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Southwest Airlines Company is an airlines business based in the US. Southwest Airlines Company shares (LUV) are listed on the NYSE and all prices are listed in US Dollars. Southwest Airlines Company employs 64,123 staff and has a trailing 12-month revenue of around $22.7 billion.
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| Latest market close | $36.87 |
|---|---|
| 52-week range | $30.05 - $49.84 |
| 50-day moving average | $37.03 |
| 200-day moving average | $38.45 |
| Wall St. target price | $47.19 |
| PE ratio | 27.7218 |
| Dividend yield | $0 (1.96%) |
| Earnings per share (TTM) | $1.33 |
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Historical closes compared with the close of $36.87 from 2023-01-25
| 1 week (2023-01-18) | 1.57% |
|---|---|
| 1 month (2022-12-23) | N/A |
| 3 months (2022-10-25) | 6.50% |
| 6 months (2022-07-26) | -6.89% |
| 1 year (2022-01-27) | -13.90% |
|---|---|
| 2 years (2021-01-27) | -16.49% |
| 3 years (2020-01-27) | 56.25 |
| 5 years (2018-01-26) | 60.82 |
Valuing Southwest Airlines Company stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Southwest Airlines Company's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Southwest Airlines Company's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 28x. In other words, Southwest Airlines Company shares trade at around 28x recent earnings.
That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).
Southwest Airlines Company's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.4312. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Southwest Airlines Company's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Southwest Airlines Company's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $2.7 billion.
The EBITDA is a measure of a Southwest Airlines Company's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | $22.7 billion |
|---|---|
| Operating margin TTM | 7.16% |
| Gross profit TTM | $2.2 billion |
| Return on assets TTM | 2.78% |
| Return on equity TTM | 7.81% |
| Profit margin | 3.64% |
| Book value | $18.40 |
| Market capitalisation | $21.9 billion |
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Southwest Airlines Company.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 29.94
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Southwest Airlines Company's overall score of 29.94 (as at 12/31/2018) is pretty weak – landing it in it in the 61st percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Southwest Airlines Company is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 8.72/100
Social score: 11.49/100
Governance score: 4.73/100
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Southwest Airlines Company scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Southwest Airlines Company has, for the most part, managed to keep its nose clean.
Southwest Airlines Company was last rated for ESG on: 2019-01-01.
| Total ESG score | 29.94 |
|---|---|
| Total ESG percentile | 61.04 |
| Environmental score | 8.72 |
| Social score | 11.49 |
| Governance score | 4.73 |
| Level of controversy | 2 |
Dividend payout ratio: 11.11% of net profits
Recently Southwest Airlines Company has paid out, on average, around 11.11% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.96% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Southwest Airlines Company shareholders could enjoy a 1.96% return on their shares, in the form of dividend payments. In Southwest Airlines Company's case, that would currently equate to about $0 per share.
While Southwest Airlines Company's payout ratio might seem low, this can signify that Southwest Airlines Company is investing more in its future growth.
Southwest Airlines Company's most recent dividend payout was on 30 January 2023. The latest dividend was paid out to all shareholders who bought their shares by 8 January 2023 (the "ex-dividend date").
Southwest Airlines Company's shares were split on a 3:2 basis on 15 February 2001. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Southwest Airlines Company shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for Southwest Airlines Company shares which in turn could have impacted Southwest Airlines Company's share price.
Over the last 12 months, Southwest Airlines Company's shares have ranged in value from as little as $30.045 up to $49.843. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Southwest Airlines Company's is 1.1409. This would suggest that Southwest Airlines Company's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. As of December 31, 2021, the company operated a total fleet of 728 Boeing 737 aircrafts; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 10 near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. It also provides inflight entertainment and connectivity services on Wi-Fi enabled aircrafts; and Rapid Rewards loyalty program that enables program members to earn points for dollars spent on Southwest base fares. In addition, the company offers a suite of digital platforms to support customers' travel needs, including websites and apps; and SWABIZ, an online booking tool. Further, it provides ancillary services, such as Southwest's EarlyBird Check-In, upgraded boarding, and transportation of pets and unaccompanied minors. The company was incorporated in 1967 and is headquartered in Dallas, Texas.
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