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Southwest Gas HoldingsFRA:SZR -0.64%70 Return-on-Tangible-Asset is 5.35% as of Mar. 2026, which is 89% above its 10-year median of 2.83. GuruFocus rates FRA:SZR with a GF Score™ of 70/100 and a GF Value™ of €56.20. The stock has 11 warning signs investors should review. Among 510 Utilities - Regulated companies, Southwest Gas Holdings ranks better than 60.98% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Southwest Gas Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was €479 Mil. Southwest Gas Holdings's average total tangible assets for the quarter that ended in Mar. 2026 was €8,945 Mil. Therefore, Southwest Gas Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 5.35%.
The historical rank and industry rank for Southwest Gas Holdings's Return-on-Tangible-Asset or its related term are showing as below:
FRA:SZR'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -1.74 Med: 2.83 Max: 4.31
Current: 4.31
During the past 13 years, Southwest Gas Holdings's highest Return-on-Tangible-Asset was 4.31%. The lowest was -1.74%. And the median was 2.83%.
FRA:SZR's Return-on-Tangible-Asset is ranked better than 60.98% of 510
companies
in the Utilities - Regulated industry
Industry Median: 3.33
vs FRA:SZR: 4.31
Southwest Gas Holdings (FRA:SZR) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Southwest Gas Holdings Return-on-Tangible-Asset Related Terms
Southwest Gas Holdings Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Southwest Gas Holdings's Return-on-Tangible-Asset 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.
Southwest Gas Holdings Return-on-Tangible-Asset Chart
FRA:SZR vs NJR, BKH, UGI: Return-on-Tangible-Asset Comparison
For the Utilities - Regulated Gas subindustry, Southwest Gas Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Southwest Gas Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Southwest Gas Holdings's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 5.35% mean?
Southwest Gas Holdings (FRA:SZR) has a Return-on-Tangible-Asset of 5.35% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Southwest Gas Holdings and its competitors. This is 89% above median its historical median of 2.83. According to the industry distribution chart, Southwest Gas Holdings ranks #199 out of 510 companies in the Utilities - Regulated industry, placing it in the top 39%.
Is Southwest Gas Holdings' Return-on-Tangible-Asset too high?
Southwest Gas Holdings' current Return-on-Tangible-Asset of 5.35% is 89% above median its 10-year median of 2.83. The Utilities - Regulated industry median Return-on-Tangible-Asset is 3.33. Southwest Gas Holdings' value of 5.35% is 60.7% above this industry median. Based on the distribution chart, Southwest Gas Holdings ranks #199 out of 510 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Southwest Gas Holdings has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does Southwest Gas Holdings' Return-on-Tangible-Asset compare to NJR and BKH?
According to the Utilities - Regulated industry distribution chart, Southwest Gas Holdings ranks #199 out of 510 companies for Return-on-Tangible-Asset. This puts Southwest Gas Holdings in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.33. Southwest Gas Holdings' value of 5.35% is 60.7% above this benchmark. While the company's 10-year median is 2.83 vs. the industry median of 3.33, 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 Return-on-Tangible-Asset for an Utilities - Regulated company?
The median Return-on-Tangible-Asset among Utilities - Regulated companies is 3.33, based on 510 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Gas Holdings's current Return-on-Tangible-Asset of 5.35% is 60.7% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Southwest Gas Holdings and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Asset is 3.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Gas Holdings's current Return-on-Tangible-Asset is 5.35%, which is 89% above median its own 10-year median of 2.83. 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?
Southwest Gas Holdings (FRA:SZR) has a current Return-on-Tangible-Asset of 5.35%. The stock's GF Value™ is €56.20, compared to a current price of €77.50 — trading 37.9% above its estimated fair value. The current Return-on-Tangible-Asset is 5.35%, which is 89% above median its 10-year median of 2.83 and 60.7% above the Utilities - Regulated industry median of 3.33. Southwest Gas Holdings' overall GF Score™ is 70/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Southwest Gas Holdings (FRA:SZR), the current Return-on-Tangible-Asset is 5.35% as of Mar. 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 (FRA:SZR) Overvalued in 2026?
Based on GuruFocus' analysis, Southwest Gas Holdings stock appears to be overvalued.
The current stock price of €77.50 is trading 37.9% above its estimated GF Value™ of €56.20.
Key valuation signals for FRA:SZR:
Return-on-Tangible-Asset: 5.35% (89% above median its 10-year median of 2.83)
GF Value™: €56.20 vs. price of €77.50 (37.9% above fair value)
Industry Position: 60.7% above the Utilities - Regulated median (#199 of 510)
No single metric tells the full story. See the FRA:SZR 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.
70GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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