LUV Stock Analysis: Southwest Airlines | NYSE
Airlines | NYSE, USA | Market Cap: 21.757m USD | 12M Return: 47.9% | US8447411088 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 280M
EPS Trend: 45.6%
Qual. Beats: 0
Rev. Trend: 89.8%
Qual. Beats: 1
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.9 years of data, until 10/2026
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, ≥40 worth a closer look and ≥60 is strong.
Southwest Airlines Co. (NYSE: LUV) is a major U.S. passenger airline providing scheduled air transportation across the United States and to ten countries in the near-international market, including Mexico, the Caribbean, and Central America. The company operates an all-Boeing 737 fleet, a single-fleet operational approach that simplifies maintenance, crew training, and scheduling across its network.
Beyond core passenger service, Southwest generates ancillary revenue through baggage fees, EarlyBird Check-In, upgraded boarding, pet transportation, and unaccompanied minor services. It also operates the Rapid Rewards loyalty program, the SWABIZ corporate booking platform, and an inflight entertainment offering featuring movies, live and on-demand television, and curated content. As of December 31, 2025, the airline operated 803 Boeing 737 aircraft and served 117 destinations across 42 states, the District of Columbia, and Puerto Rico. Headquartered in Dallas, Texas, and incorporated in 1967, Southwest is a large-cap Industrials stock (market cap ~$20.5 billion USD) within the passenger airlines sub-industry, a highly competitive sector characterized by low operating margins and high sensitivity to fuel and labor expenses.
- Jet fuel price volatility pressures airline operating margins
- Baggage fee policy reversal boosts ancillary revenue growth
- Boeing 737 delivery delays constrain fleet capacity expansion
| Net Income: 1.05b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.02 > 0.02 and ΔFCF/TA -1.49 > 1.0 |
| NWC/Revenue: -22.93% < 20% (prev -20.32%; Δ -2.60% < -1%) |
| CFO/TA 0.08 > 3% & CFO 2.59b > Net Income 1.05b |
| Net Debt (4.23b) to EBITDA (3.03b): 1.39 < 3 |
| Current Ratio: 0.47 > 1.5 & < 3 |
| Outstanding Shares: last quarter (494.0m) vs 12m ago -6.08% < -2% |
| Gross Margin: 55.70% > 18% (prev 16.74%; Δ 38.97% > 0.5%) |
| Asset Turnover: 107.2% > 50% (prev 97.31%; Δ 9.89% > 0%) |
| Interest Coverage Ratio: 7.11 > 6 (EBIT TTM 1.47b / Interest Expense TTM 206.0m) |
| A: -0.24 (Total Current Assets 6.51b - Total Current Liabilities 13.7b) / Total Assets 30.5b |
| B: 0.55 (Retained Earnings 16.9b / Total Assets 30.5b) |
| C: 0.05 (EBIT TTM 1.47b / Avg Total Assets 29.4b) |
| D: 0.32 (Book Value of Equity 7.33b / Total Liabilities 23.2b) |
| Altman-Z'' = 0.91 = BB |
| DSRI: 1.03 (Receivables 1.31b/1.12b, Revenue 31.5b/27.6b) |
| GMI: 0.30 (GM 16.74% / 55.70%) |
| AQI: 0.93 (AQ_t 0.07 / AQ_t-1 0.07) |
| SGI: 1.15 (Revenue 31.5b / 27.6b) |
| TATA: -0.05 (NI 1.05b - CFO 2.59b) / TA 30.5b) |
| Beneish M = -3.58 (Cap -4..+1) = AAA |
As of November 12, 2026, the stock is trading at USD 46.48 with a total of 4,242,954 shares traded. Over the past week, the price has changed by +0.13%, over one month by +14.03%, over three months by +2.59% and over the past year by +47.89%.
Current recommended Stop Loss: 42.50 (which is 8.6% or 2.3 ATR below the current price).
Southwest Airlines has received a consensus analysts rating of 3.58. Therefore, it is recommended to hold LUV.
- StrongBuy: 7
- Buy: 5
- Hold: 11
- Sell: 2
- StrongSell: 1
| Analysts Target Price | 49.9 | 7.3% |
P/E Trailing = 21.6829
P/E Forward = 8.547
P/S = 0.6897
P/B = 2.9686
P/EG = 0.2065
Revenue TTM = 31.5b USD
EBIT TTM = 1.47b USD
EBITDA TTM = 3.03b USD
Long Term Debt = 3.73b USD (from longTermDebt, last quarter)
Short Term Debt = 2.43b USD (from shortTermDebt, last quarter)
Debt = 7.86b USD (from shortLongTermDebtTotal, last quarter) + Leases 984.0m
Net Debt = 4.23b USD (calculated: Debt 7.86b - CCE 3.62b)
Enterprise Value = 26.0b USD (21.8b + Debt 7.86b - CCE 3.62b)
Interest Coverage Ratio = 7.11 (Ebit TTM 1.47b / Interest Expense TTM 206.0m)
EV/FCF = -35.85x (Enterprise Value 26.0b / FCF TTM -725.0m)
FCF Yield = -2.79% (FCF TTM -725.0m / Enterprise Value 26.0b)
FCF Margin = -2.30% (FCF TTM -725.0m / Revenue TTM 31.5b)
Net Margin = 3.34% (Net Income TTM 1.05b / Revenue TTM 31.5b)
Gross Margin = 55.70% ((Revenue TTM 31.5b - Cost of Revenue TTM 14.0b) / Revenue TTM)
Gross Margin QoQ = 4.50% (prev none%)
Tobins Q-Ratio = 0.85 (Enterprise Value 26.0b / Total Assets 30.5b)
Interest Expense / Debt = 2.62% (Interest Expense 206.0m / Debt 7.86b)
Taxrate = 22.23% (301.0m / 1.35b)
NOPAT = 1.14b (EBIT 1.47b * (1 - 22.23%))
Current Ratio = 0.47 (Total Current Assets 6.51b / Total Current Liabilities 13.7b)
Debt / Equity = 1.07 (Debt 7.86b / totalStockholderEquity, last quarter 7.33b)
Debt / EBITDA = 1.39 (Net Debt 4.23b / EBITDA 3.03b)
Debt / FCF = -5.84 (negative FCF - burning cash) (Net Debt 4.23b / FCF TTM -725.0m)
Total Stockholder Equity = 7.32b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.58% (Net Income 1.05b / Total Assets 30.5b)
RoE = 14.39% (Net Income TTM 1.05b / Total Stockholder Equity 7.32b)
RoCE = 13.26% (EBIT 1.47b / Capital Employed (Equity 7.32b + L.T.Debt 3.73b))
RoIC = 6.45% (NOPAT 1.14b / Invested Capital 17.7b)
WACC = 7.47% (E(21.8b)/V(29.6b) * Re(9.43%) + D(7.86b)/V(29.6b) * Rd(2.62%) * (1-Tc(0.22)))
Discount Rate = 9.43% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -94.00 | Cagr: -11.06%
[DCF] Fair Price = unknown (Cash Flow -725.0m)
EPS Correlation: 45.64 | EPS CAGR: 20.87% | SUE: 0.33 | # QB: 0
Revenue Correlation: 89.83 | Revenue CAGR: 5.38% | SUE: 2.13 | # QB: 1
EPS current Quarter (2027-03-31): EPS=0.39 | Chg30d=-27.50% | Revisions=-55% | Analysts=13
EPS current Year (2026-12-31): EPS=2.76 | Chg30d=-9.37% | Revisions=-62% | GrowthEPS=+196.3% | GrowthRev=+19.6%
EPS next Year (2027-12-31): EPS=4.17 | Chg30d=-8.56% | Revisions=-70% | GrowthEPS=+51.5% | GrowthRev=+6.7%
[Analyst] Revisions Ratio: -71% (up=6, down=43)