Intrinsiqq
Southwest Gas Holdings Inc. logoSouthwest Gas Holdings Inc.SWX
$88.42-0.79%
Southwest Gas Holdings Inc. logo

Southwest Gas Holdings Inc.

SWX

$88.42

-$0.70 (-0.79%)

⊜ Compare
ProfitabilityStrong marginsGrowthDecliningCash FlowN/AValuationAttractively priced
What stands out

24.42% operating margin is above average. ROIC at 4.71%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.

What's changing

Revenue declined 21.6% YoY. The question is whether this is cyclical or a structural shift.

What deserves caution

Free cash flow declined 149% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$252M. The business is consuming cash, not generating it.

Valuation context

11.7x earnings. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.

Price History

+11.3%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$6.41B
EPS$7.55
P/E11.71
P/FCF-12.14
EV/EBITDA11.42
FCF Yield—
Div. Yield2.82%
Net Debt/FCF-6.1x
52-Week Range
$78.83$94.05

Profitability & Returns

Revenue (FY)

$1.94B

▼ -21.6% YoY

Net Income (TTM)

$547M

▲ +121.2% YoY

Op. Margin

24.42%

▲ +8.0pp YoY

ROIC

5.39%

▲ +0.4pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

-$528M

▼ -149.4% YoY

Op. Cash Flow (TTM)

$447M

▼ -59.0% YoY

Net Debt

$3.24B

Cash & Equiv.

$271M

5Y CAGR: -10.1%

Continue Research

SourceComputed from the 10-Q filed 31 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 12 Oct 2026. How this is calculated.

Price from market data, last close as of 21 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.

Is Southwest Gas Holdings (SWX) overvalued?

At a P/E of 11.7, Southwest Gas Holdings (SWX)'s valuation is best read against its own history, its peers, and the growth its price implies. A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Southwest Gas Holdings scores 24/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.8%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

Is Southwest Gas Holdings a high-quality business?+

Southwest Gas Holdings scores 24 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 24.4% operating margin and a 5.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does Southwest Gas Holdings (SWX) pay a dividend, and how much?+

Yes, Southwest Gas Holdings pays a regular dividend of about $2.49 per share per year (typically in quarterly installments), a yield of roughly 2.8% at the current price. That is a payout ratio of about 33.1% of earnings, so the dividend is amply covered by earnings. Southwest Gas Holdings has grown the dividend at roughly 6.6% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For SWX's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is Southwest Gas Holdings a good stock to buy right now?+

That depends on valuation and quality together, not either alone. you should weigh SWX's valuation and scores 24/100 on quality (lower-quality). It also yields about 2.8%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.

Related stocks: Natural Gas Transmisison & Distribution

Spot a number that looks wrong? Check it in SWX's SEC filings or

Download this analysis as a PDF (Pro)

Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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