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 1.11
LUV's Cash to Debt is ranked higher than
91% of the 174 Companies
in the Global Airlines industry.

( Industry Median: 0.44 vs. LUV: 1.11 )
LUV' s 10-Year Cash to Debt Range
Min: 0.49   Max: No Debt
Current: 1.11

Equity to Asset 0.34
LUV's Equity to Asset is ranked higher than
88% of the 171 Companies
in the Global Airlines industry.

( Industry Median: 0.24 vs. LUV: 0.34 )
LUV' s 10-Year Equity to Asset Range
Min: 0.34   Max: 0.52
Current: 0.34

0.34
0.52
Interest Coverage 20.79
LUV's Interest Coverage is ranked higher than
94% of the 118 Companies
in the Global Airlines industry.

( Industry Median: 3.47 vs. LUV: 20.79 )
LUV' s 10-Year Interest Coverage Range
Min: 1.59   Max: 9999.99
Current: 20.79

1.59
9999.99
F-Score: 7
Z-Score: 3.00
M-Score: -3.00
WACC vs ROIC
5.00%
20.74%
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 (%) 11.95
LUV's Operating margin (%) is ranked higher than
93% of the 173 Companies
in the Global Airlines industry.

( Industry Median: 5.05 vs. LUV: 11.95 )
LUV' s 10-Year Operating margin (%) Range
Min: 2.53   Max: 18.09
Current: 11.95

2.53
18.09
Net-margin (%) 6.11
LUV's Net-margin (%) is ranked higher than
90% of the 173 Companies
in the Global Airlines industry.

( Industry Median: 2.91 vs. LUV: 6.11 )
LUV' s 10-Year Net-margin (%) Range
Min: 0.96   Max: 11.08
Current: 6.11

0.96
11.08
ROE (%) 15.67
LUV's ROE (%) is ranked higher than
89% of the 168 Companies
in the Global Airlines industry.

( Industry Median: 6.70 vs. LUV: 15.67 )
LUV' s 10-Year ROE (%) Range
Min: 1.9   Max: 19.91
Current: 15.67

1.9
19.91
ROA (%) 5.63
LUV's ROA (%) is ranked higher than
90% of the 176 Companies
in the Global Airlines industry.

( Industry Median: 1.26 vs. LUV: 5.63 )
LUV' s 10-Year ROA (%) Range
Min: 0.7   Max: 10.16
Current: 5.63

0.7
10.16
ROC (Joel Greenblatt) (%) 16.16
LUV's ROC (Joel Greenblatt) (%) is ranked higher than
92% of the 176 Companies
in the Global Airlines industry.

( Industry Median: 6.95 vs. LUV: 16.16 )
LUV' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 2.42   Max: 40.81
Current: 16.16

2.42
40.81
Revenue Growth (3Y)(%) 9.80
LUV's Revenue Growth (3Y)(%) is ranked higher than
91% of the 148 Companies
in the Global Airlines industry.

( Industry Median: 4.00 vs. LUV: 9.80 )
LUV' s 10-Year Revenue Growth (3Y)(%) Range
Min: -3.6   Max: 21.3
Current: 9.8

-3.6
21.3
EBITDA Growth (3Y)(%) 37.80
LUV's EBITDA Growth (3Y)(%) is ranked higher than
97% of the 125 Companies
in the Global Airlines industry.

( Industry Median: 3.90 vs. LUV: 37.80 )
LUV' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -28.6   Max: 55
Current: 37.8

-28.6
55
EPS Growth (3Y)(%) 92.10
LUV's EPS Growth (3Y)(%) is ranked higher than
99% of the 114 Companies
in the Global Airlines industry.

( Industry Median: 2.00 vs. LUV: 92.10 )
LUV' s 10-Year EPS Growth (3Y)(%) Range
Min: -40.3   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

Q1 2014

LUV Guru Trades in Q1 2014

John Keeley 11,450 sh (New)
Jeremy Grantham Sold Out
Jim Simons Sold Out
Louis Moore Bacon Sold Out
Richard Snow Sold Out
James Barrow 3,293,316 sh (-0.33%)
PRIMECAP Management 79,216,421 sh (-0.58%)
Steven Cohen 19,535 sh (-23.30%)
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%)
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%)
John Keeley 11,450 sh (unchged)
Pioneer Investments 119,232 sh (unchged)
Diamond Hill Capital Sold Out
Donald Smith 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
» 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 Guru Trades Found!
» 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...

Ratios

vs
industry
vs
history
P/E(ttm) 27.00
LUV's P/E(ttm) is ranked higher than
83% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 36.70 vs. LUV: 27.00 )
LUV' s 10-Year P/E(ttm) Range
Min: 11.86   Max: 93.19
Current: 27

11.86
93.19
Forward P/E 11.76
LUV's Forward P/E is ranked higher than
80% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 12.59 vs. LUV: 11.76 )
N/A
PE(NRI) 27.00
LUV's PE(NRI) is ranked higher than
86% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 29.80 vs. LUV: 27.00 )
LUV' s 10-Year PE(NRI) Range
Min: 12.14   Max: 94.88
Current: 27

12.14
94.88
P/B 4.40
LUV's P/B is ranked higher than
70% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 2.22 vs. LUV: 4.40 )
LUV' s 10-Year P/B Range
Min: 0.77   Max: 4.65
Current: 4.4

0.77
4.65
P/S 1.66
LUV's P/S is ranked higher than
68% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 0.78 vs. LUV: 1.66 )
LUV' s 10-Year P/S Range
Min: 0.35   Max: 2.16
Current: 1.66

0.35
2.16
PFCF 27.20
LUV's PFCF is ranked higher than
89% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 0.00 vs. LUV: 27.20 )
LUV' s 10-Year PFCF Range
Min: 2.92   Max: 237.86
Current: 27.2

2.92
237.86
POCF 10.66
LUV's POCF is ranked higher than
79% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 6.70 vs. LUV: 10.66 )
LUV' s 10-Year POCF Range
Min: 2.12   Max: 13.83
Current: 10.66

2.12
13.83
EV-to-EBIT 13.31
LUV's EV-to-EBIT is ranked higher than
89% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 17.50 vs. LUV: 13.31 )
LUV' s 10-Year EV-to-EBIT Range
Min: 6.8   Max: 51.9
Current: 13.31

6.8
51.9
PEG 1.15
LUV's PEG is ranked higher than
95% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 0.00 vs. LUV: 1.15 )
LUV' s 10-Year PEG Range
Min: 0.54   Max: 34.97
Current: 1.15

0.54
34.97
Shiller P/E 61.90
LUV's Shiller P/E is ranked higher than
86% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 0.00 vs. LUV: 61.90 )
LUV' s 10-Year Shiller P/E Range
Min: 9.68   Max: 65.3
Current: 61.9

9.68
65.3
Current Ratio 0.74
LUV's Current Ratio is ranked higher than
76% of the 176 Companies
in the Global Airlines industry.

( Industry Median: 0.89 vs. LUV: 0.74 )
LUV' s 10-Year Current Ratio Range
Min: 0.66   Max: 1.56
Current: 0.74

0.66
1.56
Quick Ratio 0.69
LUV's Quick Ratio is ranked higher than
77% of the 176 Companies
in the Global Airlines industry.

( Industry Median: 0.83 vs. LUV: 0.69 )
LUV' s 10-Year Quick Ratio Range
Min: 0.59   Max: 1.5
Current: 0.69

0.59
1.5
Days Inventory 24.57
LUV's Days Inventory is ranked higher than
77% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 15.06 vs. LUV: 24.57 )
LUV' s 10-Year Days Inventory Range
Min: 8.07   Max: 31
Current: 24.57

8.07
31
Days Sales Outstanding 7.16
LUV's Days Sales Outstanding is ranked higher than
96% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 20.77 vs. LUV: 7.16 )
LUV' s 10-Year Days Sales Outstanding Range
Min: 4.68   Max: 13.86
Current: 7.16

4.68
13.86

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.54
LUV's Dividend Yield is ranked lower than
84% of the 95 Companies
in the Global Airlines industry.

( Industry Median: 1.57 vs. LUV: 0.54 )
LUV' s 10-Year Dividend Yield Range
Min: 0.11   Max: 0.76
Current: 0.54

0.11
0.76
Dividend Payout 0.13
LUV's Dividend Payout is ranked higher than
98% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 0.00 vs. LUV: 0.13 )
LUV' s 10-Year Dividend Payout Range
Min: 0.02   Max: 0.14
Current: 0.13

0.02
0.14
Dividend growth (3y) 130.30
LUV's Dividend growth (3y) is ranked higher than
98% of the 59 Companies
in the Global Airlines industry.

( Industry Median: -20.90 vs. LUV: 130.30 )
LUV' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 130.3
Current: 130.3

0
130.3
Yield on cost (5-Year) 7.68
LUV's Yield on cost (5-Year) is ranked higher than
91% of the 97 Companies
in the Global Airlines industry.

( Industry Median: 1.69 vs. LUV: 7.68 )
LUV' s 10-Year Yield on cost (5-Year) Range
Min: 1.69   Max: 11.68
Current: 7.68

1.69
11.68
Share Buyback Rate 3.50
LUV's Share Buyback Rate is ranked higher than
96% of the 124 Companies
in the Global Airlines industry.

( Industry Median: -0.60 vs. LUV: 3.50 )
LUV' s 10-Year Share Buyback Rate Range
Min: 8.3   Max: -9.2
Current: 3.5

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 5.50
LUV's Price/Tangible Book is ranked higher than
72% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 3.28 vs. LUV: 5.50 )
LUV' s 10-Year Price/Tangible Book Range
Min: 1.15   Max: 5.28
Current: 5.5

1.15
5.28
Price/DCF (Projected) 1.80
LUV's Price/DCF (Projected) is ranked higher than
90% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 0.00 vs. LUV: 1.80 )
LUV' s 10-Year Price/DCF (Projected) Range
Min: 0.86   Max: 9.93
Current: 1.8

0.86
9.93
Price/Median PS Value 1.80
LUV's Price/Median PS Value is ranked higher than
77% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 1.44 vs. LUV: 1.80 )
LUV' s 10-Year Price/Median PS Value Range
Min: 0.47   Max: 3.44
Current: 1.8

0.47
3.44
Price/Peter Lynch Fair Value 1.30
LUV's Price/Peter Lynch Fair Value is ranked higher than
91% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 0.00 vs. LUV: 1.30 )
LUV' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.58   Max: 11.55
Current: 1.3

0.58
11.55
Price/Graham Number 2.50
LUV's Price/Graham Number is ranked higher than
81% of the 188 Companies
in the Global Airlines industry.

( Industry Median: 2.64 vs. LUV: 2.50 )
LUV' s 10-Year Price/Graham Number Range
Min: 0.89   Max: 2.43
Current: 2.5

0.89
2.43
Earnings Yield (Greenblatt) 7.40
LUV's Earnings Yield (Greenblatt) is ranked higher than
87% of the 173 Companies
in the Global Airlines industry.

( Industry Median: 6.60 vs. LUV: 7.40 )
LUV' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.9   Max: 14.7
Current: 7.4

1.9
14.7
Forward Rate of Return (Yacktman) 23.94
LUV's Forward Rate of Return (Yacktman) is ranked higher than
92% of the 127 Companies
in the Global Airlines industry.

( Industry Median: 2.68 vs. LUV: 23.94 )
LUV' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -17.1   Max: 36.2
Current: 23.94

-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 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
American Airlines’ Remains A Great Stock To Invest In Mar 31 2015 
A Few Reasons Why MDC Holdings Looks Like a Good Long-Term Buy Mar 30 2015 
SouthWest Airlines : An Airline With Potential To Reach Even Higher Altitudes Mar 25 2015 
Virgin America Stock Outlook Mar 24 2015 
American Airlines Enthusiastic On Joining The S&P 500 Club Mar 20 2015 
Southwest Airlines: Set To Take Off In Your Portfolio Mar 16 2015 
2-For-1 Promotional Campaign Launched By Virgin America To Tide Over Competition Mar 15 2015 
Primecap Management's Annual Shareholder Letter 2014 Mar 09 2015 
Apple Set To Dominate Again In 2015: A Fundamental And Algorithmic Analysis Feb 26 2015 
Southwest Airlines Gets FAA Nod To Use Planes That Missed Inspection Feb 26 2015 

More From Our Partners
GOL Posts Wider Q4 Loss Despite Y/Y Revenue Growth - Analyst Blog Mar 31 2015 - ZACKS

More From Other Websites
Delta, United, American Overseas Sales Seen Weak Apr 01 2015
Early Glance: Airlines companies Apr 01 2015
Airline stocks slump after Deutsche Bank cuts ratings, target on sector heavyweights Apr 01 2015
Southwest Airlines And The Hispanic Association Of Colleges And Universities Now Accepting... Apr 01 2015
Southwest Airlines And The Hispanic Association Of Colleges And Universities Now Accepting... Apr 01 2015
Wow Air Targets Boston Logan as Low-Fare Europe Service Ramps Up Apr 01 2015
Southwest Airlines Cargo Takes Off With Another Award! Mar 31 2015
Southwest Airlines Cargo Takes Off With Another Award! Mar 31 2015
GOL Posts Wider Q4 Loss Despite Y/Y Revenue Growth - Analyst Blog Mar 31 2015
Midday Glance: Airlines companies Mar 31 2015
Midday Glance: Airlines companies Mar 31 2015
Southwest diverts flight to Idaho over burning smell Mar 31 2015
Southwest diverts flight to Idaho over burning smell Mar 31 2015
US Airways continues surge at Dayton Airport Mar 31 2015
Southwest Airlines Is Top Airline In Forbes® List Of Best Employers For 2015 Mar 31 2015
Southwest Airlines Is Top Airline In Forbes® List Of Best Employers For 2015 Mar 31 2015
Sell Rails, Buy Airlines in Transport Switch Mar 31 2015
[$$] Germanwings Crash Comes Amid Labor Strife at Lufthansa Mar 30 2015
U.S. Airlines Slog to Slowest Start Since 2011 on Excess Seats Mar 30 2015
Read This Before You Sell Southwest Airlines Stock Mar 30 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)
Free 7-day Trial
FEEDBACK