Southwest Gas Holdings SWX
United StatesUtilities · Utilities - Regulated GasUSD
100.50 USD (+21.8%)
8 analysts
Trading 2120.30 €Open account ↗
Lightyear0.90 €Open account ↗
N260.90 €Open account ↗
XTB1.00 €★ featured · affiliateOpen account ↗Trading 2120.30 €Open account ↗Lightyear0.90 €Open account ↗XTB1.00 €★ featured · affiliateOpen account ↗200.00 € order · cheapest cheapest available in your country iCompare all 22 brokers →What does it do?
Southwest Gas Holdings is a public utility company that distributes natural gas to approximately 2 million residential, commercial, and industrial customers in Arizona, Nevada, and California, and also operates energy infrastructure services through its subsidiary Centuri.
Key points
from its scores- ✓Favourable backdrop7.6
- ✓Very solid balance sheet7.2
- ✓Attractive dividend7.1
- ✕Weak growth1.2
- ✕Little competitive advantage3.6
AI analysis
bottom line, main risk, context and newsThe combination of high debt and rising rates is a drag, but the dividend and the regulated nature of the business offer some stability. Wait for revenue growth to stabilize or for an improvement in free cash flow generation before increasing the position.
Southwest Gas has an acceptable financial health score (7.58) but with high leverage (Net Debt/EBITDA of 3.78) and negative free cash flow generation (FCF yield of -6.54%), making it vulnerable to the current rise in interest rates. Revenue growth is negative (-9.60%) and business quality is weak (ROIC of 5.51%), although the dividend (3.13% net) and valuation (P/E 20.62) offer some appeal for a defensive profile.
The main risk is the high leverage (Net Debt/EBITDA of 3.78) in a rising interest rate environment, which makes debt refinancing more expensive and pressures free cash flow, which is already negative.
Context and risks
Southwest Gas's natural gas distribution business is subject to tariff regulation in several US states (Arizona, Nevada, California), introducing a risk that regulatory decisions could affect margins and investment recovery. Although the US regulatory framework is stable, political pressure on utility tariffs could limit future profitability.
Is Southwest Gas Holdings stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Utilities median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 20.6 | 19.1 | +8% |
| EV / EBITDA | 10.7 | 12.2 | −12% |
| Price / book | 1.4 | 1.9 | −25% |
| Price / sales | 3.4 | 2.6 | +33% |
Sector: median of the 92 Utilities companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.8 out of 10 (median for Utilities: 4.8).
Average analyst target: 100.50 USD, +21.8% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Utilities medianValuation
- P/E
- 20.6
- Forward P/E
- 16.6
- EV / EBITDA
- 10.7
- Price / book
- 1.4
- Price / sales
- 3.4
- PEG
- 1.86
- Market cap
- 6.0B USD
- Enterprise value
- 9.2B USD
Profitability
- ROE
- 6.8%
- ROA
- 2.8%
- ROIC (approx.)
- 5.5%
- Gross margin
- 54.0%
- Operating margin
- 24.2%
- Net margin
- 31.4%
- Free cash flow
- −390.8M USD
- FCF yield
- −6.5%
- Cash conversion
- −46%
Solvency
- Total debt
- 3.5B USD
- Net debt
- 3.2B USD
- Cash
- 270.5M USD
- EBITDA
- 858.0M USD
- Net debt / EBITDA
- 3.78
- Debt / equity
- 85.08
- Current ratio
- 1.12
- Quick ratio
- 0.58
Growth
- Revenue growth
- −9.6%
- EPS (TTM)
- 4.00 USD
- EPS (forward)
- 4.95 USD
Dividend
- Dividend yield
- 3.1%
- Payout
- 62.6%
Risk and market
- Beta
- 0.56
- Analyst consensus
- Strong buy (8)
- Target price
- 100.50 USD
- 52-week range
- 76.74 – 94.47
Recent news
All SWX news →Compare it with its sector
All 92 in Utilities →Frequently asked questions about Southwest Gas Holdings
Is Southwest Gas Holdings stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Utilities median (within 15%). Valuation score: 4.8 out of 10 (median for Utilities: 4.8). Average analyst target: 100.50 USD, +21.8% versus the price. This is not investment advice.
What score does Southwest Gas Holdings get on MeridIAn Screener?
It scores 5.9 out of 10, rank 1,112 of 2,130 (better than 47% of the companies analysed). Its strongest category is Risk & Context (7.6) and its weakest, Growth (1.2). Analysis of 08/10/2026.
What is Southwest Gas Holdings's P/E ratio?
Its P/E is 20.6: the share price equals 20.6 times earnings per share over the last 12 months. The Utilities median is 19.1. Based on the earnings analysts expect, the forward P/E is 16.6.
How much is Southwest Gas Holdings worth on the stock market?
Its market capitalisation is 6.0B USD and its enterprise value, debt included, is 9.2B USD.
How much debt does Southwest Gas Holdings have?
Its net debt (debt minus cash) is 3.2B USD. That is 3.78 times its EBITDA; the Utilities median is 5.33.
Does Southwest Gas Holdings pay a dividend?
Yes: its dividend yield is 3.13% and it pays out 63% of its earnings.
How has Southwest Gas Holdings stock performed over the last year?
It has risen 7.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 76.74 and 94.47 USD. Past performance does not guarantee future results.
What do analysts think of Southwest Gas Holdings?
8 analysts cover it; their average recommendation is “Strong buy” and their average target is 100.50 USD (+21.8% versus the price). It is an estimate, not market data.