Latest Ratios: P/E Ratio 14.6x · EV/EBITDA 11.6x · ROE 11.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.4B | $5.8B | $5.1B | $4.5B | $4.1B | $4.2B | $3.4B | $4.1B | $3.8B | $3.9B | $3.7B |
| Enterprise Value | $9.3B | $8.7B | $9.8B | $9.7B | $9.9B | $10.3B | $6.2B | $6.8B | $6.0B | $5.9B | $5.2B |
| P/E Ratio → | 14.56 | 13.16 | 25.62 | 29.74 | — | 20.66 | 14.67 | 19.28 | 20.79 | 19.92 | 24.09 |
| P/S Ratio | 3.30 | 2.98 | 1.00 | 0.83 | 0.82 | 1.13 | 1.03 | 1.32 | 1.31 | 1.52 | 1.49 |
| P/B Ratio | 1.62 | 1.46 | 1.38 | 1.32 | 1.26 | 1.32 | 1.20 | 1.59 | 1.62 | 2.13 | 2.18 |
| P/FCF | — | — | 12.43 | — | — | — | — | — | — | — | 53.20 |
| P/OCF | 11.52 | 10.41 | 3.76 | 8.83 | 9.96 | 37.27 | 5.44 | 8.25 | 7.16 | 10.44 | 6.12 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.49 | 1.91 | 1.78 | 2.00 | 2.79 | 1.88 | 2.16 | 2.08 | 2.30 | 2.13 |
| EV / EBITDA | 11.60 | 10.84 | 10.61 | 11.26 | 22.25 | 13.84 | 8.22 | 10.00 | 9.88 | 10.19 | 8.95 |
| EV / EBIT | 19.70 | 16.33 | 18.18 | 19.75 | — | 28.00 | 14.90 | 17.68 | 17.46 | 17.95 | 17.70 |
| EV / FCF | — | — | 23.88 | — | — | — | — | — | — | — | 76.03 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 29.3% | 29.3% | 19.8% | 18.8% | 20.1% | 22.3% | 24.8% | 23.6% | 23.1% | 24.8% | 25.9% |
| Operating Margin | 24.4% | 24.4% | 9.5% | 7.7% | -0.5% | 10.0% | 12.8% | 11.9% | 12.4% | 12.7% | 12.0% |
| Net Profit Margin | 22.7% | 22.7% | 3.9% | 2.8% | -4.1% | 5.5% | 7.0% | 6.9% | 6.3% | 7.6% | 6.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.5% | 11.5% | 5.6% | 4.5% | -6.4% | 6.7% | 8.6% | 8.7% | 8.8% | 11.1% | 9.2% |
| ROA | 3.9% | 3.9% | 1.7% | 1.2% | -1.6% | 1.9% | 2.7% | 2.8% | 2.7% | 3.3% | 2.8% |
| ROIC | 4.7% | 4.7% | 4.3% | 3.6% | -0.2% | 3.7% | 5.8% | 5.7% | 6.4% | 6.9% | 6.9% |
| ROCE | 4.8% | 4.8% | 4.7% | 4.2% | -0.3% | 4.2% | 5.7% | 5.5% | 6.0% | 6.2% | 6.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.89 | 0.89 | 1.37 | 1.55 | 1.86 | 2.01 | 1.01 | 1.03 | 0.98 | 1.12 | 0.95 |
| Debt / EBITDA | 4.36 | 4.36 | 5.49 | 6.15 | 13.43 | 8.54 | 3.81 | 3.96 | 3.78 | 3.55 | 2.74 |
| Net Debt / Equity | — | 0.74 | 1.27 | 1.52 | 1.82 | 1.94 | 0.98 | 1.01 | 0.95 | 1.10 | 0.93 |
| Net Debt / EBITDA | 3.64 | 3.64 | 5.09 | 6.02 | 13.15 | 8.24 | 3.70 | 3.89 | 3.64 | 3.47 | 2.69 |
| Debt / FCF | — | — | 11.45 | — | — | — | — | — | — | — | 22.83 |
| Interest Coverage | 2.63 | 2.63 | 1.81 | 1.68 | -0.13 | 3.07 | 3.73 | 3.50 | 3.55 | 4.18 | 4.01 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.28 | 1.28 | 0.80 | 1.12 | 1.08 | 0.52 | 0.96 | 0.80 | 0.89 | 0.81 | 0.85 |
| Quick Ratio | 1.18 | 1.18 | 0.80 | 1.12 | 1.08 | 0.52 | 0.96 | 0.80 | 0.89 | 0.79 | 0.84 |
| Cash Ratio | 0.62 | 0.62 | 0.20 | 0.06 | 0.04 | 0.07 | 0.09 | 0.05 | 0.09 | 0.05 | 0.04 |
| Asset Turnover | — | 0.19 | 0.43 | 0.46 | 0.38 | 0.29 | 0.38 | 0.38 | 0.39 | 0.41 | 0.44 |
| Inventory Turnover | 14.63 | 14.63 | — | — | — | — | — | — | 449.16 | 131.42 | 699.11 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.8% | 3.1% | 3.5% | 3.9% | 4.0% | 3.3% | 3.7% | 2.8% | 2.6% | 2.4% | 2.3% |
| Payout Ratio | 40.6% | 40.6% | 89.4% | 115.7% | — | 68.8% | 54.0% | 54.3% | 55.0% | 47.5% | 54.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.9% | 7.6% | 3.9% | 3.4% | — | 4.8% | 6.8% | 5.2% | 4.8% | 5.0% | 4.2% |
| FCF Yield | — | — | 8.0% | — | — | — | — | — | — | — | 1.9% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.8% | 3.1% | 3.5% | 3.9% | 4.0% | 3.3% | 3.7% | 2.8% | 2.6% | 2.4% | 2.3% |
| Shares Outstanding | — | $72M | $72M | $71M | $66M | $59M | $56M | $54M | $49M | $48M | $48M |
Regulatory ROE compression risk
As reported in recent financial statements, SWX trades at a forward P/E of 21.41, suggesting that the market is pricing the utility as a premium growth asset rather than a traditional bond proxy, despite the inherent volatility associated with its recent corporate restructuring and geographic concentration.
The elevated forward P/E relative to the TTM P/E of 14.96 indicates that investors are anticipating a significant earnings recovery following the Centuri spin-off. This valuation appears to be heavily dependent on the company's ability to execute on its rate base growth strategy in the Southwest, as any failure to meet these expectations could lead to a rapid multiple contraction.
Based on the provided quarterly data, the company's ROE has fluctuated significantly, reaching 3.4% in 2026Q1, which suggests that the utility is still in the process of normalizing its earnings power following the deconsolidation of its lower-margin infrastructure services business segment.
The gap between current earned returns and typical industry-authorized ROEs in the 9-10% range warrants further investigation into regulatory lag. Investors should monitor whether the Arizona Corporation Commission provides constructive rate relief, as the current ROE levels appear insufficient to sustain long-term equity value without significant improvement.
According to recent SEC filings, the debt-to-capital ratio has stabilized near 0.46 in 2026Q1, indicating that the company is successfully deleveraging its balance sheet to align with the risk profile of a pure-play regulated gas utility after shedding its more capital-intensive infrastructure services arm.
While the reduction in leverage is a positive development, the interest coverage ratio of 5.04x suggests that the company remains sensitive to interest rate fluctuations. Maintaining this balance sheet discipline is critical, as any return to aggressive debt-funded acquisitions would likely be viewed negatively by the market.
As indicated by the 32.4% dividend payout ratio in 2026Q1, the company maintains a conservative distribution policy that appears well-supported by current cash flows, despite the significant capital expenditure requirements necessary to modernize its pipeline network and expand its regulated rate base.
The dividend yield of 2.7% serves as a primary return driver for income-oriented investors, but its long-term safety is tied to the company's ability to recover its massive infrastructure investments through timely rate cases. If regulatory lag persists, the company may face a difficult choice between funding its growth and maintaining its dividend growth trajectory.
The most commonly misapplied metric for SWX is the standard P/E ratio, which fails to account for the significant non-cash regulatory assets and pass-through fuel costs that distort GAAP earnings, often leading analysts to misinterpret the company's true underlying profitability and growth potential.
Investors should instead focus on the Price-to-Rate-Base or EV/Rate-Base metrics, which provide a more accurate reflection of the utility's earning power. Relying on P/E ignores the regulatory compact, where earnings are essentially a function of the allowed return on invested capital rather than traditional volume-driven growth.
Includes 30+ ratios · 30 years · Updated daily
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Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying SWX stock.
Southwest Gas Holdings, Inc.'s current P/E ratio is 14.6x. The historical average is 21.3x. This places it at the 3th percentile of its historical range.
Southwest Gas Holdings, Inc.'s current EV/EBITDA is 11.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.7x.
Southwest Gas Holdings, Inc.'s return on equity (ROE) is 11.5%. The historical average is 7.4%.
Based on historical data, Southwest Gas Holdings, Inc. is trading at a P/E of 14.6x. This is at the 3th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Southwest Gas Holdings, Inc.'s current dividend yield is 2.79% with a payout ratio of 40.6%.
Southwest Gas Holdings, Inc. has 29.3% gross margin and 24.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Southwest Gas Holdings, Inc.'s Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.