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Southwest Airlines CoMEX:LUV 67 Piotroski F-Score is 7 as of Jul. 13, 2026, which is 40% above its 10-year median of 5.00. GuruFocus rates MEX:LUV with a GF Score™ of 67/100 and a GF Value™ of MXN783.47 (Fairly Valued). The stock has 3 warning signs investors should review. Among 978 Transportation companies, Southwest Airlines Co ranks better than 86.81% on this metric.
Good Sign:
Piotroski F-Score is 7, indicates a very healthy situation.
The zones of discrimination were as such:
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Southwest Airlines Co has an F-score of 6 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for Southwest Airlines Co's Piotroski F-Score or its related term are showing as below:
MEX:LUV'
s Piotroski F-Score Range Over the Past 10 Years
Min: 2 Med: 5 Max: 8
Current: 7
During the past 13 years, the highest Piotroski F-Score of Southwest Airlines Co was 8. The lowest was 2. And the median was 5.
Southwest Airlines Co (MEX:LUV) Piotroski F-Score Explanation
The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.
He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.
He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.
What he found was something that exceeded his most optimistic expectations.
Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.
Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).
Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.
Southwest Airlines Co Piotroski F-Score Related Terms
Southwest Airlines Co Piotroski F-Score Historical Data
* Premium members only.
The historical data trend for Southwest Airlines Co's Piotroski F-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:LUV vs AAL, UAL, CPA: Piotroski F-Score Comparison
For the Airlines subindustry, Southwest Airlines Co's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Southwest Airlines Co Piotroski F-Score vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's Piotroski F-Score falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
This Year (Mar26) TTM:
Last Year (Mar25) TTM:
Net Income was 4010.62 + 990.587 + 5815.841 + 4093.423 = MXN14,910 Mil. Cash Flow from Operations was 7550.509 + 5264.785 + 5311.682 + 25570.369 = MXN43,697 Mil. Revenue was 136398.725 + 127473.846 + 133998.419 + 130719.042 = MXN528,590 Mil. Gross Profit was 25570.054 + 21242.584 + 27224.618 + 24650.701 = MXN98,688 Mil.
Average Total Assets from the begining of this year (Mar25)
to the end of this year (Mar26) was
(679457.739 + 540623.991 + 519360.991 + 523263.648 + 529349.909) / 5 = MXN558411.2556 Mil. Total Assets at the begining of this year (Mar25) was MXN679,458 Mil. Long-Term Debt & Capital Lease Obligation was MXN94,582 Mil. Total Current Assets was MXN107,637 Mil. Total Current Liabilities was MXN225,120 Mil.
Net Income was 6723.478 + 1319.25 + 5443.338 + -3048.272 = MXN10,438 Mil.
Revenue was 134726.038 + 135272.361 + 144530.001 + 131505.31 = MXN546,034 Mil. Gross Profit was 27315.274 + 21994.065 + 25610.8 + 17737.259 = MXN92,657 Mil.
Average Total Assets from the begining of last year (Mar24)
to the end of last year (Mar25) was
(597763.913 + 651517.824 + 686147.885 + 703879.875 + 679457.739) / 5 = MXN663753.4472 Mil. Total Assets at the begining of last year (Mar24) was MXN597,764 Mil. Long-Term Debt & Capital Lease Obligation was MXN103,437 Mil. Total Current Assets was MXN219,598 Mil. Total Current Liabilities was MXN284,389 Mil.
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
Profitability
Question 1. Return on Assets (ROA)
Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
Southwest Airlines Co's current Net Income (TTM) was 14,910.
==> Positive ==> Score 1.
Question 2. Cash Flow Return on Assets (CFROA)
Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
Southwest Airlines Co's current Cash Flow from Operations (TTM) was 43,697.
==> Positive ==> Score 1.
Question 3. Change in Return on Assets
Compare this year's return on assets (1) to last year's return on assets.
Southwest Airlines Co's return on assets of this year was 0.02194466. Southwest Airlines Co's return on assets of last year was 0.0174614.
==> This year is higher. ==> Score 1.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Southwest Airlines Co's gearing of this year was 0.16937608. Southwest Airlines Co's gearing of last year was 0.15583597.
==> Last year is lower than this year ==> Score 0.
Question 6. Change in Working Capital (Liquidity)
Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.
Score 1 if this year's current ratio is higher, 0 if it's lower
Southwest Airlines Co's current ratio of this year was 0.47813201. Southwest Airlines Co's current ratio of last year was 0.77217466.
==> Last year's current ratio is higher ==> Score 0.
Question 7. Change in Shares in Issue
Compare the number of shares in issue this year, to the number in issue last year.
Score 0 if there is larger number of shares in issue this year, 1 otherwise.
Southwest Airlines Co's number of shares in issue this year was 503. Southwest Airlines Co's number of shares in issue last year was 584.
==> There is smaller number of shares in issue this year, or the same. ==> Score 1.
Efficiency
Question 8. Change in Gross Margin
Compare this year's gross margin (Gross Profit divided by sales) to last year's.
Score 1 if this year's gross margin is higher, 0 if it's lower.
Southwest Airlines Co's gross margin of this year was 0.18670037. Southwest Airlines Co's gross margin of last year was 0.16969172.
==> This year's gross margin is higher. ==> Score 1.
Question 9. Change in asset turnover
Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.
Score 1 if this year's asset turnover ratio is higher, 0 if it's lower
Southwest Airlines Co's asset turnover of this year was 0.77795866. Southwest Airlines Co's asset turnover of last year was 0.91346048.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
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6
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Southwest Airlines Co has an F-score of 6 indicating the company's financial situation is typical for a stable company.
Southwest Airlines Co (MEX:LUV) has a Piotroski F-Score of 7 as of Jul. 13, 2026. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on Southwest Airlines Co and its competitors. This is 40% above median its historical median of 5.00. Over the past decade, Southwest Airlines Co's Piotroski F-Score has ranged from 2.00 to 8.00. According to the industry distribution chart, Southwest Airlines Co ranks #129 out of 978 companies in the Transportation industry, placing it in the top 13.2%.
Is Southwest Airlines Co's Piotroski F-Score too high?
Southwest Airlines Co's current Piotroski F-Score of 7 is 40% above median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 8.00. The Transportation industry median Piotroski F-Score is 6.00. Southwest Airlines Co's value of 7 is 16.7% above this industry median. Based on the distribution chart, Southwest Airlines Co ranks #129 out of 978 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Southwest Airlines Co has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's Piotroski F-Score compare to AAL and UAL?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #129 out of 978 companies for Piotroski F-Score. This places Southwest Airlines Co in the top 13% of its industry — outperforming the majority of peers. The industry median Piotroski F-Score is 6.00. Southwest Airlines Co's value of 7 is 16.7% above this benchmark. Historically, Southwest Airlines Co's own Piotroski F-Score has ranged from 2.00 to 8.00 over the past decade. While the company's 10-year median is 5.00 vs. the industry median of 6.00, Southwest Airlines Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Piotroski F-Score for a Transportation company?
The median Piotroski F-Score among Transportation companies is 6.00, based on 978 companies in the industry. Companies in the top quartile (top 25%) have a Piotroski F-Score significantly above this median, while those in the bottom quartile fall well below. However, Piotroski F-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current Piotroski F-Score of 7 is 16.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Piotroski F-Score mean?
A high Piotroski F-Score can signal that a stock is expensive relative to its fundamentals. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median Piotroski F-Score is 6.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current Piotroski F-Score is 7, which is 40% above median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southwest Airlines Co stock overvalued right now?
Based on GuruFocus' analysis, Southwest Airlines Co (MEX:LUV) is currently considered Fairly Valued. The stock's GF Value™ is MXN783.47, compared to a current price of MXN840.00 — trading 7.2% above its estimated fair value. The current Piotroski F-Score is 7, which is 40% above median its 10-year median of 5.00 and 16.7% above the Transportation industry median of 6.00. Southwest Airlines Co's overall GF Score™ is 67/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Piotroski F-Score calculated?
Piotroski F-Score is calculated from a company's financial statements. For Southwest Airlines Co (MEX:LUV), the current Piotroski F-Score is 7 as of Jul. 13, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Southwest Airlines Co (MEX:LUV) Overvalued in 2026?
Based on GuruFocus' analysis, Southwest Airlines Co stock appears to be overvalued.
The current stock price of MXN840.00 is trading 7.2% above its estimated GF Value™ of MXN783.47.
GuruFocus considers Southwest Airlines Co to be Fairly Valued.
Key valuation signals for MEX:LUV:
Piotroski F-Score: 7 (40% above median its 10-year median of 5.00)
GF Value™: MXN783.47 vs. price of MXN840.00 (7.2% above fair value)
Industry Position: 16.7% above the Transportation median (#129 of 978)
No single metric tells the full story. See the MEX:LUV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated with a simple cabin configuration in a point-to-point network. In early 2026, Southwest modified its cabins to offer some rows with extra legroom, its ticketing process and merchandising to offer assigned seats, and more fare categories to include a basic economy class that appears for the first time in travel aggregators' search results and more directly competes with other airlines' offerings.
67GF Score
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