Southwest Airlines Co. operates a passenger airline that provides scheduled air transportation services in the United States and near-international markets.
No risks detected for LUV from our risk checks.
Adequate balance sheet average dividend payer.
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 underperformed the US Airlines industry which returned -10.6% over the past year.
Return vs Market: LUV underperformed the US Market which returned 10.2% 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
6 days ago | Simply Wall StAre You An Income Investor? Don't Miss Out On Southwest Airlines Co. (NYSE:LUV)
2 weeks ago | Simply Wall StShould You Be Concerned With Southwest Airlines Co.'s (NYSE:LUV) -6.7% Earnings Drop?
4 weeks ago | Simply Wall StHere's What Analysts Are Forecasting For Southwest Airlines Co. After Its Yearly Results
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 ($48.9) is trading below our estimate of fair value ($133.48)
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 (11.4x) compared to the Airlines industry average (6.9x).
PE vs Market: LUV is good value based on its PE Ratio (11.4x) compared to the US market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: LUV is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: LUV is overvalued based on its PB Ratio (2.6x) compared to the US Airlines industry average (1.3x).
How is Southwest Airlines forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LUV's forecast earnings growth (7.1% per year) is above the savings rate (1.7%).
Earnings vs Market: LUV's earnings (7.1% per year) are forecast to grow slower than the US market (13.2% per year).
High Growth Earnings: LUV's earnings are forecast to grow, but not significantly.
Revenue vs Market: LUV's revenue (4.8% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: LUV's revenue (4.8% per year) is forecast to grow slower 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 (18.7%).
How has Southwest Airlines performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LUV has high quality earnings.
Growing Profit Margin: LUV's current net profit margins (10.3%) are lower than last year (11.2%).
Past Earnings Growth Analysis
Earnings Trend: LUV's earnings have grown by 10.9% 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 (-6.7%) over the past year, making it difficult to compare to the Airlines industry average (41.3%).
Return on Equity
High ROE: LUV's Return on Equity (23.4%) is considered high.
Return on Assets
Return on Capital Employed
How is Southwest Airlines's financial position?
Financial Position Analysis
Short Term Liabilities: LUV's short term assets ($6.0B) do not cover its short term liabilities ($9.0B).
Long Term Liabilities: LUV's short term assets ($6.0B) do not cover its long term liabilities ($7.1B).
Debt to Equity History and Analysis
Debt Level: LUV's debt to equity ratio (20.8%) is considered satisfactory.
Reducing Debt: LUV's debt to equity ratio has reduced from 40.6% to 20.8% over the past 5 years.
Debt Coverage: LUV's debt is well covered by operating cash flow (195.1%).
Interest Coverage: LUV earns more interest than it pays, so coverage of interest payments is not a concern.
Inventory Level: LUV has a high level of physical assets or inventory.
Debt Coverage by Assets: LUV's debt is covered by short term assets (assets are 2.9x debt).
What is Southwest Airlines's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Purchase Southwest Airlines before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: LUV's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).
High Dividend: LUV's dividend (1.47%) is low compared to the top 25% of dividend payers in the US market (3.96%).
Stability and Growth of Payments
Stable Dividend: LUV's dividends per share have been stable in the past 10 years.
Growing Dividend: LUV's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (16.4%), LUV's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LUV's dividends in 3 years are forecast to be thoroughly covered by earnings (15% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Gary Kelly (64yo)
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 ($USD7.73M) is about average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.
|Chairman & CEO||15.6yrs||US$7.73m||0.12% $29.2m|
|Executive VP & CFO||7.4yrs||US$3.14m||0.016% $4.1m|
|Chief Operating Officer||11.8yrs||US$3.78m||0.033% $8.4m|
|Executive Vice President of Corporate Services||15.5yrs||US$3.11m||0.014% $3.7m|
|Managing Director of Accounting & Financial Reporting||1.3yrs||no data||no data|
|VP of Technology – Infrastructure & Services and CTO||0.4yrs||no data||no data|
|Senior VP of Technology & Chief Information Officer||2.6yrs||no data||no data|
|Managing Director of Investor Relations||2.4yrs||no data||no data|
|Executive VP and Chief Legal & Regulatory Officer||7yrs||no data||0.0019% $478.1k|
Experienced Management: LUV's management team is seasoned and experienced (5 years average tenure).
|Chairman & CEO||15.6yrs||US$7.73m||0.12% $29.2m|
|Independent Director||11.3yrs||US$281.52k||0.010% $2.6m|
|Vice Chairman||4.6yrs||US$273.02k||0.037% $9.4m|
|Independent Director||13.8yrs||US$283.02k||0.010% $2.5m|
|Independent Director||10.1yrs||US$248.02k||0.010% $2.6m|
|Independent Director||8.5yrs||US$248.02k||0.0083% $2.1m|
|Independent Director||18.1yrs||US$286.52k||0.0040% $1.0m|
|Lead Director||0yrs||US$300.02k||0.015% $3.7m|
|Independent Director||16.9yrs||US$248.02k||0.0081% $2.1m|
|Independent Director||4.4yrs||US$254.02k||0.0022% $546.4k|
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
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$25.296b
- Shares outstanding: 517.30m
- 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 total of 747 Boeing 737 aircraft; and served 101 destinations in 40 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 10 near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. It also offers inflight entertainment and connectivity service on Wi-Fi enabled aircraft; and sells points and related services to business partners participating in the Rapid Rewards loyalty program, such as car rental agencies, hotels, and restaurants. In addition, the company provides a suite of digital platforms to support customers' needs across the travel journey, including Southwest.com, mobile.southwest.com, an iOS app, an iPadOS app, and an android app; and SWABIZ, an online booking tool. Further, it offers ancillary services, such as Southwest's EarlyBird Check-In, upgraded boarding, and transportation of pets and unaccompanied minors. Southwest Airlines Co. was founded in 1967 and is headquartered in Dallas, Texas.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/28 00:09|
|End of Day Share Price||2020/02/27 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.