Stock AnalizSouthwest Airlines Co. LUV
Air Freight/Delivery Services · data as of November 13, 2026
Southwest Airlines Co. (LUV) is a consumer discretionary company listed in the US with a market value of about $22.0B. In the twelve months to September 30, 2026 it had revenue of $31.5B and net income of $1.1B, a net margin of 3.3%.
Its overall Stock Analiz score is 1.4 out of 5 (weak). The strongest part is shareholder returns (4/5); the weakest is future growth (0/5).
Key numbers: a P/E of 21.9, 5-year revenue growth of 25% a year, a 5-year average ROIC of 3%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 10% below the current price.
Score: 1.4 / 5
Checks passed
- P/E below 25
- 5-year revenue growth above 8% a year
- Profitable 5 years in a row
- Pays a dividend
- Share count down over 3 years (buybacks)
- Dividend 3 years in a row
- Stock-based pay below 5% of revenue
Checks not passed
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $31.5B | $28.1B | $27.5B | $26.1B | $23.8B | $15.8B | $9.0B | $22.4B | $22.0B | $21.2B | $20.4B |
| Net income | $1.1B | $441M | $465M | $465M | $539M | $977M | -$3.1B | $2.3B | $2.5B | $3.4B | $2.2B |
| Free cash flow | -$450M | -$831M | -$1.6B | -$356M | -$134M | $1.8B | -$1.6B | $3.0B | $3.0B | $1.8B | $2.3B |
| EPS (diluted) | $2.05 | $0.79 | $0.76 | $0.76 | $0.87 | $1.61 | $-5.44 | $4.27 | $4.29 | $5.57 | $3.45 |
| Net margin | 3.3% | 1.6% | 1.7% | 1.8% | 2.3% | 6.2% | -34.0% | 10.3% | 11.2% | 15.9% | 10.7% |
| ROIC | — | 2.4% | 1.4% | 0.8% | 3.7% | 5.6% | -13.1% | 16.6% | 18.9% | 20.2% | 20.0% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 24 analysts is $50.01, 11% above the current price; targets range from $34.00 to $65.00; the consensus rating is “Buy”; expected EPS is $2.76 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Southwest Airlines’s P/E ratio?
About 21.9, based on the last twelve months of diluted earnings per share (forward P/E about 14.3).
Is Southwest Airlines stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 10% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Southwest Airlines pay a dividend?
Yes. The dividend yield is about 1.55%, and it has paid dividends for 8 years in our data.
Is Southwest Airlines a good stock to buy?
We do not give buy or sell advice. Southwest Airlines scores 1.4 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.