Obermatt

Southwest Airlines

NYQ:LUV · US8447411088
AirlinesX-Large

360

76
EV / EBIT62
Price / Owner Earnings91
Owner Earnings Yield1
Dividend Yield83
Price/Sales73
EV / Gross Profit82
Price/Book36
Return on Capital27
Cash Return on Capital6
Return on Equity44
EBIT Margin7
Gross Profitability74
Cash Conversion70
Accruals37
Owner Earnings Margin16
Sales growth90
Profit Growth82
Long-Term EPS Growth96
Reinvestment79
Price momentum48
Debt load54
Refinancing17
Debt Payback1
Liquidity84
Analyst ratings20
Opinion Changes48
Price Target Upside35
Market mood40
Value Creation6/20not creating value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Southwest Airlines doesn't consistently earn more than its cost of capital, so it isn't yet creating shareholder value.

Profile

CountryUSA
IndustryAirlines
SizeX-Large
TypePublic Company
ExchangeNYSE
Founded1967
Employees25,751
ISINUS8447411088
Last UpdateApr 2, 2026
Themes
TourismTravel AccommodationsOnline PaymentsPassenger Aircraft ManufacturingBusiness TravelVacation RentalFleet ManagementArtificial IntelligencePublic Transportation

Description

Southwest Airlines Co. (‘Southwest’) operates Southwest Airlines, a major passenger airline that provides scheduled air transportation in the United States and near-international markets. As of December 31, 2025, the company had a total of 803 Boein…

Analysis

Middle-of-the-road

Southwest Airlines Co. is a middle-of-the-road business: neither the economics nor the price stand out from the peer group.

Valuation data is not available for this company.

The trajectory is solid and the balance sheet is adequate. The company scores 6/20 on our value-creation score: not creating value.

What to watch: Some accounting patterns deserve a closer look. The financial cushion is thinner than comfortable. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
87
2023202420252026

All-time high

87

Jun 2026

All-time low

26

Jan 2023

Average rank

54

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
73
64
49
40
Price/Earnings
67
43
34
20
Price/Book
36
61
53
44
Dividend Yield
83
84
82
82
Value (overall)
82
83
59
47

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →