← Back to All US Stocks

Southwest Gas Holdings, Inc. (SWX) Stock Fundamental Analysis & AI Rating 2026

SWX NYSE Natural Gas Transmisison & Distribution DE CIK: 0001692115
Updated This Month • Analysis: May 7, 2026 • SEC Data: 2026-03-31
Combined AI Rating
SELL
72% Confidence
N/A
SELL
72% Conf
Pending
Analysis scheduled

📊 SWX Key Takeaways

Revenue: $3.8B
Net Margin: 3.6%
Free Cash Flow: $-46.6M
Current Ratio: 1.45x
Debt/Equity: 0.84x
EPS: $1.91
AI Rating: SELL with 72% confidence
Southwest Gas Holdings, Inc. (SWX) receives a SELL rating with 72% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $3.8B, net profit margin of 3.6%, and return on equity (ROE) of 3.4%, Southwest Gas Holdings, Inc. demonstrates mixed fundamentals in the Energy sector. Below is our complete SWX stock analysis for 2026.

Is Southwest Gas Holdings, Inc. (SWX) a Good Investment?

Claude

Southwest Gas faces fundamental profitability challenges with negative free cash flow of -$46.6M, indicating the company cannot self-fund operations and growth through internal cash generation. The company's severely weak returns (ROE: 3.4%, ROA: 1.3%) and thin margins (3.6%) suggest inefficient capital deployment, while modest net income growth (1.1% YoY) indicates stagnation.

Why Buy Southwest Gas Holdings, Inc. Stock? SWX Key Strengths

Claude
  • + Stable regulated utility business model with predictable revenues
  • + Adequate liquidity with $484.8M cash position
  • + Moderate leverage at 0.84x Debt/Equity ratio, manageable for sector

SWX Stock Risks: Southwest Gas Holdings, Inc. Investment Risks

Claude
  • ! Negative free cash flow of -$46.6M requires external financing and is fundamentally unsustainable
  • ! Severely weak returns on equity (3.4%) and assets (1.3%) indicate shareholder value destruction
  • ! Interest coverage ratio of 3.1x provides limited cushion; capex ($208.7M) exceeds operating cash flow

Key Metrics to Watch

Claude
  • * Free cash flow path to positive territory and sustainability
  • * Return on Equity improvement and capital efficiency
  • * Operating cash flow growth relative to capital expenditure requirements

Southwest Gas Holdings, Inc. (SWX) Financial Metrics & Key Ratios

Revenue
$3.8B
Net Income
$138.4M
EPS (Diluted)
$1.91
Free Cash Flow
$-46.6M
Total Assets
$10.4B
Cash Position
$484.8M

💡 AI Analyst Insight

Southwest Gas Holdings, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

SWX Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 5.7%
Net Margin 3.6%
ROE 3.4%
ROA 1.3%
FCF Margin -1.2%

SWX vs Energy Sector: How Southwest Gas Holdings, Inc. Compares

How Southwest Gas Holdings, Inc. compares to Energy sector averages

Net Margin
SWX 3.6%
vs
Sector Avg 12.0%
SWX Sector
ROE
SWX 3.4%
vs
Sector Avg 14.0%
SWX Sector
Current Ratio
SWX 1.4x
vs
Sector Avg 1.3x
SWX Sector
Debt/Equity
SWX 0.8x
vs
Sector Avg 0.6x
SWX Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Southwest Gas Holdings, Inc. Stock Overvalued? SWX Valuation Analysis 2026

Based on fundamental analysis, Southwest Gas Holdings, Inc. shows some fundamental concerns relative to the Energy sector in 2026.

Return on Equity
3.4%
Sector avg: 14%
Net Profit Margin
3.6%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.84x
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Southwest Gas Holdings, Inc. Balance Sheet: SWX Debt, Cash & Liquidity

Current Ratio
1.45x
Quick Ratio
1.45x
Debt/Equity
0.84x
Debt/Assets
0.0%
Interest Coverage
3.06x
Long-term Debt
$3.4B

SWX Revenue & Earnings Growth: 5-Year Financial Trend

SWX 5-year financial data: Year 2018: Revenue $1.3B, Net Income N/A, EPS N/A. Year 2019: Revenue $1.4B, Net Income N/A, EPS N/A. Year 2020: Revenue $1.4B, Net Income N/A, EPS N/A. Year 2021: Revenue $1.5B, Net Income $213.9M, EPS $3.94.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Southwest Gas Holdings, Inc.'s revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.13 reflects profitable operations.

SWX Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-1.2%
Free cash flow / Revenue

SWX Quarterly Earnings & Performance

Quarterly financial performance data for Southwest Gas Holdings, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2024 $1.1B $289.0K $0.00
Q2 2024 $1.2B $18.3M $0.25
Q1 2024 $1.6B $45.9M $0.67
Q3 2023 $1.1B $3.2M $0.04
Q2 2023 $1.1B -$6.6M $-0.10
Q1 2023 $1.3B $45.9M $0.67
Q3 2022 $888.7M -$11.6M $-0.18
Q2 2022 $821.4M -$6.6M $-0.10

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Southwest Gas Holdings, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$162.1M
Cash generated from operations
Capital Expenditures
$208.7M
Investment in assets
Dividends Paid
$44.8M
Returned to shareholders

SWX SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Southwest Gas Holdings, Inc. (CIK: 0001692115)

📋 Recent SEC Filings

Date Form Document Action
May 13, 2026 4 xslF345X06/wk-form4_1778707585.xml View →
May 13, 2026 4 xslF345X06/wk-form4_1778707579.xml View →
May 11, 2026 8-K swx-20260507.htm View →
May 5, 2026 10-Q swx-20260331.htm View →
May 5, 2026 8-K swx-20260505.htm View →

Frequently Asked Questions about SWX

What is the AI rating for SWX?

Southwest Gas Holdings, Inc. (SWX) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SWX's key strengths?

Claude: Stable regulated utility business model with predictable revenues. Adequate liquidity with $484.8M cash position.

What are the risks of investing in SWX?

Claude: Negative free cash flow of -$46.6M requires external financing and is fundamentally unsustainable. Severely weak returns on equity (3.4%) and assets (1.3%) indicate shareholder value destruction.

What is SWX's revenue and growth?

Southwest Gas Holdings, Inc. reported revenue of $3.8B.

Does SWX pay dividends?

Southwest Gas Holdings, Inc. pays dividends, with $44.8M distributed to shareholders in the trailing twelve months.

Where can I find SWX SEC filings?

Official SEC filings for Southwest Gas Holdings, Inc. (CIK: 0001692115) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SWX's EPS?

Southwest Gas Holdings, Inc. has a diluted EPS of $1.91.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is SWX a good stock to buy right now?

Based on our AI fundamental analysis in May 2026, Southwest Gas Holdings, Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is SWX stock overvalued or undervalued?

Valuation metrics for SWX: ROE of 3.4% (sector avg: 14%), net margin of 3.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy SWX stock in 2026?

Our dual AI analysis gives Southwest Gas Holdings, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SWX's free cash flow?

Southwest Gas Holdings, Inc.'s operating cash flow is $162.1M, with capital expenditures of $208.7M. FCF margin is -1.2%.

How does SWX compare to other Energy stocks?

Vs Energy sector averages: Net margin 3.6% (avg: 12%), ROE 3.4% (avg: 14%), current ratio 1.45 (avg: 1.3).

Top Rated Stocks
AAPL 92% MSFT 92% FAST 92% DT 92% DECK 92% DAVEW 92% ANET 88% RDDT 88% KNSL 88% MGRE 88%
Sector: All Energy Stocks →
Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 7, 2026 | Data as of: 2026-03-31 | Powered by Claude AI