At the moment, the debt-to-equity of Southwestern Energy Company (NYSE:SWN) is low, standing at 98.14, a figure that is less than the 158.21 average recorded by the industry. This means that the company is currently holding a debt level at 2.32 B. SWN shares have a strong debt-to-equity ratio but their quick ratio which reads 1.10 is strong and might cause problems for them later in the future.
Even though there was a rise of +45.24% in revenue, the company failed to succeed in outperforming the industry average of 62.18%. For the most recent quarter, the net income has dropped by -8.08%. This weakness in their income has affected them and thus increased their earnings to $489.00 M. The 45.24% yoy growth of SWN’s revenue has gone up that of the industry average by 24.67%. For the past 12 months, Southwestern Energy Company revenue has gone up by 20.57%. The sustained growth in their revenue has helped boost their earnings per share.
Southwestern Energy Company (SWN) has seen their earnings per share increased to $0.54 during the last quarter in comparison to the same quarter last year. They have recorded a 1183.60% growing earnings per share earnings. They have recorded a 1183.60% growing earnings per share earnings. Analysts expect increase in earnings is also on the cards next quarter with an average estimate at $0.30. In the fiscal year 2018, Southwestern Energy Company overcame its bottom line by hitting earning $0.93 per share compared to the $1.63 in 2017.
The 12-month return on equity has significantly fallen to 24.56 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Basic Materials sector, the industry average is -0.07 while 15.13 is of the sector.
SWN total operating cash flow had dropped to $252 billion compared to $307 billion in the same quarter last year. Also, looking at the price to cash flow of the company and the industry average, the 2.19 ratio of the stock is lower than the industry’s 9.10.
Southwestern Energy Company (NYSE:SWN) has a price-to-earnings ratio of 4.74 which is higher than the 4.67 industry average at the moment. In addition to their unfavorable P/E ratio, Southwestern Energy Company has maintained a gross margin of 68.18. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 8.06 when compared to -0.38 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, Southwestern Energy Company ROE is above 15.13 that of both the sector average.
The operating profit margin for Southwestern Energy Company (SWN) is 20.20%, a figure which is considered to be weak. It has gone 29.85 from the -35.71 over the past 5 years. In addition to this, their operating margin is -9.65 lower than the industry average.
The net profit margin which stood at -28.14 on average in the past 5 years has jumped to 13.90 in the last 12 months. Added to that, this ratio has surpassed the industry net margin that stands at 0.32.
Analysts meanwhile rate Southwestern Energy Company (NYSE:SWN) as a hold. Still some above discussed indicators of the $2.55B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the SWN shares to either perform positively or negatively when compared to other stocks. The primary strengths of Southwestern Energy Company can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.