Southwest Gas Holdings Stock Buy Hold or Sell Recommendation
| SWX Stock | USD 78.16 0.14 0.18% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Southwest Gas Holdings is 'Strong Hold'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Southwest Gas Holdings given historical horizon and risk tolerance towards Southwest Gas. When Macroaxis issues a 'buy' or 'sell' recommendation for Southwest Gas Holdings, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Southwest Gas Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Southwest and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Southwest Gas Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.
Southwest |
Execute Southwest Gas Buy or Sell Advice
The Southwest recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Southwest Gas Holdings. Macroaxis does not own or have any residual interests in Southwest Gas Holdings or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Southwest Gas' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
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 |
Southwest Gas Trading Alerts and Improvement Suggestions
| 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 Returns Distribution Density
The distribution of Southwest Gas' historical returns is an attempt to chart the uncertainty of Southwest Gas' future price movements. The chart of the probability distribution of Southwest Gas daily returns describes the distribution of returns around its average expected value. We use Southwest Gas Holdings price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Southwest Gas returns is essential to provide solid investment advice for Southwest Gas.
| Mean Return | 0.15 | Value At Risk | -2.13 | Potential Upside | 2.48 | Standard Deviation | 1.43 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Southwest Gas historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Southwest Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as Southwest Gas, soars without any apparent reason? This usually happens because many institutional investors are aggressively trading Southwest Gas Holdings back and forth among themselves.
| 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 Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (35.8M) | 33.8M | 139.3M | (99.6M) | (16.5M) | (15.7M) | |
| Free Cash Flow | (437.8M) | (199.0M) | (604.2M) | (452.0M) | (363.3M) | (345.1M) | |
| Other Non Cash Items | (43.4M) | (101.8M) | (94.1M) | 437.5M | (17.8M) | (16.9M) | |
| Dividends Paid | 116.1M | (125.5M) | (138.2M) | (160.6M) | (174.6M) | (165.8M) | |
| Capital Expenditures | 938.1M | 825.1M | 715.6M | 859.4M | 872.5M | 436.7M | |
| Net Income | 216.6M | 239.0M | 207.2M | (197.7M) | 150.9M | 98.2M | |
| End Period Cash Flow | 49.5M | 83.4M | 222.7M | 123.1M | 106.5M | 54.5M | |
| Change To Netincome | 51.4M | 51.3M | 63.6M | 380.5M | 437.6M | 459.5M | |
| Change To Inventory | (11.0M) | 3.3M | 11.9M | (9.2M) | (8.3M) | (7.9M) | |
| Depreciation | 303.2M | 332.0M | 371.0M | 470.5M | 440.9M | 313.2M | |
| Investments | (951.6M) | (802.1M) | (3.0B) | (838.9M) | 122.3M | 128.4M | |
| Net Borrowings | 376.6M | 202.0M | 3.0B | 97.5M | 112.2M | 106.5M | |
| Change Receivables | (14.9M) | (56.1M) | (48.8M) | (51.6M) | (46.4M) | (48.7M) |
Southwest Gas Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Southwest Gas or Gas Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Southwest Gas' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Southwest stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.09 | |
β | Beta against Dow Jones | 0.43 | |
σ | Overall volatility | 1.45 | |
Ir | Information ratio | 0.01 |
Southwest Gas Volatility Alert
Southwest Gas Holdings has relatively low volatility with skewness of 0.12 and kurtosis of -0.06. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Southwest Gas' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Southwest Gas' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Southwest Gas Fundamentals Vs Peers
Comparing Southwest Gas' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Southwest Gas' direct or indirect competition across all of the common fundamentals between Southwest Gas and the related equities. This way, we can detect undervalued stocks with similar characteristics as Southwest Gas or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Southwest Gas' fundamental indicators could also be used in its relative valuation, which is a method of valuing Southwest Gas by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Southwest Gas to competition |
| Fundamentals | Southwest Gas | Peer Average |
| Return On Equity | 0.0524 | -0.31 |
| Return On Asset | 0.0242 | -0.14 |
| Profit Margin | 0.03 % | (1.27) % |
| Operating Margin | 0.06 % | (5.51) % |
| Current Valuation | 10.24 B | 16.62 B |
| Shares Outstanding | 71.74 M | 571.82 M |
| Shares Owned By Insiders | 0.49 % | 10.09 % |
| Shares Owned By Institutions | 90.42 % | 39.21 % |
| Number Of Shares Shorted | 1.73 M | 4.71 M |
| Price To Earning | 16.91 X | 28.72 X |
| Price To Book | 1.63 X | 9.51 X |
| Price To Sales | 1.08 X | 11.42 X |
| Revenue | 5.43 B | 9.43 B |
| Gross Profit | 994.87 M | 27.38 B |
| EBITDA | 930.54 M | 3.9 B |
| Net Income | 150.89 M | 570.98 M |
| Cash And Equivalents | 123.08 M | 2.7 B |
| Cash Per Share | 3.22 X | 5.01 X |
| Total Debt | 5.44 B | 5.32 B |
| Debt To Equity | 1.70 % | 48.70 % |
| Current Ratio | 0.70 X | 2.16 X |
| Book Value Per Share | 48.16 X | 1.93 K |
| Cash Flow From Operations | 509.21 M | 971.22 M |
| Short Ratio | 6.16 X | 4.00 X |
| Earnings Per Share | 2.50 X | 3.12 X |
| Price To Earnings To Growth | 2.77 X | 4.89 X |
| Target Price | 78.5 | |
| Number Of Employees | 14.94 K | 18.84 K |
| Beta | 0.37 | -0.15 |
| Market Capitalization | 5.61 B | 19.03 B |
| Total Asset | 11.87 B | 29.47 B |
| Retained Earnings | 738.84 M | 9.33 B |
| Working Capital | 196.27 M | 1.48 B |
Note: Disposition of 1390000 shares by Icahn Carl C of Southwest Gas at 76.74 subject to Rule 16b-3 [view details]
Southwest Gas Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Southwest . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Southwest Gas Buy or Sell Advice
When is the right time to buy or sell Southwest Gas Holdings? Buying financial instruments such as Southwest Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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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.