August 22, 2025 a 08:00 am
LUV: Fundamental Ratio Analysis - Southwest Airlines Co.
Southwest Airlines Co. operates a robust network, primarily within the United States, with an extensive fleet size and a reputation for customer service. As travel demand fluctuates, so does its stock performance. Monitoring its unique offerings and market strategy is crucial for investors.
Fundamental Ratings
Southwest Airlines Co. shows moderate average scores across fundamental metrics, indicating potential but moderate attractiveness for investors looking for undervalued opportunities.
| Category | Score | Visualization |
|---|---|---|
| Overall Rating | C+ | |
| Discounted Cash Flow (DCF) | 3 | |
| Return on Equity (ROE) | 2 | |
| Return on Assets (ROA) | 2 | |
| Debt to Equity | 2 | |
| Price to Earnings (P/E) | 1 | |
| Price to Book (P/B) | 3 |
Historical Rating
The historical performance suggests stable fundamental scores with recent fluctuations in overall ratings, indicative of market challenges.
| Date | Overall | DCF | ROE | ROA | Debt/Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-08-21 | 2 | 3 | 2 | 2 | 2 | 1 | 3 |
| Previous | 0 | 3 | 2 | 2 | 2 | 1 | 3 |
Analyst Price Targets
Analysts anticipate a stable price range for Southwest Airlines Co., with a slight upward consensus.
| High | Low | Median | Consensus |
|---|---|---|---|
| $34 | $33 | $33.5 | $33.5 |
Price movement chart of Southwest Airlines Co.
Analyst Recommendations
The current analyst sentiment is largely mixed with a leaning towards 'Hold', reflecting uncertainty in the airline sector.
| Recommendation | Number | Distribution |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 14 | |
| Hold | 21 | |
| Sell | 5 | |
| Strong Sell | 0 |
Conclusion
Southwest Airlines Co. presents a moderate investment opportunity with stable financial performance. The company's extensive network and customer service reputation are strengths. However, the airline industry faces challenges such as fluctuating travel demand and fuel costs, impacting short-term performance. Investors should remain cautious and consider market conditions when deciding.