Southwest Airlines
Market Cap
US$35.6b
Last Updated
2021/04/15 22:28 UTC
Data Sources
Company Financials +
Executive Summary
Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. More Details
Rewards
Risk Analysis
Snowflake Analysis
Exceptional growth potential and slightly overvalued.
Similar Companies
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: LUV's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-0.8%
LUV
-1.5%
US Airlines
1.1%
US Market
1 Year Return
105.2%
LUV
101.3%
US Airlines
56.6%
US Market
Return vs Industry: LUV underperformed the US Airlines industry which returned 101.3% over the past year.
Return vs Market: LUV exceeded the US Market which returned 56.6% over the past year.
Shareholder returns
| LUV | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | -1.5% | 1.1% |
| 30 Day | 4.0% | -3.1% | 1.7% |
| 90 Day | 34.9% | 26.3% | 6.0% |
| 1 Year | 105.2%105.2% | 101.3%101.3% | 59.3%56.6% |
| 3 Year | 17.9%14.9% | 1.5%-0.6% | 62.6%52.2% |
| 5 Year | 37.7%31.9% | 14.2%10.4% | 120.6%96.1% |
Long-Term 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
6 days ago | Simply Wall St
Southwest Airlines (NYSE:LUV) Shareholders Have Enjoyed A 74% Share Price Gain3 weeks ago | Simply Wall St
Is Southwest Airlines (NYSE:LUV) Weighed On By Its Debt Load?1 month ago | Simply Wall St
Have Insiders Been Selling Southwest Airlines Co. (NYSE:LUV) Shares?Valuation
Is Southwest Airlines undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LUV ($63.03) is trading below our estimate of fair value ($162.38)
Significantly Below Fair Value: LUV is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LUV is unprofitable, so we can't compare its PE Ratio to the XX Airlines industry average.
PE vs Market: LUV is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate LUV's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: LUV is overvalued based on its PB Ratio (4.2x) compared to the US Airlines industry average (2.7x).
Future Growth
How is Southwest Airlines forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
78.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LUV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: LUV is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: LUV's is expected to become profitable in the next 3 years.
Revenue vs Market: LUV's revenue (25.2% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: LUV's revenue (25.2% 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 high in 3 years time (25.9%)
Past Performance
How has Southwest Airlines performed over the past 5 years?
-23.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LUV is currently unprofitable.
Growing Profit Margin: LUV is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: LUV is unprofitable, and losses have increased over the past 5 years at a rate of 23.1% per year.
Accelerating Growth: Unable to compare LUV's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: LUV is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (-23.8%).
Return on Equity
High ROE: LUV has a negative Return on Equity (-34.63%), as it is currently unprofitable.
Financial Health
How is Southwest Airlines's financial position?
Financial Position Analysis
Short Term Liabilities: LUV's short term assets ($15.2B) exceed its short term liabilities ($7.5B).
Long Term Liabilities: LUV's short term assets ($15.2B) do not cover its long term liabilities ($18.2B).
Debt to Equity History and Analysis
Debt Level: LUV's debt to equity ratio (110.4%) is considered high.
Reducing Debt: LUV's debt to equity ratio has increased from 43.9% to 110.4% over the past 5 years.
Debt Coverage: LUV's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if LUV's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is Southwest Airlines's current dividend yield, its reliability and sustainability?
0.44%
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.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Gary Kelly (65 yo)
16.75yrs
Tenure
US$8,771,124
Compensation
Mr. Gary C. Kelly has been the Chairman and Chief Executive Officer of Southwest Airlines Co., an affiliate of AirTran Airways, Inc. since May 2008 and July 15, 2004 respectively. Mr. Kelly served as an Ex...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD8.77M) is about average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Gary's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: LUV's management team is considered experienced (4.3 years average tenure).
Board Members
Experienced Board: LUV's board of directors are seasoned and experienced ( 11.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LUV insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.2%.
Top Shareholders
Company Information
Southwest Airlines Co.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Southwest Airlines Co.
- Ticker: LUV
- Exchange: NYSE
- Founded: 1967
- Industry: Airlines
- Sector: Transportation
- Market Cap: US$35.561b
- Shares outstanding: 591.29m
- Website: https://www.southwest.com
Number of Employees
Location
- Southwest Airlines Co.
- PO Box 36611
- Dallas
- Texas
- 75235-1611
- United States
Listings
Biography
Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. As of December 31, 2020, the company o...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/15 22:28 |
| End of Day Share Price | 2021/04/15 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.