Southwest Airlines Co. (LUV) — Stock Score Summary

Southwest Airlines Co. (LUV) has a MoatMap StockRank of 46/100 based on Quality (36/100), Value (43/100), and Momentum (52/100) factor scores. The current signal is HOLD. Southwest Airlines is a direct casualty of the geopolitical energy risk premium, as rising fuel costs compress margins in an already highly competitive, capital-intensive industry with no pricing power to pass on rapid fuel spikes.

Southwest Airlines Co. is a major U.S. low-cost airline providing short-haul, high-frequency, point-to-point air transportation services. The company benefits from a highly efficient, point-to-point operating model, a single aircraft type (Boeing 737) which streamlines operations, and strong brand loyalty due to its customer service and low fares. As a pioneering and consistently profitable low-cost carrier, Southwest has carved out a distinct market position with its operational efficiency, unique culture, and strong brand.

Key Financial Metrics

Price$41.31
Market Cap$21.2B
P/E (TTM)27.54
P/E (Forward)9.12
Price/Book2.94
Return on Equity10.1%
Return on Invested Capital3.7%
Debt/Equity93.03
Gross Margin23.0%
Operating Margin4.6%
Revenue Growth12.8%
Dividend Yield1.7%
Free Cash Flow$-372M

Southwest Airlines Co. operates in the Airlines industry, part of the Industrials sector (United States).

Frequently Asked Questions

What is Southwest Airlines Co.’s (LUV) StockRank?
MoatMap’s StockRank for Southwest Airlines Co. (LUV) is 46/100, with a Hold signal. It is a composite of Quality (36), Value (43), and Momentum (52) factor ranks across MoatMap’s 19,000+ stock universe.
Does Southwest Airlines Co. have an economic moat?
Southwest Airlines Co. (LUV) has a Quality factor score of 36/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Southwest Airlines Co. a buy, hold, or sell?
MoatMap’s current signal for Southwest Airlines Co. (LUV) is Hold, based on a StockRank of 46/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Southwest Airlines Co. in?
Southwest Airlines Co. (LUV) operates in the Industrials sector, specifically the Airlines industry (United States).
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