LUV$43.1
$42.98
Chart
Performance
Key Stats
AI LUV Summary
Powered by LiveAIAI Scoreboard
Powered by LiveAIOverall Analysis
NeutralSouthwest Airlines exhibits a mixed profile with a solid fundamental base but faces challenges in profitability and near-term technical weakness. Diversification benefits are present, but caution is advised.
Thematic
The airline industry benefits from continued travel demand post-pandemic, but faces significant headwinds from volatile fuel prices, competition, and macroeconomic uncertainty.
Fundamental
Southwest Airlines demonstrates a solid balance sheet and consistent revenue generation. However, recent profitability has been challenged, leading to a lower net profit margin and elevated P/E ratio.
Technical
The stock price has experienced a significant decline, indicating short-term weakness. While some indicators suggest potential oversold conditions, the prevailing trend is bearish across most timeframes.
| Factor | Score |
|---|---|
| Travel Demand Recovery | 80 |
| Fuel Price Volatility | 30 |
| Competitive Landscape | 50 |
| Macroeconomic Sensitivity | 70 |
| Operational Efficiency | 75 |
| Factor | Score |
|---|---|
| Valuation | 30 |
| Profitability | 40 |
| Growth | 50 |
| Balance Sheet Health | 70 |
| Cash Flow | 35 |
| Dividend Yield | 60 |
| Factor | Score |
|---|---|
| Trend Analysis | 30 |
| Momentum | 50 |
| Volume Confirmation | 60 |
| Support & Resistance | 60 |
| Short-Term Oscillators | 65 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Improving Profitability and Revenue
Revenue for the trailing twelve months (TTM) is $20.23 billion, and net income is $179 million. The company has shown positive revenue growth year-over-year in its annual statements. Quarterly net income has shown fluctuations but positive results in some recent quarters (e.g., Q4 2024). Dividend yield is 1.92%.
Reasonable Valuation Multiples
The Price-to-Earnings (P/E) ratio (TTM) is 105.9, which is high. However, looking at annual data, the P/E for 2024 was 40.7, and for 2023 was 40.8. The Price-to-Sales (P/S) ratio (TTM) is 0.9, indicating the company generates substantial revenue relative to its market capitalization.
Bearish Points (6)
High P/E Ratio
The trailing Price-to-Earnings (P/E) ratio of 105.9 is significantly higher than the industry average and historical norms, potentially indicating the stock is overvalued. Quarterly P/E ratios also show volatility and high figures (e.g., -127.7 in Q1 2025).
Declining Net Margins
Net profit margins have significantly declined from 6.2% in 2021 to 1.7% in 2024. Quarterly net margins have also been negative in recent periods (e.g., -2.3% in Q1 2025, -3.6% in Q1 2024), signaling profitability challenges.
Calendar
June 2025
18
Ex-Dividend Date
July 2025
9
Next Dividend Date
October 2025
23
Next Earnings Date
H: $0.42
A: $0.19
L: $0.05
H: 7.03B
A: 6.97B
L: 6.89B
Profile
Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2024, the company operated a total fleet of 803 Boeing 737 aircraft; and served 117 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. It also provides inflight entertainment and connectivity services; and Rapid Rewards loyalty program that enables program members to earn points for dollars spent on Southwest base fares. In addition, the company offers a suite of digital platforms to support customers' travel needs, including websites and apps; and SWABIZ, an online booking tool. Further, it provides ancillary services, such as Southwest's EarlyBird Check-In, upgraded boarding, and transportation of pets and unaccompanied minors. Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.
Seasonals
Price Target
30.94 USD
The 39 analysts offering 1 year price forecasts for LUV have a max estimate of 46.00 and a min estimate of 19.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
Related Companies
Powered by LiveAIWeight: 98
Major U.S. legacy competitor of Southwest Airlines, competing on domestic routes, business travelers, and connecting through major hubs.
Weight: 97
Major U.S. legacy competitor with extensive domestic and international networks, directly competing with Southwest on many key routes.
Weight: 96
Largest U.S. legacy carrier, competing directly with Southwest on a vast number of domestic routes and for leisure and business passengers.
Weight: 94
Direct U.S. low-cost carrier competitor, often vying for similar leisure-oriented passengers and expanding into Southwest's traditional markets.