3 years (-48.5% per year).

Earnings vs Market: SW5's earnings are forecast to decline over the next 3 years (-48.5% per year).

High Growth Earnings: SW5's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SW5's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: SW5's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SW5's Return on Equity is forecast to be low in 3 years time (5.6%).


Next Steps

  • Explore growth companies in the Energy industry.

Past Performance

How has Southwestern Energy performed over the past 5 years?

32.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SW5 has a high level of non-cash earnings.

Growing Profit Margin: SW5's current net profit margins (31.3%) are higher than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: SW5 has become profitable over the past 5 years, growing earnings by 32.9% per year.

Accelerating Growth: SW5's earnings growth over the past year (119.2%) exceeds its 5-year average (32.9% per year).

Earnings vs Industry: SW5 earnings growth over the past year (119.2%) exceeded the Oil and Gas industry -2.9%.


Return on Equity

High ROE: SW5's Return on Equity (34.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Southwestern Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SW5's short term assets ($633.0M) do not cover its short term liabilities ($880.0M).

Long Term Liabilities: SW5's short term assets ($633.0M) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: SW5's debt to equity ratio (72.4%) is considered high.

Reducing Debt: SW5's debt to equity ratio has increased from 43.5% to 72.4% over the past 5 years.

Debt Coverage: SW5's debt is well covered by operating cash flow (43.6%).

Interest Coverage: SW5's interest payments on its debt are well covered by EBIT (11x coverage).


Balance Sheet

Inventory Level: SW5 has a high level of physical assets or inventory.

Debt Coverage by Assets: SW5's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Southwestern Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage5.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SW5's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SW5's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SW5's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SW5's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SW5's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Southwestern Energy's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Bill Way (60yo)

3.9yrs

Tenure

US$8,420,470

Compensation

Mr. William J. Way, also known as Bill, has been the Chief Executive Officer of Southwestern Energy Company since January 6, 2016 and has been its President since December 4, 2014. Mr. Way served as the Ch ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD8.42M) is above average for companies of similar size in the German market ($USD1.17M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.4yrs

Average Tenure

55yo

Average Age

Experienced Management: SW5's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

63yo

Average Age

Experienced Board: SW5's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$1,91927 Aug 19
R. Kurtz
EntityIndividual
Role
Head of Marketing
Vice President of Marketing & Transportation
Shares1,250
Max PriceUS$1.54
BuyUS$42,34609 Aug 19
Julian Bott
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares25,000
Max PriceUS$1.69
BuyUS$170,27709 Aug 19
William Way
EntityIndividual
Role
Chief Executive Officer
President
Shares100,000
Max PriceUS$1.70

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • John Ale (64yo)

    Senior VP

    • Tenure: 6.1yrs
    • Compensation: US$2.61m
  • James Cecil (52yo)

    Executive Vice President of Corporate Development

    • Tenure: 2.3yrs
    • Compensation: US$4.57m
  • Clay Carrell (54yo)

    Executive VP & COO

    • Tenure: 2yrs
    • Compensation: US$4.35m
  • Jennifer McCauley (55yo)

    Senior Vice President of Administration

    • Tenure: 3.7yrs
  • Jennifer Stewart (55yo)

    Senior Vice President of Government & Regulatory Affairs

    • Tenure: 0yrs
    • Compensation: US$1.26m
  • Bill Way (60yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$8.42m
  • Julian Bott (56yo)

    Executive VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$3.44m
  • R. Kurtz (48yo)

    Vice President of Marketing & Transportation

    • Tenure: 2.4yrs
  • C. Penchas

    Vice President of Investor Relations

    • Tenure: 1.8yrs
  • Ron Hyden

    Vice President of Technology

    • Tenure: 0yrs

Board Members

  • Jon Marshall (67yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$275.00k
  • Greg Kerley (63yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$299.41k
  • John Gass (67yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$311.92k
  • Patrick Prevost (64yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$275.00k
  • Denis Walsh (58yo)

    Independent Director

    • Tenure: 0.5yrs
  • Anne Taylor (63yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$141.27k
  • Cathy Kehr (56yo)

    Independent Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: US$414.20k
  • Bill Way (60yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$8.42m

Company Information

Southwestern Energy Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Southwestern Energy Company
  • Ticker: SW5
  • Exchange: DB
  • Founded: 1929
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$992.522m
  • Listing Market Cap: US$895.056m
  • Shares outstanding: 539.41m
  • Website: https://www.swn.com

Number of Employees


Location

  • Southwestern Energy Company
  • 10000 Energy Drive
  • Spring
  • Texas
  • 77389
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SWNNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
SW5DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980

Biography

Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas and oil in the United States. It operates through two segments, Exploratio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 20:44
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.