Stock fact sheet · data as of
Southwest Gas Holdings, Inc. (SWX): fair value, margin of safety and Wheel Score
Utilities · Regulated Gas · United States · Defensive
Is SWX undervalued?
Southwest Gas Holdings, Inc. (SWX) closed at 85.30 on 16 Oct 2026. The GLS average fair value - the simple average of the 6 valuation models that produced a positive number - is 115.31, so the price sits 26% below it. 4 of the 6 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
The 6 models disagree widely: DDM gives 37.23 while Graham Growth gives 253.22. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files SWX under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for SWX
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 95.74 | +12% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 253.22 | +197% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 99.05 | +16% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 127.06 | +49% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 37.23 | -56% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 79.57 | -7% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -72.90 | -185% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 101.80 | +19% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - SWX passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.7 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 5.9%, ROE 11.1%, ROA 4.2% - with debt at 0.89 times equity and negative free cash flow.
The dividend yield is 2.97% at a payout ratio of 35%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Natural Gas Distribution 100% (quarter Q3 FY2025).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 5.9% |
|---|---|---|---|
| GLS Moat | 3.7 / 10 | ROE | 11.1% |
| Debt / equity | 0.89 | ROA | 4.2% |
| Free-cash-flow yield | -13.4% | Payout ratio | 35% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 69: Good
SWX scores 69 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 23/25), Piotroski health (13/20), the GLS moat (6/15), the option premium on offer (11/20) and how easily the stock trades (16/20). Moat (6/15) is the part holding the score back.
Implied volatility is 26% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (11 of 20 points). Chain open interest is thin - 250 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 576k shares a day on a market cap of $6.2B, with a beta of 0.56 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 23 / 25 | 26% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 6 / 15 | moat 3.7/10 | |
| Premium | 11 / 20 | implied volatility 26% | |
| Stability | 16 / 20 | 576k shares/day, $6.2B cap, beta 0.56 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 4 Nov 2026 (before the open), 19 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Regulated Gas
The 12 companies below are the closest to Southwest Gas Holdings, Inc. by market cap within the Regulated Gas industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BKH Black Hills Corporation | 75.87 | 40.35 | -88% | 54Fair | $5.8B |
| NJR New Jersey Resources Corporation | 51.53 | 44.50 | -16% | 59Fair | $5.2B |
| UGI UGI Corporation | 37.21 | 32.66 | -14% | 53Fair | $8.0B |
| SR Spire Inc. | 79.80 | 171.07 | +53% | 64Fair | $4.7B |
| OGS ONE Gas, Inc. | 74.56 | 46.32 | -61% | 53Fair | $4.7B |
| BIPC Brookfield Infrastructure Corporation | 37.63 | 26.41 | -42% | 45Weak | $4.6B |
| MDU MDU Resources Group, Inc. | 18.61 | 11.63 | -60% | 49Weak | $3.9B |
| CPK Chesapeake Utilities Corporation | 130.66 | 82.95 | -58% | 47Weak | $3.1B |
| NWN Northwest Natural Holding Company | 48.35 | 33.78 | -43% | 49Weak | $2.0B |
| CTRI Centuri Holdings, Inc. | 19.76 | 8.02 | -147% | 56Fair | $2.0B |
| NI NiSource Inc | 41.25 | 21.62 | -91% | 52Fair | $19.8B |
| ATO Atmos Energy Corporation | 163.95 | 105.99 | -55% | 49Weak | $27.7B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about SWX
Is SWX undervalued right now?
By the GLS models, moderately: at 85.30 the stock trades 26% below the average fair value of 115.31 (data as of 16 Oct 2026).
What is the Wheel Score of SWX and what does it mean?
SWX scores 69 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for SWX?
115.31 per share as of 16 Oct 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Southwest Gas Holdings, Inc. report earnings next?
The next earnings report is due on 4 Nov 2026 (before the open), 19 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does SWX have listed options, and how liquid are they?
Yes. The nightly snapshot found 180 listed contracts with 250 open interest across all expiries and implied volatility of 26% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.