CluenexSouthwest Gas SWX
Southwest Gas scores average on business quality (4.6 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Southwest Gas does
Southwest Gas Holdings distributes natural gas to residential and commercial customers across the American Southwest, generating revenue through regulated utility operations. The company is actively communicating strategy to investors following recent presentations, aiming to stabilize its operational footprint.
- What it does best
Southwest maintains a high gross margin of 85.2%, outpacing peers like UGI at 50.3%, supported by the essential nature of regulated utility delivery infrastructure in its regional markets.
- The main risk
Negative free cash flow of $482 million strains capital allocation, driven by heavy capital expenditures of $929 million that outpace operating cash flow generation of $447 million.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at a strong 28.7% and ROE reaches 12.9%, but heavy capital spending of $929 million pushes free cash flow margin to negative territory, meaning scale currently requires significant outside capital.
Operating in a regulated utility market locks in regional customers through high infrastructure barriers, reflected in an operating margin ranking in the top quartile at the 88th sector percentile.
Revenue growth fell by 21.6%, showing a sharp decline compared to historical figures as top-line contraction accelerates across its utility segments.
Total debt sits at $3.5 billion against $577 million in cash, while free cash flow remains negative at $482 million, pointing to a capital-intensive profile getting softer as investments outpace cash generation.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $205K outside pre-planned sales.
Our sealed record on SWX
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Southwest Gas scores average on the Cluenex quality check (4.6 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: 1 sold $205K outside pre-planned sales.
Nov 3, 2026.
See SWX today
- Today's verdict on SWX, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Southwest Gas (SWX)”, https://cluenex.com/stocks/swx/, data as of Oct 10, 2026.