Southwest Gas (SWX) AI Stock Analysis

• Market Cap: $5.69B
• Dividend Yield: 3.15%
• Average Volume (3M): 367.29K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.35
• Revenue Growth: -23.15%
• EPS Growth: 157.45%
• Country: US
• Employees: 11,122
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 3.74
• Shares Outstanding: 71,979,294
• 10 Day Avg. Volume: 378,328
• 30 Day Avg. Volume: 367,285
• PEG Ratio: 0.85
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 12.39
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $86.25
• Price Target Upside: 9.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $88.00 ▲(11.63% Upside)

Southwest Gas's overall stock score is driven by strong earnings call sentiment and positive technical indicators. However, financial performance concerns, particularly with cash flow and high leverage, and a high P/E ratio weigh on the score. The company's strategic achievements and positive momentum provide a balanced outlook.

Positive Factors

Balance Sheet Strength

The sale of Centuri and subsequent debt repayment significantly strengthened Southwest Gas's balance sheet, enhancing financial stability and flexibility.

Credit Rating Upgrade

The credit rating upgrade reflects improved financial health and reduces borrowing costs, supporting long-term growth and investment capacity.

Regulatory Developments

Filing for new rates can improve revenue stability and growth, aligning investment recovery with operational activities, enhancing long-term profitability.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can hinder the company's ability to expand and invest in new opportunities, impacting long-term competitive positioning.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.

Cash Flow Concerns

Negative free cash flow growth indicates challenges in generating cash post-capital expenditures, which could constrain future investment and debt servicing.

Southwest Gas Business Overview & Revenue Model

Company Description

Southwest Gas Holdings, Inc., through its subsidiaries, distributes and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and Storage segments. It also provides trenching, installation, and replacement of underground pipes, as well as maintenance services for energy distribution systems. As of December 31, 2021, it had 2,159,000 residential, commercial, industrial, and other natural gas customers. Southwest Gas Holdings, Inc. was incorporated in 1931 and is headquartered in Las Vegas, Nevada.

How the Company Makes Money

Southwest Gas generates revenue primarily through the sale of natural gas to its utility customers. The company earns money by charging customers for the gas consumed as well as for the distribution of that gas through its pipeline network. Revenue is driven by the volume of gas sold, which is influenced by factors such as customer demand, weather conditions, and regulatory pricing structures. Additionally, the company may earn income through its Infrastructure segment, which includes construction services for natural gas pipelines and related facilities. Regulatory frameworks play a significant role in how Southwest Gas sets its rates, as they must obtain approval from state utility commissions to adjust prices. The company also benefits from partnerships with other energy providers and infrastructure companies, which can enhance its service offerings and operational efficiency.

Southwest Gas Financial Statement Overview

Summary

Southwest Gas demonstrates stable profitability and controlled expenses, but faces challenges with revenue growth and high leverage. Cash flow generation is a concern, particularly with negative free cash flow growth. The company needs to focus on improving cash generation and managing its debt levels to enhance financial stability.

Income Statement

Southwest Gas shows a stable gross profit margin with a slight decline in revenue over the TTM period. The net profit margin is modest, indicating controlled expenses relative to revenue. However, the negative revenue growth rate suggests potential challenges in maintaining sales momentum.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage, which could pose risks if not managed properly. Return on equity is positive but relatively low, suggesting moderate efficiency in generating profits from shareholders' equity.

Cash Flow

The free cash flow growth rate is significantly negative, highlighting challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is moderate, indicating some ability to convert income into cash, but the free cash flow to net income ratio is very low, raising concerns about cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.00B	5.11B	5.43B	4.96B	3.68B	3.30B
Gross Profit	893.32M	1.01B	1.02B	994.87M	820.93M	818.49M
EBITDA	1.20B	976.78M	930.54M	439.87M	726.57M	735.01M
Net Income	463.92M	198.81M	150.89M	-1.62B	200.78M	232.32M
Balance Sheet
Total Assets	9.73B	12.02B	11.87B	13.20B	12.77B	8.74B
Cash, Cash Equivalents and Short-Term Investments	348.13M	363.79M	106.54M	123.08M	222.70M	83.35M
Total Debt	0.00	5.06B	5.44B	5.99B	6.32B	2.88B
Total Liabilities	6.31B	8.33B	8.46B	9.98B	9.61B	5.90B
Stockholders Equity	3.42B	3.50B	3.31B	3.06B	2.95B	2.67B
Cash Flow
Free Cash Flow	491.69M	409.86M	-363.31M	-451.96M	-604.24M	-199.03M
Operating Cash Flow	727.80M	1.36B	509.21M	407.46M	111.38M	626.08M
Investing Cash Flow	-795.11M	-921.57M	150.97M	-838.90M	-3.04B	-802.07M
Financing Cash Flow	-154.15M	-176.34M	-700.79M	356.48M	3.06B	209.57M

Southwest Gas Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 78.83
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWX, the sentiment is Neutral. The current price of 78.83 is below the 20-day moving average (MA) of 79.59, below the 50-day MA of 79.02, and above the 200-day MA of 74.88, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 46.70 is Neutral, neither overbought nor oversold. The STOCH value of 55.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SWX.

Southwest Gas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NJR	75 Outperform	$4.48B	10.91	18.03%	4.04%	21.88%	71.35%
OGS	72 Outperform	$4.91B	19.08	8.51%	3.28%	15.06%	12.27%
SR	72 Outperform	$5.22B	19.11	8.37%	3.54%	-6.65%	11.47%
CPK	66 Neutral	$3.10B	23.48	9.25%	1.99%	19.02%	20.13%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
SWX	63 Neutral	$5.69B	12.31	5.42%	3.15%	-23.15%	157.45%
UGI	62 Neutral	$7.24B	17.76	8.75%	4.45%	-0.52%	-39.42%

Southwest Gas Corporate Events

Southwest Gas Announces CFO Departure Effective December

On November 5, 2025, Southwest Gas Holdings, Inc. announced the departure of Robert J. Stefani, the Senior Vice President/Chief Financial Officer, effective December 1, 2025. His departure is amicable and not due to any disagreements with the company’s management or auditors. The company has initiated a search for his successor. As part of his transition, Mr. Stefani will receive cash payments and prorated stock units, contingent upon his compliance with the separation agreement and continued service until his separation date.

The most recent analyst rating on (SWX) stock is a Buy with a $91.00 price target. To see the full list of analyst forecasts on Southwest Gas stock, see the SWX Stock Forecast page.

Southwest Gas Updates Cooperation Agreement with Icahn

On October 14, 2025, Southwest Gas Holdings, Inc. and the Icahn Group entered into an Amended and Restated Cooperation Agreement, which updates their previous agreement from October 15, 2024. The new agreement includes the nomination of Icahn Designees for the 2026 annual meeting and outlines conditions for the termination of the agreement, impacting the company’s governance structure and potentially its strategic direction.

The most recent analyst rating on (SWX) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on Southwest Gas stock, see the SWX Stock Forecast page.

Southwest Gas Completes Sale of Centuri Holdings Shares

On September 5, 2025, Southwest Gas Holdings, Inc. completed the sale of 27,362,210 shares of Centuri Holdings, Inc. common stock to J.P. Morgan Securities LLC, generating approximately $524.8 million in net proceeds. This transaction marks the company’s exit from its ownership in Centuri, relinquishing its governance rights and influence over Centuri’s corporate actions.

The most recent analyst rating on (SWX) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on Southwest Gas stock, see the SWX Stock Forecast page.

Southwest Gas Sells Centuri Shares, Raises $325 Million

On August 11, 2025, Southwest Gas Holdings, Inc. completed an underwritten offering of 17,250,000 shares of Centuri Holdings, Inc. common stock, generating approximately $325 million in net proceeds. The company plans to use these funds for debt repayment and general corporate purposes. Concurrently, Southwest Gas also closed a private placement with Icahn Investors, selling 1,573,500 shares for approximately $31 million. As a result of these transactions, Southwest Gas no longer holds a controlling interest in Centuri and will deconsolidate its financial statements, reflecting Centuri’s results as discontinued operations.

The most recent analyst rating on (SWX) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Southwest Gas stock, see the SWX Stock Forecast page.

Southwest Gas Earnings Call Highlights Robust Growth and Challenges

The recent earnings call for Southwest Gas highlighted a robust financial performance, marked by significant regulatory achievements and strategic advancements. The company’s efforts in the Centuri sell-downs and the Great Basin expansion project were particularly emphasized. However, challenges remain, especially concerning regulatory mechanisms in Arizona and ongoing regulatory lag issues, which present some headwinds.

Southwest Gas Holdings Reports Q2 2025 Results

Southwest Gas Holdings, Inc. is a company engaged in the distribution and transportation of natural gas, serving over 2 million customers across Arizona, Nevada, and California, and is also a majority owner of Centuri Holdings, Inc., which provides utility infrastructure services in North America.