Southwest Gas Intrinsic Stock Value – Southwest Gas Holdings: Bottom Line Recovers Despite Dilution

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The company specializes in natural gas production, distribution and transportation services in the southwestern United States. Recently, despite a dilution of stock, the company’s bottom line has recovered. Southwest Gas ($NYSE:SWX) Holdings has seen a strong rebound in earnings and revenue growth over the past year, and analysts believe that the company stands to benefit from the high demand for natural gas. The company has been focused on expanding its operations and investing in new technologies that have improved efficiency and customer satisfaction. Recently, the company acquired a number of smaller natural gas providers and has been successful in increasing its market share.

Investors should consider Southwest Gas Holdings as a potential investment opportunity. Despite dilution of stock, its bottom line has recovered and it stands to benefit from the increasing demand for natural gas. The company’s focus on expansion and new technologies further makes it a strong investment choice.

Share Price

On Monday, SOUTHWEST GAS stock opened at $63.7 and closed at $63.4, up by 0.2% from last closing price of 63.2. Despite dilution resulting from a recent stock offering, SOUTHWEST GAS holdings are beginning to show signs of recovery. Analysts were expecting the share price to be lower after the dilution, but it appears the company’s bottom line is still strong enough to offset the impact. SOUTHWEST GAS is still on track to reach its financial targets for the quarter, despite the dilution. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Southwest Gas. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Southwest Gas. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Southwest Gas. More…

Key Ratios Snapshot

Some of the financial key ratios for Southwest Gas are shown below. More…

Analysis – Southwest Gas Intrinsic Stock Value

At GoodWhale, we conducted an analysis of SOUTHWEST GAS‘ wellbeing. After careful consideration of their industry, market positioning, financials, and operational performance, we determined a fair value of SOUTHWEST GAS share to be around $78.5. This figure was derived using our proprietary Valuation Line which takes into account multiple factors in order to provide an accurate assessment. We believe that there is an opportunity to take advantage of this price discrepancy for potential investors. More…

Peers

The energy industry is highly competitive, and Southwest Gas Holdings Inc is no exception. It competes with some of the largest energy companies in the world, such as Snam SpA, Amber Grid AB, and Korea Gas Corp. Each of these companies has a unique set of strengths and weaknesses that can help them gain an edge in the market, and Southwest Gas Holdings Inc must be prepared to face off against these formidable opponents.

– Snam SpA ($LTS:0NQP)

Snam SpA is an Italian energy company focusing on natural gas infrastructure, energy services, and energy efficiency. The company has a market capitalization of 16.44 billion as of 2022, and its Return on Equity (ROE) is 13.61%. This suggests that the company is generating a high return on its investments compared to its peers, which is a positive indicator of its financial health. The company has a strong presence in the European energy market, and is well-positioned to capitalize on the increasing demand for natural gas.

– Amber Grid AB ($LTS:0QGQ)

Amber Grid AB is a Lithuanian natural gas transmission system operator. The company operates a natural gas transmission, distribution and storage system in Lithuania and Latvia, as well as a network for international transit of natural gas. As of 2022, the company has a market capitalization of 223.87M and a Return on Equity of 7.82%. This gives investors an indication of the company’s financial performance, as well as its ability to generate profits from its current operations. Amber Grid AB is a reliable provider of natural gas transmission, distribution and storage services in the Baltic region.

– Korea Gas Corp ($KOSE:036460)

Korea Gas Corporation (KOGAS) is the world’s largest liquefied natural gas (LNG) importer and Korea’s largest natural gas utility company. With a market cap of 2.98 trillion as of 2022, KOGAS is one of the major players in the global gas industry. Furthermore, KOGAS has an impressive Return on Equity (ROE) of 17.22%, which indicates its ability to generate profits from its shareholders’ investments. This is largely due to KOGAS’ strong financial position, allowing it to make investments in its LNG infrastructure, expand production capacity and increase its customer base. KOGAS is a leader in the LNG industry, and its impressive market cap and ROE make it a strong player in the energy sector.

Summary

Despite this, the company’s overall share dilution continues to be a concern for investors. Over the last few years, Southwest Gas has struggled to reduce their long-term debt while also attempting to maintain a healthy dividend payout ratio. Currently, the company has an above-average dividend yield and an attractive valuation that could appeal to some investors.

Despite some of the challenges they face, Southwest Gas Holdings has a fairly strong balance sheet and its cash flows are expected to remain strong in the foreseeable future. As of yet, there has been no indication that the company plans to reduce its dividend or take any other drastic measures, which could be beneficial to investors in the long run.