Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas and oil in the United States.
The last earnings update was 53 days ago.
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Southwestern Energy. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Southwestern Energy's earnings available for a low price, and how does
this compare to other companies in the same industry?
Southwestern Energy's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Southwestern Energy's revenue is expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Southwestern Energy's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Oil and Gas
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Southwestern Energy's finances.
The net worth of a company is the difference between its assets and liabilities.
Southwestern Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Southwestern Energy's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Southwestern Energy's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.4x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
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 Chief Operating Officer of Southwestern Energy Company since October 01, 2011 until January 6, 2016. He served as an Executive Vice President of Southwestern Energy Company since October 2011 until December 2014. Mr. Way joined BG Group plc in 2007 as Senior Vice President, Americas with responsibility for E&P, Midstream and LNG operations in the United States, Trinidad and Tobago, Chile, Bolivia, Canada and Argentina as well as its global shipping business. He has been a Director of Southwestern Energy Company since January 2016. Mr. Way began his career at Conoco in 1981 and over the course of his more than twenty-seven year tenure, he held a wide range of senior leadership positions in E&P, LNG, Midstream and Shipping operations in the United States, Scotland, United Arab Emirates and Trinidad and Tobago. He serves as a Director for several secondary educational organizations. Mr. Way is a Registered Professional Engineer with the State of Texas. Mr. Way earned his undergraduate degree in Industrial Engineering from Texas A&M University and has an MBA from The Massachusetts Institute of Technology.
Bill's compensation has been consistent with company performance over the past year, both up more than 20%.
Bill's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Southwestern Energy management team is less than 2 years, this suggests a new team.
Executive VP & CFO
Executive VP & COO
Executive Vice President of Corporate Development
Senior Vice President of Government & Regulatory Affairs
Vice President of Technology
Senior Vice President of Administration
Vice President of Investor Relations
Vice President of Marketing & Transportation
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Southwestern Energy board of directors is about average.
Southwestern Energy Company (NYSE:SWN) Is Employing Capital Very Effectively
The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Southwestern Energy: 0.15 = US$817m ÷ (US$6.4b - US$943m) (Based on the trailing twelve months to March 2019.) So, Southwestern Energy has an ROCE of 15%. … What Are Current Liabilities, And How Do They Affect Southwestern Energy's ROCE? … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.
Does The Southwestern Energy Company (NYSE:SWN) Share Price Fall With The Market?
Given that it has a beta of 1.24, we can surmise that the Southwestern Energy share price has been fairly sensitive to market volatility (over the last 5 years). … Beta is worth considering, but it's also important to consider whether Southwestern Energy is growing earnings and revenue. … This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as Southwestern Energy’s financial health and performance track record.
Does Southwestern Energy Company's (NYSE:SWN) P/E Ratio Signal A Buying Opportunity?
We'll look at Southwestern Energy Company's (NYSE:SWN) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Southwestern Energy's P/E ratio is 2.41. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Those Who Purchased Southwestern Energy (NYSE:SWN) Shares Five Years Ago Have A 91% Loss To Show For It
For example, we sympathize with anyone who was caught holding Southwestern Energy Company (NYSE:SWN) during the five years that saw its share price drop a whopping 91%. … We really hope anyone holding through that price crash has a diversified portfolio. … During five years of share price growth, Southwestern Energy moved from a loss to profitability.
Southwestern Energy Company (NYSE:SWN): Time For A Financial Health Check
However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.
Does Southwestern Energy Company's (NYSE:SWN) Debt Level Pose A Problem?
Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Southwestern Energy Company (NYSE:SWN), with a market cap of US$2.4b, often get neglected by retail investors. … Let’s take a look at SWN’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further.
Our Take On Southwestern Energy Company's (NYSE:SWN) CEO Salary
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Bill Way's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Southwestern Energy Company has a market cap of US$2.3b, and is paying total annual CEO compensation of US$8.7m.
Should You Be Impressed By Southwestern Energy Company's (NYSE:SWN) ROE?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Southwestern Energy has a return on equity of 26% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Are Southwestern Energy Company’s (NYSE:SWN) High Returns Really That Great?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Here's What Southwestern Energy Company's (NYSE:SWN) P/E Ratio Is Telling Us
To keep it practical, we'll show how Southwestern Energy Company's (NYSE:SWN) P/E ratio could help you assess the value on offer. … Southwestern Energy has a P/E ratio of 4.94, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
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, Exploration and Production, and Midstream. The company focuses on the development of unconventional natural gas reservoirs located in Pennsylvania and West Virginia. As of December 31, 2018, it had approximately 184,024 net acres in Northeast Appalachia; and approximately 297,445 net acres in Southwest Appalachia. The company’s estimated proved natural gas, oil, and NGLs reserves comprise 11,921 billion cubic feet of natural gas equivalent (Bcfe); and 6,364 Bcfe of proved undeveloped reserves. Southwestern Energy Company was founded in 1929 and is headquartered in Spring, Texas.
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