LUV Stock Analysis: Southwest Airlines | NYSE
Airlines | NYSE, USA | Market Cap: 18.849m USD | 12M Return: 22% | US8447411088 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 176M
EPS Trend: 34.9%
Qual. Beats: 1
Rev. Trend: 93.1%
Qual. Beats: -1
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Southwest Airlines Co. is a U.S. passenger airline providing scheduled air transportation domestically and to select near-international destinations. The carrier runs an all-Boeing 737 fleet of 803 aircraft serving 117 destinations across 42 states, the District of Columbia, Puerto Rico, and ten countries including Mexico, Jamaica, Costa Rica, the Bahamas, and the Cayman Islands, as of December 31, 2025. Southwest follows a point-to-point, single-fleet-type operating model common among low-cost carriers.
Beyond base ticket revenue, the company sells ancillary services such as baggage fees, EarlyBird Check-In, upgraded boarding, pet transport, and unaccompanied minor services. It also operates the Rapid Rewards loyalty program, the SWABIZ corporate booking tool, and an inflight entertainment and refreshment offering. Founded in 1967 and headquartered in Dallas, Texas, Southwest is classified within the Passenger Airlines sub-industry of the Industrials sector and trades on the NYSE under the ticker LUV.
- Jet fuel costs pressure operating margins
- New baggage and seat fees boost ancillary revenue growth
- Boeing 737 delivery delays constrain domestic capacity expansion
| Net Income: 837.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.02 > 0.02 and ΔFCF/TA -1.11 > 1.0 |
| NWC/Revenue: -22.57% < 20% (prev -17.47%; Δ -5.09% < -1%) |
| CFO/TA 0.08 > 3% & CFO 2.36b > Net Income 837.0m |
| Net Debt (4.04b) to EBITDA (2.71b): 1.49 < 3 |
| Current Ratio: 0.49 > 1.5 & < 3 |
| Outstanding Shares: last quarter (498.0m) vs 12m ago -7.95% < -2% |
| Gross Margin: 61.02% > 18% (prev 16.64%; Δ 44.39% > 0.5%) |
| Asset Turnover: 102.2% > 50% (prev 95.68%; Δ 6.55% > 0%) |
| Interest Coverage Ratio: 6.68 > 6 (EBIT TTM 1.14b / Interest Expense TTM 171.0m) |
| A: -0.23 (Total Current Assets 6.48b - Total Current Liabilities 13.3b) / Total Assets 30.1b |
| B: 0.55 (Retained Earnings 16.7b / Total Assets 30.1b) |
| C: 0.04 (EBIT TTM 1.14b / Avg Total Assets 29.4b) |
| D: 0.31 (Book Value of Equity 7.08b / Total Liabilities 23.0b) |
| Altman-Z'' = 0.91 = BB |
| DSRI: 1.10 (Receivables 1.22b/1.01b, Revenue 30.1b/27.5b) |
| GMI: 0.27 (GM 16.64% / 61.02%) |
| AQI: 1.49 (AQ_t 0.10 / AQ_t-1 0.07) |
| SGI: 1.09 (Revenue 30.1b / 27.5b) |
| TATA: -0.05 (NI 837.0m - CFO 2.36b) / TA 30.1b) |
| Beneish M = -3.25 (Cap -4..+1) = AA |
As of September 03, 2026, the stock is trading at USD 38.61 with a total of 4,602,071 shares traded. Over the past week, the price has changed by -5.07%, over one month by -17.97%, over three months by -8.41% and over the past year by +21.97%.
Current recommended Stop Loss: 37.00 (which is 4.2% or 1.2 ATR below the current price).
Southwest Airlines has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold LUV.
- StrongBuy: 4
- Buy: 2
- Hold: 11
- Sell: 4
- StrongSell: 3
| Analysts Target Price | 51.3 | 32.9% |
P/E Trailing = 24.6987
P/E Forward = 12.7389
P/S = 0.6268
P/B = 2.7465
P/EG = 0.3063
Revenue TTM = 30.1b USD
EBIT TTM = 1.14b USD
EBITDA TTM = 2.71b USD
Long Term Debt = 3.79b USD (from longTermDebt, last quarter)
Short Term Debt = 2.44b USD (from shortTermDebt, last quarter)
Debt = 7.83b USD (from shortLongTermDebtTotal, last quarter) + Leases 943.0m
Net Debt = 4.04b USD (calculated: Debt 7.83b - CCE 3.79b)
Enterprise Value = 22.9b USD (18.8b + Debt 7.83b - CCE 3.79b)
Interest Coverage Ratio = 6.68 (Ebit TTM 1.14b / Interest Expense TTM 171.0m)
EV/FCF = -36.86x (Enterprise Value 22.9b / FCF TTM -621.0m)
FCF Yield = -2.71% (FCF TTM -621.0m / Enterprise Value 22.9b)
FCF Margin = -2.06% (FCF TTM -621.0m / Revenue TTM 30.1b)
Net Margin = 2.78% (Net Income TTM 837.0m / Revenue TTM 30.1b)
Gross Margin = 61.02% ((Revenue TTM 30.1b - Cost of Revenue TTM 11.7b) / Revenue TTM)
Gross Margin QoQ = none% (prev 10.04%)
Tobins Q-Ratio = 0.76 (Enterprise Value 22.9b / Total Assets 30.1b)
Interest Expense / Debt = 2.18% (Interest Expense 171.0m / Debt 7.83b)
Taxrate = 21.56% (230.0m / 1.07b)
NOPAT = 896.6m (EBIT 1.14b * (1 - 21.56%))
Current Ratio = 0.49 (Total Current Assets 6.48b / Total Current Liabilities 13.3b)
Debt / Equity = 1.11 (Debt 7.83b / totalStockholderEquity, last quarter 7.08b)
Debt / EBITDA = 1.49 (Net Debt 4.04b / EBITDA 2.71b)
Debt / FCF = -6.51 (negative FCF - burning cash) (Net Debt 4.04b / FCF TTM -621.0m)
Total Stockholder Equity = 7.43b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.85% (Net Income 837.0m / Total Assets 30.1b)
RoE = 11.27% (Net Income TTM 837.0m / Total Stockholder Equity 7.43b)
RoCE = 10.19% (EBIT 1.14b / Capital Employed (Equity 7.43b + L.T.Debt 3.79b))
RoIC = 5.04% (NOPAT 896.6m / Invested Capital 17.8b)
WACC = 7.53% (E(18.8b)/V(26.7b) * Re(9.95%) + D(7.83b)/V(26.7b) * Rd(2.18%) * (1-Tc(0.22)))
Discount Rate = 9.95% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.24 | Cagr: -7.74%
[DCF] Fair Price = unknown (Cash Flow -621.0m)
EPS Correlation: 34.87 | EPS CAGR: 12.75% | SUE: 4.0 | # QB: 1
Revenue Correlation: 93.08 | Revenue CAGR: 4.59% | SUE: -2.27 | # QB: -1
EPS current Quarter (2026-09-30): EPS=0.64 | Chg30d=-11.50% | Revisions=+25% | Analysts=21
EPS current Year (2026-12-31): EPS=3.38 | Chg30d=+0.24% | Revisions=+52% | GrowthEPS=+263.9% | GrowthRev=+17.5%
EPS next Year (2027-12-31): EPS=4.86 | Chg30d=-1.60% | Revisions=+29% | GrowthEPS=+43.7% | GrowthRev=+3.7%
[Analyst] Revisions Ratio: +40% (up=39, down=16)