Southwest Gas Holdings Inc. Common Stock (DE) (SWX)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Southwest Gas is a regulated gas distributor serving about 2.281 million customers in Arizona, Nevada, and California as of December 31, 2025. That kind of regulated franchise can be a modest moat, but it is not a high-return business. FairStock calculations from the 2026-10-13 close show a P/E of 22.08, P/B of 1.51, ROE of 6.83%, ROCE of 2.82%, and a dividend yield of 3.01%. The balance sheet carries D/E of 0.85, and trailing free cash flow is negative $527.8 million, an FCF yield of -8.5%, so growth requires capital and the utility is not currently self-funding. The turnaround label is fair: in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $42.1 million and diluted EPS was $0.58, compared with a net loss of $40.2 million and diluted EPS of -$0.56 in fiscal Q2 2025, the quarter ended 2025-06-30. For full fiscal 2025, the period ended 2025-12-31, net income was $439.8 million and diluted EPS $6.08, up from $198.8 million and $2.76 in fiscal 2024, the period ended 2024-12-31. But the Piotroski F-Score of 4/9 and Altman Z-Score of 0.81 suggest financial quality is only middling-to-weak. Valuation is not Graham cheap: the Graham Number is $70.60 versus the $85.91 close on 2026-10-13, a margin of safety of -21.69%. I would want a wider discount, stronger cash generation, and better returns before calling this a compelling value. The low beta of 0.56 and 3.01% dividend are supports, but not enough by themselves.

In plain English: Southwest Gas sells natural gas to homes and businesses in Arizona, Nevada, and California. The business is steady but capital-hungry, and its recent results have swung from a loss to a profit. At the recent price, the shares look expensive relative to the company's profits and accounting value, even though the dividend and low stock volatility offer some stability.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer