NYSE:SWX

Stock Analysis Report

Southwest Gas Holdings

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with mediocre balance sheet.


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


Market Performance


7 Day Return

-0.2%

NYSE:SWX

2.0%

US Gas Utilities

0.9%

US Market


1 Year Return

11.5%

NYSE:SWX

3.4%

US Gas Utilities

0.3%

US Market

SWX outperformed the Gas Utilities industry which returned 3.4% over the past year.

SWX outperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

SWXIndustryMarket
7 Day-0.2%2.0%0.9%
30 Day-0.2%-0.8%-1.9%
90 Day3.9%-1.3%1.6%
1 Year14.4%11.5%6.1%3.4%2.6%0.3%
3 Year33.4%23.6%31.7%22.1%41.0%31.8%
5 Year95.9%71.9%75.2%53.0%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

23.26x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Southwest Gas Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Southwest Gas Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Southwest Gas Holdings is good value based on earnings compared to the US Gas Utilities industry average.

Southwest Gas Holdings is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Southwest Gas Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Southwest Gas Holdings is good value based on assets compared to the US Gas Utilities industry average.


Next Steps

Future Growth

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

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Southwest Gas Holdings's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Southwest Gas Holdings's earnings are expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).

Southwest Gas Holdings's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Southwest Gas Holdings's earnings growth is positive but not above the United States of America market average.

Southwest Gas Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Southwest Gas Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

9.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Southwest Gas Holdings's year on year earnings growth rate has been positive over the past 5 years.

Southwest Gas Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Southwest Gas Holdings's 1-year earnings growth is negative, it can't be compared to the US Gas Utilities industry average.


Return on Equity

Southwest Gas Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Southwest Gas Holdings used its assets less efficiently than the US Gas Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Southwest Gas Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Southwest Gas Holdings's financial position?


Financial Position Analysis

Southwest Gas Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Southwest Gas Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Southwest Gas Holdings's level of debt (96.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (94.9% vs 96.3% today).

Debt is well covered by operating cash flow (23.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

2.62%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Southwest Gas Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Southwest Gas Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

What is the CEO of Southwest Gas Holdings's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

John Hester (57yo)

4.4yrs

Tenure

US$4,096,485

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

John's remuneration is lower than average for companies of similar size in United States of America.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.5yrs

Average Tenure

56yo

Average Age

The average tenure for the Southwest Gas Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

10.0yrs

Average Tenure

66yo

Average Age

The average tenure for the Southwest Gas Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Southwest Gas Holdings individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$22,48812 Aug 19
Paul Daily
EntityIndividual
Role
Unit CEO
President & CEO of Centuri Construction Group Inc.
Shares250
Max PriceUS$90.25
SellUS$181,20021 Jun 19
John Hester
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceUS$90.60
BuyUS$36,03212 Jun 19
Justin Brown
EntityIndividual
Shares418
Max PriceUS$86.20
SellUS$174,40006 Jun 19
John Hester
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceUS$87.20
SellUS$170,91017 May 19
John Hester
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceUS$85.46
SellUS$29,11715 May 19
Eric DeBonis
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations - Southwest Gas Corporation
Shares350
Max PriceUS$83.19
BuyUS$26,97521 Mar 19
Paul Daily
EntityIndividual
Role
Unit CEO
President & CEO of Centuri Construction Group Inc.
Shares325
Max PriceUS$83.00
SellUS$142,01620 Mar 19
Thomas Chestnut
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,700
Max PriceUS$83.54
SellUS$117,14605 Mar 19
Eric DeBonis
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Operations - Southwest Gas Corporation
Shares1,400
Max PriceUS$83.68
SellUS$24,56918 Sep 18
Justin Brown
EntityIndividual
Shares300
Max PriceUS$81.90
SellUS$41,33614 Sep 18
Kenneth Kenny
EntityIndividual
Role
Head of Investor Relations
VP of Finance & Treasurer
Shares500
Max PriceUS$82.67

Ownership Breakdown


Management Team

  • Paul Daily (62yo)

    President & CEO of Centuri Construction Group Inc.

    • Tenure: 0.0yrs
    • Compensation: US$1.75m
  • Ken Kenny (56yo)

    VP of Finance & Treasurer

    • Tenure: 0.0yrs
  • John Hester (57yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$4.10m
  • Karen Haller (55yo)

    Executive VP & Chief Legal and Administrative Officer

    • Tenure: 1.6yrs
    • Compensation: US$1.16m
  • Gregory Peterson (59yo)

    Senior VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$1.09m
  • Eric DeBonis (51yo)

    Senior Vice President of Operations - Southwest Gas Corporation

    • Tenure: 0.0yrs
    • Compensation: US$848.33k
  • Anita Romero (56yo)

    Senior Vice President of Staff Operations & Technology - Southwest Gas Corporation

    • Tenure: 6.6yrs
    • Compensation: US$938.43k
  • Boyd Nelson

    Vice President of Strategy & Corporate Development

    • Tenure: 0.0yrs
  • Lori Colvin (51yo)

    VP, Chief Accounting Officer & Controller

    • Tenure: 1.3yrs
  • Thomas Moran

    Corporate Secretary & Legal Counsel

    • Tenure: 0.6yrs

Board Members

  • Randy Thoman (67yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: US$232.29k
  • Bob Boughner (66yo)

    Director

    • Tenure: 11.1yrs
    • Compensation: US$225.81k
  • José Cárdenas (66yo)

    Director

    • Tenure: 8.0yrs
    • Compensation: US$201.89k
  • Michael Melarkey (70yo)

    Chairman of the Board

    • Tenure: 8.3yrs
    • Compensation: US$301.70k
  • Anne Mariucci (61yo)

    Director

    • Tenure: 13.2yrs
    • Compensation: US$227.55k
  • Thomas Chestnut (68yo)

    Director

    • Tenure: 15.3yrs
    • Compensation: US$242.73k
  • Jane Lewis-Raymond (52yo)

    Director

    • Tenure: 0.6yrs
  • John Hester (57yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$4.10m
  • Steve Comer (69yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: US$247.41k
  • Tom Thomas (60yo)

    Director

    • Tenure: 10.9yrs
    • Compensation: US$218.61k

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$4.829b
  • Shares outstanding: 54.32m
  • 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
  • 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 through two segments, Natural Gas Operati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 23:49
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.