(LUV) Southwest Airlines - Overview
Sector: IndustrialsIndustry: Airlines | Exchange NYSE (USA) | Currency USD | Market Cap: 20.598m | Total Return 18.3% in 12m
Stock: Air Travel, Loyalty Program, Ancillary Services, Entertainment
Total Rating 49
Risk 72
Buy Signal -0.66
| Risk 5d forecast | |
|---|---|
| Volatility | 42.9% |
| Relative Tail Risk | -13.0% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.50 |
| Alpha | 1.17 |
| Character TTM | |
|---|---|
| Beta | 1.069 |
| Beta Downside | 1.281 |
| Drawdowns 3y | |
|---|---|
| Max DD | 42.93% |
| CAGR/Max DD | 0.26 |
EPS (Earnings per Share)
Revenue
Description: LUV Southwest Airlines March 05, 2026
Southwest Airlines Co. (LUV) operates as a passenger airline, offering scheduled air transportation in the United States and internationally. The company utilizes a low-cost carrier business model, focusing on point-to-point travel rather than a hub-and-spoke system.
LUV provides a loyalty program (Rapid Rewards), an online booking tool (SWABIZ), and an inflight entertainment platform. They also generate revenue from ancillary services, including in-flight purchases, baggage fees, and services for pets and unaccompanied minors. Ancillary services are a growing revenue stream across the airline sector.
As of December 31, 2025, Southwest operated a fleet of 803 Boeing 737 aircraft, serving 117 destinations across 42 states, the District of Columbia, Puerto Rico, and ten near-international countries. The companys exclusive use of Boeing 737 aircraft simplifies maintenance and training.
Further research on ValueRay can provide more detailed financial and operational metrics.
Headlines to watch out for
- Fuel price volatility impacts operating expenses
- Labor contract negotiations influence cost structure
- Domestic travel demand drives passenger revenue
- Boeing 737 fleet reliability affects operational capacity
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income: 441.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA 1.94 > 1.0 |
| NWC/Revenue: -18.80% < 20% (prev -3.65%; Δ -15.15% < -1%) |
| CFO/TA 0.06 > 3% & CFO 1.84b > Net Income 441.0m |
| Net Debt (2.75b) to EBITDA (2.24b): 1.23 < 3 |
| Current Ratio: 0.52 > 1.5 & < 3 |
| Outstanding Shares: last quarter (521.0m) vs 12m ago -18.72% < -2% |
| Gross Margin: 17.44% > 18% (prev 0.16%; Δ 1.73k% > 0.5%) |
| Asset Turnover: 89.36% > 50% (prev 81.43%; Δ 7.93% > 0%) |
| Interest Coverage Ratio: 5.94 > 6 (EBITDA TTM 2.24b / Interest Expense TTM 114.0m) |
Altman Z'' 1.65
| A: -0.18 (Total Current Assets 5.64b - Total Current Liabilities 10.92b) / Total Assets 29.06b |
| B: 0.56 (Retained Earnings 16.39b / Total Assets 29.06b) |
| C: 0.02 (EBIT TTM 677.0m / Avg Total Assets 31.41b) |
| D: 0.82 (Book Value of Equity 17.25b / Total Liabilities 21.08b) |
| Altman-Z'' Score: 1.65 = BB |
Beneish M -3.01
| DSRI: 1.01 (Receivables 1.15b/1.11b, Revenue 28.06b/27.48b) |
| GMI: 0.93 (GM 17.44% / 16.23%) |
| AQI: 1.18 (AQ_t 0.07 / AQ_t-1 0.06) |
| SGI: 1.02 (Revenue 28.06b / 27.48b) |
| TATA: -0.05 (NI 441.0m - CFO 1.84b) / TA 29.06b) |
| Beneish M-Score: -3.01 (Cap -4..+1) = AA |
What is the price of LUV shares?
As of March 26, 2026, the stock is trading at USD 40.19 with a total of 6,657,000 shares traded.
Over the past week, the price has changed by +0.00%, over one month by -19.09%, over three months by -2.22% and over the past year by +18.26%.
Over the past week, the price has changed by +0.00%, over one month by -19.09%, over three months by -2.22% and over the past year by +18.26%.
Is LUV a buy, sell or hold?
Southwest Airlines has received a consensus analysts rating of 3.00.
Therefor, it is recommend to hold LUV.
- StrongBuy: 4
- Buy: 2
- Hold: 11
- Sell: 4
- StrongSell: 3
What are the forecasts/targets for the LUV price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 47.4 | 17.9% |
| Analysts Target Price | 47.4 | 17.9% |
LUV Fundamental Data Overview March 26, 2026
P/E Trailing = 50.4177
P/E Forward = 9.9206
P/S = 0.734
P/B = 2.452
P/EG = 0.1893
Revenue TTM = 28.06b USD
EBIT TTM = 677.0m USD
EBITDA TTM = 2.24b USD
Long Term Debt = 4.58b USD (from longTermDebt, last quarter)
Short Term Debt = 636.0m USD (from shortTermDebt, last quarter)
Debt = 5.98b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.75b USD (from netDebt column, last quarter)
Enterprise Value = 23.35b USD (20.60b + Debt 5.98b - CCE 3.23b)
Interest Coverage Ratio = 5.94 (Ebit TTM 677.0m / Interest Expense TTM 114.0m)
EV/FCF = -28.13x (Enterprise Value 23.35b / FCF TTM -830.0m)
FCF Yield = -3.55% (FCF TTM -830.0m / Enterprise Value 23.35b)
FCF Margin = -2.96% (FCF TTM -830.0m / Revenue TTM 28.06b)
Net Margin = 1.57% (Net Income TTM 441.0m / Revenue TTM 28.06b)
Gross Margin = 17.44% ((Revenue TTM 28.06b - Cost of Revenue TTM 23.17b) / Revenue TTM)
Gross Margin QoQ = 20.30% (prev 16.66%)
Tobins Q-Ratio = 0.80 (Enterprise Value 23.35b / Total Assets 29.06b)
Interest Expense / Debt = 0.52% (Interest Expense 31.0m / Debt 5.98b)
Taxrate = 20.64% (84.0m / 407.0m)
NOPAT = 537.3m (EBIT 677.0m * (1 - 20.64%))
Current Ratio = 0.52 (Total Current Assets 5.64b / Total Current Liabilities 10.92b)
Debt / Equity = 0.75 (Debt 5.98b / totalStockholderEquity, last quarter 7.98b)
Debt / EBITDA = 1.23 (Net Debt 2.75b / EBITDA 2.24b)
Debt / FCF = -3.31 (negative FCF - burning cash) (Net Debt 2.75b / FCF TTM -830.0m)
Total Stockholder Equity = 8.28b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.40% (Net Income 441.0m / Total Assets 29.06b)
RoE = 5.33% (Net Income TTM 441.0m / Total Stockholder Equity 8.28b)
RoCE = 5.27% (EBIT 677.0m / Capital Employed (Equity 8.28b + L.T.Debt 4.58b))
RoIC = 4.06% (NOPAT 537.3m / Invested Capital 13.23b)
WACC = 7.64% (E(20.60b)/V(26.58b) * Re(9.74%) + D(5.98b)/V(26.58b) * Rd(0.52%) * (1-Tc(0.21)))
Discount Rate = 9.74% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -6.50%
[DCF] Fair Price = unknown (Cash Flow -830.0m)
EPS Correlation: 5.26 | EPS CAGR: 87.16% | SUE: 0.31 | # QB: 0
Revenue Correlation: 66.89 | Revenue CAGR: 13.08% | SUE: -0.80 | # QB: 0
EPS next Quarter (2026-06-30): EPS=1.18 | Chg7d=-0.034 | Chg30d=-0.266 | Revisions Net=-7 | Analysts=17
EPS current Year (2026-12-31): EPS=4.03 | Chg7d=+0.016 | Chg30d=-0.201 | Revisions Net=-7 | Growth EPS=+332.9% | Growth Revenue=+13.3%
EPS next Year (2027-12-31): EPS=4.84 | Chg7d=-0.004 | Chg30d=+0.055 | Revisions Net=+1 | Growth EPS=+20.2% | Growth Revenue=+4.7%
[Analyst] Revisions Ratio: -0.78 (1 Up / 8 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 7.8% (Discount Rate 9.7% - Earnings Yield 2.0%)
[Growth] Growth Spread = +8.5% (Analyst 16.3% - Implied 7.8%)
P/E Forward = 9.9206
P/S = 0.734
P/B = 2.452
P/EG = 0.1893
Revenue TTM = 28.06b USD
EBIT TTM = 677.0m USD
EBITDA TTM = 2.24b USD
Long Term Debt = 4.58b USD (from longTermDebt, last quarter)
Short Term Debt = 636.0m USD (from shortTermDebt, last quarter)
Debt = 5.98b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.75b USD (from netDebt column, last quarter)
Enterprise Value = 23.35b USD (20.60b + Debt 5.98b - CCE 3.23b)
Interest Coverage Ratio = 5.94 (Ebit TTM 677.0m / Interest Expense TTM 114.0m)
EV/FCF = -28.13x (Enterprise Value 23.35b / FCF TTM -830.0m)
FCF Yield = -3.55% (FCF TTM -830.0m / Enterprise Value 23.35b)
FCF Margin = -2.96% (FCF TTM -830.0m / Revenue TTM 28.06b)
Net Margin = 1.57% (Net Income TTM 441.0m / Revenue TTM 28.06b)
Gross Margin = 17.44% ((Revenue TTM 28.06b - Cost of Revenue TTM 23.17b) / Revenue TTM)
Gross Margin QoQ = 20.30% (prev 16.66%)
Tobins Q-Ratio = 0.80 (Enterprise Value 23.35b / Total Assets 29.06b)
Interest Expense / Debt = 0.52% (Interest Expense 31.0m / Debt 5.98b)
Taxrate = 20.64% (84.0m / 407.0m)
NOPAT = 537.3m (EBIT 677.0m * (1 - 20.64%))
Current Ratio = 0.52 (Total Current Assets 5.64b / Total Current Liabilities 10.92b)
Debt / Equity = 0.75 (Debt 5.98b / totalStockholderEquity, last quarter 7.98b)
Debt / EBITDA = 1.23 (Net Debt 2.75b / EBITDA 2.24b)
Debt / FCF = -3.31 (negative FCF - burning cash) (Net Debt 2.75b / FCF TTM -830.0m)
Total Stockholder Equity = 8.28b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.40% (Net Income 441.0m / Total Assets 29.06b)
RoE = 5.33% (Net Income TTM 441.0m / Total Stockholder Equity 8.28b)
RoCE = 5.27% (EBIT 677.0m / Capital Employed (Equity 8.28b + L.T.Debt 4.58b))
RoIC = 4.06% (NOPAT 537.3m / Invested Capital 13.23b)
WACC = 7.64% (E(20.60b)/V(26.58b) * Re(9.74%) + D(5.98b)/V(26.58b) * Rd(0.52%) * (1-Tc(0.21)))
Discount Rate = 9.74% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -6.50%
[DCF] Fair Price = unknown (Cash Flow -830.0m)
EPS Correlation: 5.26 | EPS CAGR: 87.16% | SUE: 0.31 | # QB: 0
Revenue Correlation: 66.89 | Revenue CAGR: 13.08% | SUE: -0.80 | # QB: 0
EPS next Quarter (2026-06-30): EPS=1.18 | Chg7d=-0.034 | Chg30d=-0.266 | Revisions Net=-7 | Analysts=17
EPS current Year (2026-12-31): EPS=4.03 | Chg7d=+0.016 | Chg30d=-0.201 | Revisions Net=-7 | Growth EPS=+332.9% | Growth Revenue=+13.3%
EPS next Year (2027-12-31): EPS=4.84 | Chg7d=-0.004 | Chg30d=+0.055 | Revisions Net=+1 | Growth EPS=+20.2% | Growth Revenue=+4.7%
[Analyst] Revisions Ratio: -0.78 (1 Up / 8 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 7.8% (Discount Rate 9.7% - Earnings Yield 2.0%)
[Growth] Growth Spread = +8.5% (Analyst 16.3% - Implied 7.8%)