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Southwest Gas HoldingsFRA:SZR +1.88%70 Return-on-Tangible-Equity is 13.85% as of Mar. 2026, which is 33% above its 10-year median of 10.38. GuruFocus rates FRA:SZR with a GF Score™ of 70/100 and a GF Value™ of €57.11. The stock has 11 warning signs investors should review. Among 497 Utilities - Regulated companies, Southwest Gas Holdings ranks better than 58.55% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Southwest Gas Holdings's annualized net income for the quarter that ended in Mar. 2026 was €479 Mil. Southwest Gas Holdings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €3,456 Mil. Therefore, Southwest Gas Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.85%.
The historical rank and industry rank for Southwest Gas Holdings's Return-on-Tangible-Equity or its related term are showing as below:
FRA:SZR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -11.81 Med: 10.38 Max: 13.16
Current: 13.16
During the past 13 years, Southwest Gas Holdings's highest Return-on-Tangible-Equity was 13.16%. The lowest was -11.81%. And the median was 10.38%.
FRA:SZR's Return-on-Tangible-Equity is ranked better than 58.55% of 497
companies
in the Utilities - Regulated industry
Industry Median: 10.92
vs FRA:SZR: 13.16
Southwest Gas Holdings (FRA:SZR) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Southwest Gas Holdings Return-on-Tangible-Equity Related Terms
Southwest Gas Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Southwest Gas Holdings's Return-on-Tangible-Equity 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-Equity Chart
FRA:SZR vs NJR, BKH, UGI: Return-on-Tangible-Equity Comparison
For the Utilities - Regulated Gas subindustry, Southwest Gas Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Southwest Gas Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Southwest Gas Holdings's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.85% mean?
Southwest Gas Holdings (FRA:SZR) has a Return-on-Tangible-Equity of 13.85% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Southwest Gas Holdings and its competitors. This is 33% above median its historical median of 10.38. According to the industry distribution chart, Southwest Gas Holdings ranks #206 out of 497 companies in the Utilities - Regulated industry, placing it in the top 41.4%.
Is Southwest Gas Holdings' Return-on-Tangible-Equity too high?
Southwest Gas Holdings' current Return-on-Tangible-Equity of 13.85% is 33% above median its 10-year median of 10.38. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.92. Southwest Gas Holdings' value of 13.85% is 26.8% above this industry median. Based on the distribution chart, Southwest Gas Holdings ranks #206 out of 497 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-Equity compare to NJR and BKH?
According to the Utilities - Regulated industry distribution chart, Southwest Gas Holdings ranks #206 out of 497 companies for Return-on-Tangible-Equity. This puts Southwest Gas Holdings in the upper half of its industry. The industry median Return-on-Tangible-Equity is 10.92. Southwest Gas Holdings' value of 13.85% is 26.8% above this benchmark. While the company's 10-year median is 10.38 vs. the industry median of 10.92, 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-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.92, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 13.85% is 26.8% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Southwest Gas Holdings and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.92 — 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-Equity is 13.85%, which is 33% above median its own 10-year median of 10.38. 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-Equity of 13.85%. The stock's GF Value™ is €57.11, compared to a current price of €81.50 — trading 42.7% above its estimated fair value. The current Return-on-Tangible-Equity is 13.85%, which is 33% above median its 10-year median of 10.38 and 26.8% above the Utilities - Regulated industry median of 10.92. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Southwest Gas Holdings (FRA:SZR), the current Return-on-Tangible-Equity is 13.85% 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 €81.50 is trading 42.7% above its estimated GF Value™ of €57.11.
Key valuation signals for FRA:SZR:
Return-on-Tangible-Equity: 13.85% (33% above median its 10-year median of 10.38)
GF Value™: €57.11 vs. price of €81.50 (42.7% above fair value)
Industry Position: 26.8% above the Utilities - Regulated median (#206 of 497)
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-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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