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About The Company

CEO

Mr. Robert E. Jordan

Market Cap

17.17 Billion USD

Sector

Industrials

Website

https://www.southwest.com

Last Update

2/22/2024, 12:00:00 PM

Description

Southwest Airlines Co.

Read More

Overview

Value

31

Growth

35

Health

33

Management

36

Analyst Opinion

51

Total

37

All Scores Out Of 100

Best Features

  • Earnings growth has improved recently
  • Has a low level of debt
  • Has a history of share buybacks
  • Has a margin-of-safety above fair value

Risk Factors

  • Income is not covering expenditure and investment
  • Disliked by Twitter users
  • Poor earnings and cashflow growth
  • Price-to-earnings ratio of 35.5 is higher than the market average (19.6x)
  • High preportion of income is paid as dividend
  • Dividend could be at risk

Market Peers

LUV

Key Figures

PE Ratio (TTM)

35.51

Margin Of Safety (DCF)

87.75%

Revenue Growth (5 Year Average)

12.96%

Ratings Consensus

Neutral

Share Buybacks

0.30%

Dividend Yeild (TTM)

2.49%

Valuation

Value Score

31

  • Margin-of-safety of 87.75% is better than the market average (17.95%)
  • Estimated intrinsic-value of 54.00 USD is higher than current price ( 28.78 USD)
  • Price-to-earnings ratio of 35.5 is higher than the market average (19.6x)
  • Free-cashflow-yeild of -2.27% is worse than the market average (4.7%)

Desired Margin Of Safety

0%

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Buy Target: < 7993903745 USD

Current Price: 28.8 USD

How Does This Work?

Show Advanced Options

This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated target price for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel the impact this has on longterm investment returns and discover a margin of safety you are comfortable with. This can be a useful tool for investors looking to make informed decisions about whether to buy or sell shares of a particular company.

Price/Earnings

35.51x

Free Cashflow Yeild

-2.27%

PE/Earnings Growth

N/A

Price/Book

1.63x

Growth

Growth Score

35

  • 5 Year Average Revenue growth of 12.96% is higher than the market average (10.97%)
  • Earnings growth has improved this year
  • Revenue growth has slowed this year
  • 5 Year Average Earnings growth of -8.82% is lower than the market average (14.48%)
  • 5 Year Average Free Cashflow growth of 12.27% is lower than the market average (12.35%)
  • Free Cashflow growth has slowed this year

Revenue Growth

12.96%

Earnings Growth

-8.82%

Cashflow Growth

12.27%

Health

Health Score

33

  • Assets cover liabilities
  • Normal operation does not require debt to be sustainable
  • Cashflow is negative
  • Has a high level of debt
  • Debt repayments significantly impact cashflow

Altman Z Score

1.86

Piostroski Score

6.00

Debt/Equity

0.88x

Current Assets/Liabilities

1.43x

Free Cashflow/Total Debt

0.00x

Debt/Capital

0.64x

Dividend

Secure Dividend Score

0

  • Dividend yeild of 2.49% is more than the market average (1.85%)
  • Long term dividend payout ratio of 5.23% is considered good
  • Dividends have shown growth over the last 5 years
  • Very unsafe
  • Payout ratio (TTM) of 92.04% is higher than the average (40%)
  • Spending a higher percentage of their income on dividends than last 5 years

Dividend Yeild

2.49%

Dividend Growth

0.00%

Payout Ratio (Earnings)

92.04%

Payout Ratio (Cashflow)

-109.74%

Management

Management Score

36

  • Has a history of returning value to shareholders through stock buybacks
  • Return-on-capital-employed of 8.16% is lower than the market average (10%)
  • Has repurchased shares when overvalued
  • Return-on-equity of 5.08% is lower than the market average (15%)

Average Buybacks/Dilution

0.30%

Recent Buybacks/Dilution

0.79%

5 Year Price Volitility

18.47%

Return On Assets

1.54%

Return On Capital Employed

8.16%

Return On Equity

5.08%

Return On Free Cashflow

N/A

Return On Investments

N/A

Social Sentiment

Social Sentiment Score

0

Twitter Sentiment

0.00

Stocktwits Sentiment

0.00

Analysts

Analyst Opinion

51

  • Ratings consensus is Neutral

SEC Filings

Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

Other Information

Company Name

Southwest Airlines Co.

Currency

USD

Beta

1.175887

Vol Avg

7411450

Ceo

Mr. Robert E. Jordan

Cik

0000092380

Cusip

844741108

Exchange

New York Stock Exchange

Full Time Employees

69868

Industry

Airlines

Sector

Industrials

Ipo Date

1980-01-02

Address

PO Box 36611

City

Dallas

State

TX

Country

US

Zip

75235-1611

Phone

214 792 4000

Analysis Last Updated

2/22/2024, 12:00:00 PM

All financial data provided by FMP

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