Home News Valuation Now: Southwest Gas (NYSE: SWX)

Valuation Now: Southwest Gas (NYSE: SWX)

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Southwest Gas trades as part of the regulated utilities industry and is part of the utilities sector. The company CEO is John P. Hester. Southwest Gas Inc is a U.S. based utility company. It is primarily involved in the purchasing, distributing, and transporting of natural gas in the American Southwest. Its operations are divided into natural gas and construction services.

Previous Intraday Trading Performance:

The SWX stock showed a previous change of 1.92% with an open at 77.77 and a close of 79.26. It reached an intraday high of 79.42 and a low of 77.18.

SeekingAlpha:  Utilities Dashboard - Update

Liquidity:

The stock has a market cap of $3.8b with 48.4m shares outstanding, of which the float is 47.5m shares. Trading volume reached 157,330 shares compared to its average volume of 297,674 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Southwest Gas shares returned 1.43% and in the past 30 trading days it returned 6.12%. Over three months, it changed 14.85%. In one year it has changed 9.99% and within that year its 52-week high was 86.87 and its 52-week low was 62.54. SWX stock is 26.75% above its 52 Week Low.

Our calculations show a 200 day moving average of 74.47 and a 50 day moving average of 74.54. Currently SWX stock is trading 6.44% above its 200 day moving average.

SeekingAlpha:  Utilities Dashboard - Update

Earnings:

The last annual fiscal EPS for the company was reported at 4.04 that ended on 31st of December 2017, which according to the previous close, that is a PE of 19.62. Based on 2 analyst estimates, the consensus EPS for the next quarter is 0.29. The TTM EPS is 3.79, which comes to a TTM PE of 20.91. Historically, the PE high was 27.30 and the PE low was 14.40. If the stock reached its PE low, that would represent a price of 54.58, which is a decrease of -31.13%.

The following are the last four quarter reported earnings per share:
03-31-2018:  1.63
12-31-2017:  1.58
09-30-2017:  0.21
06-30-2017:  0.37

The dividend per share is currently 2.08, which is a dividend yield of 2.67%. Also, the payout ratio is 54.88%, therefore the dividend is safe according to our calculations.

Indicators to Watch:

Based on the latest filings, there is 83.00% of institutional ownership. Short-interest is 1,452,755, which is 3.00% of shares outstanding. The short-interest ratio or days-to-cover ratio is 5.00. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.51

SeekingAlpha:  Notable earnings before Wednesday's open

Fundamental Indicators:

Based on last reported financials, the company's return on equity is 10.54%, return on assets is 3.19%, profit margin is 8.90%, price-to-sales is 1.80 and price-to-book is 2.00.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 3  :Past Performance Score
 2  :Financial Strength Score
 1  :Future Growth Score
 5  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks. Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.