July 30, 2025 a 06:00 pm
LUV: Fundamental Ratio Analysis - Southwest Airlines Co.
Southwest Airlines Co., operating as a passenger airline majorly within the United States, has shown a steady performance despite challenges in the airline industry. Currently, it's positioned as a moderately strong investment choice, though competition and fluctuating fuel prices are risks to watch. The company's range of services, including its loyalty program and digital platforms, contribute positively to its valuation.
Fundamental Rating
Southwest Airlines' fundamental ratings reflect a decent score across various financial metrics. Here's a breakdown of essential scores:
| Metric | Score | Visualization |
|---|---|---|
| Discounted Cash Flow | 3 | |
| Return on Equity | 2 | |
| Return on Assets | 2 | |
| Debt to Equity | 3 | |
| Price to Earnings | 1 | |
| Price to Book | 3 |
Historical Rating
The historical rating data shows the progression of fundamental scores, indicating financial health over time:
| Date | Overall | DCF | ROE | ROA | Debt to Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-07-30 | 2 | 3 | 2 | 2 | 3 | 1 | 3 |
| - | 0 | 3 | 2 | 2 | 3 | 1 | 3 |
Analyst Price Targets
Analysts have set diverse price targets, reflecting varied expectations for Southwest's future stock performance:
| High | Low | Median | Consensus |
|---|---|---|---|
| $34 | $33 | $34 | $33.67 |
Analysts Sentiment
The overall analyst sentiment is moderate, with the majority suggesting a hold position:
| Recommendation | Number | Visualization |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 14 | |
| Hold | 21 | |
| Sell | 5 | |
| Strong Sell | 0 |
Conclusion
Southwest Airlines Co. has managed a stable yet cautious position amid industry challenges. While the fundamental scores suggest moderate strength, growth potential might be tempered by macroeconomic factors and operational costs. However, its established brand and comprehensive service offerings keep it resilient. Investors should weigh the potential risks associated with the volatile airline industry against the company's strategically diversified offerings. Maintaining a portfolio balance may be prudent.