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Southwest Airlines Co. (LUV) Stock

Southwest Airlines Co. Stock Details, Movements and Public Alerts

Stock Details

Southwest Airlines Co. (LUV), a prominent company in the energy & transportation sector within the air transportation, scheduled industry, is based in USA and primarily trades on the NYSE.Currently, the stock is trading at $37.32. Over the past 52 weeks, it has ranged between $23.04 and $37.85. This places the current price at 98.6% of its 52-week high and 62.0% above its 52-week low. Recent trading volume was recorded at 104,805. The International Securities Identification Number (ISIN) for this stock is US8447411088.

Market Cap

$18.33B

52-Week High

$37.85

-1.40% from high

52-Week Low

$23.04

+61.98% from low

Avg Daily Volume

104,805

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

36.13

Above market average

Forward P/E

24.75

Earnings expected to grow

PEG Ratio

0.55

Potentially undervalued

Price to Book

1.96

EV/EBITDA

7.11

EPS (TTM)

$0.89

Price to Sales

0.66

Beta

1.23

Similar volatility to market

How is LUV valued relative to its earnings and growth?
Southwest Airlines Co. trades at a P/E ratio of 36.13, 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 24.75 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.55 suggests the stock may be undervalued relative to its growth rate.
What is LUV's risk profile compared to the market?
With a beta of 1.23, Southwest Airlines Co. 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 1.96 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

1.98%

Operating Margin

-2.51%

Return on Equity

5.59%

Return on Assets

0.93%

Revenue Growth (YoY)

1.60%

Earnings Growth (YoY)

-64.40%

How profitable and efficient is LUV's business model?
Southwest Airlines Co. achieves a profit margin of 1.98%, meaning it retains $1.98 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 -2.51% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 5.59% and ROA at 0.93%, the company achieves moderate returns on invested capital.
What are LUV's recent growth trends?
Southwest Airlines Co.'s revenue grew by 1.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 64.40% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against AIR TRANSPORTATION, SCHEDULED industry averages for proper context.

Dividend Information

Dividend Per Share

$0.72

Dividend Yield

2.24%

Ex-Dividend Date

6/18/2025

Dividend Date

7/9/2025

What dividend income can investors expect from LUV?
Southwest Airlines Co. offers a dividend yield of 2.24%, paying $0.72 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 6/18/2025.
How reliable is LUV's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Southwest Airlines Co. pays $0.72 per share in dividends against earnings of $0.89 per share, resulting in a payout ratio of 80.90%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for 7/9/2025.

Company Size & Market

Shares Outstanding

569.87M

Book Value/Share

$16.43

Asset Type

Common Stock

What is LUV's market capitalization and position?
Southwest Airlines Co. has a market capitalization of $18.33B, 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 569.87M shares outstanding, the company's ownership is relatively concentrated. As a participant in the AIR TRANSPORTATION, SCHEDULED industry, it competes with other firms in this sector.
How does LUV's price compare to its book value?
Southwest Airlines Co.'s book value per share is $16.43, while the current stock price is $37.32, resulting in a price-to-book (P/B) ratio of 2.27. 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 a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$30.11

19.32% downside potential

Analyst Recommendations

Strong Buy

2

Buy

5

Hold

11

Sell

2

Strong Sell

4

How reliable are analyst predictions for LUV?
24 analysts cover LUV with 29% 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 $30.11 implies -19.3% downside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on LUV?
Current analyst recommendations:2 Strong Buy, 5 Buy, 11 Hold, 2 Sell, 4 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: Jul 1, 2025, 02:01 AM

Technical Indicators

What does LUV's RSI value tell investors?
RSI data is not available for this stock.
How should traders interpret LUV's MACD and moving average crossovers?
MACD and moving average data are not available for this stock.

No technical indicators available yet.

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