November 03, 2025 a 08:00 am
LUV: Fundamental Ratio Analysis - Southwest Airlines Co.
Southwest Airlines Co., known for its customer-friendly services and extensive network, offers potential for growth despite sector challenges. Investing in Southwest means banking on its resilience and ability to adapt in the competitive airline sector.
Fundamental Rating
The fundamental rating reflects the company's current financial health and operational efficiency. Southwest shows a moderate overall score, indicating room for improvement across different financial metrics.
| Metric | Score | Visualization |
|---|---|---|
| Discounted Cash Flow | 3 | |
| Return On Equity | 2 | |
| Return On Assets | 4 | |
| Debt To Equity | 1 | |
| Price To Earnings | 1 | |
| Price To Book | 3 |
Historical Rating
The historical ratings provide insight into the company's past performance and indicate areas of consistency or fluctuation in financial metrics over time.
| Date | Overall Score | Discounted Cash Flow | Return On Equity | Return On Assets | Debt To Equity | Price To Earnings | Price To Book |
|---|---|---|---|---|---|---|---|
| 2025-10-31 | 2 | 3 | 2 | 4 | 1 | 1 | 3 |
| Past | 0 | 3 | 2 | 4 | 1 | 1 | 3 |
Analyst Price Targets
Analysts provide a forecast of the stock price based on future expectations of the company's performance. The price targets vary, suggesting differing opinions on Southwest's market potential.
| High | Low | Median | Consensus |
|---|---|---|---|
| $42 | $31 | $34 | $35.25 |
Analyst Sentiment
Analyst sentiments indicate the overall market perspective on Southwest, ranging from strong buy to strong sell. This can guide investors in making informed decisions.
| Recommendation | Count | Visualization |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 13 | |
| Hold | 22 | |
| Sell | 5 | |
| Strong Sell | 0 |
Conclusion
Southwest Airlines Co. shows potential for growth within the airline industry, driven by its robust network and customer-centric approach. However, financial metrics suggest areas for improvement, particularly in debt management. The stock is currently rated as a 'Hold', indicating that while the company has underlying strengths, external challenges and internal limitations may impact performance.