LUV
NEUTRAL
$40.92
Live
Southwest Airlines Co. · NYSE
Target $44.6
(+9.0%)
$24.63
52W Range
$55.11
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Apr 22, 2026
Market cap
$20.1B
P/E
53.14
ROE
4.8%
Profit margin
1.6%
Debt/Equity
0.75
Dividend yield
1.76%
AI Analysis
AI-powered fundamental assessment
Confidence
85%
LUV presents a conflicted profile with a stable but mediocre Piotroski F-Score of 4/9 and a significant valuation gap, trading at $40.92 against a Graham Number of $16.38. While the Forward P/E (8.95) and PEG (0.22) suggest strong future earnings potential and a recovery trajectory, current liquidity is concerning with a Current Ratio of 0.52. The dividend is largely unsustainable given a 91.14% payout ratio. Overall, the stock is trading at a significant premium to its intrinsic value of $22.71, though analyst targets remain slightly bullish.
Key Strengths
Strong earnings growth (YoY +50.80%)
Very attractive PEG ratio (0.22) suggesting growth is undervalued
Significant compression in Forward P/E (8.95) compared to trailing P/E
Strong 1-year price performance (+73.7%)
Manageable Debt/Equity ratio (0.75) relative to industry peers
Key Risks
Severe liquidity risk with a Current Ratio of 0.52 and Quick Ratio of 0.40
Unsustainable dividend payout ratio (91.14%)
Trading at a massive premium to Graham Number ($16.38) and Intrinsic Value ($22.71)
Bearish insider sentiment with recent selling activity
Thin profit margins (1.57%) leaving little room for operational error
AI Fair Value Estimate
Based on comprehensive analysis
$23.5
-42.6% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
47
Moderate
30
85
60
40
20
AI Verdict
Speculative Recovery
Key drivers: Earnings growth, Liquidity constraints, Valuation premium
Confidence
80%
Value
30/100
Ref P/E, PEG, Graham Number
Positives
- Low Price/Sales (0.72)
Watchpoints
- Price far exceeds Graham Number
- High trailing P/E (53.14)
Future
85/100
Ref Growth rates
Positives
- High YoY Earnings Growth
- Low Forward P/E
Watchpoints
- Industry volatility
Past
60/100
Ref Historical trends
Positives
- Strong 1Y recovery
Watchpoints
- Negative 5Y change (-27.7%)
Health
40/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Moderate Debt/Equity
Watchpoints
- Piotroski F-Score 4/9
- Current Ratio < 1.0
Dividend
20/100
Ref Yield, Payout
Positives
- Positive yield (1.76%)
Watchpoints
- Extreme payout ratio (91.14%)
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$40.92
Analyst Target
$44.6
Upside/Downside
+9.0%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for LUV and closest competitors.
Updated 2026-04-21
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
LUV
Southwest Airlines Co.
Primary
|
-27.7% | +36.0% | +73.7% | +19.0% | +1.4% | -0.8% |
|
BWXT
BWX Technologies, Inc.
Peer
|
+252.3% | +262.4% | +108.1% | +10.1% | +0.5% | -5.4% |
|
CHRW
C.H. Robinson Worldwide, Inc.
Peer
|
+93.4% | +87.8% | +89.8% | +25.1% | -8.7% | +0.0% |
|
EXPD
Expeditors International of Washington, Inc.
Peer
|
+42.5% | +39.5% | +34.6% | +25.9% | +3.1% | +0.2% |
|
EFX
Equifax Inc.
Peer
|
-20.7% | -11.0% | -32.3% | -25.9% | -0.1% | -12.1% |
LUV
Southwest Airlines Co.
Primary
5Y
-27.7%
3Y
+36.0%
1Y
+73.7%
6M
+19.0%
1M
+1.4%
1W
-0.8%
BWX
BWX Technologies, Inc.
Peer
5Y
+252.3%
3Y
+262.4%
1Y
+108.1%
6M
+10.1%
1M
+0.5%
1W
-5.4%
CHR
C.H. Robinson Worldwide, Inc.
Peer
5Y
+93.4%
3Y
+87.8%
1Y
+89.8%
6M
+25.1%
1M
-8.7%
1W
+0.0%
EXP
Expeditors International of Washington, Inc.
Peer
5Y
+42.5%
3Y
+39.5%
1Y
+34.6%
6M
+25.9%
1M
+3.1%
1W
+0.2%
EFX
Equifax Inc.
Peer
5Y
-20.7%
3Y
-11.0%
1Y
-32.3%
6M
-25.9%
1M
-0.1%
1W
-12.1%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
53.14
Forward P/E
8.95
PEG Ratio
0.22
P/B Ratio
2.64
P/S Ratio
0.72
EV/Revenue
0.81
EV/EBITDA
13.29
Market Cap
$20.1B
Profitability
Profit margins and return metrics
Profit Margin
1.57%
Operating Margin
5.09%
Gross Margin
22.04%
ROE
4.81%
ROA
0.95%
Growth
Revenue and earnings growth rates
Revenue Growth
+7.4%
Earnings Growth
+50.8%
Q/Q Revenue Growth
+7.39%
Q/Q Earnings Growth
+23.8%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.75
Moderate
Current Ratio
0.52
Weak
Quick Ratio
0.4
Poor
Cash/Share
$6.58
Financial Statement Flow
Interactive flow visualization showing how money moves through the company Q4 2025
Revenue
$7.4B
Gross Margin
20.3%
Op. Margin
5.3%
Net Margin
4.3%
Total Assets
$29.1B
Liabilities
$21.1B
Equity
$8.0B
Debt/Equity
2.64x
Operating CF
$0.3B
CapEx
$-0.9B
Free Cash Flow
$-0.6B
FCF Yield
-191%
Quarterly Earnings History
EPS performance vs analyst estimates
2026-04-22
$N/A
2026-01-28
$0.58
+1.8% surprise
2025-10-22
$0.11
+401.0% surprise
2025-07-23
$0.43
-16.2% surprise
Industrials Sector Comparison
Comparing LUV against 469 companies in the Industrials sector
(39 bullish, 174 neutral, 256 bearish)
P/E Ratio
53.14
This Stock
vs
98.24
Sector Avg
-45.9%
(Discount)
Return on Equity (ROE)
4.81%
This Stock
vs
-19.38%
Sector Avg
-124.8%
(Below Avg)
Profit Margin
1.57%
This Stock
vs
6.65%
Sector Avg
-76.4%
(Weaker)
Debt to Equity
0.75
This Stock
vs
2.63
Sector Avg
-71.5%
(Less Debt)
Revenue Growth
7.4%
This Stock
vs
71.29%
Sector Avg
-89.6%
(Slower)
Current Ratio
0.52
This Stock
vs
3.09
Sector Avg
-83.3%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
LUV
Southwest Airlines Co.
|
NEUTRAL | $20.1B | 53.14 | 4.8% | 1.6% | $40.92 | |
|
BWXT
BWX Technologies, Inc.
|
NEUTRAL | $20.44B | 62.51 | 28.5% | 10.3% | $223.15 | Compare |
|
CHRW
C.H. Robinson Worldwide, Inc.
|
BEARISH | $19.7B | 34.39 | 32.9% | 3.6% | $166.1 | Compare |
|
EXPD
Expeditors International...
|
BEARISH | $19.62B | 24.8 | 35.4% | 7.3% | $147.56 | Compare |
|
EFX
Equifax Inc.
|
NEUTRAL | $20.81B | 30.42 | 14.4% | 11.1% | $172.47 | Compare |
LUV
Southwest Airlines Co.
NEUTRAL
Mkt Cap
$20.1B
P/E
53.1
ROE
4.8%
Price
$40.92
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-04-07 | ATHERTON LISA M | Director | Sale | 118 | $4,478 |
| 2026-03-16 | JORDAN ROBERT E | Chief Executive Officer | Stock Award | 92,867 | - |
| 2026-03-16 | WATTERSON ANDREW M | Chief Operating Officer | Stock Award | 35,092 | - |
| 2026-03-16 | JONES JUSTIN | Officer | Stock Award | 23,863 | - |
| 2026-03-16 | ROACH ANTHONY | Officer | Stock Award | 22,058 | - |
| 2026-03-16 | DOXEY TOM | Chief Financial Officer | Stock Award | 28,199 | - |
| 2026-03-16 | MARTINEZ JIMMY RYAN | Officer | Stock Award | 7,294 | - |
| 2026-03-16 | WOODS LAUREN TAUSCHER | Chief Technology Officer | Stock Award | 18,950 | - |
| 2025-12-05 | JONES JUSTIN | Officer | Sale | 8,085 | $302,056 |
ATHERTON LISA M
Director
2026-04-07
118 shares
·
$4,478
JORDAN ROBERT E
Chief Executive Officer
2026-03-16
92,867 shares
WATTERSON ANDREW M
Chief Operating Officer
2026-03-16
35,092 shares
JONES JUSTIN
Officer
2026-03-16
23,863 shares
ROACH ANTHONY
Officer
2026-03-16
22,058 shares
DOXEY TOM
Chief Financial Officer
2026-03-16
28,199 shares
MARTINEZ JIMMY RYAN
Officer
2026-03-16
7,294 shares
WOODS LAUREN TAUSCHER
Chief Technology Officer
2026-03-16
18,950 shares
JONES JUSTIN
Officer
2025-12-05
8,085 shares
·
$302,056
Insider transactions can signal confidence or concerns about company prospects
SEC Filings
Recent regulatory filings from the SEC EDGAR database
DEF 14A
8-K
10-K
8-K
Data sourced from SEC EDGAR. AI summaries generated automatically.
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
23 analysts
Freedom Broker
2026-03-26
Buy
Buy
UBS
2026-03-23
Buy
Buy
Citigroup
2026-03-20
Neutral
Neutral
UBS
2026-03-16
Buy
Buy
Wells Fargo
2026-03-16
Equal-Weight
Equal-Weight
Jefferies
2026-03-12
Hold
Hold
Evercore ISI Group
2026-03-12
In-Line
In-Line
TD Cowen
2026-03-09
Buy
Buy
Rothschild & Co
2026-03-05
Sell
Sell
TD Cowen
2026-02-27
Hold
Buy
Past News Coverage
Recent headlines mentioning LUV from our newsroom.
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