LUV
Southwest Airlines
$48.57
▲ 1.3%Updated Today 7:15 PM ET
▲ Up 53.9% over the last 12 months
Market Cap
$23.45B
P/E
28.83x
Forward P/E (est.)
20.59x
ROE
10.7%
Revenue Growth
4.7%
EPS Growth
80.7%
Profit Margin
2.8%
FCF Yield
6.7%
Debt / Equity
0.61x
ROIC
3.0%
Interest Coverage
3.63x
Current Ratio
0.48x
Dividend Yield
1.6%
Implied Growth (rev. DCF)
—
Rating Score
50/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what LUV's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. LUV trades near $48.57, above its 50-day average ($41.11) and 200-day average ($39.39). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 66 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. LUV's is $1.81 (~3.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month LUV found buyers near $38.81 (support) and sellers near $48.67 (resistance); its 52-week range is $28.98–$55.11. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.7× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Southwest Airlines (LUV) is a large-cap company in the Passenger Airlines industry, part of the Industrials sector of the S&P 500, with a market value around $23.45B.
In its latest reported year it generated about $28.06B in revenue and $441.00M in net profit.
Our model rates LUV Neutral (50/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
15.5%
Revenue moved from $15.79B in 2021 to $28.06B in 2025, a 15.5% compound annual growth rate. The most recent year was roughly flat (4.7%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
73.8%
Operating Margin
1.5%
Net Margin
1.6%
ROE
10.7%
Southwest Airlines keeps about 2.8% of each sales dollar as net profit, with a 73.8% gross margin and 1.5% operating margin. Return on equity is 10.7% and return on invested capital about 3.0%. Thin margins leave less cushion if costs rise.
Total Debt
$4.93B
Net Debt
$1.60B
Net Debt / EBITDA
3.74x
Debt / Equity
0.61x
Leverage: debt-to-equity is 0.6x, and operating profit covers interest about 3.6x, with a current ratio of 0.5x. That is a moderate, manageable debt load for most businesses. It carries roughly $4.93B of total debt against $3.33B of cash.
Operating CF
$1.84B
Free Cash Flow
-$831.00M
FCF Margin
-3.0%
In the latest year Southwest Airlines produced about $1.84B of operating cash flow but negative free cash flow as it invested heavily. That is a free-cash-flow yield of about 6.7% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
28.83x
P/S
0.83x
P/B
2.71x
EV / EBITDA
12.47x
LUV trades at 28.8x trailing earnings (about 20.6x on estimated forward earnings), 0.8x sales, and 2.7x book value. That is a premium multiple that needs growth to justify it.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How LUV stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (80 S&P 500 companies), LUV ranks #46 of 80 by our overall rating. It trades at roughly in line versus the sector on earnings (28.8x P/E vs. 30x median) with a lower return on equity (10.7% vs. 24.7%) and slower revenue growth (4.7% vs. 5.0%).
P/E vs sector
28.8x
median 30x
ROE vs sector
10.7%
median 24.7%
Growth vs sector
4.7%
median 5.0%
Sector rank
#46
of 80 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 80 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$37.37 – $63.75
vs. $48.57 today · expected CAGR -5% – 6%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $29.47B | $30.94B | $32.49B | $34.11B | $35.82B |
| Net income | $883.98M | $928.18M | $974.59M | $1.02B | $1.07B |
| EPS | $1.81 | $1.90 | $1.99 | $2.09 | $2.20 |
| Share price (low) | $30.75 | $32.28 | $33.90 | $35.59 | $37.37 |
| Share price (high) | $52.45 | $55.07 | $57.82 | $60.72 | $63.75 |
| CAGR (low–high) | -37% / 8% | -18% / 6% | -11% / 6% | -7% / 6% | -5% / 6% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for LUV:
- Healthy free-cash-flow yield (~6.7%) funds buybacks and dividends.
- As an established S&P 500 member in Industrials, it brings scale and a long operating history.
The case against LUV:
- Thin net margins (2.8%) leave little room for error.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Margin risk — thin profitability (2.8%) is vulnerable to cost or pricing pressure.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Southwest Airlines is a large-cap industrials business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 28.8x earnings, which our model scores Neutral (50/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.