Southwest Gas Holdings, Inc. (SWX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-152.9%

-$49.36

vs $93.26 price

Levered DCF

-$71.93

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.13

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	13.14×	25.53×	29.74×	-19.96×	20.66×	14.64×	19.28×	20.73×
P/B	1.46×	1.45×	1.35×	1.33×	1.4×	1.27×	1.64×	1.68×
P/S	2.98×	0.99×	0.83×	0.82×	1.13×	1.03×	1.32×	1.31×
EV / EBITDA	10.07×	10.01×	10.38×	22.56×	13.9×	8.28×	9.85×	10.11×
Gross margin	29.3%	19.8%	18.8%	20.1%	22.3%	24.8%	23.6%	23.1%
Operating margin	24.4%	9.5%	7.7%	-0.5%	10.0%	12.8%	11.9%	12.4%
Net margin	22.7%	3.9%	2.8%	-4.1%	5.5%	7.0%	6.9%	6.3%
Current ratio	1.28×	0.8×	1.12×	1.08×	0.52×	0.96×	0.8×	0.89×
Debt / equity	0.89×	1.44×	1.6×	1.96×	2.14×	1.08×	1.07×	1.02×
Interest coverage	2.33×	1.63×	1.43×	-0.1×	3.1×	3.79×	3.4×	3.7×
Dividend yield	3.1%	3.5%	3.9%	4.0%	3.3%	3.7%	2.8%	2.7%
Payout ratio	40.6%	89.4%	115.7%	-79.0%	68.8%	54.0%	54.3%	55.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.1%	5.7%	4.6%	-6.6%	6.8%	8.7%	8.5%	8.1%
Return on invested capital	3.5%	3.8%	3.0%	-0.2%	2.6%	4.2%	4.0%	4.0%
Return on assets	4.2%	1.7%	1.3%	-1.5%	1.6%	2.7%	2.6%	2.5%
Free cash flow yield	-4.4%	8.1%	-8.1%	-11.1%	-14.6%	-5.9%	-10.6%	-6.3%
Earnings yield	7.6%	3.9%	3.4%	-5.0%	4.8%	6.8%	5.2%	4.8%
Enterprise value	$8.7B	$9.8B	$9.7B	$9.9B	$10.2B	$6.2B	$6.7B	$6B
Net debt / EBITDA	3.39×	4.81×	5.56×	13.34×	8.27×	3.74×	3.83×	3.72×
Cash conversion cycle (days)	18	29	37	10	35	34	32	24