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.
15.36%
0.87
42.54%
S&P 500
13.68%
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
51
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%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
ROCE(HY)
Highest at 4.82%
RAW MATERIAL COST(Y)
Fallen by -15.86% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 24.85 times
NET SALES(Q)
Highest at USD 7,442 MM
OPERATING PROFIT(Q)
Highest at USD 832 MM
OPERATING PROFIT MARGIN(Q)
Highest at 11.18 %
PRE-TAX PROFIT(Q)
Highest at USD 442 MM
NET PROFIT(Q)
Highest at USD 351.78 MM
EPS(Q)
Highest at USD 0.62
-5What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 34.46 %
INTEREST(Q)
At USD 31 MM has Grown at 40.91%
CASH AND EQV(HY)
Lowest at USD 6,249 MM
Here's what is working for Southwest Airlines Co.
Net Sales
Highest at USD 7,442 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 832 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 11.18 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 442 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 351.78 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.62
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Highest at 24.85 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -15.86% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Southwest Airlines Co.
Interest
At USD 31 MM has Grown at 40.91%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 34.46 % 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
Cash and Eqv
Lowest at USD 6,249 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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