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%

SWX

1.4%

US Gas Utilities

0.4%

US Market


1 Year Return

9.9%

SWX

2.4%

US Gas Utilities

11.4%

US Market

Return vs Industry: SWX exceeded the US Gas Utilities industry which returned 2.4% over the past year.

Return vs Market: SWX exceeded the US Market which returned 11.4% over the past year.


Shareholder returns

SWXIndustryMarket
7 Day0.2%1.4%0.4%
30 Day-1.8%-1.5%0.3%
90 Day0.4%-0.3%-1.2%
1 Year12.8%9.9%4.9%2.4%13.9%11.4%
3 Year35.8%25.8%37.0%27.1%47.2%37.6%
5 Year76.4%54.8%70.8%49.5%62.4%44.6%

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?

23.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SWX ($88.84) is trading above our estimate of fair value ($48.91)

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 (23.2x) compared to the Gas Utilities industry average (25.9x).

PE vs Market: SWX is poor value based on its PE Ratio (23.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: SWX is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: SWX is good value based on its PB Ratio (2x) compared to the US Gas Utilities industry average (2.3x).


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?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWX's forecast earnings growth (8.7% per year) is above the savings rate (2.7%).

Earnings vs Market: SWX's earnings (8.7% per year) are forecast to grow slower than the US market (14.3% 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 (-2.2% per year).

High Growth Revenue: SWX's revenue is forecast to decline over the next 3 years (-2.2% 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 (9%).


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

Earnings Trend: SWX's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: SWX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SWX had negative earnings growth (-4.3%) over the past year, making it difficult to compare to the Gas Utilities industry average (-8.9%).


Return on Equity

High ROE: SWX's Return on Equity (8%) is considered low.


Return on Assets

ROA vs Industry: SWX's Return on Assets is below or equal to the Gas Utilities industry average last year.


Return on Capital Employed

ROCE Improving: SWX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Southwest Gas Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SWX's short term assets ($752.1M) exceeds its short term liabilities ($726.5M)

Long Term Liabilities: SWX's short term assets (752.1M) do not cover its long term liabilities (4.4B)


Debt to Equity History and Analysis

Debt Level: SWX's debt to equity ratio (96.3%) is considered high

Reducing Debt: SWX's debt to equity ratio has increased from 94.9% to 96.3% over the past 5 years.

Debt Coverage: SWX's debt is well covered by operating cash flow (23.2%).

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


Balance Sheet

Inventory Level: SWX has a high level of physical assets or inventory.

Debt Coverage by Assets: SWX's 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?

2.45%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Southwest Gas Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SWX's dividend (2.45%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SWX's dividend (2.45%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (55.1%), 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% payout ratio).


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?

1.6yrs

Average management tenure


CEO

John Hester (57yo)

4.6yrs

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

Compensation vs. Market: John's total compensation ($USD4.10M) is about average for companies of similar size in the US market ($USD6.91M).

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


Management Age and Tenure

1.6yrs

Average Tenure

56yo

Average Age

Experienced Management: SWX's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

10.2yrs

Average Tenure

66yo

Average Age

Experienced Board: SWX's board of directors are seasoned and experienced ( 10.2 years average tenure).


Insider Trading

Insider Buying: SWX insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$45,12920 Aug 19
Kenneth Kenny
EntityIndividual
Role
Head of Investor Relations
VP of Finance & Treasurer
Shares500
Max PriceUS$90.26
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
Independent 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

Ownership Breakdown


Management Team

  • Paul Daily (62yo)

    President & CEO of Centuri Construction Group Inc.

    • Tenure: 0yrs
    • Compensation: US$1.75m
  • Ken Kenny (56yo)

    VP of Finance & Treasurer

    • Tenure: 0yrs
  • John Hester (57yo)

    President

    • Tenure: 4.6yrs
    • Compensation: US$4.10m
  • Karen Haller (55yo)

    Executive VP & Chief Legal and Administrative Officer

    • Tenure: 1.8yrs
    • Compensation: US$1.16m
  • Gregory Peterson (59yo)

    Senior VP & CFO

    • Tenure: 1.5yrs
    • Compensation: US$1.09m
  • Eric DeBonis (51yo)

    Senior Vice President of Operations - Southwest Gas Corporation

    • Tenure: 0yrs
    • Compensation: US$848.33k
  • Anita Romero (56yo)

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

    • Tenure: 6.8yrs
    • Compensation: US$938.43k
  • Boyd Nelson

    Vice President of Strategy & Corporate Development

    • Tenure: 0yrs
  • Lori Colvin (51yo)

    VP, Chief Accounting Officer & Controller

    • Tenure: 1.5yrs
  • Thomas Moran

    Corporate Secretary & Legal Counsel

    • Tenure: 0.8yrs

Board Members

  • Randy Thoman (67yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$232.29k
  • Bob Boughner (66yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$225.81k
  • José Cárdenas (66yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$201.89k
  • Michael Melarkey (70yo)

    Chairman of the Board

    • Tenure: 8.4yrs
    • Compensation: US$301.70k
  • Anne Mariucci (61yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$227.55k
  • Thomas Chestnut (68yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: US$242.73k
  • Jane Lewis-Raymond (52yo)

    Independent Director

    • Tenure: 0.8yrs
  • John Hester (57yo)

    President

    • Tenure: 4.6yrs
    • Compensation: US$4.10m
  • Steve Comer (69yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$247.41k
  • Tom Thomas (60yo)

    Independent Director

    • Tenure: 11.1yrs
    • 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$4.826b
  • 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 Analysis2019/10/23 23:40
End of Day Share Price2019/10/23 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.