Southwestern Energy Company
Southwestern Energy Company Fundamental Analysis
Southwestern Energy Company (SWN) shows strong financial fundamentals with a PE ratio of 5.03, profit margin of 23.87%, and ROE of 30.49%. The company generates $6.5B in annual revenue with weak year-over-year growth of -45.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 6.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SWN's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSWN demonstrates superior asset utilization.
Valuation Score
ExcellentSWN trades at attractive valuation levels.
Growth Score
WeakSWN faces weak or negative growth trends.
Financial Health Score
ModerateSWN shows balanced financial health with some risks.
Profitability Score
ExcellentSWN achieves industry-leading margins.
Key Financial Metrics
Is SWN Expensive or Cheap?
P/E Ratio
SWN trades at 5.03 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SWN's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Southwestern Energy Company at 1.33 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.37 times EBITDA. This is generally considered low.
How Well Does SWN Make Money?
Net Profit Margin
For every $100 in sales, Southwestern Energy Company keeps $23.87 as profit after all expenses.
Operating Margin
Core operations generate -14.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.49 in profit for every $100 of shareholder equity.
ROA
Southwestern Energy Company generates $12.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Southwestern Energy Company generates strong operating cash flow of $2.52B, reflecting robust business health.
Free Cash Flow
Southwestern Energy Company produces free cash flow of $346.63M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.31 in free cash annually.
FCF Yield
SWN converts 4.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
-0.09
vs 25 benchmark
How SWN Stacks Against Its Sector Peers
| Metric | SWN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.03 | 20.19 | Better (Cheaper) |
| ROE | 30.49% | 1019.00% | Weak |
| Net Margin | 23.87% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.70 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.82 | 4.60 | Weak Liquidity |
| ROA | 12.98% | -11655350.00% (disorted) | Strong |
SWN outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Southwestern Energy Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-97.36%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
87.71%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-94.89%
Industry Style: Cyclical, Value, Commodity
Declining