Southwest Airlines Co. operates a passenger airline that provides scheduled air transportation services in the United States and near-international markets. More Details
High growth potential with mediocre balance sheet.
Share Price & News
How has Southwest Airlines's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LUV has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: LUV exceeded the US Airlines industry which returned -46.5% over the past year.
Return vs Market: LUV underperformed the US Market which returned 12% over the past year.
Price Volatility Vs. Market
How volatile is Southwest Airlines's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall StCan Mixed Fundamentals Have A Negative Impact on Southwest Airlines Co. (NYSE:LUV) Current Share Price Momentum?
2 weeks ago | Simply Wall StWhat Type Of Shareholders Make Up Southwest Airlines Co.'s (NYSE:LUV) Share Registry?
1 month ago | Simply Wall StDoes Southwest Airlines's (NYSE:LUV) Statutory Profit Adequately Reflect Its Underlying Profit?
Is Southwest Airlines undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LUV ($37.1) is trading below our estimate of fair value ($61.73)
Significantly Below Fair Value: LUV is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LUV is poor value based on its PE Ratio (121.5x) compared to the US Airlines industry average (8.7x).
PE vs Market: LUV is poor value based on its PE Ratio (121.5x) compared to the US market (17.5x).
Price to Earnings Growth Ratio
PEG Ratio: LUV is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: LUV is overvalued based on its PB Ratio (2x) compared to the US Airlines industry average (0.9x).
How is Southwest Airlines forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LUV's forecast earnings growth (87.7% per year) is above the savings rate (2.2%).
Earnings vs Market: LUV's earnings (87.7% per year) are forecast to grow faster than the US market (22.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LUV's revenue (22.7% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: LUV's revenue (22.7% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LUV's Return on Equity is forecast to be low in 3 years time (13.4%).
How has Southwest Airlines performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LUV has a large one-off gain of $999.0M impacting its June 30 2020 financial results.
Growing Profit Margin: LUV's current net profit margins (1%) are lower than last year (10.7%).
Past Earnings Growth Analysis
Earnings Trend: LUV's earnings have declined by 0.4% per year over the past 5 years.
Accelerating Growth: LUV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LUV had negative earnings growth (-93.2%) over the past year, making it difficult to compare to the Airlines industry average (-48.5%).
Return on Equity
High ROE: LUV's Return on Equity (1.5%) is considered low.
How is Southwest Airlines's financial position?
Financial Position Analysis
Short Term Liabilities: LUV's short term assets ($15.9B) exceed its short term liabilities ($9.4B).
Long Term Liabilities: LUV's short term assets ($15.9B) exceed its long term liabilities ($15.4B).
Debt to Equity History and Analysis
Debt Level: LUV's debt to equity ratio (88.9%) is considered high.
Reducing Debt: LUV's debt to equity ratio has increased from 38.3% to 88.9% over the past 5 years.
Debt Coverage: LUV's debt is well covered by operating cash flow (25.2%).
Interest Coverage: Insufficient data to determine if LUV's interest payments on its debt are well covered by EBIT.
What is Southwest Airlines's current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LUV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate LUV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if LUV's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LUV's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: LUV is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LUV's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Gary Kelly (65 yo)
Mr. Gary C. Kelly has been the Chairman and Chief Executive Officer of Southwest Airlines Co., an affiliate of AirTran Airways, Inc. since May 2008 and July 15, 2004 respectively. Mr. Kelly served as an Ex ...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD8.77M) is about average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.
|Chairman & CEO||16.17yrs||US$8.77m||0.11% |
|Executive VP & CFO||8yrs||US$3.19m||0.020% |
|Chief Operating Officer||12.33yrs||US$3.84m||0.030% |
|Executive Vice President of Corporate Services||16.08yrs||US$3.16m||0.017% |
|Managing Director of Accounting & Financial Reporting||1.83yrs||no data||no data|
|VP of Technology – Infrastructure & Services and CTO||1yr||no data||no data|
|Senior VP of Technology & Chief Information Officer||3.17yrs||no data||no data|
|Managing Director of Investor Relations||3yrs||no data||no data|
|Executive VP and Chief Legal & Regulatory Officer||7.58yrs||no data||0.0039% |
|Senior VP & Chief Communications Officer||no data||no data||no data|
|Senior VP & Chief Marketing Officer||3.5yrs||no data||no data|
Experienced Management: LUV's management team is considered experienced (3.7 years average tenure).
|Chairman & CEO||16.17yrs||US$8.77m||0.11% |
|Independent Director||11.83yrs||US$290.04k||0.010% |
|Vice Chairman||5.17yrs||US$281.54k||0.033% |
|Independent Director||14.33yrs||US$290.04k||0.0097% |
|Independent Director||10.67yrs||US$256.54k||0.0098% |
|Independent Director||9.08yrs||US$255.04k||0.0081% |
|Independent Director||18.67yrs||US$293.54k||0.0044% |
|Independent Lead Director||no data||US$308.54k||0.014% |
|Independent Director||17.5yrs||US$255.04k||0.0081% |
|Independent Director||5yrs||US$262.54k||0.0028% |
|Independent Director||4.67yrs||US$256.54k||0.0029% |
Experienced Board: LUV's board of directors are seasoned and experienced ( 11.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.7%.
Southwest Airlines Co.'s company bio, employee growth, exchange listings and data sources
- Name: Southwest Airlines Co.
- Ticker: LUV
- Exchange: NYSE
- Founded: 1967
- Industry: Airlines
- Sector: Transportation
- Market Cap: US$21.884b
- Shares outstanding: 589.87m
- Website: https://www.southwest.com
Number of Employees
- Southwest Airlines Co.
- PO Box 36611
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|LUV||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Oct 1975|
|SWN||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Oct 1975|
|SWN||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Oct 1975|
|LUV *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Oct 1975|
|0L8F||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Oct 1975|
|S1OU34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 1 REPR 1 SHS UNSPON||BR||BRL||Jan 2020|
Southwest Airlines Co. operates a passenger airline that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2019, the company operated a ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/09/26 05:54|
|End of Day Share Price||2020/09/25 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.