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 1.21
LUV's Cash to Debt is ranked higher than
91% of the 166 Companies
in the Global Airlines industry.

( Industry Median: 0.46 vs. LUV: 1.21 )
LUV' s 10-Year Cash to Debt Range
Min: 0.3   Max: No Debt
Current: 1.21

Equity to Asset 0.36
LUV's Equity to Asset is ranked higher than
90% of the 160 Companies
in the Global Airlines industry.

( Industry Median: 0.24 vs. LUV: 0.36 )
LUV' s 10-Year Equity to Asset Range
Min: 0.35   Max: 0.53
Current: 0.36

0.35
0.53
Interest Coverage 11.94
LUV's Interest Coverage is ranked higher than
91% of the 112 Companies
in the Global Airlines industry.

( Industry Median: 3.26 vs. LUV: 11.94 )
LUV' s 10-Year Interest Coverage Range
Min: 1.59   Max: 14.61
Current: 11.94

1.59
14.61
F-Score: 8
Z-Score: 2.83
M-Score: -2.96
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 (%) 10.81
LUV's Operating margin (%) is ranked higher than
93% of the 165 Companies
in the Global Airlines industry.

( Industry Median: 4.45 vs. LUV: 10.81 )
LUV' s 10-Year Operating margin (%) Range
Min: 2.53   Max: 18.07
Current: 10.81

2.53
18.07
Net-margin (%) 6.29
LUV's Net-margin (%) is ranked higher than
90% of the 165 Companies
in the Global Airlines industry.

( Industry Median: 2.35 vs. LUV: 6.29 )
LUV' s 10-Year Net-margin (%) Range
Min: 0.96   Max: 10.68
Current: 6.29

0.96
10.68
ROE (%) 15.87
LUV's ROE (%) is ranked higher than
87% of the 156 Companies
in the Global Airlines industry.

( Industry Median: 9.58 vs. LUV: 15.87 )
LUV' s 10-Year ROE (%) Range
Min: 1.9   Max: 19.67
Current: 15.87

1.9
19.67
ROA (%) 5.78
LUV's ROA (%) is ranked higher than
90% of the 168 Companies
in the Global Airlines industry.

( Industry Median: 1.94 vs. LUV: 5.78 )
LUV' s 10-Year ROA (%) Range
Min: 0.69   Max: 9.79
Current: 5.78

0.69
9.79
ROC (Joel Greenblatt) (%) 14.69
LUV's ROC (Joel Greenblatt) (%) is ranked higher than
89% of the 168 Companies
in the Global Airlines industry.

( Industry Median: 7.31 vs. LUV: 14.69 )
LUV' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 2.42   Max: 22.56
Current: 14.69

2.42
22.56
Revenue Growth (%) 15.00
LUV's Revenue Growth (%) is ranked higher than
93% of the 148 Companies
in the Global Airlines industry.

( Industry Median: 4.80 vs. LUV: 15.00 )
LUV' s 10-Year Revenue Growth (%) Range
Min: -3.6   Max: 21.3
Current: 15

-3.6
21.3
EBITDA Growth (%) 14.20
LUV's EBITDA Growth (%) is ranked higher than
90% of the 124 Companies
in the Global Airlines industry.

( Industry Median: -6.00 vs. LUV: 14.20 )
LUV' s 10-Year EBITDA Growth (%) Range
Min: -15.1   Max: 30.4
Current: 14.2

-15.1
30.4
EPS Growth (%) 19.80
LUV's EPS Growth (%) is ranked higher than
89% of the 111 Companies
in the Global Airlines industry.

( Industry Median: -1.70 vs. LUV: 19.80 )
LUV' s 10-Year EPS Growth (%) Range
Min: -40.3   Max: 62.7
Current: 19.8

-40.3
62.7
» LUV's 10-Y Financials

Financials


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

» Details

Guru Trades

Q4 2013

LUV Guru Trades in Q4 2013

Louis Moore Bacon 25,000 sh (New)
Ray Dalio 185,000 sh (New)
Jim Simons 4,238,680 sh (+109.14%)
Paul Tudor Jones 62,924 sh (+40.46%)
Pioneer Investments Sold Out
John Hussman Sold Out
PRIMECAP Management 79,678,194 sh (-0.66%)
Diamond Hill Capital 11,026,430 sh (-3.63%)
James Barrow 3,304,265 sh (-4.16%)
Jeremy Grantham 18,400 sh (-12.38%)
Donald Smith 7,216,338 sh (-50.21%)
Steven Cohen 25,470 sh (-70.27%)
Richard Snow 71,715 sh (-89.06%)
» More
Q1 2014

LUV Guru Trades in Q1 2014

John Keeley 11,450 sh (New)
Jim Simons Sold Out
Jeremy Grantham Sold Out
Richard Snow Sold Out
Louis Moore Bacon Sold Out
James Barrow 3,293,316 sh (-0.33%)
PRIMECAP Management 79,216,421 sh (-0.58%)
Steven Cohen 19,535 sh (-23.3%)
Paul Tudor Jones 41,600 sh (-33.89%)
Donald Smith 3,765,832 sh (-47.82%)
Ray Dalio 66,931 sh (-63.82%)
Diamond Hill Capital 2,863,420 sh (-74.03%)
» More
Q2 2014

LUV Guru Trades in Q2 2014

Jim Simons 1,187,780 sh (New)
Joel Greenblatt 1,016,501 sh (New)
Ray Dalio 206,431 sh (+208.42%)
James Barrow 3,469,544 sh (+5.35%)
Steven Cohen 4,200 sh (unchged)
John Keeley 11,450 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

Pioneer Investments 119,232 sh (New)
James Barrow 4,107,011 sh (+18.37%)
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 (-18.8%)
Jim Simons 933,100 sh (-21.44%)
Steven Cohen 3,000 sh (-28.57%)
Joel Greenblatt 514,700 sh (-49.37%)
» 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%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-09-30 Reduce -49.37%0.17%$26.7 - $35.23 $ 38.8727%514700
Donald Smith 2014-09-30 Sold Out $26.7 - $35.23 $ 38.8727%0
Donald Smith 2014-06-30 Reduce -99.86%1.7%$22.51 - $27.59 $ 38.8754%5237
Joel Greenblatt 2014-06-30 New Buy0.34%$22.51 - $27.59 $ 38.8754%1016501
Ray Dalio 2014-06-30 Add 208.42%0.03%$22.51 - $27.59 $ 38.8754%206431
Donald Smith 2014-03-31 Reduce -47.82%1.29%$18.83 - $23.98 $ 38.8779%3765832
Richard Snow 2014-03-31 Sold Out 0.06%$18.83 - $23.98 $ 38.8779%0
Ray Dalio 2014-03-31 Reduce -63.82%0.02%$18.83 - $23.98 $ 38.8779%66931
John Keeley 2014-03-31 New Buy$18.83 - $23.98 $ 38.8779%11450
Donald Smith 2013-12-31 Reduce -50.21%2.26%$14.67 - $18.95 $ 38.87123%7216338
John Hussman 2013-12-31 Sold Out 0.96%$14.67 - $18.95 $ 38.87123%0
Richard Snow 2013-12-31 Reduce -89.06%0.38%$14.67 - $18.95 $ 38.87123%71715
Ray Dalio 2013-12-31 New Buy0.03%$14.67 - $18.95 $ 38.87123%185000
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» 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

Top Ranked Articles about Southwest Airlines Co

Diamond Hill Capital Comments on Southwest Airlines Co
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. Read more...
Diamond Hill Capital Comments on Southwest Airlines Co.
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. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 23.30
LUV's P/E(ttm) is ranked higher than
84% of the 180 Companies
in the Global Airlines industry.

( Industry Median: 24.40 vs. LUV: 23.30 )
LUV' s 10-Year P/E(ttm) Range
Min: 11.86   Max: 93.19
Current: 23.3

11.86
93.19
P/B 3.55
LUV's P/B is ranked higher than
74% of the 180 Companies
in the Global Airlines industry.

( Industry Median: 2.14 vs. LUV: 3.55 )
LUV' s 10-Year P/B Range
Min: 0.77   Max: 3.56
Current: 3.55

0.77
3.56
P/S 1.48
LUV's P/S is ranked higher than
72% of the 180 Companies
in the Global Airlines industry.

( Industry Median: 0.57 vs. LUV: 1.48 )
LUV' s 10-Year P/S Range
Min: 0.35   Max: 2.25
Current: 1.48

0.35
2.25
PFCF 22.86
LUV's PFCF is ranked higher than
93% of the 180 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. LUV: 22.86 )
LUV' s 10-Year PFCF Range
Min: 2.92   Max: 246
Current: 22.86

2.92
246
EV-to-EBIT 12.95
LUV's EV-to-EBIT is ranked higher than
86% of the 180 Companies
in the Global Airlines industry.

( Industry Median: 17.18 vs. LUV: 12.95 )
LUV' s 10-Year EV-to-EBIT Range
Min: 6.8   Max: 51.9
Current: 12.95

6.8
51.9
PEG 1.19
LUV's PEG is ranked higher than
92% of the 180 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. LUV: 1.19 )
LUV' s 10-Year PEG Range
Min: 0.71   Max: 81.43
Current: 1.19

0.71
81.43
Shiller P/E 58.27
LUV's Shiller P/E is ranked higher than
86% of the 180 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. LUV: 58.27 )
LUV' s 10-Year Shiller P/E Range
Min: 9.68   Max: 58.13
Current: 58.27

9.68
58.13
Current Ratio 0.77
LUV's Current Ratio is ranked higher than
77% of the 163 Companies
in the Global Airlines industry.

( Industry Median: 0.89 vs. LUV: 0.77 )
LUV' s 10-Year Current Ratio Range
Min: 0.49   Max: 1.64
Current: 0.77

0.49
1.64
Quick Ratio 0.71
LUV's Quick Ratio is ranked higher than
78% of the 163 Companies
in the Global Airlines industry.

( Industry Median: 0.85 vs. LUV: 0.71 )
LUV' s 10-Year Quick Ratio Range
Min: 0.43   Max: 1.58
Current: 0.71

0.43
1.58

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.51
LUV's Dividend Yield is ranked lower than
92% of the 89 Companies
in the Global Airlines industry.

( Industry Median: 1.57 vs. LUV: 0.51 )
LUV' s 10-Year Dividend Yield Range
Min: 0.11   Max: 0.76
Current: 0.51

0.11
0.76
Dividend Payout 0.12
LUV's Dividend Payout is ranked higher than
97% of the 180 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. LUV: 0.12 )
LUV' s 10-Year Dividend Payout Range
Min: 0.01   Max: 0.5
Current: 0.12

0.01
0.5
Dividend growth (3y) 93.30
LUV's Dividend growth (3y) is ranked higher than
96% of the 46 Companies
in the Global Airlines industry.

( Industry Median: 9.90 vs. LUV: 93.30 )
LUV' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 93.3
Current: 93.3

0
93.3
Yield on cost (5-Year) 5.03
LUV's Yield on cost (5-Year) is ranked higher than
82% of the 91 Companies
in the Global Airlines industry.

( Industry Median: 1.85 vs. LUV: 5.03 )
LUV' s 10-Year Yield on cost (5-Year) Range
Min: 1.11   Max: 7.65
Current: 5.03

1.11
7.65
Share Buyback Rate 1.30
LUV's Share Buyback Rate is ranked higher than
93% of the 135 Companies
in the Global Airlines industry.

( Industry Median: -0.70 vs. LUV: 1.30 )
LUV' s 10-Year Share Buyback Rate Range
Min: 8.3   Max: -9.2
Current: 1.3

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 4.33
LUV's Price/Tangible Book is ranked higher than
78% of the 180 Companies
in the Global Airlines industry.

( Industry Median: 2.97 vs. LUV: 4.33 )
LUV' s 10-Year Price/Tangible Book Range
Min: 0.95   Max: 4.88
Current: 4.33

0.95
4.88
Price/DCF (Projected) 2.31
LUV's Price/DCF (Projected) is ranked higher than
88% of the 180 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. LUV: 2.31 )
LUV' s 10-Year Price/DCF (Projected) Range
Min: 0.53   Max: 38.54
Current: 2.31

0.53
38.54
Price/Median PS Value 1.60
LUV's Price/Median PS Value is ranked higher than
77% of the 180 Companies
in the Global Airlines industry.

( Industry Median: 1.18 vs. LUV: 1.60 )
LUV' s 10-Year Price/Median PS Value Range
Min: 0.42   Max: 3.41
Current: 1.6

0.42
3.41
Price/Peter Lynch Fair Value 1.10
LUV's Price/Peter Lynch Fair Value is ranked higher than
94% of the 180 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. LUV: 1.10 )
LUV' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.73   Max: 12.17
Current: 1.1

0.73
12.17
Price/Graham Number 2.09
LUV's Price/Graham Number is ranked higher than
84% of the 180 Companies
in the Global Airlines industry.

( Industry Median: 2.09 vs. LUV: 2.09 )
LUV' s 10-Year Price/Graham Number Range
Min: 0.8   Max: 3.07
Current: 2.09

0.8
3.07
Earnings Yield (Greenblatt) 7.70
LUV's Earnings Yield (Greenblatt) is ranked higher than
85% of the 165 Companies
in the Global Airlines industry.

( Industry Median: 7.20 vs. LUV: 7.70 )
LUV' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.9   Max: 14.7
Current: 7.7

1.9
14.7
Forward Rate of Return (Yacktman) 23.45
LUV's Forward Rate of Return (Yacktman) is ranked higher than
93% of the 130 Companies
in the Global Airlines industry.

( Industry Median: -1.09 vs. LUV: 23.45 )
LUV' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -13.1   Max: 29.1
Current: 23.45

-13.1
29.1

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 in 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 most major U.S. airlines. The hub-and-spoke system concentrates most of an airline's operations at a limited number of central hub cities and serves most 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
Southwest Airlines Raises $600,000 'Fore' Ronald McDonald House Charities at 29th-Annual LUV Classic Oct 15 2014 
Some Stocks Thrive, Others Dive in Ebola Scare Oct 14 2014 
Reasons Why Greenblatt and Simons Are Betting on Southwest Airlines Sep 29 2014 
Southwest Airlines is All Set to Fly Higher Jul 14 2014 
Diamond Hill Capital Comments on Southwest Airlines Co Jun 26 2014 
Diamond Hill Select Fund Commentary – First Quarter 2014 Jun 25 2014 
Profit from the Aviation Industry with These Stocks May 30 2014 
2 Airline Stocks to Consider for Your Portfolio May 01 2014 
A Small Airline Can Make Big Waves too Apr 02 2014 
Delta Air Lines: Improvements Go a Long way Mar 31 2014 


More From Other Websites
Midday movers: Intel, Toyota, Petrobras & more Nov 21 2014
American Airlines focuses on growth in the Pacific region Nov 21 2014
Alaska Air's Valuation is 'Nonsense' and It's Delta's Fault Nov 21 2014
United’s October revenue, capacity growth best in Latin America Nov 21 2014
United reports EPS growth of 82%, exceeding analyst estimates Nov 21 2014
This airline could soar even higher Nov 20 2014
Delta Airlines’ domestic revenue remains strong in October Nov 20 2014
United’s margins soar in 3Q14 Nov 20 2014
Southwest Pilots Seek Mediation Nov 20 2014
Southwest, pilots far apart in contract talks Nov 20 2014
Southwest, pilots far apart in contract talks Nov 20 2014
Southwest Airlines Declares 153rd Consecutive Quarterly Dividend Nov 20 2014
Southwest Airlines Declares 153rd Consecutive Quarterly Dividend Nov 20 2014
JetBlue records highest traffic growth among peers in October Nov 20 2014
United sees major improvement in 3Q14 fuel cost efficiency Nov 20 2014
U.S. Consumer Prices for Airfares in October Nov 20 2014
Must know: United beats peers in 3Q14 cost efficiency improvement Nov 20 2014
JetBlue Bag Fee, Legroom Cut Please Investors While Fliers Irked Nov 19 2014
How did United improve passenger revenue growth in 3Q14? Nov 19 2014
What's Behind JetBlue's New Fees? Nov 19 2014

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)
Free 7-day Trial
FEEDBACK