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SWX

Southwest Gas HoldingsNYSE:SWX Stock Report

Market Cap

US$4.2b

7D

7.9%

1Y

9.1%

Updated

08 Dec, 2021

Data

Company Financials +
SWX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance2/6
Financial Health2/6
Dividends5/6

SWX Stock Overview

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

Southwest Gas Holdings Competitors

Atmos Energy

NYSE:ATO

US$12.5b

New Jersey Resources

NYSE:NJR

US$3.9b

ONE Gas

NYSE:OGS

US$3.8b

Spire

NYSE:SR

US$3.3b

Price History & Performance

Summary of all time highs, changes and price drops for Southwest Gas Holdings
Historical stock prices
Current Share PriceUS$70.12
52 Week HighUS$73.54
52 Week LowUS$57.00
Beta0.21
1 Month Change1.82%
3 Month Change-0.47%
1 Year Change9.14%
3 Year Change-15.25%
5 Year Change-5.85%
Change since IPO300.69%

Recent News & Updates

Nov 04
Here's Why Southwest Gas Holdings (NYSE:SWX) Has A Meaningful Debt Burden

Here's Why Southwest Gas Holdings (NYSE:SWX) Has A Meaningful Debt Burden

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Oct 28

Southwest Gas: Icahn Takeover Rumblings

Famed activist investor Carl Icahn is showing interest in Southwest Gas. Along with the interest comes some criticism aimed at management. If Icahn's plans for a takeover bid at ~$75 eventuate, short-term share price gains are possible. As a bonus, current dividend yield is 3.37%, with current quarterly installment going ex-dividend on Nov. 12.

Aug 17
With EPS Growth And More, Southwest Gas Holdings (NYSE:SWX) Is Interesting

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...

Shareholder Returns

SWXUS Gas UtilitiesUS Market
7D7.9%6.3%4.0%
1Y9.1%3.3%21.7%

Return vs Industry: SWX exceeded the US Gas Utilities industry which returned 3.3% over the past year.

Return vs Market: SWX underperformed the US Market which returned 21.7% over the past year.

Price Volatility

Is SWX's price volatile compared to industry and market?
SWX volatility
SWX Average Weekly Movement4.9%
Gas Utilities Industry Average Movement3.4%
Market Average Movement6.3%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

Stable Share Price: SWX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SWX's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193111,149John Hesterhttps://www.swgasholdings.com

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.

Southwest Gas Holdings Fundamentals Summary

How do Southwest Gas Holdings's earnings and revenue compare to its market cap?
SWX fundamental statistics
Market CapUS$4.23b
Earnings (TTM)US$234.38m
Revenue (TTM)US$3.51b

18.1x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SWX income statement (TTM)
RevenueUS$3.51b
Cost of RevenueUS$2.66b
Gross ProfitUS$851.09m
ExpensesUS$616.71m
EarningsUS$234.38m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.88
Gross Margin24.25%
Net Profit Margin6.68%
Debt/Equity Ratio133.9%

How did SWX perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

58%

Payout Ratio

Does SWX pay a reliable dividends?

See SWX dividend history and benchmarks
When do you need to buy SWX by to receive an upcoming dividend?
Southwest Gas Holdings dividend dates
Ex Dividend DateFeb 14 2022
Dividend Pay DateMar 01 2022
Days until Ex dividend66 days
Days until Dividend pay date81 days

Does SWX pay a reliable dividends?

See SWX dividend history and benchmarks

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SWX ($70.12) is trading below our estimate of fair value ($145.6)

Significantly Below Fair Value: SWX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SWX's PE Ratio (18.1x) is in line with the US Gas Utilities industry average.

PE vs Market: SWX is poor value based on its PE Ratio (18.1x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: SWX is poor value based on its PEG Ratio (1.2x)


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 (1.6x).


Future Growth

How is Southwest Gas Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWX's forecast earnings growth (15.6% per year) is above the savings rate (2%).

Earnings vs Market: SWX's earnings (15.6% per year) are forecast to grow faster than the US market (13.9% per year).

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

Revenue vs Market: SWX's revenue (10% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: SWX's revenue (10% per year) is forecast to grow slower than 20% 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 (8.4%).


Past Performance

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

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWX has high quality earnings.

Growing Profit Margin: SWX's current net profit margins (6.7%) are lower than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: SWX's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: SWX's earnings growth over the past year (6.3%) is below its 5-year average (9.8% per year).

Earnings vs Industry: SWX earnings growth over the past year (6.3%) underperformed the Gas Utilities industry 13%.


Return on Equity

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


Financial Health

How is Southwest Gas Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SWX's short term assets ($1.4B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: SWX's short term assets ($1.4B) do not cover its long term liabilities ($5.9B).


Debt to Equity History and Analysis

Debt Level: SWX's net debt to equity ratio (127.9%) is considered high.

Reducing Debt: SWX's debt to equity ratio has increased from 100.1% to 133.9% over the past 5 years.

Debt Coverage: SWX's debt is not well covered by operating cash flow (4.6%).

Interest Coverage: SWX's interest payments on its debt are well covered by EBIT (3.8x 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

TodayDec 09 2021Ex Dividend DateFeb 14 2022Dividend Pay DateMar 01 202215 days from Ex DividendBuy in the next 66 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 (1.32%).

High Dividend: SWX's dividend (3.39%) is low compared to the top 25% of dividend payers in the US market (3.56%).


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 (57.9%), 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 (60.3% payout ratio).


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

John Hester (59 yo)

7.33yrs

Tenure

US$6,511,777

Compensation

Mr. John P. Hester joined the Southwest Gas Holdings, Inc. (the “Company”) in 1989. He has been named to various positions at the Southwest Gas Holdings, Inc. and Southwest Gas Corporation, such as Directo...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD6.51M) is about average for companies of similar size in the US market ($USD5.15M).

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 seasoned and experienced (6.6 years average tenure).


Board Members

Experienced Board: SWX's board of directors are seasoned and experienced ( 12.3 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.3%.


Top Shareholders

Company Information

Southwest Gas Holdings, Inc.'s 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$4.234b
  • Shares outstanding: 60.39m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/08 23:59
End of Day Share Price2021/12/08 00:00
Earnings2021/09/30
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.