Southwest Airlines Co (LUV)
Industrials · Passenger Airlines · US stock · S&P 500 component
$39.50
▼ -1.33 (3.26%)
Fair valueData under review
$55
$28fair band $39–$72$83
Day's range
$39.45 – $41.25
52-week range
$28.75 – $54.38
About Southwest Airlines Co
Southwest Airlines is a Dallas-based passenger airline that flies mainly short- and medium-haul routes across the United States and to nearby destinations in Mexico, the Caribbean and Central America. It operates a point-to-point route network rather than a hub-and-spoke one. Customers are leisure and business travellers who book through the airline's website, app and reservation centres, and it also earns income from cargo and a loyalty programme.
Revenue comes mainly from passenger fares, supplemented by cargo, loyalty programme and other income. It totals $30.1 billion over the last twelve months, growing at 5.6% a year across the last three years. The operating margin is 3.5%, and the business earns a profit of 9% on the capital invested in it. The airline carries net debt of 0.8 times EBITDA, and the dividend yield is 1.8%. On the site's X-Ray Score it receives 40 out of 100.
Written with AI from public information and the filing figures on this page, then checked automatically for unsupported numbers. It can contain mistakes: read the company's own filings below before relying on it.
Price chart
52-wk range $28.75 – $54.38Volume 5,610,800Daily, split-adjusted
Vitals
Market cap$19.5B
52-week range$28.75 – $54.38
Volume (last day)5,610,800
P/E (TTM)24.5
EBIT / EV yield4.8%
Free-cash-flow yield-2.3%
Dividend yield1.8%
Revenue (TTM)$30.1B
Net income (TTM)$837M
Operating margin3.5%
Return on capital8.8%
Debt incl. leases$5.9B
Cash & securities$3.8B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies like Apple). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$55model spread $50 – $60
Data under review
+0.0% to fair value
Equal blend of three models: peer multiples, a fundamentals-adjusted multiple (growth, ROIC and margin) and a 10-year DCF scaled to the market's average. Earnings-power value (no growth) is a floor and not part of the blend. Model uncertainty is Medium, so the safety margin is 30%.
Earnings are far above the company's own 3-year history, so models would extrapolate a possible peak
Price $40
Undervalued < $39Fair $39 – $72Overvalued > $72
10-year DCF (market-scaled)
$67
Peer multiples
$45
Earnings power floor (not blended)
$-13
Fundamentals-adjusted multiple
$54
Growth the price implies
13.6%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.09%, equity risk premium 4.23% (Damodaran). How it works.
What this means
Read the lenses below
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Valuation
Weak
48/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield4.8%
Free-cash-flow yield-2.3%
Fair value vs price1.4×
Growth
Weak
40/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)5.6%
EPS growth (3y)-3.2%
Growth consistency90%
Profitability
Weak
28/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital8.8%
Operating margin3.5%
Financial health
Weak
45/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score8 / 9
Net debt / EBITDA0.8×
Interest cover5.2×
Dividends
Weak
38/100
Dividend is modest or less certain than peers.
See the numbers →
Dividend yield1.8%
Quarterly results: last 6 quarters
+1.6%
Mar '25
-1.5%
Jun '25
+1.1%
Sep '25
+7.4%
Dec '25
+12.8%
Mar '26
+16.4%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $8.4B, diluted EPS $0.47.
Compare with peers
UAL United Airlines Holdin...64 DAL Delta Air Lines, Inc.61Other Passenger Airlines companies by X-Ray Score.
Fundamentals checklist
● 4 Good · ● 3 Average · ● 7 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldBad
Risk models
Altman Z''Bad
Piotroski F-ScoreGood
Growth
EPS growth (3y)Bad
Revenue growth (3y)Average
Growth consistencyAverage
Balance sheet
Current ratioBad
Net debt / EBITDAGood
Interest coverBad
Valuation
Fair value vs priceGood
EBIT / EV yieldAverage
Profitability
Return on invested capitalBad
Operating marginBad
Each check is graded against the company's sector, not a fixed number. Checklist score 37/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $15.8B | $23.8B | $26.1B | $27.5B | $28.1B |
| Operating income | $1.7B | $1.0B | $224M | $321M | $428M |
| Net income | $977M | $539M | $465M | $465M | $441M |
| Operating cash flow | $2.3B | $3.8B | $3.2B | $462M | $1.8B |
| Operating margin | 10.9% | 4.3% | 0.9% | 1.2% | 1.5% |
| Free cash flow | $1.8B | −$134M | −$356M | −$1.6B | −$831M |
| Diluted EPS | $1.61 | $0.87 | $0.76 | $0.76 | $0.79 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bearish
3 bullish · 1 neutral · 12 bearish
Weekly
Bearish
3 bullish · 1 neutral · 8 bearish
Monthly
Bullish
5 bullish · 1 neutral · 2 bearish
Moving averages (daily)
| SMA 10 | 41.01 | Bearish |
| EMA 10 | 40.72 | Bearish |
| SMA 20 | 41.48 | Bearish |
| EMA 20 | 40.97 | Bearish |
| SMA 50 | 41.09 | Bearish |
| EMA 50 | 41.64 | Bearish |
| SMA 100 | 43.82 | Bearish |
| EMA 100 | 42.24 | Bearish |
| SMA 200 | 43.17 | Bearish |
| EMA 200 | 41.42 | Bearish |
Oscillators (daily)
| RSI (14) | 41.43 | Neutral |
| MACD (12, 26) | -0.26 | Bearish |
| Momentum (12) | -5.14 | Bearish |
| Stochastic %K (14) | 10.05 | Bullish |
| Williams %R (14) | -89.95 | Bullish |
| CCI (20) | -146.1 | Bullish |
Pivot points (classic, last session)
S3 37.08 | S2 38.27 | S1 38.88 | Pivot 40.07 | R1 40.68 | R2 41.87 | R3 42.48 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
0.72 USD
Yield on today's price
1.82%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 3 Sep 2026 | 0.1800 |
| 11 Jun 2026 | 0.1800 |
| 12 Mar 2026 | 0.1800 |
| 26 Dec 2025 | 0.1800 |
| 3 Sep 2025 | 0.1800 |
| 18 Jun 2025 | 0.1800 |
| 12 Mar 2025 | 0.1800 |
| 26 Dec 2024 | 0.1800 |
| 4 Sep 2024 | 0.1800 |
| 18 Jun 2024 | 0.1800 |
| 5 Mar 2024 | 0.1800 |
| 20 Dec 2023 | 0.1800 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
LUV SEC filings
12 Aug 2026
8-KSEC EDGAR
Entered a material agreement
10 Aug 2026
8-KSEC EDGAR
Director or officer change
7 Aug 2026
8-KSEC EDGAR
Director or officer change
23 Jul 2026
10-QSEC EDGAR
Quarterly report
22 Jul 2026
8-KSEC EDGAR
Results of operations
19 May 2026
8-KSEC EDGAR
Entered a material agreement
11 May 2026
8-KSEC EDGAR
Shareholder vote results
23 Apr 2026
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.