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Southwest Airlines Co LUV

Morningstar Rating
$29.30 −0.16 (0.54%)
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Company Report

Price vs Fair Value

LUV is trading at a 56% premium.
Price
$29.73
Fair Value
$47.00
Uncertainty
High
1-Star Price
$54.63
5-Star Price
$98.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Southwest operates a leisure-focused low-cost carrier, which is well-positioned for a leisure-led post-pandemic recovery in aviation.

Bears

Major 2022 holiday travel disruptions put a spotlight on Southwest's antiquated operating systems. A necessary system overhaul could reduce the firm's near- to midterm profit margin and free cash flow.

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News

Trading Information

Previous Close Price
$29.46
Day Range
$28.9529.59
52-Week Range
$21.9139.53
Bid/Ask
$29.16 / $29.30
Market Cap
$17.53 Bil
Volume/Avg
9.6 Mil / 8.1 Mil

Key Statistics

Price/Earnings (Normalized)
18.66
Price/Sales
0.72
Dividend Yield (Trailing)
2.45%
Dividend Yield (Forward)
2.45%
Total Yield
2.46%

Company Profile

Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates over 700 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights, using a point-to-point network. Southwest operates a low-cost carrier business model.
Sector
Industrials
Industry
Airlines
Stock Style Box
Mid Core
Total Number of Employees
74,806

Competitors

Valuation

Metric
LUV
DAL
AAL
Price/Earnings (Normalized)
18.667.445.27
Price/Book Value
1.662.77
Price/Sales
0.720.520.19
Price/Cash Flow
9.794.662.81
Price/Earnings
LUV
DAL
AAL

Financial Strength

Metric
LUV
DAL
AAL
Quick Ratio
1.030.290.44
Current Ratio
1.140.410.62
Interest Coverage
1.218.691.25
Quick Ratio
LUV
DAL
AAL

Profitability

Metric
LUV
DAL
AAL
Return on Assets (Normalized)
2.71%5.85%2.75%
Return on Equity (Normalized)
9.19%47.04%
Return on Invested Capital (Normalized)
3.63%13.54%7.97%
Return on Assets
LUV
DAL
AAL
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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
DAL
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UAL
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SINGY
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AICAF
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AIRYY
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SINGF
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TKHVY
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AAL
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