Southwest Airlines Co

LTS : 0L8F
USA·Industrials·Transportation·Ordinary Shares
$39.83
−1.51 (−3.42%)Oct 16 close
Market Cap
$19.57B
Enterprise Value
$22.32B
P/E (TTM)
49.48
P/B
2.68
Net Cash / (Debt)
−$2.75B
52-Week Range
$29 — $55
5-Year Range
$22 — $55
Avg Volume (3M)
6.13K

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 in a single, open-seating cabin configuration in a point-to-point network. In early 2026, Southwest will modify its cabins to offer some rows with extra legroom and will update its ticketing process and merchandising to offer assigned seats and more fare categories, including a basic economy class that will more directly compete with other airlines' offerings and appear for the first time in travel aggregators' search results.

Employees77,397IPOJan 18, 2018SIC4512HQP.O. Box 36611, Dallas, TX, USA, 75235-1611
to

Financials

Profitability

Metric
Current
Margins
Gross Margin
17.4%
Operating Margin
1.5%
EBITDA Margin
8.0%
Net Margin
1.6%
OCF Margin
6.6%
FCF Margin
−3.0%
Returns on Capital
ROE
5.1%
ROA
1.4%
ROIC
1.1%
ROCE
3.6%
ROC (Greenblatt)
3.3%
3Y ROIIC
−13.9%
Consistency
Years Profitable / 10Y
9

Valuation

Metric
Current
Earnings Multiples
P/E (TTM)
49.48
Forward P/E
9.86
P/E ex-NRI
41.98
Shiller P/E (CAPE)
18.96
Cash Flow Multiples
P/FCF
—
P/OCF
12.71
P/Owner Earnings
—
FCF Yield
−4.06%
Enterprise Value Multiples
EV / EBIT
34.17
EV / Forward EBIT
9.07
EV / EBITDA
10.35
EV / Forward EBITDA
6.33
EV / Revenue
0.83
EV / Forward Revenue
0.74
Asset / Sales
P/S
0.82
P/B
2.68
P/Tangible Book
3.19
Growth-Adjusted
PEG
—

Capital Returns

Metric
Current
Dividends
Dividend Yield (TTM)
1.69%
Forward Dividend Yield
1.69%
3Y Dividend Growth
58.7%
Payout Ratio
0.73
5Y Yield on Cost
1.69%
Buybacks & Dilution
3Y Buyback Ratio
4.60%
5Y Share Change
3.5%
Combined
Shareholder Yield
27.50%

Balance Sheet

Metric
Current
Leverage
Debt / Equity
0.75
Gross Debt / EBITDA
2.67
Cash / Debt
0.54
Equity / Assets
0.28
Coverage
Interest Coverage
3.75
Short-Term Liquidity
Current Ratio
0.52
Quick Ratio
0.45
Cash Ratio
0.30
Composite Scores
Piotroski F-Score
7
Altman Z-Score
2.20

5-Step DuPont Analysis

ROE %
4.81%
Net Margin %
1.57%
Operating Margin %
1.53%
Operating Income
$428M
÷
Revenue
$28.06B
×
Tax Burden
0.7819
Net Income
$441M
÷
Pretax Income
$564M
×
Interest Burden
1.3178
Pretax Income
$564M
÷
Operating Income
$428M
×
Asset Turnover
0.89
Revenue
$28.06B
÷
Average Total Assets
$31.41B
Begin Total Assets
$33.75B
End Total Assets
$29.06B
×
Equity Multiplier
3.43
Avg Total Assets
$31.41B
÷
Avg Stockholders Equity
$9.17B
Begin Equity
$10.35B
End Equity
$7.98B