Switch to:

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 1.28
LUV's Cash to Debt is ranked higher than
75% of the 68 Companies
in the Global Airlines industry.

( Industry Median: 0.46 vs. LUV: 1.28 )
Ranked among companies with meaningful Cash to Debt only.
LUV' s 10-Year Cash to Debt Range
Min: 0.49  Med: 1.16 Max: No Debt
Current: 1.28
Equity to Asset 0.33
LUV's Equity to Asset is ranked higher than
68% of the 66 Companies
in the Global Airlines industry.

( Industry Median: 0.27 vs. LUV: 0.33 )
Ranked among companies with meaningful Equity to Asset only.
LUV' s 10-Year Equity to Asset Range
Min: 0.33  Med: 0.45 Max: 0.53
Current: 0.33
0.33
0.53
Interest Coverage 20.79
LUV's Interest Coverage is ranked higher than
79% of the 39 Companies
in the Global Airlines industry.

( Industry Median: 4.32 vs. LUV: 20.79 )
Ranked among companies with meaningful Interest Coverage only.
LUV' s 10-Year Interest Coverage Range
Min: 1.59  Med: 6.65 Max: 9999.99
Current: 20.79
1.59
9999.99
F-Score: 8
Z-Score: 2.64
M-Score: -2.82
WACC vs ROIC
8.16%
26.70%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 14.79
LUV's Operating margin (%) is ranked higher than
87% of the 69 Companies
in the Global Airlines industry.

( Industry Median: 6.48 vs. LUV: 14.79 )
Ranked among companies with meaningful Operating margin (%) only.
LUV' s 10-Year Operating margin (%) Range
Min: 2.53  Med: 8.48 Max: 18.09
Current: 14.79
2.53
18.09
Net-margin (%) 7.62
LUV's Net-margin (%) is ranked higher than
71% of the 69 Companies
in the Global Airlines industry.

( Industry Median: 2.92 vs. LUV: 7.62 )
Ranked among companies with meaningful Net-margin (%) only.
LUV' s 10-Year Net-margin (%) Range
Min: 0.96  Med: 6.10 Max: 11.08
Current: 7.62
0.96
11.08
ROE (%) 20.06
LUV's ROE (%) is ranked higher than
72% of the 64 Companies
in the Global Airlines industry.

( Industry Median: 10.09 vs. LUV: 20.06 )
Ranked among companies with meaningful ROE (%) only.
LUV' s 10-Year ROE (%) Range
Min: 1.9  Med: 7.94 Max: 19.91
Current: 20.06
1.9
19.91
ROA (%) 6.99
LUV's ROA (%) is ranked higher than
77% of the 69 Companies
in the Global Airlines industry.

( Industry Median: 2.26 vs. LUV: 6.99 )
Ranked among companies with meaningful ROA (%) only.
LUV' s 10-Year ROA (%) Range
Min: 0.7  Med: 3.97 Max: 10.16
Current: 6.99
0.7
10.16
ROC (Joel Greenblatt) (%) 17.15
LUV's ROC (Joel Greenblatt) (%) is ranked higher than
75% of the 69 Companies
in the Global Airlines industry.

( Industry Median: 7.60 vs. LUV: 17.15 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
LUV' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 3.04  Med: 11.23 Max: 40.81
Current: 17.15
3.04
40.81
Revenue Growth (3Y)(%) 9.80
LUV's Revenue Growth (3Y)(%) is ranked higher than
69% of the 51 Companies
in the Global Airlines industry.

( Industry Median: 2.90 vs. LUV: 9.80 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
LUV' s 10-Year Revenue Growth (3Y)(%) Range
Min: -3.6  Med: 10.10 Max: 21.3
Current: 9.8
-3.6
21.3
EBITDA Growth (3Y)(%) 37.80
LUV's EBITDA Growth (3Y)(%) is ranked higher than
90% of the 41 Companies
in the Global Airlines industry.

( Industry Median: 3.90 vs. LUV: 37.80 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
LUV' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -28.6  Med: 8.50 Max: 55
Current: 37.8
-28.6
55
EPS Growth (3Y)(%) 92.10
LUV's EPS Growth (3Y)(%) is ranked higher than
91% of the 33 Companies
in the Global Airlines industry.

( Industry Median: 9.80 vs. LUV: 92.10 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
LUV' s 10-Year EPS Growth (3Y)(%) Range
Min: -40.3  Med: 9.90 Max: 92.1
Current: 92.1
-40.3
92.1
» LUV's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

LUV Guru Trades in Q2 2014

Joel Greenblatt 1,016,501 sh (New)
Jim Simons 1,187,780 sh (New)
Ray Dalio 206,431 sh (+208.42%)
James Barrow 3,469,544 sh (+5.35%)
John Keeley 11,450 sh (unchged)
Steven Cohen 4,200 sh (unchged)
PRIMECAP Management 78,488,794 sh (-0.92%)
Paul Tudor Jones 37,000 sh (-11.06%)
Diamond Hill Capital 87,974 sh (-96.93%)
Donald Smith 5,237 sh (-99.86%)
» More
Q3 2014

LUV Guru Trades in Q3 2014

T Boone Pickens 10,400 sh (New)
James Barrow 4,107,011 sh (+18.37%)
Pioneer Investments 119,232 sh (unchged)
John Keeley 11,450 sh (unchged)
Donald Smith Sold Out
Diamond Hill Capital Sold Out
PRIMECAP Management 78,315,911 sh (-0.22%)
Paul Tudor Jones 32,900 sh (-11.08%)
Ray Dalio 167,631 sh (-18.80%)
Jim Simons 933,100 sh (-21.44%)
Steven Cohen 3,000 sh (-28.57%)
Joel Greenblatt 514,700 sh (-49.37%)
» More
Q4 2014

LUV Guru Trades in Q4 2014

RS Investment Management 84,205 sh (New)
Stanley Druckenmiller 270,000 sh (New)
Steven Cohen 62,000 sh (+1966.67%)
Jim Simons 2,008,100 sh (+115.21%)
Ray Dalio 274,931 sh (+64.01%)
James Barrow 4,267,009 sh (+3.90%)
John Keeley 11,630 sh (+1.57%)
T Boone Pickens Sold Out
PRIMECAP Management 78,042,174 sh (-0.35%)
Joel Greenblatt 504,102 sh (-2.06%)
Paul Tudor Jones 29,100 sh (-11.55%)
Pioneer Investments 76,045 sh (-36.22%)
» More
Q1 2015

LUV Guru Trades in Q1 2015

Lee Ainslie 5,910 sh (New)
RS Investment Management 108,068 sh (+28.34%)
Jim Simons 2,511,900 sh (+25.09%)
Steven Cohen 68,400 sh (+10.32%)
Joel Greenblatt 554,499 sh (+10.00%)
Ray Dalio 277,631 sh (+0.98%)
Stanley Druckenmiller Sold Out
PRIMECAP Management 77,610,990 sh (-0.55%)
John Keeley 11,450 sh (-1.55%)
Paul Tudor Jones 26,714 sh (-8.20%)
James Barrow 3,833,194 sh (-10.17%)
Pioneer Investments 58,741 sh (-22.75%)
» More
» Details

Insider Trades

Latest Guru Trades with LUV

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

No Entry found in the selected group of Gurus. You can
  • 1. Modify your Personalized List of Gurus, or
  • 2. Click on Premium Premium Tools above to check out all the Gurus, or
  • 3. Click on Premium Plus Premium Plus above for the stocks picks of all the institutional investment advisors (>4000)
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Southwest Airlines Co

Diamond Hill Capital Comments on Southwest Airlines Co - Jun 26, 2014

Shares of Southwest Airlines Co. (LUV) increased as a result of strong revenue trends and moderating non-fuel costs which led to significant margin expansion.



We eliminated our positions in Southwest Airlines Co. (LUV) and medical device manufacturer Medtronic, Inc. (MDT) as these companies’ share prices approached our estimates of intrinsic value.



From Diamond Hill Capital's Select Fund Commentary – First Quarter 2014.



Check out Diamond Hill Capital latest stock trades

Diamond Hill Capital Comments on Southwest Airlines Co. - Mar 05, 2014

Airline Southwest Airlines Co. (LUV) reported stronger revenue and improving operating margins due to better demand, continued network improvements, and recent investments in the fleet.



From Diamond Hill Capital (Trades, Portfolio)'s Fourth Quarter 2013 Commentary.

Check out Diamond Hill Capital latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 15.52
LUV's P/E(ttm) is ranked higher than
50% of the 44 Companies
in the Global Airlines industry.

( Industry Median: 16.40 vs. LUV: 15.52 )
Ranked among companies with meaningful P/E(ttm) only.
LUV' s 10-Year P/E(ttm) Range
Min: 11.86  Med: 23.76 Max: 93.19
Current: 15.52
11.86
93.19
Forward P/E 9.13
LUV's Forward P/E is ranked lower than
61% of the 46 Companies
in the Global Airlines industry.

( Industry Median: 8.40 vs. LUV: 9.13 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 16.40
LUV's PE(NRI) is ranked higher than
50% of the 44 Companies
in the Global Airlines industry.

( Industry Median: 16.40 vs. LUV: 16.40 )
Ranked among companies with meaningful PE(NRI) only.
LUV' s 10-Year PE(NRI) Range
Min: 12.14  Med: 23.79 Max: 94.88
Current: 16.4
12.14
94.88
P/B 3.18
LUV's P/B is ranked lower than
75% of the 59 Companies
in the Global Airlines industry.

( Industry Median: 1.93 vs. LUV: 3.18 )
Ranked among companies with meaningful P/B only.
LUV' s 10-Year P/B Range
Min: 0.77  Med: 1.62 Max: 4.59
Current: 3.18
0.77
4.59
P/S 1.19
LUV's P/S is ranked lower than
79% of the 68 Companies
in the Global Airlines industry.

( Industry Median: 0.54 vs. LUV: 1.19 )
Ranked among companies with meaningful P/S only.
LUV' s 10-Year P/S Range
Min: 0.35  Med: 0.91 Max: 2.05
Current: 1.19
0.35
2.05
PFCF 17.04
LUV's PFCF is ranked lower than
73% of the 30 Companies
in the Global Airlines industry.

( Industry Median: 12.80 vs. LUV: 17.04 )
Ranked among companies with meaningful PFCF only.
LUV' s 10-Year PFCF Range
Min: 2.92  Med: 12.65 Max: 237.86
Current: 17.04
2.92
237.86
POCF 6.92
LUV's POCF is ranked lower than
70% of the 56 Companies
in the Global Airlines industry.

( Industry Median: 5.05 vs. LUV: 6.92 )
Ranked among companies with meaningful POCF only.
LUV' s 10-Year POCF Range
Min: 2.12  Med: 6.09 Max: 11.46
Current: 6.92
2.12
11.46
EV-to-EBIT 9.24
LUV's EV-to-EBIT is ranked higher than
68% of the 50 Companies
in the Global Airlines industry.

( Industry Median: 13.17 vs. LUV: 9.24 )
Ranked among companies with meaningful EV-to-EBIT only.
LUV' s 10-Year EV-to-EBIT Range
Min: 6.8  Med: 13.00 Max: 51.9
Current: 9.24
6.8
51.9
PEG 0.70
LUV's PEG is ranked higher than
61% of the 23 Companies
in the Global Airlines industry.

( Industry Median: 1.00 vs. LUV: 0.70 )
Ranked among companies with meaningful PEG only.
LUV' s 10-Year PEG Range
Min: 0.54  Med: 1.21 Max: 34.97
Current: 0.7
0.54
34.97
Shiller P/E 38.00
LUV's Shiller P/E is ranked lower than
76% of the 37 Companies
in the Global Airlines industry.

( Industry Median: 22.15 vs. LUV: 38.00 )
Ranked among companies with meaningful Shiller P/E only.
LUV' s 10-Year Shiller P/E Range
Min: 9.68  Med: 25.41 Max: 63.58
Current: 38
9.68
63.58
Current Ratio 0.72
LUV's Current Ratio is ranked lower than
64% of the 66 Companies
in the Global Airlines industry.

( Industry Median: 0.88 vs. LUV: 0.72 )
Ranked among companies with meaningful Current Ratio only.
LUV' s 10-Year Current Ratio Range
Min: 0.49  Med: 0.92 Max: 1.64
Current: 0.72
0.49
1.64
Quick Ratio 0.67
LUV's Quick Ratio is ranked lower than
64% of the 66 Companies
in the Global Airlines industry.

( Industry Median: 0.75 vs. LUV: 0.67 )
Ranked among companies with meaningful Quick Ratio only.
LUV' s 10-Year Quick Ratio Range
Min: 0.43  Med: 0.85 Max: 1.58
Current: 0.67
0.43
1.58
Days Inventory 24.46
LUV's Days Inventory is ranked lower than
78% of the 64 Companies
in the Global Airlines industry.

( Industry Median: 11.21 vs. LUV: 24.46 )
Ranked among companies with meaningful Days Inventory only.
LUV' s 10-Year Days Inventory Range
Min: 8.07  Med: 18.42 Max: 31
Current: 24.46
8.07
31
Days Sales Outstanding 9.66
LUV's Days Sales Outstanding is ranked higher than
79% of the 61 Companies
in the Global Airlines industry.

( Industry Median: 19.03 vs. LUV: 9.66 )
Ranked among companies with meaningful Days Sales Outstanding only.
LUV' s 10-Year Days Sales Outstanding Range
Min: 4.68  Med: 7.55 Max: 13.86
Current: 9.66
4.68
13.86

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.78
LUV's Dividend Yield is ranked lower than
77% of the 94 Companies
in the Global Airlines industry.

( Industry Median: 1.81 vs. LUV: 0.78 )
Ranked among companies with meaningful Dividend Yield only.
LUV' s 10-Year Dividend Yield Range
Min: 0.11  Med: 0.17 Max: 0.76
Current: 0.78
0.11
0.76
Dividend Payout 0.12
LUV's Dividend Payout is ranked higher than
86% of the 42 Companies
in the Global Airlines industry.

( Industry Median: 0.28 vs. LUV: 0.12 )
Ranked among companies with meaningful Dividend Payout only.
LUV' s 10-Year Dividend Payout Range
Min: 0.01  Med: 0.03 Max: 0.5
Current: 0.12
0.01
0.5
Dividend growth (3y) 130.30
LUV's Dividend growth (3y) is ranked higher than
94% of the 16 Companies
in the Global Airlines industry.

( Industry Median: -9.10 vs. LUV: 130.30 )
Ranked among companies with meaningful Dividend growth (3y) only.
LUV' s 10-Year Dividend growth (3y) Range
Min: 0  Med: 6.30 Max: 130.3
Current: 130.3
0
130.3
Yield on cost (5-Year) 12.14
LUV's Yield on cost (5-Year) is ranked higher than
93% of the 96 Companies
in the Global Airlines industry.

( Industry Median: 1.94 vs. LUV: 12.14 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
LUV' s 10-Year Yield on cost (5-Year) Range
Min: 1.69  Med: 2.61 Max: 11.68
Current: 12.14
1.69
11.68
Share Buyback Rate 3.50
LUV's Share Buyback Rate is ranked higher than
90% of the 42 Companies
in the Global Airlines industry.

( Industry Median: -1.80 vs. LUV: 3.50 )
Ranked among companies with meaningful Share Buyback Rate only.
LUV' s 10-Year Share Buyback Rate Range
Min: 8.3  Med: -0.50 Max: -9.2
Current: 3.5

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 4.03
LUV's Price/Tangible Book is ranked lower than
81% of the 54 Companies
in the Global Airlines industry.

( Industry Median: 2.25 vs. LUV: 4.03 )
Ranked among companies with meaningful Price/Tangible Book only.
LUV' s 10-Year Price/Tangible Book Range
Min: 0.95  Med: 2.13 Max: 5.49
Current: 4.03
0.95
5.49
Price/Projected FCF 1.16
LUV's Price/Projected FCF is ranked higher than
58% of the 33 Companies
in the Global Airlines industry.

( Industry Median: 1.37 vs. LUV: 1.16 )
Ranked among companies with meaningful Price/Projected FCF only.
LUV' s 10-Year Price/Projected FCF Range
Min: 0.59  Med: 2.29 Max: 38.54
Current: 1.16
0.59
38.54
Price/Median PS Value 1.31
LUV's Price/Median PS Value is ranked lower than
66% of the 62 Companies
in the Global Airlines industry.

( Industry Median: 1.08 vs. LUV: 1.31 )
Ranked among companies with meaningful Price/Median PS Value only.
LUV' s 10-Year Price/Median PS Value Range
Min: 0.42  Med: 1.54 Max: 3.41
Current: 1.31
0.42
3.41
Price/Peter Lynch Fair Value 0.67
LUV's Price/Peter Lynch Fair Value is ranked higher than
50% of the 16 Companies
in the Global Airlines industry.

( Industry Median: 0.71 vs. LUV: 0.67 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
LUV' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.58  Med: 1.49 Max: 11.55
Current: 0.67
0.58
11.55
Price/Graham Number 1.66
LUV's Price/Graham Number is ranked lower than
72% of the 36 Companies
in the Global Airlines industry.

( Industry Median: 1.42 vs. LUV: 1.66 )
Ranked among companies with meaningful Price/Graham Number only.
LUV' s 10-Year Price/Graham Number Range
Min: 0.8  Med: 1.51 Max: 2.48
Current: 1.66
0.8
2.48
Earnings Yield (Greenblatt) (%) 11.39
LUV's Earnings Yield (Greenblatt) (%) is ranked higher than
75% of the 65 Companies
in the Global Airlines industry.

( Industry Median: 6.20 vs. LUV: 11.39 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
LUV' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 1.9  Med: 7.70 Max: 14.7
Current: 11.39
1.9
14.7
Forward Rate of Return (Yacktman) (%) 27.14
LUV's Forward Rate of Return (Yacktman) (%) is ranked higher than
82% of the 39 Companies
in the Global Airlines industry.

( Industry Median: 14.11 vs. LUV: 27.14 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
LUV' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -17.1  Med: 8.30 Max: 36.2
Current: 27.14
-17.1
36.2

Business Description

Industry: Airlines » Airlines
Compare:CPA, RYAAY, LFL, ALNPY, CPCAY » details
Traded in other countries:SWN.Germany, LUV.Mexico,
Southwest Airlines Co was incorporated in Texas on March 15, 1967. The Company operates Southwest Airlines (Southwest) and AirTran Airways (AirTran), passenger airlines that provide scheduled air transportation in the United States and near-international markets. At December 31, 2013, Southwest's and AirTran's combined active fleet consisted of 680aircraft, including 614 Boeing 737s and 66 Boeing 717s. Southwest principally provides point-to-point service, rather than the "hub-and-spoke" service provided by U.S. airlines. The hub-and-spoke system concentrates on airline's operations at a limited number of central hub cities and serves other destinations in the system by providing one-stop or connecting service through a hub. Southwest does not provide international service; however, in April 2013, the Company began converting AirTran service to San Juan, Puerto Rico, into Southwest service, Southwest's first scheduled service outside of the continental United States. Southwest offers inflight satellite-based WiFi service and AirTran currently offers GoGo's inflight internet connectivity on every Air Tran flight. The Company is subject to various federal laws and regulations relating to the protection of the environment, including the Clean Air Act, the Resource Conservation and Recovery Act, the Clean Water Act, the Safe Drinking Water Act, and the Comprehensive Environmental Response, Compensation and Liability Act, as well as state and local laws and regulations.
» More Articles for LUV

Headlines

Articles On GuruFocus.com
Analyzing How Reduced Oil Hedging Will Benefit Southwest Airlines Jun 24 2015 
gild Jun 02 2015 
Airline Stocks Look Attractive After Southwest Trims Capacity Growth Plans Jun 02 2015 
Imperial Capital Remains Bullish On American Airlines Group and Southwest Airlines Jun 01 2015 
Goldman Believes Airline Stocks Offers Compelling Risk Reward May 25 2015 
Southwest Airlines – The Best Buy In The U.S. Airlines Sector Currently May 18 2015 
Seven Airline Stocks that are a Must Have May 13 2015 
Seven Leading Airline Stocks to Watch in the Future Apr 30 2015 
American Airlines' Mixed Bag Q1 Earnings Apr 28 2015 
Southwest Airlines' Q1 Earnings Rockets Through The Sky Apr 27 2015 

More From Other Websites
US airline probe would need proof beyond business as usual Jul 03 2015
Southwest says it has contract deal with flight attendants Jul 02 2015
Southwest says it has contract deal with flight attendants Jul 02 2015
Southwest Airlines And Its Flight Attendants Reach Tentative Agreement Jul 02 2015
Southwest Airlines And Its Flight Attendants Reach Tentative Agreement Jul 02 2015
Improving 'awful' isn't airline collusion: Experts Jul 02 2015
Why American Airlines Stock May Be a Buy Jul 02 2015
American, Southwest cooperating in airline collusion probe Jul 02 2015
Expect Healthy Returns From Health Care Stocks, Says Fund Manager Jul 02 2015
Bank Of America: How To Play Airlines Following 'Unexpected' DOJ Probe Jul 02 2015
JP Morgan Remains Overweight Delta, Calls DOJ Collusion Investigation Humorous Jul 02 2015
As DOJ probes airlines, here's a reason why fares from RDU may be going up Jul 02 2015
Why the Era of Airfare Price Wars Is Gone, Perhaps Forever Jul 02 2015
Southwest Airlines (LUV) Stock Lower Amid Antitrust Investigation Jul 02 2015
Airlines: DoJ Claims 'Without Merit,' Time to Buy Jul 02 2015
The Zacks Analyst Blog Highlights: Delta Air Lines, Southwest Airlines, United Continental and... Jul 02 2015
Airlines Battered On Revelation Of Possible Collusion Jul 02 2015
DOJ Investigation: Big Airline Collusion Or Bureaucratic Bullying? Jul 02 2015
Airlines' Capacity Moves Are Very Public Jul 02 2015

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK