Southwest Gas Holdings, Inc. (SWX) AI Stock Analysis

Headquartered in Las Vegas, Nevada, Southwest Gas Holdings, Inc. oversees the distribution and transportation of natural gas across Arizona, Nevada, and California through its subsidiaries. Established in 1931, the company operates across three primary segments: Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and Storage. Beyond natural gas distribution, it provides comprehensive services such as trenching, installation, replacement of underground pipes, and maintenance for energy distribution systems. As of December 31, 2021, its infrastructure served a customer base of 2,159,000 across residential, commercial, industrial, and other natural gas categories.

Revenue shifted from $3.68B in FY2021 to a peak of $5.43B in FY2023, before declining to $5.11B in FY2024 and falling 62.0% to $1.94B in FY2025. Across the five-year period from FY2020 to FY2025, revenue posted a compound annual growth rate of -10.1%. Net income stood at $200.8M in FY2021, dipped to -$203.3M in FY2022, and reached $439.8M in FY2025, when gross margin expanded to 29.3% and operating margin rose to 24.4%. For the latest quarter ended June 30, 2026, quarterly revenue fell 9.6% year-over-year, while quarterly earnings grew 20.9% year-over-year. TTM revenue reached $1.74B with an operating margin of 24.2% and EPS of $4.00.

As of June 30, 2026, Southwest Gas Holdings held $270.5M in cash and short-term investments alongside total debt of $3.51B, yielding net debt of $3.24B. Shareholders' equity was $4.13B, supported by total assets of $10.48B. The company maintained a current ratio of 1.12 and a debt-to-equity ratio of 0.85. In FY2025, operating cash flow stood at $556.1M, capital expenditures were $807.9M, and free cash flow was -$251.8M. Cash uses in FY2025 also included $178.5M in dividends paid, while share issuance brought in $19.7M.

At a last close of $87.45, Southwest Gas Holdings traded at a trailing P/E of 21.9x and a forward P/E of 17.4x, compared to the median of its US-listed Utilities peers of 20.6x and 17.2x, respectively. Its enterprise value to EBITDA ratio was 10.3x, below the peer median of 12.1x, while its price-to-sales of 3.6x stood above the peer median of 2.4x. Over the past year, the stock returned 16.1%, trailing the S&P 500's 16.8% return. Over five years, its 51.0% return trailed the S&P 500's 83.0% gain.

Southwest Gas Holdings pays a quarterly dividend with a forward annual payout of $2.58 per share, representing a dividend yield of 2.95%. The company has paid consecutive dividends for 42 years, with a 5-year annualized dividend growth rate of 1.9%. Its payout ratio is 67.6%, and the last ex-dividend date was November 16, 2026.

Analyst coverage includes 8 Strong Buy ratings and 2 Buy ratings, with zero Hold, Sell, or Strong Sell recommendations. The mean price target of $99.78 implies 14.1% upside compared to the last close of $87.45. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $4.26 on revenue of $1.92B. Over the last four quarters, the company recorded 0 EPS beats. The next earnings date is November 4, 2026.

This page is an AI-written research summary of Southwest Gas Holdings, Inc. (SWX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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