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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 : 7/10

vs
industry
vs
history
Cash to Debt 1.33
LUV's Cash to Debt is ranked higher than
92% of the 128 Companies
in the Global Airlines industry.

( Industry Median: 0.48 vs. LUV: 1.33 )
LUV' s 10-Year Cash to Debt Range
Min: 0.3   Max: No Debt
Current: 1.33

Equity to Asset 0.36
LUV's Equity to Asset is ranked higher than
90% of the 126 Companies
in the Global Airlines industry.

( Industry Median: 0.27 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
92% of the 97 Companies
in the Global Airlines industry.

( Industry Median: 3.40 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: 2.48
M-Score: -3.02
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 (%) 7.22
LUV's Operating margin (%) is ranked higher than
83% of the 126 Companies
in the Global Airlines industry.

( Industry Median: 4.53 vs. LUV: 7.22 )
LUV' s 10-Year Operating margin (%) Range
Min: 2.53   Max: 18.07
Current: 7.22

2.53
18.07
Net-margin (%) 4.26
LUV's Net-margin (%) is ranked higher than
87% of the 126 Companies
in the Global Airlines industry.

( Industry Median: 2.79 vs. LUV: 4.26 )
LUV' s 10-Year Net-margin (%) Range
Min: 0.96   Max: 10.68
Current: 4.26

0.96
10.68
ROE (%) 10.28
LUV's ROE (%) is ranked higher than
85% of the 121 Companies
in the Global Airlines industry.

( Industry Median: 6.13 vs. LUV: 10.28 )
LUV' s 10-Year ROE (%) Range
Min: 1.81   Max: 18.08
Current: 10.28

1.81
18.08
ROA (%) 3.90
LUV's ROA (%) is ranked higher than
88% of the 129 Companies
in the Global Airlines industry.

( Industry Median: 1.66 vs. LUV: 3.90 )
LUV' s 10-Year ROA (%) Range
Min: 0.69   Max: 9.19
Current: 3.9

0.69
9.19
ROC (Joel Greenblatt) (%) 9.55
LUV's ROC (Joel Greenblatt) (%) is ranked higher than
86% of the 126 Companies
in the Global Airlines industry.

( Industry Median: 5.66 vs. LUV: 9.55 )
LUV' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 2.46   Max: 17.55
Current: 9.55

2.46
17.55
Revenue Growth (%) 15.00
LUV's Revenue Growth (%) is ranked higher than
93% of the 112 Companies
in the Global Airlines industry.

( Industry Median: 5.30 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 99 Companies
in the Global Airlines industry.

( Industry Median: -6.70 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 87 Companies
in the Global Airlines industry.

( Industry Median: -16.50 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

Q3 2013

LUV Guru Trades in Q3 2013

Jim Simons 2,026,680 sh (New)
Diamond Hill Capital 11,441,616 sh (+47.84%)
James Barrow 3,447,565 sh (+21.06%)
Richard Snow 655,560 sh (+9.36%)
John Hussman 1,200,000 sh (unchged)
Jeremy Grantham 21,000 sh (unchged)
George Soros Sold Out
Manning & Napier Advisors, Inc Sold Out
Ray Dalio Sold Out
Charles Brandes Sold Out
PRIMECAP Management 80,211,175 sh (-0.74%)
Donald Smith 14,493,018 sh (-2.52%)
Pioneer Investments 1,456,300 sh (-25.06%)
Paul Tudor Jones 44,800 sh (-49.72%)
Steven Cohen 85,672 sh (-51.46%)
» More
Q4 2013

LUV Guru Trades in Q4 2013

Ray Dalio 185,000 sh (New)
Louis Moore Bacon 25,000 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

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
» 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
Donald Smith 2014-06-30 Reduce -99.86%1.7%$22.51 - $27.59 $ 32.0127%5237
Joel Greenblatt 2014-06-30 New Buy0.34%$22.51 - $27.59 $ 32.0127%1016501
Ray Dalio 2014-06-30 Add 208.42%0.03%$22.51 - $27.59 $ 32.0127%206431
Donald Smith 2014-03-31 Reduce -47.82%1.29%$18.83 - $23.98 $ 32.0147%3765832
Ray Dalio 2014-03-31 Reduce -63.82%0.02%$18.83 - $23.98 $ 32.0147%66931
John Keeley 2014-03-31 New Buy$18.83 - $23.98 $ 32.0147%11450
Donald Smith 2013-12-31 Reduce -50.21%2.26%$14.67 - $18.95 $ 32.0183%7216338
John Hussman 2013-12-31 Sold Out 0.96%$14.67 - $18.95 $ 32.0183%0
Ray Dalio 2013-12-31 New Buy0.03%$14.67 - $18.95 $ 32.0183%185000
Donald Smith 2013-09-30 Reduce -2.52%0.11%$12.71 - $14.7 $ 32.01135%14493018
George Soros 2013-09-30 Sold Out 0.04%$12.71 - $14.7 $ 32.01135%0
James Barrow 2013-09-30 Add 21.06%0.01%$12.71 - $14.7 $ 32.01135%3447565
Ray Dalio 2013-09-30 Sold Out 0.01%$12.71 - $14.7 $ 32.01135%0
Charles Brandes 2013-09-30 Sold Out $12.71 - $14.7 $ 32.01135%0
Premium More recent guru trades are included for Premium 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

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 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) 20.50
LUV's P/E(ttm) is ranked higher than
75% of the 135 Companies
in the Global Airlines industry.

( Industry Median: 15.20 vs. LUV: 20.50 )
LUV' s 10-Year P/E(ttm) Range
Min: 11.86   Max: 93.19
Current: 20.5

11.86
93.19
P/B 2.95
LUV's P/B is ranked higher than
53% of the 135 Companies
in the Global Airlines industry.

( Industry Median: 1.91 vs. LUV: 2.95 )
LUV' s 10-Year P/B Range
Min: 0.77   Max: 3.14
Current: 2.95

0.77
3.14
P/S 1.24
LUV's P/S is ranked higher than
54% of the 135 Companies
in the Global Airlines industry.

( Industry Median: 0.50 vs. LUV: 1.24 )
LUV' s 10-Year P/S Range
Min: 0.35   Max: 3.13
Current: 1.24

0.35
3.13
PFCF 11.23
LUV's PFCF is ranked higher than
90% of the 135 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. LUV: 11.23 )
LUV' s 10-Year PFCF Range
Min: 2.92   Max: 246
Current: 11.23

2.92
246
EV-to-EBIT 11.86
LUV's EV-to-EBIT is ranked higher than
86% of the 135 Companies
in the Global Airlines industry.

( Industry Median: 23.44 vs. LUV: 11.86 )
LUV' s 10-Year EV-to-EBIT Range
Min: 6.8   Max: 51.9
Current: 11.86

6.8
51.9
PEG 1.06
LUV's PEG is ranked higher than
93% of the 135 Companies
in the Global Airlines industry.

( Industry Median: 7.71 vs. LUV: 1.06 )
LUV' s 10-Year PEG Range
Min: 0.71   Max: 41.3
Current: 1.06

0.71
41.3
Shiller P/E 57.24
LUV's Shiller P/E is ranked higher than
67% of the 135 Companies
in the Global Airlines industry.

( Industry Median: 291.30 vs. LUV: 57.24 )
LUV' s 10-Year Shiller P/E Range
Min: 9.68   Max: 57.16
Current: 57.24

9.68
57.16
Current Ratio 0.76
LUV's Current Ratio is ranked higher than
78% of the 96 Companies
in the Global Airlines industry.

( Industry Median: 0.93 vs. LUV: 0.76 )
LUV' s 10-Year Current Ratio Range
Min: 0.49   Max: 1.64
Current: 0.76

0.49
1.64
Quick Ratio 0.69
LUV's Quick Ratio is ranked higher than
76% of the 96 Companies
in the Global Airlines industry.

( Industry Median: 0.75 vs. LUV: 0.69 )
LUV' s 10-Year Quick Ratio Range
Min: 0.43   Max: 1.58
Current: 0.69

0.43
1.58

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.60
LUV's Dividend Yield is ranked lower than
87% of the 62 Companies
in the Global Airlines industry.

( Industry Median: 1.50 vs. LUV: 0.60 )
LUV' s 10-Year Dividend Yield Range
Min: 0.1   Max: 0.76
Current: 0.6

0.1
0.76
Dividend Payout 0.12
LUV's Dividend Payout is ranked higher than
96% of the 135 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
94% of the 33 Companies
in the Global Airlines industry.

( Industry Median: 2.50 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) 6.04
LUV's Yield on cost (5-Year) is ranked higher than
89% of the 63 Companies
in the Global Airlines industry.

( Industry Median: 1.52 vs. LUV: 6.04 )
LUV' s 10-Year Yield on cost (5-Year) Range
Min: 1.01   Max: 7.65
Current: 6.04

1.01
7.65
Share Buyback Rate 1.30
LUV's Share Buyback Rate is ranked higher than
91% of the 102 Companies
in the Global Airlines industry.

( Industry Median: -1.00 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 3.59
LUV's Price/Tangible Book is ranked higher than
74% of the 135 Companies
in the Global Airlines industry.

( Industry Median: 2.68 vs. LUV: 3.59 )
LUV' s 10-Year Price/Tangible Book Range
Min: 0.95   Max: 4.88
Current: 3.59

0.95
4.88
Price/DCF (Projected) 3.18
LUV's Price/DCF (Projected) is ranked higher than
83% of the 135 Companies
in the Global Airlines industry.

( Industry Median: 12.48 vs. LUV: 3.18 )
LUV' s 10-Year Price/DCF (Projected) Range
Min: 0.53   Max: 38.54
Current: 3.18

0.53
38.54
Price/Median PS Value 1.36
LUV's Price/Median PS Value is ranked higher than
74% of the 135 Companies
in the Global Airlines industry.

( Industry Median: 1.10 vs. LUV: 1.36 )
LUV' s 10-Year Price/Median PS Value Range
Min: 0.42   Max: 3.41
Current: 1.36

0.42
3.41
Price/Peter Lynch Fair Value 0.91
LUV's Price/Peter Lynch Fair Value is ranked higher than
93% of the 135 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. LUV: 0.91 )
LUV' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.73   Max: 12.17
Current: 0.91

0.73
12.17
Price/Graham Number 1.80
LUV's Price/Graham Number is ranked higher than
81% of the 135 Companies
in the Global Airlines industry.

( Industry Median: 1.36 vs. LUV: 1.80 )
LUV' s 10-Year Price/Graham Number Range
Min: 0.8   Max: 3.07
Current: 1.8

0.8
3.07
Earnings Yield (Greenblatt) 8.40
LUV's Earnings Yield (Greenblatt) is ranked higher than
78% of the 125 Companies
in the Global Airlines industry.

( Industry Median: 7.60 vs. LUV: 8.40 )
LUV' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.9   Max: 14.7
Current: 8.4

1.9
14.7
Forward Rate of Return (Yacktman) 23.61
LUV's Forward Rate of Return (Yacktman) is ranked higher than
92% of the 105 Companies
in the Global Airlines industry.

( Industry Median: 3.78 vs. LUV: 23.61 )
LUV' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -13.1   Max: 29.1
Current: 23.61

-13.1
29.1

Business Description

Industry: Airlines » Airlines
Compare:CPA, RYAAY, LFL, ALNPY, CPCAY » details
Traded in other countries:SWN.Germany
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.
» More Articles for LUV

Headlines

Articles On GuruFocus.com
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 
Keep Your Eyes on This Soaring Champion Mar 07 2014 
Diamond Hill Capital Comments on Southwest Airlines Co. Mar 05 2014 
Diamond Hill Large Cap Fund Commentary Q4 2013 Mar 05 2014 

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