May 26, 2025 a 07:43 pm
LUV: Fundamental Ratio Analysis - Southwest Airlines Co.
Southwest Airlines Co. (LUV) is a major player in the passenger airline industry, offering extensive scheduled air transportation services. The company's robust operations and comprehensive fleet have positioned it well in both domestic and near-international markets. However, its financial performance is subject to typical industry volatility.
Fundamental Rating
This section provides an overview of the fundamental evaluation of Southwest Airlines Co.
| Category | Score | |
|---|---|---|
| Discounted Cash Flow | 3 | |
| Return on Equity | 3 | |
| Return on Assets | 3 | |
| Debt to Equity | 2 | |
| Price to Earnings | 2 | |
| Price to Book | 3 |
Historical Rating
The historical ratings provide context to the changes and growth in the company's financial metrics.
| Date | Overall Score | DCF | ROE | ROA | Debt to Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-05-23 | 3 | 3 | 3 | 3 | 2 | 2 | 3 |
| N/A | 0 | 3 | 3 | 3 | 2 | 2 | 3 |
Analyst Price Targets
Analysts provide price targets based on current and estimated future performance of Southwest Airlines Co.
| High | Low | Median | Consensus |
|---|---|---|---|
| $36 | $29 | $34 | $33.2 |
Analyst Sentiment
The sentiment analysis provides insights into the collective opinion of market analysts about the stock.
| Recommendation | Count | |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 14 | |
| Hold | 17 | |
| Sell | 3 | |
| Strong Sell | 0 |
Conclusion
Southwest Airlines Co. remains a solid player in the airline industry, with a consistent operational footprint. The fundamental analysis indicates stability in certain financial metrics, yet some areas such as debt to equity may warrant closer investor attention. While analysts are cautious, with a consensus rating of "hold", the stock's future potential is closely tied to market recovery and operational resilience. Investors should weigh the industry risks, including fuel price fluctuations and demand variability, when considering a position in LUV. Overall, prudent long-term monitoring is advised.