Stock · LUV · Industrials

Southwest Airlines Company

United States · Large Cap · listed since 1980 · Revenue 12 mo. $31.5B

Price as of 11/06/2026

StockScorer score
0.9
of 10 1 of 11 points Low Match To the score
Price
$44.45
1 Y +31.5%
Market cap
$22.7B
Phase
Payout
core business profitable, at least half of operating cash flow goes to shareholders
Revenue +5.6% a year (3 years)EBIT margin 1.5%Payout 158.4% of operating cash flow

Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally.

moreless

Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee. In addition, the company offers ancillary services, such as in-flight purchases, baggage fees, EarlyBird Check-In, and upgraded boarding, as well as transportation of pets and unaccompanied minors. As of December 31, 2025, the company operated a total fleet of 803 Boeing 737 aircraft; and served 117 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.

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Summary

Southwest Airlines Company is around the middle of the Industrials sector overall

40.8 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

Free cash flow was negative in 2025. No priced-in expectation can be derived from it.

Valuation against its own history

Price to operating cash flow 8.5×, within its usual range.

Middle half of 20 quarters: 7.0× to 11.3×, median 8.5×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

No sign supports the expectation, 3 speak against it.

What supports it

with respect to the priced-in expectation

No indication in the stored figures.

What speaks against it

with respect to the priced-in expectation

  • Negative free cash flow FCF −€745.7M (2025)
  • Dividend above free cash flow
  • Volatile earnings 3 drops or sign changes in up to 10 years

Since the last quarter

Q2 → Q3 2026

Mostly worse than the previous quarter: 2 of 3 changes for the worse.

  • FCF, 12 mo.−$621.0M → −$725.0M−16.8%worse
  • Gross margin61.0% → 55.7%−5.3 ppworse
  • Return on equity11.8% → 14.4%+2.6 ppbetter

5 more unchanged: Revenue, 12 mo., EBIT margin, FCF margin, Net debt, Shares outstanding

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability8.8below the middleEarns less than the sector: Return on capital (Greenblatt) 2.01%, sector 19.33%.
MetricStockSector medianPosition in sector
Return on equity5.53%13.10%Rank 10
Return on capital (Greenblatt)2.01%19.33%Rank 2
EBIT margin1.53%11.28%Rank 2
FCF margin−2.96%8.50%Rank 7
Gross margin17.44%28.98%Rank 23
Growth47.3around the middleGrows about as fast as the sector.
MetricStockSector medianPosition in sector
Revenue growth, 1 year2.11%5.15%Rank 33
Earnings growth, 3 years per year−1.99%8.01%Rank 26
Earnings growth, 5 years per yeardoes not count towards the rank–12.89%
Sustainable growth (ROE × retained earnings)9.52%4.02%Rank 83
Valuation24.9below the middleValued higher than the sector: EV/EBIT 59.52, sector 19.47.
MetricStockSector medianPosition in sector
Earnings yield1.78%4.42%Rank 8
FCF yield−3.66%3.98%Rank 6
EV/saleslower is better0.912.08Rank 83
EV/EBITlower is better59.5219.47Rank 3
Momentum62.5above the middleShare price doing better than the sector: Share price, 1 year 31.46%, sector −0.01%.
MetricStockSector medianPosition in sector
Share price, 1 year31.46%−0.01%Rank 90
Share price, 6 months8.08%−1.43%Rank 69
Share price, 3 months−0.39%0.53%Rank 48
Distance from 52-week high−18.89%−16.36%Rank 43
Quality67.2above the middleQuality above the sector: Change in share count −13.22%, sector −0.44%.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better0.09%1.39%Rank 61
Change in share countlower is better−13.22%−0.44%Rank 99
Dividend streak in years15Rank 21
Price reaction to results, market-adjusted6.50%0.27%Rank 88
Balance sheet & risk34.1below the middleMore risk than the sector: Volatility, 1 year 44.70%, sector 32.95%.
MetricStockSector medianPosition in sector
Equity ratio27.46%39.65%Rank 23
Net debt/EBITDAlower is better1.231.38Rank 54
Debt to equitylower is better0.750.61Rank 43
Volatility, 1 yearlower is better44.70%32.95%Rank 16

Ten years in figures

Revenue from $20.4B (2016) to $28.1B (2025), 3.6% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCFSharesNet debt
201620.417.2%$2.1B633M$1.7B
201721.216.1%$1.7B603M$2.2B
201822.014.6%$2.9B574M$1.5B
201922.413.2%$3.0B539M$1.4B
20209.0−42.2%−$1.6B565M$1.1B
202115.810.9%$1.8B609M−$199.0M
202223.84.3%−$156.0M642M−$19.0M
202326.10.9%−$356.0M640M−$88.0M
202427.51.2%−$1.6B643M$549.0M
202528.11.5%−$831.0M558M$3.2B
0.9 / 10Low MatchStockScorer score1 of 11 points

1 of 7 StockScorer Score rules met · How the score is built

Southwest Airlines Company mainly meets criteria in the Momentum category. Result from 18 strategies checked.

This stock · Profitability: 0%This stock · Growth: 0%This stock · Valuation: 0%This stock · Momentum: 100%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Southwest Airlines Company's score is built

Southwest Airlines Company is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

1 of 7 rules met

1 of 11 points

  1. Free cash flow yield above the sector mediannot met0 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector mediannot met0 of 2 points
  3. Return on equity above the sector mediannot met0 of 1 point
  4. Free cash flow margin above the sector mediannot met0 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.not met0 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketmet1 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Southwest Airlines Company stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • StockScorer Score
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Moat Quality
  • Defensive: Low Volatility
  • Dividend Aristocrats & Continuity
  • Dividend Quality: 4 Factors
  • Balanced GARP
  • High-Growth / Rule of 40
  • Levermann Strategy (13 Criteria)
  • Magic Formula: Value + Quality
  • PEG Strategy (inspired by Peter Lynch)
  • Undervalued Stocks: Multi-Factor Check

Southwest Airlines Company key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Southwest Airlines Company.

MetricStockSector
P/E ratio56.222.5
P/B ratio3.12.9
Return on equity (ROE)5.5%13.1%
Equity ratio27.5%39.7%
Debt-to-equity (D/E)0.750.61
Dividend yield1.6%2.0%

Similar stocks in Industrials

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
LUVSouthwest Airlines Companythis page
UALUnited Airlines Holdings IncLow3.6
DALDelta Air Lines IncLow4.5
INDIGO.NSInterGlobe Aviation Limitedlocked
IAG.MCInternational Consolidated Airlines Group S.Alocked
601111.SSAir China Ltd Class Alocked

Frequently asked questions about Southwest Airlines Company stock

How does Southwest Airlines Company stock (LUV) score in the StockScorer model?
Southwest Airlines Company stock reaches a StockScorer score of 0.9 out of 10, which is a low match with the rule-based strategies. 1 out of 7 flagship profile rules are met.
What is Southwest Airlines Company's P/E ratio?
Southwest Airlines Company's P/E ratio is 56.2. The Industrials sector median is 22.5.
What sector is Southwest Airlines Company in?
Southwest Airlines Company is assigned to the Industrials sector. Its rank within the sector is 40.8 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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