Southwest Gas Valuation
| SWX Stock | USD 78.16 0.14 0.18% |
At this time, the company appears to be overvalued. Southwest Gas Holdings has a current Real Value of $73.02 per share. The regular price of the company is $78.16. Our model measures the value of Southwest Gas Holdings from inspecting the company fundamentals such as Shares Outstanding of 71.74 M, operating margin of 0.06 %, and Return On Equity of 0.0524 as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Southwest Gas' valuation include:
Price Book 1.6228 | Enterprise Value 10.2 B | Enterprise Value Ebitda 10.841 | Price Sales 1.0763 | Forward PE 20.7469 |
Overvalued
Today
Please note that Southwest Gas' price fluctuation is very steady at this time. Calculation of the real value of Southwest Gas Holdings is based on 3 months time horizon. Increasing Southwest Gas' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Southwest Gas is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Southwest Stock. However, Southwest Gas' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 78.16 | Real 73.02 | Target 68.67 | Hype 77.67 |
The intrinsic value of Southwest Gas' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Southwest Gas' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Southwest Gas Holdings helps investors to forecast how Southwest stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Southwest Gas more accurately as focusing exclusively on Southwest Gas' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Southwest Gas' intrinsic value based on its ongoing forecasts of Southwest Gas' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Southwest Gas' closest peers.
Southwest Gas Cash |
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Southwest Valuation Trend
Analysing the historical paterns of Southwest Gas' enterprise value and its market capitalization is a good way to estimate and gauge the value of Southwest Gas Holdings over time and is usually enough for investors to make rational market timing decisions.
Southwest Revenue by Product
Southwest Gas Total Value Analysis
Southwest Gas Holdings is at this time anticipated to have company total value of 10.23 B with market capitalization of 5.61 B, debt of 5.44 B, and cash on hands of 123.08 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Southwest Gas fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
10.23 B | 5.61 B | 5.44 B | 123.08 M |
Southwest Gas Investor Information
About 90.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.62. 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. Based on the key indicators related to Southwest Gas' liquidity, profitability, solvency, and operating efficiencyBased on the analysis of, Southwest Gas Holdings is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in January.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.12 | 0.077 |
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| Total Cash From Operating Activities | 332.9 M | 509.2 M |
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| Operating Income | 532.1 M | 418.3 M |
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Southwest Gas Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Southwest Gas has an asset utilization ratio of 45.78 percent. This suggests that the Company is making $0.46 for each dollar of assets. An increasing asset utilization means that Southwest Gas Holdings is more efficient with each dollar of assets it utilizes for everyday operations.Southwest Gas Ownership Allocation
Southwest Gas Holdings shows a total of 71.74 Million outstanding shares. The majority of Southwest Gas Holdings outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Southwest Gas to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Southwest Gas Holdings. Please pay attention to any change in the institutional holdings of Southwest Gas Holdings as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Southwest Gas Profitability Analysis
The company reported the last year's revenue of 5.43 B. Total Income to common stockholders was 150.89 M with profit before taxes, overhead, and interest of 994.87 M.Southwest Gas Past Distributions to stockholders
About Southwest Gas Valuation
Our relative valuation model uses a comparative analysis of Southwest Gas. We calculate exposure to Southwest Gas's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Southwest Gas's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1 B | 927.5 M | |
| Pretax Profit Margin | 0.04 | 0.05 | |
| Operating Profit Margin | 0.08 | 0.12 | |
| Net Profit Margin | 0.03 | 0.04 | |
| Gross Profit Margin | 0.19 | 0.18 |
A single share of Southwest Gas represents a small ownership stake in the entity. As a stockholder of Southwest, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Southwest Gas Dividends Analysis For Valuation
At this time, Southwest Gas' Dividends Paid is fairly stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to rise to 0.77 in 2024, whereas Dividend Yield is likely to drop 0.04 in 2024. . At this time, Southwest Gas' Earnings Yield is fairly stable compared to the past year. Price Earnings Ratio is likely to rise to 31.21 in 2024, whereas Retained Earnings are likely to drop slightly above 437.9 M in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 174.6 M | 183.3 M | |
| Dividend Yield | 0.04 | 0.04 | |
| Dividend Payout Ratio | 1.16 | 0.66 | |
| Dividend Paid And Capex Coverage Ratio | 0.49 | 0.77 |
There are various types of dividends Southwest Gas can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Southwest shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Southwest Gas Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Southwest pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Southwest Gas by the value of the dividends paid out.
Southwest Gas Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 71 M | |
| Quarterly Earnings Growth Y O Y | -0.9 | |
| Forward Price Earnings | 20.7469 |
Southwest Gas Current Valuation Indicators
Valuation refers to the process of determining the present value of Southwest Gas Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Southwest we look at many different elements of the entity such as Southwest's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Southwest Gas, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Southwest Gas' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Southwest Gas' worth.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.