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Southwest Gas Holdings Inc (SWX)



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Upturn Advisory Summary
04/01/2025: SWX (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit 10.39% | Avg. Invested days 50 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.17B USD | Price to earnings Ratio 26.06 | 1Y Target Price 78.14 |
Price to earnings Ratio 26.06 | 1Y Target Price 78.14 | ||
Volume (30-day avg) 448118 | Beta 0.36 | 52 Weeks Range 62.73 - 79.64 | Updated Date 04/1/2025 |
52 Weeks Range 62.73 - 79.64 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 3.45% | Basic EPS (TTM) 2.76 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 3.89% | Operating Margin (TTM) 14.57% |
Management Effectiveness
Return on Assets (TTM) 2.62% | Return on Equity (TTM) 5.77% |
Valuation
Trailing PE 26.06 | Forward PE 19.12 | Enterprise Value 9861869104 | Price to Sales(TTM) 1.01 |
Enterprise Value 9861869104 | Price to Sales(TTM) 1.01 | ||
Enterprise Value to Revenue 1.93 | Enterprise Value to EBITDA 10.1 | Shares Outstanding 71847904 | Shares Floating 66631011 |
Shares Outstanding 71847904 | Shares Floating 66631011 | ||
Percent Insiders 0.5 | Percent Institutions 89.83 |
Analyst Ratings
Rating 3.5 | Target Price 77.4 | Buy - | Strong Buy 2 |
Buy - | Strong Buy 2 | ||
Hold 3 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Southwest Gas Holdings Inc
Company Overview
History and Background
Southwest Gas Holdings, Inc. was founded in 1931 in Las Vegas, Nevada. Initially focused on providing natural gas service, it has grown through acquisitions and expansions. Notable milestones include diversifying into infrastructure services and expanding its service territory.
Core Business Areas
- Natural Gas Operations: This segment distributes natural gas to residential, commercial, and industrial customers in Arizona, Nevada, and California.
- Centuri Group: This segment provides infrastructure services to utilities, including pipeline construction, maintenance, and repair.
Leadership and Structure
Karen Haller is the President and CEO. The company has a board of directors and is structured into operating segments.
Top Products and Market Share
Key Offerings
- Natural Gas Distribution: Distribution of natural gas to over 2 million customers. Market share varies by region. Competitors include other regional gas utilities like SoCalGas and PG&E in overlapping regions and electrical utilities for heating purposes. Revenue for Natural Gas Operations = $3.663B (2023)
- Infrastructure Services: Construction, maintenance, and repair of energy infrastructure. Centuri revenue for 2023 = $3.586B. Competitors include other infrastructure service providers like Primoris Services Corporation and MasTec.
Market Dynamics
Industry Overview
The natural gas distribution industry is mature and regulated, with stable demand. The infrastructure services sector is growing due to aging infrastructure and new construction.
Positioning
Southwest Gas Holdings is a major player in natural gas distribution in the Southwest U.S. and a significant infrastructure service provider.
Total Addressable Market (TAM)
TAM for US Gas Distribution is estimated at hundreds of billions. The infrastructure services market is also large, with significant growth potential. SWX is a relevant player in both markets.
Upturn SWOT Analysis
Strengths
- Stable revenue from regulated natural gas distribution
- Diversified business model with infrastructure services
- Strong presence in growing regions of the Southwest
- Experienced management team
Weaknesses
- Exposure to regulatory risks
- Dependence on commodity prices
- Debt Load post Questar acquisition
- Capital expenditure intensive business
Opportunities
- Expansion of natural gas infrastructure in growing regions
- Increased demand for infrastructure services
- Acquisition opportunities
- Investment in renewable natural gas and hydrogen
Threats
- Increasing competition from alternative energy sources
- Rising interest rates
- Environmental regulations
- Economic downturns
Competitors and Market Share
Key Competitors
- SO
- CNP
- OKE
Competitive Landscape
Southwest Gas competes with other large utilities and infrastructure service providers. It has a competitive advantage in its service territory due to regulated monopolies in some areas.
Major Acquisitions
Questar Pipelines
- Year: 2021
- Acquisition Price (USD millions): 1975
- Strategic Rationale: Expanded SWX's infrastructure footprint and diversified its earnings.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been driven by acquisitions and organic growth in natural gas distribution and infrastructure services.
Future Projections: Analysts project continued revenue growth, driven by infrastructure investments and population growth in the Southwest. EPS growth is expected to be slower due to higher interest expenses and increased expenses.
Recent Initiatives: Focus on infrastructure upgrades and modernization, expansion of renewable natural gas initiatives, and cost management efforts.
Summary
Southwest Gas Holdings is a stable utility company with a growing infrastructure services business. While it benefits from regulated natural gas distribution and expansion opportunities, its high debt levels and regulatory environment pose challenges. Recent acquisitions have boosted revenue but increased financial risks. SWX needs to focus on debt reduction and operational efficiency.
Similar Companies
- SO
- CNP
- OKE
- MDU
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q), Investor presentations, Analyst reports, Market research reports
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market share data is based on publicly available estimates and may not be precise.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Southwest Gas Holdings Inc
Exchange NYSE | Headquaters Las Vegas, NV, United States | ||
IPO Launch date 1987-12-30 | President, CEO & Director Ms. Karen S. Haller | ||
Sector Utilities | Industry Utilities - Regulated Gas | Full time employees 11122 | Website https://www.swgasholdings.com |
Full time employees 11122 | Website https://www.swgasholdings.com |
Southwest Gas Holdings, Inc., through its subsidiaries, purchases, distributes, and transports natural gas for residential, commercial, and industrial customers in Arizona, Nevada, and California. The company operates through two segments, Natural Gas Distribution and Utility Infrastructure Services. It offers tariff sales and transportation services. The company also provides installation, replacement, repair, and maintenance of energy distribution systems, as well as undertakes gas construction works in North America. Southwest Gas Holdings, Inc. was incorporated in 1931 and is headquartered in Las Vegas, Nevada.
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