Southwest Airlines (LUV) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Southwest Airlines

NYSE•Industrials•Airlines

$40.34+1.19(0.03%)After hours

Market Cap

$19.89B

P/E

23.8x

P/S

0.7x

P/B

2.8x

Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee. In addition, the company offers ancillary services, such as in-flight purchases, baggage fees, EarlyBird Check-In, and upgraded boarding, as well as transportation of pets and unaccompanied minors. As of December 31, 2025, the company operated a total fleet of 803 Boeing 737 aircraft; and served 117 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.

How this company scores

AverageMetricSide Score: 55/100

Strongest: Growth (21/25); weakest: Cash & Earnings Quality (3/25).

Profitability14/25

Growth21/25

Balance Sheet & Red Flags17/25

Cash & Earnings Quality3/25

Strengths

Rising earningsProfit converts from growthConsistent growthNet cash position

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 23.8x5y range 21.6x – 15551.8x

Currently below its 19-quarter median.

P/S · 0.7x5y range 0.6x – 2.4x

Currently near its 20-quarter median.

P/B · 2.8x5y range 1.5x – 3.0x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

Free cash flow has been negative in 5 of the last 8 quarters — earnings are not translating to cash.

Price & Volume

Market Cap $19.89B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $30.07B
Q. Revenue: $8.43B
TTM EBITDA: $2.61B
TTM Op. Income: $1.04B
Q. Op. Income: $285.00M
TTM Net Income: $837.00M
Q. Net Income: $233.00M
EPS: $0.48
Shares Out.: $489.00M

$30.07B in TTM revenue grew 9.5% YoY, reaching $8.43B last quarter. TTM EBITDA of $2.61B and TTM operating income of $1.04B show growth is flowing through to the bottom line. TTM net income of $837.00M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 4 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 8.1%
Op. Margin: 3.4%
Net Margin: 2.8%

Op. margin of 3.4% is up 0.3% YoY — cost efficiency is improving. Net margin at 2.8% Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 23.8x
P/S Ratio: 0.7x
P/B Ratio: 2.8x

At 23.8x P/E, the stock trades within typical market levels. P/S of 0.7x and P/B of 2.8x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 46% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $30.12B
Cash: $3.79B
Long-Term Debt: $3.79B
Book Value: $7.08B
D/E Ratio: 0.5
Debt/EBITDA: 5.5

With $30.12B in assets and $3.79B in long-term debt, D/E is 0.5and book value is $7.08B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 5% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $529.00M
TTM Free Cash Flow: $-457.00M
FCF Margin: -1.5%
FCF / Net Income: -0.5

TTM FCF of $-457.00M on $529.00M in operating cash flow. The FCF / Net Income ratio of -0.5x means the business consumes cash — it is not yet self-funding. Over the past year, free cash flow is down 74% — a weakening trend.