NYSE
SWX
Last Price
US $88.51
KEY FIGURES
MKT CAP
$6.6B
EPS
TTM
$6.41
PEG
TTM
0.13x
P/E
TTM
14.16x
P/S
TTM
3.39x
YIELD
2.75%
GROWTH
Revenue Y/Y
-10.07%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $88.51
—
Default assumptions
EBITDA Multiple
Fair Value
Market $88.51
-51.26%
Default assumptions
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Southwest Gas Holdings, Inc. cash flow to debt ratio of 15.85% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Southwest Gas Holdings, Inc.'s free cash flow has decreased -161.43% from $409.86M last year to $-251.79M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Southwest Gas Holdings, Inc.'s debt to equity ratio is 0.86, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Southwest Gas Holdings, Inc.'s debt has decreased relative to shareholder equity from 1.44 last year to 0.86 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
Southwest Gas Holdings, Inc. has a net debt to EBITDA ratio of 3.39x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Southwest Gas Holdings, Inc.'s interest coverage ratio of 2.40 indicates that earnings with margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Southwest Gas Holdings, Inc.'s profit margin has increased (377.00%) in the last year from 3.89% to 18.55%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Southwest Gas Holdings, Inc.'s short-term assets of $1.19G exceed its short-term liabilities of $929.90M
Decreasing performance - ROA.
Southwest Gas Holdings, Inc.'s return on assets of 4.46% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Southwest Gas Holdings, Inc.'s return on equity of 11.86%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Southwest Gas Holdings, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Southwest Gas Holdings, Inc. had positive net income in 4.00 out of 5 years, indicating stable and consistent earnings
Decreasing performance - Free cash flow.
Southwest Gas Holdings, Inc. has negative free cash flow, indicating the company is burning cash rather than generating it
Decreasing performance - FCF yield.
Southwest Gas Holdings, Inc. has negative free cash flow, indicating cash burn
Increasing performance - Healthy earnings growth.
Southwest Gas Holdings, Inc.'s yearly earnings has increased 121.22% since last year from $198.81M to $439.83M, signaling increasing performance
Decreasing performance - Healthy revenue growth.
Southwest Gas Holdings, Inc.'s yearly revenue has decreased -62.05% since last year from $5.11G to $1.94G, signaling decreasing performance
Decreasing performance - ROIC.
ROIC 2.94% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Decreasing performance - 3-year revenue CAGR.
Southwest Gas Holdings, Inc.'s 3-year revenue CAGR of -26.86% is negative, indicating declining revenue over the past 3 years
Increasing performance - Revenue consistency.
Southwest Gas Holdings, Inc. had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Southwest Gas Holdings, Inc. had positive ROE in 4.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Southwest Gas Holdings, Inc. has insufficient data to evaluate this check.
Undervalued - Earnings yield.
Southwest Gas Holdings, Inc. has an earnings yield of 7.05%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Southwest Gas Holdings, Inc. is overvalued relative to its fair value price of 43.14 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Southwest Gas Holdings, Inc. has an EV/EBITDA ratio of 10.18x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Southwest Gas Holdings, Inc. has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Southwest Gas Holdings, Inc. has a price-to-book ratio of 1.61x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Southwest Gas Holdings, Inc. has a price-to-sales ratio of 2.63x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
11.86%
Return on equity
ROIC: 2.94%
Valuation History
14.2X
Price to Earnings
EV/EBITDA: 10.2X
Cash flow
Profit margin
2.93%
(FY vs FY)
Cash flow Y/Y
-4.59%
(FY vs FY)
EARNINGS FV (GRAHAM)
Fair Value
Market $88.51
-78.15%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.