Southwest Airlines Co. LUV
Industrials · Airlines · United States · S&P 500
Based on the available data, Southwest Airlines Co. gets an algorithmic score of 55/100. It trades at 42.08 $, with a bullish technical trend (RSI 55.5) and 44.1% annual volatility.
Updated: 2026-09-30
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Strengths
- Low valuation (P/E 8.9).
Weaknesses
- Thin net margin (2.8%): vulnerable to costs.
- Negative free cash flow.
Fundamentals
| P/E | 26.30 |
| Forward P/E | 8.93 |
| PEG | 0.20 |
| P/B | 2.91 |
| EV/EBITDA | 10.13 |
| P/S | 0.68 |
| ROE % | 11.10 |
| ROA % | 2.32 |
| Gross margin % | 22.40 |
| Operating margin % | 3.38 |
| Net margin % | 2.78 |
| Revenue growth % (y/y) | 16.40 |
| Earnings growth % (y/y) | 20.50 |
| Revenue CAGR % | 5.63 |
| Earnings CAGR % | -6.47 |
| Debt/Equity % | 97.28 |
| Current ratio | 0.49 |
| FCF yield % | -4.04 |
| Dividend yield % | 1.71 |
| Payout % | 45.00 |
Returns
| 1 month | +6.7 % |
| 3 months | -17.8 % |
| 6 months | +17.0 % |
| YTD | +3.3 % |
| 1 year | +31.7 % |
| 3 years | +59.9 % |
| 5 years | -6.7 % |
Risk
| 1-year volatility | 44.1 % |
| Beta | 1.28 |
| 5-year max drawdown | -58.8 % |
| Sharpe 1A | 0.75 |
Macroeconomic context
Cyclical: depends on manufacturing PMI, infrastructure investment and defence spending. Sensitive to energy prices and supply chains. As a US company, its valuation depends on the Fed, 10-year Treasury yields and the US earnings cycle.
How the score is calculated
The score combines profitability (ROE, ROA, net margin), growth (revenue and earnings), valuation (P/E, EV/EBITDA, free cash flow), financial strength (debt and liquidity; not applied to banks and insurers) and momentum (6 and 12-month returns and trend). It is an educational quantitative filter, not a buy or sell recommendation.