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14.1 (1y: +61%)
Market Cap 9.94 B P/E(ttm) 28.00
Enterprise Value 9.99 B P/B 1.50
LUV- NYSE (USA)
Southwest Airlines Co
  • Currently 3.5/5
Business Predictability Rank: 3.5-Star
Back Testing Results:
Average gain of all 3.5-Star stocks: 9.3% per year.
% of Stocks that are in still loss if held for 10yrs: 9%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$14.10
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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 : 6/10

vs
industry		 vs
history
Cash to Debt 0.841
LUV's Cash to Debt is ranked lower than
2325579% of the 43 Companies
in the Global Airlines industry.

( Industry Median: 0.42 vs. LUV: 0.841 )
LUV' s 10-Year Cash to Debt Range
Min: 0.48   Max: 1.33
Current: 0.84
0.48
1.33
Equity to Asset 0.316
LUV's Equity to Asset is ranked lower than
2631576% of the 38 Companies
in the Global Airlines industry.

( Industry Median: 0.26 vs. LUV: 0.316 )
LUV' s 10-Year Equity to Asset Range
Min: 0.32   Max: 0.52
Current: 0.32
0.32
0.52
Interest Coverage 5.2
LUV's Interest Coverage is ranked lower than
3225803% of the 31 Companies
in the Global Airlines industry.

( Industry Median: 2.80 vs. LUV: 5.2 )
LUV' s 10-Year Interest Coverage Range
Min: 2   Max: 34
Current: 5.2
2
34
F-Score: 6
Z-Score: 1.86
M-Score: -2.6
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 : 6/10

vs
industry		 vs
history
Operating margin (%) 3.60
LUV's Operating margin (%) is ranked lower than
2857140% of the 35 Companies
in the Global Airlines industry.

( Industry Median: 6.90 vs. LUV: 3.60 )
LUV' s 10-Year Operating margin (%) Range
Min: 2.5   Max: 18.1
Current: 3.6
2.5
18.1
Net-margin (%) 2.5
LUV's Net-margin (%) is ranked lower than
2941174% of the 34 Companies
in the Global Airlines industry.

( Industry Median: 2.80 vs. LUV: 2.5 )
LUV' s 10-Year Net-margin (%) Range
Min: 1   Max: 10.7
Current: 2.5
1
10.7
ROE (%) 6
LUV's ROE (%) is ranked lower than
3124997% of the 32 Companies
in the Global Airlines industry.

( Industry Median: 9.80 vs. LUV: 6 )
LUV' s 10-Year ROE (%) Range
Min: 1.8   Max: 17.5
Current: 6
1.8
17.5
ROA (%) 2.3
LUV's ROA (%) is ranked lower than
2941174% of the 34 Companies
in the Global Airlines industry.

( Industry Median: 2.40 vs. LUV: 2.3 )
LUV' s 10-Year ROA (%) Range
Min: 0.7   Max: 9
Current: 2.3
0.7
9
ROC (Joel Greenblatt) (%) 6.50
LUV's ROC (Joel Greenblatt) (%) is ranked lower than
2857140% of the 35 Companies
in the Global Airlines industry.

( Industry Median: 9.30 vs. LUV: 6.50 )
LUV' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 2.9   Max: 20.7
Current: 6.5
2.9
20.7
Revenue Growth (%) 12.7
LUV's Revenue Growth (%) is ranked lower than
3333330% of the 30 Companies
in the Global Airlines industry.

( Industry Median: 8.40 vs. LUV: 12.7 )
LUV' s 10-Year Revenue Growth (%) Range
Min: 0.5   Max: 12.8
Current: 12.7
0.5
12.8
EBITDA Growth (%) 13.2
LUV's EBITDA Growth (%) is ranked lower than
3703700% of the 27 Companies
in the Global Airlines industry.

( Industry Median: 13.30 vs. LUV: 13.2 )
LUV' s 10-Year EBITDA Growth (%) Range
Min: -10.3   Max: 13.7
Current: 13.2
-10.3
13.7
EPS Growth (%) 44.1
LUV's EPS Growth (%) is ranked lower than
6666660% of the 15 Companies
in the Global Airlines industry.

( Industry Median: 26.50 vs. LUV: 44.1 )
LUV' s 10-Year EPS Growth (%) Range
Min: -32.1   Max: 44.1
Current: 44.1
-32.1
44.1
» LUV's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

LUV Guru Trades in Q2 2012

Tom Russo 100 sh (New)
Ken Heebner 3,920,000 sh (New)
George Soros 1,115,000 sh (New)
HOTCHKIS & WILEY 2,092,300 sh (New)
Steven Cohen 294,724 sh (+251.72%)
Paul Tudor Jones 89,600 sh (+58.87%)
Donald Smith 9,895,627 sh (+38.59%)
Manning & Napier Advisors, Inc 41,606,994 sh (+18.4%)
PRIMECAP Management 83,436,554 sh (+4.46%)
Charles Brandes Sold Out
Jim Simons 4,466,295 sh (-2.81%)
Pioneer Investments 3,825,340 sh (-10.23%)
Diamond Hill Capital 2,241,766 sh (-26.31%)
Ray Dalio 598,847 sh (-47.15%)
» More
Q3 2012

LUV Guru Trades in Q3 2012

John Hussman 1,500,000 sh (New)
Donald Smith 12,813,942 sh (+29.49%)
HOTCHKIS & WILEY 2,360,600 sh (+12.82%)
Diamond Hill Capital 2,354,874 sh (+5.05%)
PRIMECAP Management 83,806,637 sh (+0.44%)
Ken Heebner Sold Out
Tom Russo Sold Out
Ray Dalio Sold Out
George Soros Sold Out
Manning & Napier Advisors, Inc 41,217,698 sh (-0.94%)
Pioneer Investments 3,330,750 sh (-12.93%)
Jim Simons 3,536,215 sh (-20.82%)
Paul Tudor Jones 23,100 sh (-74.22%)
Steven Cohen 48,856 sh (-83.42%)
» More
Q4 2012

LUV Guru Trades in Q4 2012

Richard Snow 192,570 sh (New)
Ray Dalio 355,600 sh (New)
Paul Tudor Jones 45,400 sh (+96.54%)
Steven Cohen 81,547 sh (+66.91%)
Donald Smith 15,295,468 sh (+19.37%)
HOTCHKIS & WILEY 2,584,600 sh (+9.49%)
John Hussman 1,500,000 sh (unchged)
Diamond Hill Capital 2,352,559 sh (-0.1%)
PRIMECAP Management 83,242,675 sh (-0.67%)
Manning & Napier Advisors, Inc 39,918,177 sh (-3.15%)
Pioneer Investments 2,662,655 sh (-20.06%)
Jim Simons 2,217,595 sh (-37.29%)
» More
Q1 2013

LUV Guru Trades in Q1 2013

Charles Brandes 12,300 sh (New)
James Barrow 828,500 sh (New)
Richard Snow 739,800 sh (+284.17%)
Paul Tudor Jones 64,000 sh (+40.97%)
Donald Smith 16,012,741 sh (+4.69%)
John Hussman 1,500,000 sh (unchged)
PRIMECAP Management 80,740,275 sh (-3.01%)
Diamond Hill Capital 2,235,964 sh (-4.96%)
Pioneer Investments 2,137,895 sh (-19.71%)
Ray Dalio 241,800 sh (-32%)
Manning & Napier Advisors, Inc 19,972,907 sh (-49.97%)
Steven Cohen 36,875 sh (-54.78%)
HOTCHKIS & WILEY 1,016,500 sh (-60.67%)
Jim Simons 91,340 sh (-95.88%)
» More
» Details

Insider Trades

Latest Guru Trades with LUV

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Donald Smith 2013-03-31 Add 4.69%0.21%$10.24 - $13.48 $ 14.3723%16012741
James Barrow 2013-03-31 New Buy0.02%$10.24 - $13.48 $ 14.3723%828500
Ray Dalio 2013-03-31 Reduce -32%0.01%$10.24 - $13.48 $ 14.3723%241800
Charles Brandes 2013-03-31 New Buy$10.24 - $13.48 $ 14.3723%12300
Donald Smith 2012-12-31 Add 19.37%0.71%$8.71 - $10.56 $ 14.3753%15295468
Ray Dalio 2012-12-31 New Buy0.04%$8.71 - $10.56 $ 14.3753%355600
Donald Smith 2012-09-30 Add 29.49%0.77%$8.47 - $9.63 $ 14.3758%12813942
John Hussman 2012-09-30 New Buy0.32%$8.47 - $9.63 $ 14.3758%1500000
George Soros 2012-09-30 Sold Out 0.15%$8.47 - $9.63 $ 14.3758%0
Ray Dalio 2012-09-30 Sold Out 0.08%$8.47 - $9.63 $ 14.3758%0
Donald Smith 2012-06-30 Add 38.59%0.75%$7.79 - $9.33 $ 14.3769%9895627
George Soros 2012-06-30 New Buy0.15%$7.79 - $9.33 $ 14.3769%1115000
Ray Dalio 2012-06-30 Reduce -47.15%0.07%$7.79 - $9.33 $ 14.3769%598847
Charles Brandes 2012-06-30 Sold Out 0.0013%$7.79 - $9.33 $ 14.3769%0
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Southwest Airlines Co

Diamond Hill Capital Comments on Southwest Airlines - Oct 24, 2012

Airline company Southwest Airlines Co. (LUV) was negatively impacted by a 15% increase in the price of jet fuel and a deceleration in passenger yield growth throughout the industry.

From Diamond Hill Capital's third quarter Select Fund Commentary.


Check out Diamond Hill Capital latest stock trades

Top Ranked Articles about Southwest Airlines Co

Diamond Hill Capital Comments on Southwest Airlines
October 24, 2012
Airline company Southwest Airlines Co. (LUV) was negatively impacted by a 15% increase in the price of jet fuel and a deceleration in passenger yield growth throughout the industry. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 28.20
LUV's P/E(ttm) is ranked lower than
2777775% of the 36 Companies
in the Global Airlines industry.

( Industry Median: 15.80 vs. LUV: 28.20 )
LUV' s 10-Year P/E(ttm) Range
Min: 11.86   Max: 157.25
Current: 28.2
11.86
157.25
P/B 1.50
LUV's P/B is ranked lower than
2499998% of the 40 Companies
in the Global Airlines industry.

( Industry Median: 1.19 vs. LUV: 1.50 )
LUV' s 10-Year P/B Range
Min: 0.77   Max: 5.36
Current: 1.5
0.77
5.36
P/S 0.60
LUV's P/S is ranked lower than
2325579% of the 43 Companies
in the Global Airlines industry.

( Industry Median: 0.39 vs. LUV: 0.60 )
LUV' s 10-Year P/S Range
Min: 0.35   Max: 3.27
Current: 0.6
0.35
3.27
PFCF 118.00
LUV's PFCF is ranked lower than
4166663% of the 24 Companies
in the Global Airlines industry.

( Industry Median: 14.30 vs. LUV: 118.00 )
LUV' s 10-Year PFCF Range
Min: 2.92   Max: 361.48
Current: 118
2.92
361.48
EV-to-EBIT 15.4
LUV's EV-to-EBIT is ranked lower than
2941174% of the 34 Companies
in the Global Airlines industry.

( Industry Median: 12.12 vs. LUV: 15.4 )
LUV' s 10-Year EV-to-EBIT Range
Min: 6.8   Max: 75.6
Current: 15.4
6.8
75.6
PEG 2.5
LUV's PEG is ranked lower than
6249994% of the 16 Companies
in the Global Airlines industry.

( Industry Median: 1.10 vs. LUV: 2.5 )
LUV' s 10-Year PEG Range
Min: 0.84   Max: 24.78
Current: 2.5
0.84
24.78
Shiller P/E 31.5
LUV's Shiller P/E is ranked lower than
100% of the Companies
in the Global Airlines industry.

( Industry Median: vs. LUV: 31.5 )
LUV' s 10-Year Shiller P/E Range
Min: 9.16   Max: 32
Current: 31.5
9.16
32

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 0.30
LUV's Dividend Yield is ranked lower than
6249994% of the 16 Companies
in the Global Airlines industry.

( Industry Median: 1.70 vs. LUV: 0.30 )
LUV' s 10-Year Dividend Yield Range
Min: 0.07   Max: 0.39
Current: 0.3
0.07
0.39
Dividend Payout 0.0781
LUV's Dividend Payout is ranked lower than
6249994% of the 16 Companies
in the Global Airlines industry.

( Industry Median: 0.40 vs. LUV: 0.0781 )
LUV' s 10-Year Dividend Payout Range
Min: 0.02   Max: 0.14
Current: 0.08
0.02
0.14
Dividend growth (3y) 18.1
LUV's Dividend growth (3y) is ranked lower than
19999980% of the 5 Companies
in the Global Airlines industry.

( Industry Median: 37.70 vs. LUV: 18.1 )
LUV' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 18.1
Current: 18.1
0
18.1
Yield on cost (5-Year) 0.58
LUV's Yield on cost (5-Year) is ranked lower than
5555550% of the 18 Companies
in the Global Airlines industry.

( Industry Median: 1.70 vs. LUV: 0.58 )
LUV' s 10-Year Yield on cost (5-Year) Range
Min: 0.14   Max: 0.76
Current: 0.58
0.14
0.76
Share Buyback Rate -0.5
LUV's Share Buyback Rate is ranked lower than
16666650% of the 6 Companies
in the Global Airlines industry.

( Industry Median: 1.30 vs. LUV: -0.5 )
LUV' s 10-Year Share Buyback Rate Range
Min: 2.4   Max: -1.1
Current: -0.5

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 22.5
LUV's Price/Net Current Asset Value is ranked lower than
2857140% of the 35 Companies
in the Global Airlines industry.

( Industry Median: 9.10 vs. LUV: 22.5 )
LUV' s 10-Year Price/Net Current Asset Value Range
Min: 16.2   Max: 168
Current: 22.5
16.2
168
Price/Tangible Book 1.8
LUV's Price/Tangible Book is ranked lower than
2631576% of the 38 Companies
in the Global Airlines industry.

( Industry Median: 1.50 vs. LUV: 1.8 )
LUV' s 10-Year Price/Tangible Book Range
Min: 1.1   Max: 5.1
Current: 1.8
1.1
5.1
Price/DCF (Projected) 1.1
LUV's Price/DCF (Projected) is ranked lower than
5555550% of the 18 Companies
in the Global Airlines industry.

( Industry Median: 1.60 vs. LUV: 1.1 )
LUV' s 10-Year Price/DCF (Projected) Range
Min: 0.8   Max: 3.3
Current: 1.1
0.8
3.3
Price/Median PS Value 0.4
LUV's Price/Median PS Value is ranked lower than
2325579% of the 43 Companies
in the Global Airlines industry.

( Industry Median: 0.90 vs. LUV: 0.4 )
LUV' s 10-Year Price/Median PS Value Range
Min: 0.3   Max: 2.1
Current: 0.4
0.3
2.1
Price/Peter Lynch Fair Value 2.5
LUV's Price/Peter Lynch Fair Value is ranked lower than
7692300% of the 13 Companies
in the Global Airlines industry.

( Industry Median: 0.90 vs. LUV: 2.5 )
LUV' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1   Max: 11.5
Current: 2.5
1
11.5
Price/Graham Number 1.5
LUV's Price/Graham Number is ranked lower than
3030300% of the 33 Companies
in the Global Airlines industry.

( Industry Median: 1.10 vs. LUV: 1.5 )
LUV' s 10-Year Price/Graham Number Range
Min: 0.9   Max: 2.5
Current: 1.5
0.9
2.5
Earnings Yield (Greenblatt) 6.50
LUV's Earnings Yield (Greenblatt) is ranked lower than
2857140% of the 35 Companies
in the Global Airlines industry.

( Industry Median: 8.30 vs. LUV: 6.50 )
LUV' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.3   Max: 14.7
Current: 6.5
1.3
14.7
Forward Rate of Return (Yacktman) 12.99
LUV's Forward Rate of Return (Yacktman) is ranked lower than
4761900% of the 21 Companies
in the Global Airlines industry.

( Industry Median: 12.99 vs. LUV: 12.99 )
LUV' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -7.5   Max: 47
Current: 12.99
-7.5
47

Business Description

Southwest Airlines, Co. was incorporated in Texas in 1967. It is a major passenger airline that provides scheduled air transportation in the United States. The Company mainly provides point-to-point, rather than hub-and-spoke, service. This allows the Company to maximize the use of key assets, including aircraft, gates, and Employees, and also facilitates the Company's ability to provide its markets with frequent, conveniently timed flights and low fares. The Company has predominantly served short-haul routes with high frequencies. Over recent years, it has complemented this service with medium to long-haul routes, including transcontinental service. The Company's point-to-point service also enables it to provide its markets with frequent, conveniently timed flights. Examples of markets offering frequent daily flights are: Dallas Love Field to Houston Hobby, 27 weekday roundtrips; Phoenix to Las Vegas, 15 weekday roundtrips; and Los Angeles International to Oakland, 16 weekday roundtrips. The Company complements these high-frequency short-haul routes with long-haul, nonstop service between markets such as Los Angeles and Nashville, Las Vegas and Orlando, and San Diego and Baltimore. The Company's use of a single aircraft type, the Boeing 737, enables it to simplify scheduling, maintenance, flight operations, and training activities. The Company's point-to-point route structure includes service to and from many secondary or downtown airports such as Dallas Love Field, Houston Hobby, Chicago Midway, Baltimore-Washington International, Burbank, Manchester, Oakland, San Jose, Providence, Ft. Lauderdale/Hollywood, and Long Island Islip airports. These conveniently located airports are typically less congested than other airlines' hub airports, which enables the Company to achieve high asset utilization because aircraft could be scheduled to minimize the amount of time they are on the ground. Competition within the airline industry is highly competitive and unpredictable, and the Company currently competes with other airlines on a majority of its routes. The airline industry is heavily regulated, especially by the federal government.
Company Website
SEC Reports
Industry: Airlines
Compare:CPA, RYAAY, LFL, ALNPY, CPCAY
Traded in other countries:SWN.Germany
» More Articles for LUV

Headlines

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Diamond Hill Capital Comments on Southwest Airlines Oct 24 2012 
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Is Delta Airlines A Buy Right Now? Mar 06 2012 

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