Southwest Gas Holdings, Inc., through its subsidiaries, purchases, distributes, and transports natural gas in Arizona, Nevada, and California.
Southwest Gas Holdings Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$68.02|
|52 Week High||US$57.00|
|52 Week Low||US$75.00|
|1 Month Change||-5.33%|
|3 Month Change||7.64%|
|1 Year Change||9.71%|
|3 Year Change||-14.33%|
|5 Year Change||-6.99%|
|Change since IPO||288.69%|
Recent News & Updates
With EPS Growth And More, Southwest Gas Holdings (NYSE:SWX) Is Interesting
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
Here's Why Southwest Gas Holdings (NYSE:SWX) Has A Meaningful Debt Burden
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Southwest Gas Holdings: Regulated LDC Utility Plus Utility Infrastructure
Southwest Gas remains a Buy for income seekers based on its secure dividend and current undervaluation. Southwest Gas offers a conservative payout ratio, a growing utility footprint, and a strategically focused utility construction subsidiary. The Riggs Distler acquisition by Southwest Gas moves the market needle for Centuri more towards the electrical side and grid upgrades of utility infrastructure investments. Grid investments and LDC gas pipe replacements will continue to drive Centuri’s market opportunities.
|SWX||US Gas Utilities||US Market|
Return vs Industry: SWX underperformed the US Gas Utilities industry which returned 13.4% over the past year.
Return vs Market: SWX underperformed the US Market which returned 33.8% over the past year.
Stable Share Price: SWX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SWX's weekly volatility (3%) has been stable over the past year.
About the Company
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 and Utility Infrastructure Services. As of December 31, 2020, it had 2,123,000 residential, commercial, industrial, and other natural gas customers.
Is Southwest Gas Holdings undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SWX ($68.02) is trading below our estimate of fair value ($172.19)
Significantly Below Fair Value: SWX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SWX is good value based on its PE Ratio (15.2x) compared to the US Gas Utilities industry average (17.1x).
PE vs Market: SWX is good value based on its PE Ratio (15.2x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: SWX is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: SWX is good value based on its PB Ratio (1.4x) compared to the US Gas Utilities industry average (1.7x).
How is Southwest Gas Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SWX's forecast earnings growth (9.5% per year) is above the savings rate (2%).
Earnings vs Market: SWX's earnings (9.5% per year) are forecast to grow slower than the US market (14.9% 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 (-25.1% per year).
High Growth Revenue: SWX's revenue is forecast to decline over the next 3 years (-25.1% 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 (8.9%).
How has Southwest Gas Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SWX has high quality earnings.
Growing Profit Margin: SWX's current net profit margins (7.7%) are higher than last year (6.6%).
Past Earnings Growth Analysis
Earnings Trend: SWX's earnings have grown by 10.5% per year over the past 5 years.
Accelerating Growth: SWX's earnings growth over the past year (27.3%) exceeds its 5-year average (10.5% per year).
Earnings vs Industry: SWX earnings growth over the past year (27.3%) exceeded the Gas Utilities industry 26.4%.
Return on Equity
High ROE: SWX's Return on Equity (8.9%) is considered low.
How is Southwest Gas Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: SWX's short term assets ($1.0B) do not cover its short term liabilities ($1.3B).
Long Term Liabilities: SWX's short term assets ($1.0B) do not cover its long term liabilities ($4.7B).
Debt to Equity History and Analysis
Debt Level: SWX's debt to equity ratio (102.3%) is considered high.
Reducing Debt: SWX's debt to equity ratio has increased from 89.3% to 102.3% over the past 5 years.
Debt Coverage: SWX's debt is not well covered by operating cash flow (8.1%).
Interest Coverage: SWX's interest payments on its debt are well covered by EBIT (4.1x coverage).
What is Southwest Gas Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SWX's dividend (3.5%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: SWX's dividend (3.5%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: SWX's dividends per share have been stable in the past 10 years.
Growing Dividend: SWX's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (50%), SWX's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SWX's dividends in 3 years are forecast to be covered by earnings (59.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Hester (59 yo)
Mr. John P. Hester joined the Southwest Gas Holdings, Inc. (the “Company”) in 1989. He serves as President, Chief Executive Officer and Director at Southwest Gas Holdings Incorporation and Southwest Gas Co...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD6.51M) is about average for companies of similar size in the US market ($USD5.27M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Experienced Management: SWX's management team is considered experienced (3.7 years average tenure).
Experienced Board: SWX's board of directors are seasoned and experienced ( 10.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.7%.
Southwest Gas Holdings, Inc.'s employee growth, exchange listings and data sources
- Name: Southwest Gas Holdings, Inc.
- Ticker: SWX
- Exchange: NYSE
- Founded: 1931
- Industry: Gas Utilities
- Sector: Utilities
- Market Cap: US$4.020b
- Shares outstanding: 59.09m
- Website: https://www.swgasholdings.com
Number of Employees
- Southwest Gas Holdings, Inc.
- 8360 South Durango Drive
- Post Office Box 98510
- Las Vegas
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:03|
|End of Day Share Price||2021/09/17 00:00|
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.