Is Southwest Gas Stock a Good Investment?
Southwest Gas Investment Advice | SWX |
- Examine Southwest Gas' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Southwest Gas' leadership team and their track record. Good management can help Southwest Gas navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Gas Utilities space and any emerging trends that could impact Southwest Gas' business and its evolving consumer preferences.
- Compare Southwest Gas' performance and market position to its competitors. Analyze how Southwest Gas is positioned in terms of product offerings, innovation, and market share.
- Check if Southwest Gas pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Southwest Gas' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Southwest Gas Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Southwest Gas Holdings is a good investment.
Sell | Buy |
Strong Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Southwest Gas Stock
Researching Southwest Gas' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 90.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.63. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Southwest Gas Holdings has Price/Earnings To Growth (PEG) ratio of 2.77. The entity last dividend was issued on the 18th of February 2025.
To determine if Southwest Gas is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Southwest Gas' research are outlined below:
| Southwest Gas Holdings has 5.44 B in debt with debt to equity (D/E) ratio of 1.7, which is OK given its current industry classification. Southwest Gas Holdings has a current ratio of 0.69, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Southwest to invest in growth at high rates of return. | |
| Over 90.0% of Southwest Gas shares are owned by institutional investors | |
| Latest headline from kalkinemedia.com: Southwest Gas Holdings Experiences Stake Reduction and Analyst Activity |
Southwest Gas Quarterly Good Will |
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Southwest Gas uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Southwest Gas Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Southwest Gas' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 27th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Southwest Gas' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Southwest Gas' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2013-11-06 | 2013-09-30 | -0.1 | -0.11 | -0.01 | 10 | ||
2012-08-07 | 2012-06-30 | 0.09 | 0.1 | 0.01 | 11 | ||
2010-08-09 | 2010-06-30 | -0.03 | -0.02 | 0.01 | 33 | ||
2009-08-04 | 2009-06-30 | -0.02 | -0.01 | 0.01 | 50 | ||
2007-11-06 | 2007-09-30 | -0.2 | -0.22 | -0.02 | 10 | ||
2016-11-07 | 2016-09-30 | 0.01 | 0.05 | 0.04 | 400 | ||
2014-08-05 | 2014-06-30 | 0.2 | 0.16 | -0.04 | 20 | ||
2008-08-06 | 2008-06-30 | -0.02 | -0.06 | -0.04 | 200 |
Southwest Gas Target Price Consensus
Southwest target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Southwest Gas' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 5 | Buy |
Most Southwest analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Southwest stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Southwest Gas Holdings, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationSouthwest Gas Target Price Projection
Southwest Gas' current and average target prices are 78.16 and 68.67, respectively. The current price of Southwest Gas is the price at which Southwest Gas Holdings is currently trading. On the other hand, Southwest Gas' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Southwest Gas Market Quote on 30th of November 2024
Target Price
Analyst Consensus On Southwest Gas Target Price
Southwest Gas Analyst Ratings
Southwest Gas' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Southwest Gas stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Southwest Gas' financials, market performance, and future outlook by experienced professionals. Southwest Gas' historical ratings below, therefore, can serve as a valuable tool for investors.Know Southwest Gas' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Southwest Gas is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Southwest Gas Holdings backward and forwards among themselves. Southwest Gas' institutional investor refers to the entity that pools money to purchase Southwest Gas' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Principal Financial Group Inc | 2024-09-30 | 1.1 M | Gabelli Funds Llc | 2024-09-30 | 1.1 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.1 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 1 M | Charles Schwab Investment Management Inc | 2024-09-30 | 977.8 K | Macquarie Group Ltd | 2024-06-30 | 909.1 K | Gamco Investors, Inc. Et Al | 2024-09-30 | 852.3 K | Adage Capital Partners Gp Llc | 2024-06-30 | 800 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 785.3 K | Icahn Carl C | 2024-09-30 | 11 M | Blackrock Inc | 2024-06-30 | 8.9 M |
Southwest Gas' market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 5.61 B.Market Cap |
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Southwest Gas' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.01 | 0.02 | |
| Return On Capital Employed | 0.04 | 0.06 | |
| Return On Assets | 0.01 | 0.02 | |
| Return On Equity | 0.05 | 0.06 |
Determining Southwest Gas' profitability involves analyzing its financial statements and using various financial metrics to determine if Southwest Gas is a good buy. For example, gross profit margin measures Southwest Gas' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Southwest Gas' profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Southwest Gas' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Southwest Gas Holdings. Check Southwest Gas' Beneish M Score to see the likelihood of Southwest Gas' management manipulating its earnings.
Evaluate Southwest Gas' management efficiency
Southwest Gas Holdings has Return on Asset of 0.0242 % which means that on every $100 spent on assets, it made $0.0242 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0524 %, implying that it generated $0.0524 on every 100 dollars invested. Southwest Gas' management efficiency ratios could be used to measure how well Southwest Gas manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to rise to 0.02 in 2024. Return On Capital Employed is likely to rise to 0.06 in 2024. At this time, Southwest Gas' Total Assets are fairly stable compared to the past year. Non Current Assets Total is likely to rise to about 10.5 B in 2024, whereas Non Currrent Assets Other are likely to drop slightly above 300.6 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 48.24 | 50.65 | |
| Tangible Book Value Per Share | 37.08 | 20.55 | |
| Enterprise Value Over EBITDA | 10.55 | 6.88 | |
| Price Book Value Ratio | 1.35 | 1.16 | |
| Enterprise Value Multiple | 10.55 | 6.88 | |
| Price Fair Value | 1.35 | 1.16 | |
| Enterprise Value | 1.3 B | 1 B |
Effective management at Southwest Gas has been a driving force behind its market achievements. We assess the correlation between management practices and financial success to determine the stock's value.
Dividend Yield 0.0317 | Forward Dividend Yield 0.0317 | Forward Dividend Rate 2.48 | Beta 0.373 |
Basic technical analysis of Southwest Stock
As of the 30th of November, Southwest Gas has the Semi Deviation of 1.12, coefficient of variation of 933.14, and Risk Adjusted Performance of 0.0866. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Southwest Gas Holdings, as well as the relationship between them.Southwest Gas' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Southwest Gas insiders, such as employees or executives, is commonly permitted as long as it does not rely on Southwest Gas' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Southwest Gas insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Southwest Gas' Outstanding Corporate Bonds
Southwest Gas issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Southwest Gas Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Southwest bonds can be classified according to their maturity, which is the date when Southwest Gas Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Southwest Gas' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Southwest Gas' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0866 | |||
| Market Risk Adjusted Performance | 0.3474 | |||
| Mean Deviation | 1.14 | |||
| Semi Deviation | 1.12 | |||
| Downside Deviation | 1.32 | |||
| Coefficient Of Variation | 933.14 | |||
| Standard Deviation | 1.43 | |||
| Variance | 2.06 | |||
| Information Ratio | 0.0112 | |||
| Jensen Alpha | 0.0893 | |||
| Total Risk Alpha | (0.1) | |||
| Sortino Ratio | 0.0121 | |||
| Treynor Ratio | 0.3374 | |||
| Maximum Drawdown | 7.12 | |||
| Value At Risk | (2.13) | |||
| Potential Upside | 2.48 | |||
| Downside Variance | 1.75 | |||
| Semi Variance | 1.26 | |||
| Expected Short fall | (1.24) | |||
| Skewness | 0.1229 | |||
| Kurtosis | (0.06) |
| Risk Adjusted Performance | 0.0866 | |||
| Market Risk Adjusted Performance | 0.3474 | |||
| Mean Deviation | 1.14 | |||
| Semi Deviation | 1.12 | |||
| Downside Deviation | 1.32 | |||
| Coefficient Of Variation | 933.14 | |||
| Standard Deviation | 1.43 | |||
| Variance | 2.06 | |||
| Information Ratio | 0.0112 | |||
| Jensen Alpha | 0.0893 | |||
| Total Risk Alpha | (0.1) | |||
| Sortino Ratio | 0.0121 | |||
| Treynor Ratio | 0.3374 | |||
| Maximum Drawdown | 7.12 | |||
| Value At Risk | (2.13) | |||
| Potential Upside | 2.48 | |||
| Downside Variance | 1.75 | |||
| Semi Variance | 1.26 | |||
| Expected Short fall | (1.24) | |||
| Skewness | 0.1229 | |||
| Kurtosis | (0.06) |
Consider Southwest Gas' intraday indicators
Southwest Gas intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Southwest Gas stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Southwest Gas Corporate Filings
F3 | 20th of November 2024 An amendment to the original Schedule 13D filing | ViewVerify |
13A | 13th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
8K | 6th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 28th of August 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Southwest Stock media impact
Far too much social signal, news, headlines, and media speculation about Southwest Gas that are available to investors today. That information is available publicly through Southwest media outlets and privately through word of mouth or via Southwest internal channels. However, regardless of the origin, that massive amount of Southwest data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Southwest Gas news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Southwest Gas relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Southwest Gas' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Southwest Gas alpha.
Southwest Gas Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Southwest Gas can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Southwest Gas Corporate Directors
| Anne Mariucci | Independent Director | Profile | |
| Thomas Thomas | Independent Director | Profile | |
| Jose Cardenas | Independent Director | Profile | |
| Jane LewisRaymond | Independent Director | Profile |
Additional Tools for Southwest Stock Analysis
When running Southwest Gas' price analysis, check to measure Southwest Gas' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Southwest Gas is operating at the current time. Most of Southwest Gas' value examination focuses on studying past and present price action to predict the probability of Southwest Gas' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southwest Gas' price. Additionally, you may evaluate how the addition of Southwest Gas to your portfolios can decrease your overall portfolio volatility.