SWX (Southwest Gas Holdings) ROCE %: 3.95% (As of Jun. 2026)

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SWX Southwest Gas Holdings Inc SWX
65 GF Score
Price $92.09
GF Value $53.66
Valuation Significantly Overvalued
! 9 Warning Signs
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What is Southwest Gas Holdings ROCE %?

Southwest Gas Holdings SWX -0.34% 65 ROCE % is 3.95% as of Jun. 2026. GuruFocus rates SWX with a GF Score™ of 65/100 and a GF Value™ of $53.66 (Significantly Overvalued). The stock has 9 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Southwest Gas Holdings's annualized ROCE % for the quarter that ended in Jun. 2026 was 3.95%.

Southwest Gas Holdings  (NYSE:SWX) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Southwest Gas Holdings ROCE % Related Terms

Southwest Gas Holdings ROCE % Historical Data

* Premium members only.

The historical data trend for Southwest Gas Holdings's ROCE % 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 ROCE % Chart

Southwest Gas Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.19 -0.31 3.65 4.51 5.41

Southwest Gas Holdings Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.13 2.06 7.41 9.61 3.95
SWX
65GF Score
Southwest Gas Holdings Inc SWX
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Southwest Gas Holdings ROCE % Calculation

Southwest Gas Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=533.954/( ( (12072.906 - 1831.967) + (10429.477 - 929.898) )/ 2 )
=533.954/( (10240.939+9499.579)/ 2 )
=533.954/9870.259
=5.41 %

Southwest Gas Holdings's ROCE % of for the quarter that ended in Jun. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=382.488/( ( (10406.646 - 729.958) + (10475.435 - 777.284) )/ 2 )
=382.488/( ( 9676.688 + 9698.151 )/ 2 )
=382.488/9687.4195
=3.95 %

(1) Note: The EBIT data used here is four times the quarterly (Jun. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 3.95% mean?
Southwest Gas Holdings (SWX) has a ROCE % of 3.95% as of Jun. 2026.
Is Southwest Gas Holdings' ROCE % too high?
Southwest Gas Holdings' current ROCE % is 3.95%. The Utilities - Regulated industry median ROCE % is 6.95. Southwest Gas Holdings' value of 3.95% is 43.1% below this industry median. 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' ROCE % compare to NJR and BKH?
Southwest Gas Holdings' ROCE % of 3.95% can be compared against companies in the Utilities - Regulated industry. The industry median ROCE % is 6.95. Southwest Gas Holdings' value of 3.95% is 43.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for an Utilities - Regulated company?
The median ROCE % among Utilities - Regulated companies is 6.95, based on 506 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Gas Holdings's current ROCE % of 3.95% is 43.1% below 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Utilities - Regulated industry, the median ROCE % is 6.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Gas Holdings's current ROCE % is 3.95%. 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 $53.66, compared to a current price of $92.09 — trading 71.6% above its estimated fair value. The current ROCE % is 3.95% and 43.1% below the Utilities - Regulated industry median of 6.95. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Southwest Gas Holdings (SWX), the current ROCE % is 3.95% 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 71.6% above its estimated GF Value™ of $53.66. GuruFocus considers Southwest Gas Holdings to be Significantly Overvalued.

Key valuation signals for SWX:

  • ROCE %: 3.95%
  • GF Value™: $53.66 vs. price of $92.09 (71.6% above fair value)
  • GF Score™: 65/100 with 9 warning signs
  • Industry Position: 43.1% below the Utilities - Regulated median

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 Business Description

Address 8360 South Durango Drive, Post Office Box 98510, Las Vegas, NV, USA, 89113
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$92.09
Price
$53.66
GF Value