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Southwest Airlines Company (LUV) Stock

Southwest Airlines Company Stock Details, Movements and Public Alerts

Stock Details

Southwest Airlines Company (LUV), a prominent company in the industrials sector within the airlines industry, is based in United States and primarily trades on the NYQ.Currently, the stock is trading at $40.21. Over the past 52 weeks, it has ranged between $23.82 and $55.11. This places the current price at 73.0% of its 52-week high and 68.8% above its 52-week low. Recent trading volume was recorded at 7,888,443. The International Securities Identification Number (ISIN) for this stock is US8447411088.

52-Week Range

$55.11 - $23.82

-27.04% from high · +68.81% from low

Avg Daily Volume

7,888,443

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

49.05

Above market average

Forward P/E

7.95

Earnings expected to grow

Price to Book

2.50

EV/EBITDA

12.67

EPS (TTM)

$0.79

Price to Sales

0.71

Beta

1.09

Similar volatility to market

Q:How is LUV valued relative to its earnings and growth?
Southwest Airlines Company trades at a P/E ratio of 49.05, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 7.95 is lower than the current P/E, indicating analysts expect earnings to grow over the next year.
Q:What is LUV's risk profile compared to the market?
With a beta of 1.09, Southwest Airlines Company is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 2.50 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

1.57%

Operating Margin

5.09%

EBITDA

$1.72B

Return on Equity

4.81%

Return on Assets

0.95%

Revenue Growth (YoY)

7.40%

Earnings Growth (YoY)

50.80%

Q:How profitable and efficient is LUV's business model?
Southwest Airlines Company achieves a profit margin of 1.57%, meaning it retains $1.57 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 5.09% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 4.81% and ROA at 0.95%, the company achieves moderate returns on invested capital.
Q:What are LUV's recent growth trends?
Southwest Airlines Company's revenue grew by 7.40% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 50.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against Airlines industry averages for proper context.

Dividend Information

Dividend Per Share

$0.72

Dividend Yield

1.86%

Ex-Dividend Date

Mar 12, 2026

Dividend Date

Apr 2, 2026

Q:What dividend income can investors expect from LUV?
Southwest Airlines Company offers a dividend yield of 1.86%, paying $0.72 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Mar 12, 2026.
Q:How reliable is LUV's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Southwest Airlines Company pays $0.72 per share in dividends against earnings of $0.79 per share, resulting in a payout ratio of 91.14%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Apr 2, 2026.

Company Size & Market

Market Cap

$20.0B

Revenue (TTM)

$28.06B

Revenue/Share (TTM)

$51.97

Shares Outstanding

491.32M

Book Value/Share

$15.48

Asset Type

EQUITY

Q:What is LUV's market capitalization and position?
Southwest Airlines Company has a market capitalization of $20.0B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 491.32M shares outstanding, the company's ownership is relatively concentrated. As a participant in the Airlines industry, it competes with other firms in this sector.
Q:How does LUV's price compare to its book value?
Southwest Airlines Company's book value per share is $15.48, while the current stock price is $40.21, resulting in a price-to-book (P/B) ratio of 2.60. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As EQUITY, this represents a specific type of security.

Analyst Ratings

Analyst Target Price

$48.78

21.31% upside potential

Analyst Recommendations

Strong Buy

3

Buy

4

Hold

12

Sell

3

Strong Sell

3

Q:How reliable are analyst predictions for LUV?
25 analysts cover LUV with 28% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $48.78 implies 21.3% upside, but targets are often adjusted to follow price moves rather than predict them.
Q:What is the Wall Street consensus on LUV?
Current analyst recommendations:3 Strong Buy, 4 Buy, 12 Hold, 3 Sell, 3 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Mar 15, 2026, 02:36 AM

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