(LUV) Southwest Airlines - Ratings and Ratios
Flights, Rewards, Wifi, Apps, Ancillaries
LUV EPS (Earnings per Share)
LUV Revenue
Description: LUV Southwest Airlines
Southwest Airlines Co. is a leading passenger airline company operating in the United States and near-international markets, with a fleet of 803 Boeing 737 aircraft serving 117 destinations across 42 states and 10 countries. The company offers a range of services, including in-flight entertainment, Rapid Rewards loyalty program, and digital platforms to support customers travel needs.
Key performance indicators (KPIs) for Southwest Airlines include revenue passenger miles (RPM), available seat miles (ASM), and load factor, which measures the percentage of available seats occupied by passengers. The companys operational efficiency is also reflected in its on-time arrival rate, cancellation rate, and baggage handling performance. Additionally, Southwests financial health can be evaluated through metrics such as revenue growth, operating margin, and debt-to-equity ratio.
Southwests business model is characterized by its point-to-point route network, which allows for more direct flights and increased flexibility for passengers. The companys focus on customer satisfaction is evident in its ancillary services, such as EarlyBird Check-In and upgraded boarding, which enhance the overall travel experience. Furthermore, the Rapid Rewards loyalty program incentivizes customer loyalty and drives repeat business.
To evaluate Southwest Airlines stock performance, investors can consider metrics such as earnings per share (EPS) growth, dividend yield, and relative strength index (RSI). The companys market capitalization and enterprise value can also provide insights into its size and valuation relative to peers. By analyzing these KPIs and financial metrics, investors can make informed decisions about investing in Southwest Airlines.
LUV Stock Overview
| Market Cap in USD | 16,486m |
| Sub-Industry | Passenger Airlines |
| IPO / Inception | 1980-01-02 |
LUV Stock Ratings
| Growth Rating | -1.26% |
| Fundamental | 47.4% |
| Dividend Rating | 49.0% |
| Return 12m vs S&P 500 | -2.55% |
| Analyst Rating | 3.0 of 5 |
LUV Dividends
| Dividend Yield 12m | 2.27% |
| Yield on Cost 5y | 2.05% |
| Annual Growth 5y | 31.95% |
| Payout Consistency | 88.3% |
| Payout Ratio | 71.3% |
LUV Growth Ratios
| Growth Correlation 3m | -29.3% |
| Growth Correlation 12m | 27.6% |
| Growth Correlation 5y | -75.5% |
| CAGR 5y | 0.25% |
| CAGR/Max DD 3y | 0.01 |
| CAGR/Mean DD 3y | 0.01 |
| Sharpe Ratio 12m | 0.93 |
| Alpha | 0.01 |
| Beta | 0.727 |
| Volatility | 33.21% |
| Current Volume | 10891.7k |
| Average Volume 20d | 7783.2k |
| Stop Loss | 30.9 (-3.8%) |
| Signal | 0.70 |
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income (392.0m TTM) > 0 and > 6% of Revenue (6% = 1.65b TTM) |
| FCFTA -0.06 (>2.0%) and ΔFCFTA -4.54pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -17.47% (prev -5.04%; Δ -12.43pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.06 (>3.0%) and CFO 1.85b > Net Income 392.0m (YES >=105%, WARN >=100%) |
| Net Debt (1.87b) to EBITDA (2.31b) ratio: 0.81 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.56 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (541.0m) change vs 12m ago -15.86% (target <= -2.0% for YES) |
| Gross Margin 16.64% (prev 14.49%; Δ 2.14pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 85.48% (prev 76.01%; Δ 9.47pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 4.12 (EBITDA TTM 2.31b / Interest Expense TTM 162.0m) >= 6 (WARN >= 3) |
Altman Z'' 1.75
| (A) -0.17 = (Total Current Assets 6.09b - Total Current Liabilities 10.89b) / Total Assets 28.71b |
| (B) 0.56 = Retained Earnings (Balance) 16.20b / Total Assets 28.71b |
| (C) 0.02 = EBIT TTM 668.0m / Avg Total Assets 32.14b |
| (D) 0.82 = Book Value of Equity 17.05b / Total Liabilities 20.71b |
| Total Rating: 1.75 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 47.37
| 1. Piotroski 6.0pt = 1.0 |
| 2. FCF Yield -9.28% = -4.64 |
| 3. FCF Margin -5.89% = -2.21 |
| 4. Debt/Equity 0.55 = 2.35 |
| 5. Debt/Ebitda 1.92 = 0.16 |
| 6. ROIC - WACC (= -3.68)% = -4.60 |
| 7. RoE 4.11% = 0.34 |
| 8. Rev. Trend 60.25% = 4.52 |
| 9. EPS Trend 8.86% = 0.44 |
What is the price of LUV shares?
Over the past week, the price has changed by +3.25%, over one month by +3.16%, over three months by +3.33% and over the past year by +15.51%.
Is Southwest Airlines a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of LUV is around 30.28 USD . This means that LUV is currently overvalued and has a potential downside of -5.73%.
Is LUV a buy, sell or hold?
- Strong Buy: 4
- Buy: 2
- Hold: 11
- Sell: 4
- Strong Sell: 3
What are the forecasts/targets for the LUV price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 32.1 | -0.2% |
| Analysts Target Price | 32.1 | -0.2% |
| ValueRay Target Price | 33.3 | 3.7% |
Last update: 2025-09-06 04:42
LUV Fundamental Data Overview
CCE Cash And Equivalents = 3.48b USD (last quarter)
P/E Trailing = 49.0469
P/E Forward = 12.6103
P/S = 0.6001
P/B = 2.043
P/EG = 0.2267
Beta = 1.189
Revenue TTM = 27.47b USD
EBIT TTM = 668.0m USD
EBITDA TTM = 2.31b USD
Long Term Debt = 4.08b USD (from longTermDebt, last quarter)
Short Term Debt = 345.0m USD (from shortTermDebt, last quarter)
Debt = 4.43b USD (Calculated: Short Term 345.0m + Long Term 4.08b)
Net Debt = 1.87b USD (from netDebt column, last quarter)
Enterprise Value = 17.44b USD (16.49b + Debt 4.43b - CCE 3.48b)
Interest Coverage Ratio = 4.12 (Ebit TTM 668.0m / Interest Expense TTM 162.0m)
FCF Yield = -9.28% (FCF TTM -1.62b / Enterprise Value 17.44b)
FCF Margin = -5.89% (FCF TTM -1.62b / Revenue TTM 27.47b)
Net Margin = 1.43% (Net Income TTM 392.0m / Revenue TTM 27.47b)
Gross Margin = 16.64% ((Revenue TTM 27.47b - Cost of Revenue TTM 22.90b) / Revenue TTM)
Tobins Q-Ratio = 1.02 (Enterprise Value 17.44b / Book Value Of Equity 17.05b)
Interest Expense / Debt = 0.59% (Interest Expense 26.0m / Debt 4.43b)
Taxrate = 22.24% (133.0m / 598.0m)
NOPAT = 519.4m (EBIT 668.0m * (1 - 22.24%))
Current Ratio = 0.56 (Total Current Assets 6.09b / Total Current Liabilities 10.89b)
Debt / Equity = 0.55 (Debt 4.43b / last Quarter total Stockholder Equity 8.00b)
Debt / EBITDA = 1.92 (Net Debt 1.87b / EBITDA 2.31b)
Debt / FCF = -2.74 (Debt 4.43b / FCF TTM -1.62b)
Total Stockholder Equity = 9.53b (last 4 quarters mean)
RoA = 1.37% (Net Income 392.0m, Total Assets 28.71b )
RoE = 4.11% (Net Income TTM 392.0m / Total Stockholder Equity 9.53b)
RoCE = 4.91% (Ebit 668.0m / (Equity 9.53b + L.T.Debt 4.08b))
RoIC = 3.27% (NOPAT 519.4m / Invested Capital 15.91b)
WACC = 6.95% (E(16.49b)/V(20.91b) * Re(8.69%)) + (D(4.43b)/V(20.91b) * Rd(0.59%) * (1-Tc(0.22)))
Shares Correlation 3-Years: -6.15 | Cagr: -1.50%
Discount Rate = 8.69% (= CAPM, Blume Beta Adj.)
Fair Price DCF = unknown (Cash Flow -1.62b)
EPS Correlation: 8.86 | EPS CAGR: -5.34% | SUE: -0.93 | # QB: 0
Revenue Correlation: 60.25 | Revenue CAGR: 5.70% | SUE: -0.77 | # QB: 0
Additional Sources for LUV Stock
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Fund Manager Positions: Dataroma | Stockcircle