Overview Dividends

(LUV) Southwest Airlines - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US8447411088

Flights, Loyalty, Digital, Ancillary

Passenger Airlines
Market Cap in USD: 21,622m

IPO / Inception: 1980-01-02
Return 12m vs S&P 500: 7.63%

EPS (Earnings per Share)

EPS CAGR: -6.23%
EPS Trend: 0.2%

Last SUE: 1.53
Qual. Beats: 1

Revenue

Rev. CAGR: 8.88%
Rev. Trend: 70.4%

Last SUE: 0.20
Qual. Beats: 0

Dividends

Dividend Yield	2.18%
Yield on Cost 5y	2.10%
Yield CAGR 5y	41.42%
Payout Consistency	81.7%
Payout Ratio	74.2%

Risk via 5d forecast
Volatility	38.5%
Value at Risk 5%th	55.7%
Relative Tail Risk	-12.07%

Reward TTM
Sharpe Ratio	0.73
Alpha	11.35
CAGR/Max DD	0.16

Character TTM
Hurst Exponent	0.789
Beta	1.290
Beta Downside	1.637

Drawdowns 3y
Max DD	42.93%
Mean DD	18.56%
Median DD	18.29%

Description: LUV Southwest Airlines December 19, 2025

Southwest Airlines Co. (NYSE:LUV) is a U.S.-based passenger carrier that operates scheduled flights across 117 domestic and near-international destinations, serving 42 states, D.C., Puerto Rico, and ten Caribbean and Central American countries. Its fleet consists exclusively of 803 Boeing 737 aircraft, and the airline complements its core service with inflight entertainment, the Rapid Rewards loyalty program, digital booking platforms (website, mobile apps, and SWABIZ), and ancillary offerings such as EarlyBird Check-In, upgraded boarding, and pet or unaccompanied-minor transport.

Key performance indicators from the most recent fiscal year (2024) show Southwest generating approximately $27 billion in revenue, achieving a load factor of 84.2 % (above the industry average of ~80 %), and posting an operating margin of 12.5 % after accounting for fuel and labor cost pressures. The airline’s point-to-point network and single-aircraft type strategy continue to support high aircraft utilization (averaging ~11.5 flight hours per day per plane).

Primary economic drivers for Southwest include volatile jet-fuel prices (which historically account for ~30 % of operating costs), the pace of consumer discretionary spending on leisure travel, and the outcome of ongoing airline labor negotiations that can affect wage growth. Additionally, macro-level trends such as U.S. GDP growth and the strength of the domestic tourism sector directly influence passenger demand, while the airline’s low-cost model makes it relatively resilient to price-sensitive market shifts.

For a deeper, data-driven look at Southwest’s valuation and risk profile, you may find ValueRay’s analytical tools worth exploring.

Piotroski VR‑10 (Strict, 0-10) 6.0

Net Income (379.0m TTM) > 0 and > 6% of Revenue (6% = 1.65b TTM)

FCFTA -0.01 (>2.0%) and ΔFCFTA 4.65pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -20.32% (prev -5.69%; Δ -14.63pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.07 (>3.0%) and CFO 2.02b > Net Income 379.0m (YES >=105%, WARN >=100%)

Net Debt (2.71b) to EBITDA (2.21b) ratio: 1.22 <= 3.0 (WARN <= 3.5)

Current Ratio 0.49 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (551.0m) change vs 12m ago -8.32% (target <= -2.0% for YES)

Gross Margin 16.74% (prev 14.47%; Δ 2.27pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 87.24% (prev 78.56%; Δ 8.68pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 4.73 (EBITDA TTM 2.21b / Interest Expense TTM 130.0m) >= 6 (WARN >= 3)

Altman Z'' 1.57

(A) -0.20 = (Total Current Assets 5.39b - Total Current Liabilities 10.99b) / Total Assets 28.31b

(B) 0.57 = Retained Earnings (Balance) 16.16b / Total Assets 28.31b

(D) 0.83 = Book Value of Equity 17.04b / Total Liabilities 20.54b

Total Rating: 1.57 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 52.86

1. Piotroski 6.0pt

2. FCF Yield -1.04%

3. FCF Margin -0.91%

4. Debt/Equity 0.68

5. Debt/Ebitda 1.22

6. ROIC - WACC (= -5.31)%

7. RoE 4.27%

8. Rev. Trend 70.43%

9. EPS Trend 0.16%

What is the price of LUV shares?

As of December 22, 2025, the stock is trading at USD 41.26 with a total of 16,963,823 shares traded.
Over the past week, the price has changed by -1.10%, over one month by +25.79%, over three months by +27.74% and over the past year by +24.63%.

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.

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	36.3	-12%
Analysts Target Price	36.3	-12%
ValueRay Target Price	45.7	10.7%

LUV Fundamental Data Overview December 15, 2025

Market Cap USD = 21.62b (21.62b USD * 1.0 USD.USD)
P/E Trailing = 65.3492
P/E Forward = 15.8228
P/S = 0.7848
P/B = 2.7381
P/EG = 0.2884
Beta = 1.167
Revenue TTM = 27.55b USD
EBIT TTM = 615.0m USD
EBITDA TTM = 2.21b USD
Long Term Debt = 4.08b USD (from longTermDebt, last quarter)
Short Term Debt = 333.0m USD (from shortTermDebt, last quarter)
Debt = 5.26b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.71b USD (from netDebt column, last quarter)
Enterprise Value = 23.98b USD (21.62b + Debt 5.26b - CCE 2.90b)
Interest Coverage Ratio = 4.73 (Ebit TTM 615.0m / Interest Expense TTM 130.0m)
FCF Yield = -1.04% (FCF TTM -250.0m / Enterprise Value 23.98b)
FCF Margin = -0.91% (FCF TTM -250.0m / Revenue TTM 27.55b)
Net Margin = 1.38% (Net Income TTM 379.0m / Revenue TTM 27.55b)
Gross Margin = 16.74% ((Revenue TTM 27.55b - Cost of Revenue TTM 22.94b) / Revenue TTM)
Gross Margin QoQ = 16.66% (prev 18.75%)
Tobins Q-Ratio = 0.85 (Enterprise Value 23.98b / Total Assets 28.31b)
Interest Expense / Debt = 0.42% (Interest Expense 22.0m / Debt 5.26b)
Taxrate = 20.59% (14.0m / 68.0m)
NOPAT = 488.4m (EBIT 615.0m * (1 - 20.59%))
Current Ratio = 0.49 (Total Current Assets 5.39b / Total Current Liabilities 10.99b)
Debt / Equity = 0.68 (Debt 5.26b / totalStockholderEquity, last quarter 7.78b)
Debt / EBITDA = 1.22 (Net Debt 2.71b / EBITDA 2.21b)
Debt / FCF = -10.82 (negative FCF - burning cash) (Net Debt 2.71b / FCF TTM -250.0m)
Total Stockholder Equity = 8.87b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.34% (Net Income 379.0m / Total Assets 28.31b)
RoE = 4.27% (Net Income TTM 379.0m / Total Stockholder Equity 8.87b)
RoCE = 4.75% (EBIT 615.0m / Capital Employed (Equity 8.87b + L.T.Debt 4.08b))
RoIC = 3.42% (NOPAT 488.4m / Invested Capital 14.27b)
WACC = 8.73% (E(21.62b)/V(26.88b) * Re(10.77%) + D(5.26b)/V(26.88b) * Rd(0.42%) * (1-Tc(0.21)))
Discount Rate = 10.77% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -3.85%
Fair Price DCF = unknown (Cash Flow -250.0m)
EPS Correlation: 0.16 | EPS CAGR: -6.23% | SUE: 1.53 | # QB: 1
Revenue Correlation: 70.43 | Revenue CAGR: 8.88% | SUE: 0.20 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.21 | Chg30d=-0.002 | Revisions Net=+0 | Analysts=13
EPS next Year (2026-12-31): EPS=2.77 | Chg30d=+0.168 | Revisions Net=+2 | Growth EPS=+178.7% | Growth Revenue=+8.3%

Additional Sources for LUV Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle