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.
25.44%
0.87
42.54%
S&P 500
11.09%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.59%
EBIT Growth (5y)
27.49%
EBIT to Interest (avg)
-2.06
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.13
Sales to Capital Employed (avg)
1.52
Tax Ratio
22.44%
Dividend Payout Ratio
95.45%
Pledged Shares
0
Institutional Holding
96.60%
ROCE (avg)
3.15%
ROE (avg)
3.95%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
38
Industry P/E
Price to Book Value
3.10
EV to EBIT
35.21
EV to EBITDA
11.42
EV to Capital Employed
3.42
EV to Sales
1.01
PEG Ratio
0.77
Dividend Yield
1.47%
ROCE (Latest)
9.71%
ROE (Latest)
8.08%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
DIVIDEND PAYOUT RATIO(Y)
Highest at 45.72%
NET PROFIT(9M)
Higher at USD 480.36 MM
-8What is not working for the Company
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%
RAW MATERIAL COST(Y)
Grown by 6.53% (YoY
CASH AND EQV(HY)
Lowest at USD 12,091 MM
Here's what is working for Southwest Airlines Co.
Dividend Payout Ratio
Highest at 45.72%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Southwest Airlines Co.
Pre-Tax Profit
At USD 316 MM has Fallen at -39.11%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 240.39 MM has Fallen at -39.67%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Debt-Equity Ratio
Highest at 18.77 % 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 12,091 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 6.53% (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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