ScoreComparison
Why is Southwest Airlines Co. ?
1
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%
2
With ROE of 8.08%, it has a very expensive valuation with a 3.10 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 21.32%, its profits have risen by 48.7% ; the PEG ratio of the company is 0.8
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Southwest Airlines Co. should be less than 10%
- Overall Portfolio exposure to Airline should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Airline)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Southwest Airlines Co. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Southwest Airlines Co.
59.17%
0.87
42.54%
S&P 500
22.36%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
25.41%
EBIT Growth (5y)
16.73%
EBIT to Interest (avg)
-2.06
Debt to EBITDA (avg)
0
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
0
Institutional Holding
100.00%
ROCE (avg)
3.15%
ROE (avg)
3.95%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
47
Industry P/E
Price to Book Value
3.69
EV to EBIT
40.28
EV to EBITDA
13.43
EV to Capital Employed
3.16
EV to Sales
1.12
PEG Ratio
1.96
Dividend Yield
1.45%
ROCE (Latest)
7.84%
ROE (Latest)
7.79%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 2,528 MM
NET PROFIT(HY)
At USD 505.18 MM has Grown at 165.35%
ROCE(HY)
Highest at 11.11%
DEBTORS TURNOVER RATIO(HY)
Highest at 26.96 times
NET SALES(Q)
Highest at USD 8,432 MM
-11What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 43.74 %
INTEREST COVERAGE RATIO(Q)
Lowest at 1,432.69
RAW MATERIAL COST(Y)
Grown by 13.93% (YoY
CASH AND EQV(HY)
Lowest at USD 7,119 MM
INTEREST(Q)
Highest at USD 52 MM
Here's what is working for Southwest Airlines Co.
Net Profit
At USD 505.18 MM has Grown at 165.35%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Operating Cash Flow
Highest at USD 2,528 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 8,432 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Debtors Turnover Ratio
Highest at 26.96 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at USD 402 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Southwest Airlines Co.
Interest
At USD 52 MM has Grown at 23.81%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 1,432.69
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at 43.74 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Interest
Highest at USD 52 MM
in the last five periods and Increased by 23.81% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Cash and Eqv
Lowest at USD 7,119 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 13.93% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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