# Southwest Gas Holdings (SWX.US)

Canonical: https://gigainvestors.com/s/SWX

Analysis as of: 2026-10-16T07:32:12.882Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $86.20 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.51×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.13×

- FY2018: 0.12×

- FY2019: 0.12×

- FY2020: 0.13×

- FY2021: 0.10×

- FY2022: -0.00×

- FY2023: 0.08×

- FY2024: 0.09×

- FY2025: 0.24×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 5.6%

- ROIC, second-lowest year: 4.3%

- Typical minus recent gross margin: 3.6 pp

- Typical gross margin (annual median): 23.4%

- Recent gross margin (lower of latest and 3-year median): 19.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 23.0%

- ROIC including acquisitions, ten-year median: 0.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.3%

- FY2017: 6.7%

- FY2018: 6.5%

- FY2019: 6.2%

- FY2020: 6.5%

- FY2021: 4.3%

- FY2022: -0.2%

- FY2023: 4.3%

- FY2024: 5.0%

- FY2025: 4.9%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -0.25×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$198M

- Net income, five-year total: $787M

- Return on incremental invested capital: 3.5%

- Working capital / revenue, annual change: 1.0 pp

- Working capital / revenue, change between three-year averages: 2.4 pp

- Working capital / revenue, final three-year average: 10.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: -1.55×

- FY2025: -0.08×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.5% vs 4.9%

- Per-share earnings: 3.18 to 2.76 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.3%

- Ordinary dilution, 5-year annual growth: 5.2%

- Market cap gain: $2.1B

- Cumulative retained earnings: $264M

- Diluted shares, 10-year annual growth: 4.3%

- Diluted shares, 5-year annual growth: 5.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -1.8%

- Per-share value change: -$0.42

- Per-share value, starting three-year median: $3.18

- Per-share value, ending three-year median: $2.76

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.0%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: $2.8B

- Cumulative net income, 10 years: $1.8B

- ROIC, first three-year median: 6.5%

- ROIC, last three-year median: 4.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.18

- FY2017: $4.04

- FY2018: $3.68

- FY2019: $3.94

- FY2020: $4.14

- FY2021: $3.39

- FY2022: -$3.10

- FY2023: $2.13

- FY2024: $2.76

- FY2025: $6.08

### accounting: pass

- Sloan accruals: -1.1%

- Receivables to sales index (DSRI): 0.90×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.26×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.0%

- FY2017: -2.8%

- FY2018: -4.7%

- FY2019: -3.5%

- FY2020: -4.5%

- FY2021: 0.7%

- FY2022: -4.6%

- FY2023: -3.0%

- FY2024: -9.6%

- FY2025: -1.1%

## Holders

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Up 47% since Oct 2023 · "Rate Base Increase: $600 million increase in authorized rate base in Arizona." (finance.yahoo.com, May 2025) · sales -62%

Story as of 2026-10-16T09:59:39.203Z; price observation 2026-10-15.

- 2025-07-30: Southwest Gas Holdings outlook revised to stable by Fitch ([investing.com](https://www.investing.com/news/stock-market-news/southwest-gas-holdings-outlook-revised-to-stable-by-fitch-93CH-4160977))

### Sales · FY2024–2025

sales -62%; source https://www.sec.gov/Archives/edgar/data/1692115/000169211526000062/swx-20251231.htm; observed 2026-02-25.

- FY2016: $2.5B 

- FY2017: $2.5B 

- FY2018: $2.9B 

- FY2019: $3.1B 

- FY2020: $3.3B 

- FY2021: $3.7B 

- FY2022: $5.0B 

- FY2023: $5.4B 

- FY2024: $5.1B 

- FY2025: $1.9B 

### Gross margin · FY2025

gross margin 29.3%; source https://www.sec.gov/Archives/edgar/data/1692115/000169211526000062/swx-20251231.htm; observed 2026-02-25.

- FY2016: 25.9% 

- FY2017: 24.8% 

- FY2018: 23.1% 

- FY2019: 23.6% 

- FY2020: 24.8% 

- FY2021: 22.3% 

- FY2022: 20.1% 

- FY2023: 18.8% 

- FY2024: 19.8% 

- FY2025: 29.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities regulated gas; annual sales are USD 1.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1692115/000169211526000062/swx-20251231.htm (filed 2026-02-25); FY2025: revenue 1940380000; grossProfit 567956000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SWX.US: Southwest Gas Holdings, Inc., through its subsidiary, Southwest Gas Corporation, purchases, distributes, and transports natural gas for residential, commercial, and industrial customers in Arizona, Nevada, and California in the United States. The company offers tariff sales and transportation services. It also operates a pipeline transmission system, including an LNG storage facility. As of December 31, 2025, the company served approximately 2,281,000 customers with 1,224,000 in Arizona, 849,000 in Nevada, and 208,000 in California. Southwest Gas Holdings, Inc. was founded in 1931 and is headquartered in Las Vegas, Nevada.

### Why customers stay

Margins ranged from 18.8% to 29.3% during 2023–25; it earns 5.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: grossProfit / revenue = 18.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: grossProfit / revenue = 19.8%.

- Source: https://www.sec.gov/Archives/edgar/data/1692115/000169211526000062/swx-20251231.htm (filed 2026-02-25); FY2025: grossProfit / revenue = 29.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on capital observations [[2016,0.06315255859406653],[2017,0.0667617160238578],[2018,0.06508029025545471],[2019,0.06169071936105301],[2020,0.0647151059185461],[2021,0.04265683474917693],[2022,-0.0023582086666990485],[2023,0.04284226856082831],[2024,0.050157897563384145],[2025,0.048877026293182683]]; median 0.055924308462218575. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2018: growth capex 516702000; upkeep 249212000; cash acquisitions 251373000; owner earnings 182277000. Growth capex plus acquisitions / owner earnings = 4.213779028621274.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2019: growth capex 454119909.8096864; upkeep 484028090.1903136; cash acquisitions 47638000; owner earnings 33144909.809686422. Growth capex plus acquisitions / owner earnings = 15.138309703985085.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2020: growth capex 354258866.00114304; upkeep 470846133.99885696; cash acquisitions 0; owner earnings 93504866.00114304. Growth capex plus acquisitions / owner earnings = 3.7886677041685983.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2021: growth capex 344585000; upkeep 371041000; cash acquisitions 2354260000; owner earnings 200779000. Growth capex plus acquisitions / owner earnings = 13.441868920554441.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: growth capex 431613000; upkeep 440908000; cash acquisitions 0; owner earnings 150889000. Growth capex plus acquisitions / owner earnings = 2.860466965782794.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,83317000],[2017,92130000],[2018,100240000],[2019,116127000],[2020,125504000],[2021,138222000],[2022,160563000],[2023,174574000],[2024,177768000],[2025,178509000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SWX.US SharesStats.PercentInsiders = 0.607 percentage points; cache date 2026-10-16.

### What the price says

The price is 3.2 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Closing price 86.2 USD; reporting-to-trading FX 1; FY2025 annual sales per share 26.82417020335375; price multiple 3.213519722940867. FY2025 cash earnings/share -0.5158632511715996. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $72.46 per share

- 2016-11: $74.13 per share

- 2016-12: $76.62 per share

- 2017-01: $80.57 per share

- 2017-02: $85.53 per share

- 2017-03: $82.91 per share

- 2017-04: $83.76 per share

- 2017-05: $79.57 per share

- 2017-06: $73.06 per share

- 2017-07: $80.10 per share

- 2017-08: $79.52 per share

- 2017-09: $77.62 per share

- 2017-10: $82.39 per share

- 2017-11: $85.94 per share

- 2017-12: $80.48 per share

- 2018-01: $73.58 per share

- 2018-02: $65.88 per share

- 2018-03: $67.63 per share

- 2018-04: $72.99 per share

- 2018-05: $75.70 per share

- 2018-06: $76.27 per share

- 2018-07: $78.20 per share

- 2018-08: $77.32 per share

- 2018-09: $79.03 per share

- 2018-10: $77.27 per share

- 2018-11: $78.77 per share

- 2018-12: $76.50 per share

- 2019-01: $78.32 per share

- 2019-02: $81.94 per share

- 2019-03: $82.26 per share

- 2019-04: $83.19 per share

- 2019-05: $85.14 per share

- 2019-06: $89.62 per share

- 2019-07: $88.91 per share

- 2019-08: $91.23 per share

- 2019-09: $91.04 per share

- 2019-10: $87.30 per share

- 2019-11: $75.76 per share

- 2019-12: $75.97 per share

- 2020-01: $75.51 per share

- 2020-02: $64.68 per share

- 2020-03: $69.56 per share

- 2020-04: $75.80 per share

- 2020-05: $75.95 per share

- 2020-06: $69.05 per share

- 2020-07: $69.64 per share

- 2020-08: $62.87 per share

- 2020-09: $63.10 per share

- 2020-10: $65.72 per share

- 2020-11: $64.25 per share

- 2020-12: $60.75 per share

- 2021-01: $59.96 per share

- 2021-02: $62.35 per share

- 2021-03: $68.71 per share

- 2021-04: $69.72 per share

- 2021-05: $66.01 per share

- 2021-06: $66.19 per share

- 2021-07: $69.93 per share

- 2021-08: $70.31 per share

- 2021-09: $66.88 per share

- 2021-10: $69.25 per share

- 2021-11: $65.81 per share

- 2021-12: $70.05 per share

- 2022-01: $68.18 per share

- 2022-02: $70.94 per share

- 2022-03: $78.29 per share

- 2022-04: $88.11 per share

- 2022-05: $93.13 per share

- 2022-06: $87.08 per share

- 2022-07: $86.96 per share

- 2022-08: $77.85 per share

- 2022-09: $69.75 per share

- 2022-10: $73.07 per share

- 2022-11: $68.46 per share

- 2022-12: $61.88 per share

- 2023-01: $66.93 per share

- 2023-02: $63.01 per share

- 2023-03: $62.45 per share

- 2023-04: $56.00 per share

- 2023-05: $58.53 per share

- 2023-06: $63.65 per share

- 2023-07: $65.94 per share

- 2023-08: $61.93 per share

- 2023-09: $60.41 per share

- 2023-10: $58.61 per share

- 2023-11: $59.11 per share

- 2023-12: $63.35 per share

- 2024-01: $58.68 per share

- 2024-02: $68.15 per share

- 2024-03: $76.13 per share

- 2024-04: $74.62 per share

- 2024-05: $77.59 per share

- 2024-06: $70.38 per share

- 2024-07: $74.16 per share

- 2024-08: $72.72 per share

- 2024-09: $73.76 per share

- 2024-10: $73.25 per share

- 2024-11: $78.16 per share

- 2024-12: $70.71 per share

- 2025-01: $74.68 per share

- 2025-02: $75.05 per share

- 2025-03: $71.80 per share

- 2025-04: $72.21 per share

- 2025-05: $71.83 per share

- 2025-06: $74.39 per share

- 2025-07: $78.14 per share

- 2025-08: $79.88 per share

- 2025-09: $78.34 per share

- 2025-10: $79.50 per share

- 2025-11: $83.05 per share

- 2025-12: $80.02 per share

- 2026-01: $82.82 per share

- 2026-02: $88.17 per share

- 2026-03: $86.90 per share

- 2026-04: $94.05 per share

- 2026-05: $86.21 per share

- 2026-06: $88.68 per share

- 2026-07: $89.40 per share

- 2026-08: $88.33 per share

- 2026-09: $81.54 per share

- 2026-10: $86.20 per share

## Annual estimated value (USD per share)

- FY2016: low $17.10 per share, central $19.84 per share, high $23.07 per share

- FY2017: low $17.60 per share, central $20.38 per share, high $23.69 per share

- FY2018: low $37.94 per share, central $45.18 per share, high $52.52 per share

- FY2019: low $6.67 per share, central $7.59 per share, high $8.81 per share

- FY2020: low $7.14 per share, central $8.08 per share, high $9.34 per share

- FY2021: low $23.31 per share, central $28.20 per share, high $32.47 per share

- FY2022: low $23.80 per share, central $27.04 per share, high $31.34 per share

- FY2023: low $26.02 per share, central $33.35 per share, high $38.98 per share

- FY2024: low $27.04 per share, central $32.69 per share, high $37.54 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1692115/000169211526000062/swx-20251231.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.