Company Deep Dive

Business segments breakdown, earnings transcript analysis, management credibility scoring, competitive landscape, and scenario modelling.

Request Deep Dive(50 Feathers)

LUV

HOLD

Southwest Airlines Co. · Industrials · United States · $22.1B · Avg Vol: $297M/d

59
StockRank
Get insider-trade alerts
Q
45
V
38
M
70
P/E (TTM)
32.0x
ROE
10.1%
D/E
0.9x
Dividend %
1.5%

COMPANY DESCRIPTION

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.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGRTTM2026E2027EFwd CAGR
Revenue23.8B26.1B27.5B28.1B5.6%28.9B32.9B34.1B10.2%
EPS0.910.840.780.82-3.4%1.51
Shares594.0M596.5M593.3M515.6M-13.2%488.8M
Debt9.4B9.2B8.1B6.0B-14.1%6.4B
Equity10.7B10.5B10.3B8.0B-9.3%
Op CF3.8B3.2B462.0M1.8B-21.4%2.4B
Inv CF-3.7B-2.9B-261.0M-1.4B
Fin CF-3.0B-436.0M-2.0B-4.7B
Loading 1Y...
PRICE (1Y)+1.8%
44.2946.2448.1950.1452.09Jun 11Jul 6Jul 24
SMA 50SMA 200
Close
$45.08
RSI (14)
27.2
52W High
$54.63
From 52W High
0.8%

SCORE BREAKDOWN

Quality
45
ROIC
6.4%41.1
ROE
10.1%58.3
GP/Assets
22.9%68.8
Op. Margin
4.6%34.9
FCF/Assets
-1.4%20.9
Piotroski
775.1
Int. Cover
9.6x49.2
D/E Ratio
0.93x22.5
Current Ratio
0.48x1.9
Value
38
P/E (TTM)
32.0x30.6
EV/EBITDA
12.1x49.3
P/FCF
N/A
P/B
3.4x27.5
P/S
0.8x68.3
Div Yield
1.5%34.9
Momentum
70
52W High %
83%64.2
RS 6M
-1%69.0
SMA 50/200
1.11x74.0
EPS Rev 4W
+7.7%96.3
EPS Rev 12W
+7.8%88.0
EPS Improve
+223%87.2
Q Growth
N/A

FUNDAMENTALS

Market Cap
$22.1B
P/E (Forward)
9.9x
Gross Margin
23.0%

SECTOR PEERS

Closest peers in Industrials, ranked by industry match, size, and score similarity. Cross-listings of LUV are excluded.

TickerCompanyMkt CapStockRankSignal
LUVSouthwest Airlines Co.(you)$22.1B59HOLD
AAL.MXAmerican Airlines Group Inc.$11.8B59HOLD
OYC.DEDelta Air Lines Inc. R$60.9B61HOLD
UALUnited Airlines Holdings, Inc.$38.4B89STRONG BUY
ALGTAllegiant Travel Company$2.6B64HOLD
SKYWSkyWest, Inc.$4.1B76BUY
ALKAlaska Air Group, Inc.$5.1B35HOLD
RJETRepublic Airways Holdings Inc.$810M62HOLD
JBLUJetBlue Airways Corporation$2.0B24SELL
ULCCFrontier Group Holdings, Inc.$1.3B19STRONG SELL

Peer medians: ROE 10.7% · P/E 30.6x · Gross margin 28.6%

Southwest Airlines Co. (LUV) — Stock Score Summary

Southwest Airlines Co. (LUV) has a MoatMap StockRank of 59/100 based on Quality (45/100), Value (38/100), and Momentum (70/100) factor scores. The current signal is HOLD.

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$45.08
Market Cap$22.1B
P/E (TTM)32.01
P/E (Forward)9.91
Price/Book3.44
Return on Equity10.1%
Return on Invested Capital6.4%
Debt/Equity0.93x
Gross Margin23.0%
Operating Margin4.6%
Revenue Growth12.8%
Dividend Yield1.5%
Free Cash Flow$-401M

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 59/100, with a Hold signal. It is a composite of Quality (45), Value (38), and Momentum (70) factor ranks across MoatMap’s 20,000+ stock universe.
Does Southwest Airlines Co. have an economic moat?
Southwest Airlines Co. (LUV) has a Quality factor score of 45/100. 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 59/100. 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).