NYSE:SWX

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Southwest Gas Holdings

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

SWX

-1.9%

US Gas Utilities

-2.4%

US Market


1 Year Return

-25.9%

SWX

-24.6%

US Gas Utilities

18.2%

US Market

Return vs Industry: SWX underperformed the US Gas Utilities industry which returned -23.6% over the past year.

Return vs Market: SWX underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

SWXIndustryMarket
7 Day-2.9%-1.9%-2.4%
30 Day6.3%4.2%4.2%
90 Day-7.6%-6.9%6.3%
1 Year-23.7%-25.9%-22.0%-24.6%20.9%18.2%
3 Year-11.0%-18.1%-10.7%-18.4%41.2%31.8%
5 Year21.5%6.3%24.5%6.4%84.8%63.9%

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?

17.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SWX ($65.92) is trading above our estimate of fair value ($50.4)

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 (17.5x) compared to the US Gas Utilities industry average (18.6x).

PE vs Market: SWX is good value based on its PE Ratio (17.5x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: SWX is poor value based on its PEG Ratio (1.3x)


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).


Next Steps

Future Growth

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

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWX's forecast earnings growth (13.3% per year) is above the savings rate (2.2%).

Earnings vs Market: SWX's earnings (13.3% per year) are forecast to grow slower than the US market (22.1% 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 (-5.8% per year).

High Growth Revenue: SWX's revenue is forecast to decline over the next 3 years (-5.8% 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 (8.5%).


Next Steps

Past Performance

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

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWX has high quality earnings.

Growing Profit Margin: SWX's current net profit margins (6.6%) are lower than last year (6.6%).


Past Earnings Growth Analysis

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

Accelerating Growth: SWX's earnings growth over the past year (4.6%) is below its 5-year average (9.5% per year).

Earnings vs Industry: SWX earnings growth over the past year (4.6%) underperformed the Gas Utilities industry 11.6%.


Return on Equity

High ROE: SWX's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is Southwest Gas Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SWX's short term assets ($867.2M) do not cover its short term liabilities ($918.0M).

Long Term Liabilities: SWX's short term assets ($867.2M) do not cover its long term liabilities ($4.8B).


Debt to Equity History and Analysis

Debt Level: SWX's debt to equity ratio (102.7%) is considered high.

Reducing Debt: SWX's debt to equity ratio has increased from 98.3% to 102.7% over the past 5 years.

Debt Coverage: SWX's debt is well covered by operating cash flow (21.5%).

Interest Coverage: SWX's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.46%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SWX's dividend (3.46%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: SWX's dividend (3.46%) is low compared to the top 25% of dividend payers in the US market (4.66%).


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 (58.5%), 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 (55.5% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

John Hester (58 yo)

5.58yrs

Tenure

US$5,870,724

Compensation

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 ($USD5.87M) is about average for companies of similar size in the US market ($USD5.61M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Hester
CEO, President & Director5.58yrsUS$5.87m0.16%
$ 6.0m
Gregory Peterson
Senior VP & CFO2.5yrsUS$1.90m0.026%
$ 973.1k
Karen Haller
Executive VP and Chief Legal & Administrative Officer2.75yrsUS$2.45m0.048%
$ 1.8m
Eric DeBonis
Senior Vice President of Operations - Southwest Gas Corporationno dataUS$1.62m0.026%
$ 965.0k
Paul Daily
President & CEO of Centuri Construction Group Inc.4.75yrsUS$2.03m0.0093%
$ 342.8k
Lori Colvin
VP, Chief Accounting Officer & Controller2.5yrsno data0.0094%
$ 347.2k
Kenneth Kenny
VP of Finance & Treasurerno datano data0.037%
$ 1.4m
Thomas Moran
Corporate Secretary & Legal Counsel1.75yrsno datano data
Boyd Nelson
Vice President of Strategy & Corporate Developmentno datano datano data
Justin Brown
Senior Vice President & General Counsel of Southwest Gas Corporation2.42yrsno data0.012%
$ 447.8k
Jose Esparza
Senior Vice President of Information Services & Customer Engagement - Southwest Gas Corporation1.75yrsno data0.0077%
$ 284.9k

2.5yrs

Average Tenure

56yo

Average Age

Experienced Management: SWX's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Hester
CEO, President & Director5.58yrsUS$5.87m0.16%
$ 6.0m
A. Thoman
Independent Director10.25yrsUS$265.45k0.048%
$ 1.8m
Robert Boughner
Independent Director12.25yrsUS$258.80k0.095%
$ 3.5m
José Cárdenas
Independent Director9.17yrsUS$232.50k0.038%
$ 1.4m
Michael Melarkey
Independent Chairman of the Board9.42yrsUS$342.91k0.065%
$ 2.4m
Anne Mariucci
Independent Director14.33yrsUS$260.75k0.057%
$ 2.1m
Leslie Thornton
Independent Director1.75yrsUS$227.22k0.0062%
$ 229.6k
Jane Lewis-Raymond
Independent Director1.75yrsUS$223.13k0.0089%
$ 328.4k
Stephen Comer
Independent Director13.75yrsUS$283.22k0.058%
$ 2.1m
Thomas Thomas
Independent Director12.08yrsUS$250.60k0.058%
$ 2.1m

9.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: SWX's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SWX insiders have bought more shares than they have sold 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 2.9%.


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$3.686b
  • Shares outstanding: 55.91m
  • Website: https://www.swgasholdings.com

Number of Employees


Location

  • Southwest Gas Holdings, Inc.
  • 5241 Spring Mountain Road
  • Post Office Box 98510
  • Las Vegas
  • Nevada
  • 89193-8510
  • United States

Listings

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

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 Analysis2020/10/19 23:41
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.