April 12, 2025 a 07:31 am

LUV: Fundamental Ratio Analysis - Southwest Airlines Co.

Southwest Airlines Co. operates predominantly in the U.S. and several near-international markets. Despite challenges in the airline industry, the company maintains a strong market presence with a broad fleet and network. However, analysts suggest moderate caution due to market volatility and operational challenges.

Fundamental Rating

The fundamental analysis of Southwest Airlines Co. reflects moderate performance with areas of potential risk and opportunity.

Category	Score	Visualization
Overall	C+
Discounted Cash Flow	3
Return on Equity	2
Return on Assets	2
Debt to Equity	2
Price to Earnings	1
Price to Book	2

Historical Rating

The historical scores showcase the performance consistency of Southwest Airlines Co. over time.

Date	Overall	DCF	ROE	ROA	D/E	P/E	P/B
2025-04-11	2	3	2	2	2	1	2
-	0	3	2	2	2	1	2

Analyst Price Targets

Analyst price targets indicate a moderate range, suggesting cautious optimism in the market outlook.

High	Low	Median	Consensus
36	28	33.5	32.33

Analyst Sentiment

The analyst sentiment reflects a balanced outlook with a significant number of 'Hold' recommendations.

Recommendation	Count	Percentage
Strong Buy	0
Buy	14
Hold	17
Sell	3
Strong Sell	0

Conclusion

Southwest Airlines Co. demonstrates a stable operational base with moderate fundamental ratings. Analysts suggest a 'Hold' position, reflecting a cautious market stance. The historical rating indicates consistent performance, although price targets signal potential appreciation within a conservative range. While external challenges in the aviation sector remain, strategic initiatives and a loyal customer base could support long-term potential. Investors should weigh these factors alongside broader market conditions.