| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 42 | 11.4x | 17.8x | Around median | |
Growth | 49 | -90.2% | 7.1% | Around median | |
Quality | 40 | 5.2% | 4.5% | Bottom tier | |
Safety | 35 | 3.8x | 2.6x | Bottom tier | |
Capital Return | 66 | 2.91% | 2.12% | Top tier | |
Momentum | 65 | 18.8% | 2.9% | Around median | |
Sentiment | 72 | 5 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Southwest Gas Holdings operates through two interconnected businesses: a regulated utility that provides natural gas service in Arizona, Nevada, and California, and Great Basin, which develops gas transmission infrastructure. The utility relies on recovering investments and costs through rate cases and regulatory recovery mechanisms, while Great Basin targets long-term growth through the 2028 expansion project and a 48-inch-diameter pipeline.
In the latest EDGAR filings provided, the company recorded revenue of $1.1 billion, gross profit of $434.3 million, equivalent to a gross margin of approximately 39.5%, net income of $289 thousand, and zero earnings per share in the third quarter of fiscal year 2024. By comparison, revenue in the second quarter of fiscal year 2024 was approximately $1.2 billion, gross profit was $577.6 million, and net income was $18.3 million, while fiscal year 2023 ended with revenue of $5.4 billion, gross profit of $2.8 billion, and net income of $150.9 million.
In the second quarter of fiscal year 2026, adjusted earnings per share from continuing operations were $0.45, compared with $0.37 in the corresponding period of fiscal year 2025, while reported earnings were $0.58 after recognizing revenue related to the California rate case. The utility's operating margin increased by $12.7 million, including $6.7 million from rate relief and $1.4 million from customer growth, but utility earnings declined slightly, while holding company performance improved due to an $8.6 million reduction in interest expense after fully repaying its outstanding holding company-level debt.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $102.67, within a narrow range of $100 to $105, with a consensus rating of “Buy.” The average target is approximately 8.7% above the 52-week range high of $94.47, while the annual range extends from $76.59 to $94.47. Analyst targets are supported by opportunities to improve regulated returns and the Great Basin expansion, but the increase in the project's cost to $2.3 billion and the possibility that the company will receive a smaller increase than requested in Nevada create clear sensitivity to execution and regulatory decisions.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Growth is based on expanding the regulated asset base and the Great Basin 2028 project. The asset base was $6.7 billion at the end of 2025, and management expects a compound annual growth rate of between 9.5% and 11.5% through 2030. The company plans to invest approximately $1.25 billion during fiscal year 2026, with the system-wide asset base potentially approaching double its size by the end of 2030 if the current plan is executed.
Contracted demand for the project reached approximately 1 billion cubic feet per day as of August 5, 2026, following the signing of additional prior binding agreements. The company selected a 48-inch-diameter pipeline with an estimated cost of $2.3 billion and expects an additional annual margin of between $270 million and $300 million upon completion. Management targets filing a FERC application before the end of 2026, obtaining approval in late 2027, and beginning service in the fourth quarter of fiscal year 2028.
Adjusted earnings per share from continuing operations were $0.45, compared with $0.37 in the second quarter of fiscal year 2025, while reported earnings were $0.58. Operating margin increased by $12.7 million, supported by $6.7 million from rate relief and $1.4 million from customer growth. Operating and maintenance expenses also declined by $3.7 million, but utility earnings were slightly lower and other income declined by $9.4 million.
The California decision added approximately $40 million in annual revenue and allowed the recognition of approximately $9.7 million in net income in the second quarter of fiscal year 2026. In Nevada, the company requested an annual increase of approximately $74 million, while the average of the parties' recommendations was just under $40 million, with rates targeted to take effect in October 2026. The Arizona case targeted an effective date in April 2027, according to management's August 5, 2026 update.
Management stated on August 5, 2026 that it does not expect to issue shares during fiscal year 2026 outside the dividend reinvestment program and that the remaining financing for the year includes issuing $400 million of utility-level debt. The company ended the quarter with approximately $270 million in cash, nearly $1 billion in available liquidity, and no outstanding holding company-level debt. However, the $600 million increase in the cost of the Great Basin expansion could raise subsequent financing needs, although management does not expect material use of the at-the-market program through 2030.
The first risk is executing the Great Basin project, with an estimated cost of $2.3 billion, within the FERC approval process and the targeted timeline for entering service in the fourth quarter of fiscal year 2028. The second is that the parties' recommendations in the Nevada case represent only approximately 52% of the revenue increase requested by the company, which could slow the closing of the gap between the adjusted return of 8% and the weighted authorized return of 9.89%. Consolidated net debt also reached approximately $3.4 billion by the end of the second quarter of fiscal year 2026, alongside a large capital program and a planned $400 million debt issuance.
