Is the business good?
How good a business is SWX?
Southwest Gas Holdings, Inc. earns 5.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
5.4%
Return on invested capital · cost of capital 9.0% · 3.6 points below what the capital costs: growth destroys value
- Operating margin
- 29%
Operating margin · Utilities - Regulated Gas median 22% · 12 months to Q2 2026
- Cash conversion
- −0.97×
Cash conversion · 0.95× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.80%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 13% |
| FY2021 | 10% |
| FY2022 | −0.49% |
| FY2023 | 5.4% |
| FY2024 | 16% |
| FY2025 | 24% |
Details›
- Operating margin12 months to Q2 2026
- 29%
- Net margin12 months to Q2 2026
- 31%
- Free cash flow margin
- −30%
- Revenue, trailing twelve months
- $1.74B
- Free cash flow, trailing twelve months
- −$528M
- Net income, trailing twelve months
- $547M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Utilities - Regulated Gas
Ranks #11 of 13 by Smart Score