Stock Analysis Report

Southwest Gas Holdings

Executive Summary

Southwest Gas Holdings, Inc., through its subsidiaries, purchases, distributes, and transports natural gas in Arizona, Nevada, and California.


Earnings are forecast to grow 8.25% per year

Pays a high and reliable dividend of 2.74%

Risk Analysis

Debt is not well covered by operating cash flow

Shareholders have been diluted in the past year

Snowflake Analysis

Established dividend payer with questionable track record.

Similar Companies

Share Price & News

How has Southwest Gas Holdings's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: SZR has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




DE Gas Utilities


DE Market

1 Year Return




DE Gas Utilities


DE Market

Return vs Industry: SZR underperformed the German Gas Utilities industry which returned 8.6% over the past year.

Return vs Market: SZR underperformed the German Market which returned 14.1% over the past year.

Shareholder returns

7 Day2.8%0.8%0.1%
30 Day5.1%4.3%0.2%
90 Day2.8%6.2%3.3%
1 Year4.3%1.5%13.7%8.6%17.6%14.1%
3 Year-0.007%-7.7%51.7%31.3%14.8%4.8%
5 Year66.4%45.6%56.3%16.8%22.2%5.4%

Price Volatility Vs. Market

How volatile is Southwest Gas Holdings's share price compared to the market and industry in the last 5 years?

Simply Wall St News

No news available


Is Southwest Gas Holdings undervalued compared to its fair value and its price relative to the market?


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: SZR (€72.5) is trading above our estimate of fair value (€49.67)

Significantly Below Fair Value: SZR is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: SZR is poor value based on its PE Ratio (22.1x) compared to the Gas Utilities industry average (17x).

PE vs Market: SZR is poor value based on its PE Ratio (22.1x) compared to the German market (20.9x).

Price to Earnings Growth Ratio

PEG Ratio: SZR is poor value based on its PEG Ratio (2.7x)

Price to Book Ratio

PB vs Industry: SZR is overvalued based on its PB Ratio (1.8x) compared to the XE Gas Utilities industry average (1.3x).

Next Steps

Future Growth

How is Southwest Gas Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SZR's forecast earnings growth (8.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: SZR's earnings (8.2% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: SZR's earnings are forecast to grow, but not significantly.

Revenue vs Market: SZR's revenue is expected to decline over the next 3 years (-2.2% per year).

High Growth Revenue: SZR's revenue is forecast to decline over the next 3 years (-2.2% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SZR's Return on Equity is forecast to be low in 3 years time (8.6%).

Next Steps

Past Performance

How has Southwest Gas Holdings performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SZR has high quality earnings.

Growing Profit Margin: SZR's current net profit margins (6.3%) are lower than last year (7.4%).

Past Earnings Growth Analysis

Earnings Trend: SZR's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: SZR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SZR had negative earnings growth (-8.6%) over the past year, making it difficult to compare to the Gas Utilities industry average (10.6%).

Return on Equity

High ROE: SZR's Return on Equity (7.7%) is considered low.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is Southwest Gas Holdings's financial position?

Financial Position Analysis

Short Term Liabilities: SZR's short term assets ($765.4M) do not cover its short term liabilities ($782.3M).

Long Term Liabilities: SZR's short term assets ($765.4M) do not cover its long term liabilities ($4.5B).

Debt to Equity History and Analysis

Debt Level: SZR's debt to equity ratio (100.9%) is considered high.

Reducing Debt: SZR's debt to equity ratio has increased from 99.9% to 100.9% over the past 5 years.

Debt Coverage: SZR's debt is not well covered by operating cash flow (19.8%).

Interest Coverage: SZR's interest payments on its debt are well covered by EBIT (3.6x coverage).

Balance Sheet

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

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

Next Steps


What is Southwest Gas Holdings's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: SZR's dividend (2.74%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: SZR's dividend (2.74%) is low compared to the top 25% of dividend payers in the German market (3.57%).

Stability and Growth of Payments

Stable Dividend: SZR's dividends per share have been stable in the past 10 years.

Growing Dividend: SZR's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.2%), SZR's dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: SZR's dividends in 3 years are forecast to be covered by earnings (56.7% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


John Hester (57yo)





Mr. John P. Hester joined the Southwest Gas Corporation (the “Company”) in 1989. He serves as President, Chief Executive Officer and Director at Southwest Gas Holdings Incorporation and has been named to v ...

CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD4.10M) is above average for companies of similar size in the German market ($USD2.01M).

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

Leadership Team

John Hester
President4.9yrsUS$4.10m0.13% $5.1m
Gregory Peterson
Senior VP & CFO1.8yrsUS$1.09m0.028% $1.1m
Karen Haller
Executive VP & Chief Legal and Administrative Officer2.1yrsUS$1.16m0.052% $2.1m
Eric DeBonis
Senior Vice President of Operations - Southwest Gas Corporation0yrsUS$848.33k0.021% $858.7k
Paul Daily
President & CEO of Centuri Construction Group Inc.0yrsUS$1.75m0.0019% $76.3k
Lori Colvin
VP, Chief Accounting Officer & Controller1.8yrsno data0.0089% $355.7k
Kenneth Kenny
VP of Finance & Treasurer0yrsno data0.037% $1.5m
Thomas Moran
Corporate Secretary & Legal Counsel1.1yrsno datano data
Boyd Nelson
Vice President of Strategy & Corporate Development0yrsno datano data
Anita Romero
Senior Vice President of Staff Operations & Technology - Southwest Gas Corporation7.1yrsUS$938.43kno data


Average Tenure


Average Age

Experienced Management: SZR's management team is not considered experienced ( 2 years average tenure), which suggests a new team.

Board Members

John Hester
President4.9yrsUS$4.10m0.13% $5.1m
A. Thoman
Independent Director9.6yrsUS$232.29k0.046% $1.8m
Robert Boughner
Independent Director11.6yrsUS$225.81k0.080% $3.2m
José Cárdenas
Independent Director8.5yrsUS$201.89k0.038% $1.5m
Michael Melarkey
Chairman of the Board8.8yrsUS$301.70k0.063% $2.5m
Anne Mariucci
Independent Director13.7yrsUS$227.55k0.055% $2.2m
Thomas Chestnut
Independent Director15.8yrsUS$242.73k0.051% $2.0m
Jane Lewis-Raymond
Independent Director1.1yrsno data0.0032% $128.1k
Stephen Comer
Independent Director13.1yrsUS$247.41k0.056% $2.2m
Thomas Thomas
Independent Director11.4yrsUS$218.61k0.055% $2.2m


Average Tenure


Average Age

Experienced Board: SZR's board of directors are seasoned and experienced ( 10.5 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: SZR insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.7%.

Top Shareholders

Company Information

Southwest Gas Holdings, Inc.'s company bio, employee growth, exchange listings and data sources

Key Information

  • Name: Southwest Gas Holdings, Inc.
  • Ticker: SZR
  • Exchange: DB
  • Founded: 1931
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$4.343b
  • Listing Market Cap: US$4.014b
  • Shares outstanding: 54.63m
  • Website: https://www.swgasholdings.com

Number of Employees


  • Southwest Gas Holdings, Inc.
  • 5241 Spring Mountain Road
  • Post Office Box 98510
  • Las Vegas
  • Nevada
  • 89193
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SWXNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1979
SZRDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1979


Southwest Gas Holdings, Inc., through its subsidiaries, purchases, distributes, and transports natural gas in Arizona, Nevada, and California. The company operates through two segments, Natural Gas Operations and Utility Infrastructure Services. As of December 31, 2018, it had 2,047,000 residential, commercial, industrial, and other natural gas customers. The company also provides trenching and installation, replacement, and maintenance services for energy distribution systems; industrial construction solutions; and electrical distribution and transmission utility infrastructure services in the Gulf Coast and Mid-Atlantic region. The company also serves customers in the provinces of British Columbia and Ontario in Canada. Southwest Gas Holdings, Inc. was founded in 1931 and is headquartered in Las Vegas, Nevada. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 21:47
End of Day Share Price2020/02/18 00:00
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.