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Is this Large Market Cap Stock target price reasonable for Southwest Gas Corporation (NYSE:SWX)?

The company in question is, Southwest Gas Corporation (NYSE:SWX) currently with a stock price of 67.37 (0.54% today). The market cap for Southwest Gas Corporation is 3221.84, and is in the sector Utilities, and Gas Utilities industry. The target price for Southwest Gas Corporation is 73.5. Currently Southwest Gas Corporation is trading with a P/E of 21.96, and a forward P/E of 19.56. Average volume for Southwest Gas Corporation is 226.5 and so far today it is 78270.

Performance in the last year for Southwest Gas Corporation has been 15.26%. For EPS growth, Southwest Gas Corporation has seen a growth of -2.90%, and is looking to grow in the next year to 8.15%. More long term stats show that EPS growth has been 5.20% over the last five years and could be 4.00% for the next five years. Southwest Gas Corporation has seen sales growth quarter over quarter at 1.70%, with EPS growth quarter over quarter at 78.70%. The 20-day simple moving average is -4.54%, with the 200-day simple moving average coming to 0.48%.

Since the IPO date for Southwest Gas Corporation on the 12/30/1987, Southwest Gas Corporation has seen performance year to date to be 23.86%. With Southwest Gas Corporation trading at 67.37, the dividend yield is 2.69%, and the EPS is 3.05.

So could Southwest Gas Corporation, be undervalued? Well as said before P/E is 21.96. The PEG is 5.49, P/S is 1.3 and the P/B is at 1.94. The P/cash is 266.27, with P/free cash flow at 32218.41.

Southwest Gas Corporation ability to deal with debt shows that the current ratio is 0.7, and the quick ratio is 0.7. This is with long term debt/equity at 0.87, and total debt/equity at 0.9.

In terms of margins, Southwest Gas Corporation has a gross margin of 80.30%, an operating margin of 12.00% and a profit margin of 5.90%.Payout ratio for Southwest Gas Corporation is 55.60%. Return on assets come to 2.70% with return on investment coming to 6.50%.

Insider ownership for Southwest Gas Corporation, is at 0.40% and institutional ownership comes to 82.40%. Outstanding shares are at 48.08. While shares float is 46.99. The float short is currently 1.93%, and short ratio is 4.01.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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