LUV Share Price | Southwest Airlines Co. Stock Analysis & Recommendation

Q: How big is Southwest Airlines Co.?

Market Cap: As of Jun 18, Southwest Airlines Co. has a market capitalization of 27,274.30 million, categorizing it as a Large Cap company.Recent Quarterly Performance: For the latest four quarters, Southwest Airlines Co. reported net sales of 27,583.00 million and a net profit of 551.00 million.Balance Sheet Snapshot: As of Dec'24, the company reported shareholder's funds of 10,350.00 million and total assets of 35,629.00 million.

Q: What does Southwest Airlines Co. do?

Overview: Southwest Airlines Co. operates as a passenger airline providing scheduled air transportation in the United States and near-international markets within the airline industry and is categorized as a large-cap company.Financial Snapshot: Most recent Net Sales: 6,428 Million (Quarterly Results - Mar 2025) Most recent Net Profit: -149 Million (Quarterly Results - Mar 2025) Market-cap: USD 27,274.30 Million (Large Cap) Key Metrics: P/E: 38.00 Dividend Yield: 1.96% Debt Equity: -0.13 Return on Equity: 8.08% Price to Book: 2.91 Contact Details: Address: 2702 Love Field Dr, PO Box 36611 DALLAS TX : 75235-1611 Tel: 1 214 7924000 Website: https://www.southwest.com/

Q: Is Southwest Airlines Co. technically bullish or bearish?

As of 24 October 2025, the technical trend for Southwest Airlines Co. has changed from bullish to mildly bullish. The weekly MACD is mildly bearish, while the monthly MACD is mildly bullish, indicating mixed signals. The daily moving averages are mildly bullish, and both the weekly and monthly Dow Theory are also mildly bullish. However, the weekly Bollinger Bands are bearish, which adds some caution to the outlook. In terms of performance, the stock has underperformed the S&P 500 across multiple periods, with a year-to-date return of -4.22% compared to the S&P 500's 15.47%, and a 5-year return of -24.75% versus the S&P 500's 95.99%. Overall, the current stance is mildly bullish, but the stock's recent performance relative to the benchmark suggests caution.

Q: Is Southwest Airlines Co. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Southwest Airlines Co. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 38, which is significantly higher than peers such as Delta Air Lines, Inc. with a P/E of 10.73 and United Airlines Holdings, Inc. at 8.92. Additionally, the EV to EBITDA ratio stands at 11.42, further suggesting a premium compared to the industry average.In comparison to its peers, Southwest Airlines Co. has a PEG ratio of 0.77, which is more favorable than Delta's PEG of 10.73, but still reflects a concerning valuation given the overall context. The recent stock performance shows that Southwest Airlines has underperformed against the S&P 500, with a year-to-date return of -11.75% compared to the S&P 500's 16.30%, reinforcing the notion that the stock may be overvalued in the current market environment.

Price Point

High/Low

1Day

52 Week

Valuation

Technical

Day's Volume

CASH

6.66 M

Shareholding (Dec 2025)

FII

14.07%

Held by 264 FIIs

DII

36.66%

Held by 109 DIIs

Promoter

0.00%

How big is Southwest Airlines Co.?

22-Jun-2025

As of Jun 18, Southwest Airlines Co. has a market capitalization of $27.27 billion, with recent net sales of $27.58 billion and a net profit of $551 million.

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What does Southwest Airlines Co. do?

22-Jun-2025

Southwest Airlines Co. is a large-cap passenger airline providing scheduled air transportation in the U.S. and near-international markets, with recent net sales of $6.43 billion and a net profit of -$149 million.

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Who are in the management team of Southwest Airlines Co.?

22-Jun-2025

As of March 2022, the management team of Southwest Airlines Co. includes Chairman and CEO Gary Kelly, Vice Chairman Ron Ricks, and several Independent Directors: Dr. William Cunningham, David Biegler, J. Veronica Biggins, Douglas Brooks, and John Denison. They are responsible for the company's strategic direction and governance.

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Is Southwest Airlines Co. technically bullish or bearish?

28-Oct-2025

As of October 24, 2025, Southwest Airlines Co. shows a mildly bullish trend despite mixed technical signals and underperformance compared to the S&P 500, with a year-to-date return of -4.22% versus the S&P 500's 15.47%.

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Is Southwest Airlines Co. overvalued or undervalued?

05-Nov-2025

As of October 31, 2025, Southwest Airlines Co. is considered overvalued with a P/E ratio of 38, significantly higher than its peers, and has underperformed the S&P 500, indicating a shift from fair to expensive valuation.

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Compare Southwest Airlines Co. with Similar Stocks

Delta Air Lines, Inc.United Airlines Holdings, Inc.American Airlines Group, Inc.

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Dashboard

Flat results in Jun 25

DEBT-EQUITY RATIO (HY) Highest at 18.77 %
PRE-TAX PROFIT(Q) At USD 316 MM has Fallen at -39.11%
NET PROFIT(Q) At USD 240.39 MM has Fallen at -39.67%

With ROE of 8.08%, it has a very expensive valuation with a 3.10 Price to Book Value

Mojo Parameters

Stock DNA

Industry

Airline

Market cap

USD 31,740 Million (Mid Cap)

P/E

51.00

Industry P/E

Dividend Yield

1.34%

Debt Equity

0.25

Return on Equity

7.79%

Price to Book

3.98

Revenue and Profits:

Net Sales:

7,442 Million

(Quarterly Results - Dec 2025)

Net Profit:

324 Million

Total Returns

Total Returns (Price + Dividend)

TimePeriod

Price Return

Dividend Return

Total Return

3 Months

-3.11%

6 Months

25.87%

1 Year

15.92%

2 Years

40.97%

3 Years

35.64%

4 Years

-9.44%

5 Years

-32.92%

Southwest Airlines Co. for the last several years.

Risk Adjusted Returns v/s

News & Corporate Actions

News

No Recent News for the Company

Announcements

No announcement available

Corporate Actions

No corporate action available

Key Factors

Quality key factors

Factor

Value

Sales Growth (5y)

25.41%

EBIT Growth (5y)

16.73%

EBIT to Interest (avg)

-2.06

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

1.69

Tax Ratio

22.44%

Dividend Payout Ratio

90.90%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

3.15%

ROE (avg)

3.95%

Valuation key factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.98

EV to EBIT

43.18

EV to EBITDA

14.40

EV to Capital Employed

3.38

EV to Sales

1.20

PEG Ratio

2.11

Dividend Yield

1.34%

ROCE (Latest)

7.84%

ROE (Latest)

7.79%

Technicals key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Shareholding

Shareholding Snapshot : Dec 2025

Shareholding Compare (%holding)

Majority shareholders

Domestic Funds

Held in 116 Schemes (49.1%)

Foreign Institutions

Held by 264 Foreign Institutions (14.07%)

Strategic Entities with highest holding

Highest Public shareholder

Financial

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Quarterly Results Snapshot (Consolidated) - Dec'25 - YoY

Dec'25

Dec'24

Change(%)

Net Sales

7,442.00

6,931.00

7.37%

Operating Profit (PBDIT) excl Other Income

832.00

739.00

12.58%

Interest

31.00

48.00

-35.42%

Exceptional Items

-35.00

-34.00

-2.94%

Consolidate Net Profit

324.00

266.00

21.80%

Operating Profit Margin (Excl OI)

61.90%

47.90%

1.40%

USD in Million.

Compare with Peers

Net Sales

YoY Growth in quarter ended Dec 2025 is 7.37% vs 1.60% in Dec 2024

Consolidated Net Profit

YoY Growth in quarter ended Dec 2025 is 21.80% vs 221.46% in Dec 2024

All Quarterly Results

Annual Results Snapshot (Consolidated) - Dec'25

Dec'25

Dec'24

Change(%)

Net Sales

28,063.00

27,483.00

2.11%

Operating Profit (PBDIT) excl Other Income

2,373.00

2,206.00

7.57%

Interest

113.00

214.00

-47.20%

Exceptional Items

-234.00

-184.00

-27.17%

Consolidate Net Profit

442.00

485.00

-8.87%

Operating Profit Margin (Excl OI)

29.00%

20.00%

0.90%

USD in Million.

Compare with Peers

Net Sales

YoY Growth in year ended Dec 2025 is 2.11% vs 5.34% in Dec 2024

Consolidated Net Profit

YoY Growth in year ended Dec 2025 is -8.87% vs 4.30% in Dec 2024

All Annual Results

Company CV

About Southwest Airlines Co.

Southwest Airlines Co.

Airline

Southwest Airlines Co. (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company provides point-to-point service. The Company offers ancillary service offerings, such as Southwest's EarlyBird Check-In and transportation of pets and unaccompanied minors, in accordance with Southwest's respective policies. Southwest's Rapid Rewards frequent flyer program enables program members (Members) to earn points for every dollar spent on Southwest fares. Its Internet Website, Southwest.com, is an avenue for Southwest customers to purchase and manage travel online. As of December 31, 2016, Southwest operated a total of 723 Boeing 737 aircraft and served 101 destinations in 40 states, the District of Columbia, the Commonwealth of Puerto Rico, and eight near-international countries: Mexico, Jamaica, The Bahamas, Aruba, Dominican Republic, Costa Rica, Belize, and Cuba.

Company Coordinates

Company Details

2702 Love Field Dr, PO Box 36611 DALLAS TX : 75235-1611

Tel: 1 214 79240001 214 7924000

https://www.southwest.com/

Registrar Details