Southwest Airlines Co. LUV
Composite 49/100; the shares have moved about 43% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Quality ranks 43/100 — a slight mark against it.
Valuation ranks 56/100 — a slight point in its favour. Income ranks 56/100 — a slight point in its favour.
Quality ranks 43/100 — a slight mark against it. Balance-sheet strength ranks 48/100 — a slight mark against it. Growth ranks 48/100 — a slight mark against it.
What the company does Southwest Airlines operates a 803-aircraft Boeing 737 fleet serving 117 U.S. and 10 near-international destinations, monetizing flights via ancillary fees, Rapid Rewards loyalty, and new lounge rollouts.
Key financials ROE 11.1%, ROA 2.3%, ROCE 6.8%; gross/operating/net margins 22.4%/3.4%/2.8%; revenue growth 2.1%, EPS growth 9.3%; debt/equity 0.97, interest coverage 6.68, current ratio 0.49.
Stock health SideraVia overall score 47.4 (Weak quality, attractively valued); Quality 42.9, Growth 46.2, Strength 45.0, Valuation 56.6, Momentum 44.0, Income 56.8. Piotroski F-Score 7/9, Altman Z 2.13.
Price vs fair value The stock trades at a discount of 36.20% versus the analyst mean target of 51.31. - New lounge openings in Austin, Baltimore, Honolulu, and Nashville (2026-09-02) - Stock fell 14% in a month amid broader market pressure (2026-08-31) - RSI(14) at 25.20 indicates oversold conditions
Looking forward Forward P/E 12.74 and EV/EBITDA 8.12 suggest valuation support, but weak momentum (3m -10.62%, 6m -20.40%) and thin net margins (2.8%) temper near-term outlooks. Dividend yield 1.9% with payout ratio 34.6% provides modest income.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.