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Southwest Gas HoldingsSWX -0.34%65 Debt-to-EBITDA is 5.06 as of Jun. 2026, which is 27% above its 10-year median of 3.98. GuruFocus rates SWX with a GF Score™ of 65/100 and a GF Value™ of $51.34 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 448 Utilities - Regulated companies, Southwest Gas Holdings ranks better than 50.67% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Southwest Gas Holdings's Debt-to-EBITDA or its related term are showing as below:
SWX'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.69 Med: 3.98 Max: 13.62
Current: 3.9
During the past 13 years, the highest Debt-to-EBITDA Ratio of Southwest Gas Holdings was 13.62. The lowest was 2.69. And the median was 3.98.
SWX's Debt-to-EBITDA is ranked better than 50.67% of 448
companies
in the Utilities - Regulated industry
Industry Median: 4.005
vs SWX: 3.90
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Southwest Gas Holdings Debt-to-EBITDA Related Terms
Southwest Gas Holdings Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Southwest Gas Holdings's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Gas subindustry, Southwest Gas Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Southwest Gas Holdings Debt-to-EBITDA vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Southwest Gas Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Southwest Gas Holdings's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Southwest Gas Holdings (SWX) has a Debt-to-EBITDA of 5.06 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Southwest Gas Holdings. This is 27% above median its historical median of 3.98. Over the past decade, Southwest Gas Holdings' Debt-to-EBITDA has ranged from 2.69 to 13.62. According to the industry distribution chart, Southwest Gas Holdings ranks #221 out of 448 companies in the Utilities - Regulated industry, placing it in the top 49.3%.
Is Southwest Gas Holdings' Debt-to-EBITDA too high?
Southwest Gas Holdings' current Debt-to-EBITDA of 5.06 is 27% above median its 10-year median of 3.98. Over the past 10 years, this metric has ranged from a low of 2.69 to a high of 13.62. The Utilities - Regulated industry median Debt-to-EBITDA is 4.01. Southwest Gas Holdings' value of 5.06 is 26.3% above this industry median. Based on the distribution chart, Southwest Gas Holdings ranks #221 out of 448 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Southwest Gas Holdings has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southwest Gas Holdings' Debt-to-EBITDA compare to NJR and BKH?
According to the Utilities - Regulated industry distribution chart, Southwest Gas Holdings ranks #221 out of 448 companies for Debt-to-EBITDA. This puts Southwest Gas Holdings in the upper half of its industry. The industry median Debt-to-EBITDA is 4.01. Southwest Gas Holdings' value of 5.06 is 26.3% above this benchmark. Historically, Southwest Gas Holdings' own Debt-to-EBITDA has ranged from 2.69 to 13.62 over the past decade. While the company's 10-year median is 3.98 vs. the industry median of 4.01, Southwest Gas Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Utilities - Regulated company?
The median Debt-to-EBITDA among Utilities - Regulated companies is 4.01, based on 448 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Gas Holdings's current Debt-to-EBITDA of 5.06 is 26.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Southwest Gas Holdings. For the Utilities - Regulated industry, the median Debt-to-EBITDA is 4.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Gas Holdings's current Debt-to-EBITDA is 5.06, which is 27% above median its own 10-year median of 3.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southwest Gas Holdings stock overvalued right now?
Based on GuruFocus' analysis, Southwest Gas Holdings (SWX) is currently considered Significantly Overvalued. The stock's GF Value™ is $51.34, compared to a current price of $92.09 — trading 79.4% above its estimated fair value. The current Debt-to-EBITDA is 5.06, which is 27% above median its 10-year median of 3.98 and 26.3% above the Utilities - Regulated industry median of 4.01. Southwest Gas Holdings' overall GF Score™ is 65/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Southwest Gas Holdings (SWX), the current Debt-to-EBITDA is 5.06 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Southwest Gas Holdings (SWX) Overvalued in 2026?
Based on GuruFocus' analysis, Southwest Gas Holdings stock appears to be overvalued.
The current stock price of $92.09 is trading 79.4% above its estimated GF Value™ of $51.34.
GuruFocus considers Southwest Gas Holdings to be Significantly Overvalued.
Key valuation signals for SWX:
Debt-to-EBITDA: 5.06 (27% above median its 10-year median of 3.98)
GF Value™: $51.34 vs. price of $92.09 (79.4% above fair value)
Industry Position: 26.3% above the Utilities - Regulated median (#221 of 448)
No single metric tells the full story. See the SWX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southwest Gas Holdings Inc is a utility company engaged in the purchasing, distributing, and transporting of natural gas in the American Southwest. The company segments its activities into natural gas distribution segment. The Natural gas distribution segment encompasses the company's core natural gas business as distributors in the states of Arizona and Nevada. Its division is responsible for roughly half of Southwest Gas' total revenue through the sale of natural gas to mainly residential and small commercial customers.
65GF Score
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