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Southwest Gas Holdings

Market Cap

US$4.1b

Last Updated

2021/05/04 23:37 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Established dividend payer and fair value.


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: SWX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SWX's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.5%

SWX

1.1%

US Gas Utilities

-1.6%

US Market


1 Year Return

-4.4%

SWX

15.6%

US Gas Utilities

52.8%

US Market

Return vs Industry: SWX underperformed the US Gas Utilities industry which returned 13.5% over the past year.

Return vs Market: SWX underperformed the US Market which returned 55.2% over the past year.


Shareholder returns

SWXIndustryMarket
7 Day1.5%1.1%-1.6%
30 Day3.0%3.5%1.3%
90 Day16.1%15.8%3.5%
1 Year-1.1%-4.4%19.7%15.6%55.4%52.8%
3 Year5.1%-3.6%11.6%1.7%63.5%53.2%
5 Year18.3%3.1%31.4%12.7%125.8%100.7%

Long-Term 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

Valuation

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

16.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SWX ($70.26) is trading above our estimate of fair value ($65.19)

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


Price To Earnings Ratio

PE vs Industry: SWX is good value based on its PE Ratio (16.9x) compared to the US Gas Utilities industry average (20.2x).

PE vs Market: SWX is good value based on its PE Ratio (16.9x) compared to the US market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: SWX is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: SWX is good value based on its PB Ratio (1.5x) compared to the US Gas Utilities industry average (1.9x).


Future Growth

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

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWX's forecast earnings growth (8.1% per year) is above the savings rate (2%).

Earnings vs Market: SWX's earnings (8.1% per year) are forecast to grow slower than the US market (16.3% per year).

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

Revenue vs Market: SWX's revenue is expected to decline over the next 3 years (-23.8% per year).

High Growth Revenue: SWX's revenue is forecast to decline over the next 3 years (-23.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SWX's Return on Equity is forecast to be low in 3 years time (8.3%).


Past Performance

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

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWX has high quality earnings.

Growing Profit Margin: SWX's current net profit margins (7%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: SWX's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: SWX's earnings growth over the past year (8.7%) is below its 5-year average (9.3% per year).

Earnings vs Industry: SWX earnings growth over the past year (8.7%) underperformed the Gas Utilities industry 9.7%.


Return on Equity

High ROE: SWX's Return on Equity (8.4%) is considered low.


Financial Health

How is Southwest Gas Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SWX's short term assets ($871.0M) do not cover its short term liabilities ($912.0M).

Long Term Liabilities: SWX's short term assets ($871.0M) do not cover its long term liabilities ($5.0B).


Debt to Equity History and Analysis

Debt Level: SWX's debt to equity ratio (101.4%) is considered high.

Reducing Debt: SWX's debt to equity ratio has increased from 98.5% to 101.4% over the past 5 years.

Debt Coverage: SWX's debt is well covered by operating cash flow (21.7%).

Interest Coverage: SWX's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Dividend

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

3.39%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 06 2021Ex Dividend DateMay 14 2021Dividend Pay DateJun 01 202118 days from Ex DividendBuy in the next 8 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SWX's dividend (3.39%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: SWX's dividend (3.39%) is low compared to the top 25% of dividend payers in the US market (3.43%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.4%), SWX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SWX's dividends in 3 years are forecast to be covered by earnings (53.4% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

John Hester (58 yo)

6.17yrs

Tenure

US$6,511,777

Compensation

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


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD6.51M) is about average for companies of similar size in the US market ($USD5.44M).

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


Leadership Team

Experienced Management: SWX's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: SWX's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SWX 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 3.9%.


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: SWX
  • Exchange: NYSE
  • Founded: 1931
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$4.062b
  • Shares outstanding: 57.28m
  • Website: https://www.swgasholdings.com

Number of Employees


Location

  • Southwest Gas Holdings, Inc.
  • 8360 South Durango Drive
  • Post Office Box 98510
  • Las Vegas
  • Nevada
  • 89193-8510
  • United States

Listings


Biography

Southwest Gas Holdings, Inc., through its subsidiaries, purchases, distributes, and transports natural gas in Arizona, Nevada, and California. The company operates in two segments, Natural Gas Operations a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/04 23:37
End of Day Share Price2021/05/04 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.