Southwest Airlines Co. (LUV) Stock Analysis
Last updated Sep 8, 2026
Health Check
Last analyzed Sep 7, 2026
- Financial Health 40
- Profitability 45
- Business Quality 60
- Balance Sheet 40
- Cash Flow 70
Why this rating?
Health 50/100 — Speculative
A usable setup — not as clean as Strong Entry, but timing is not mixed or weak.
Company overview
Southwest Airlines Co. (LUV) is a Airlines company in the Industrials sector. Compound Radar rates Southwest Airlines Co. 50/100 (Speculative) due to solid business quality, strong revenue growth, and elevated leverage.
Investment profile
- Quality Moderate
- Growth Strong
- Balance Sheet Stretched
- Valuation Attractive
Financial highlights
Valuation
- P/E 24.17
- Forward P/E 8.02
- PEG 0.19
- EV/Revenue 0.75
Profitability
- Revenue Growth 16.4%
- Gross Margin 22.4%
- Operating Margin 3.4%
- Net Margin 2.8%
- ROE 11.1%
Financial strength
- Cash $3.79B
- Debt $6.89B
- Net Cash $-3.10B
- Free Cash Flow $-831.00M
- Current Ratio 0.49
Similar companies
Peers in Airlines, ranked by Financial Health.
Latest quoted price for the name. Helps anchor the setup in today’s market level.
Health Entry- United Airlines Holdings, Inc. Airlines UAL$108.24 59 Health 59 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Strong Entry Strong EntryTiming looks favorable across trend, momentum, valuation, support, and catalysts.
- Delta Air Lines, Inc. Airlines DAL$78.96 56 Health 56 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Alaska Air Group, Inc. Airlines ALK$40.74 36 Health 36 / 100
Weaker fundamentals relative to higher-quality names in the universe.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- American Airlines Group Inc. Airlines AAL$12.91 34 Health 34 / 100
Weaker fundamentals relative to higher-quality names in the universe.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- JetBlue Airways Corporation Airlines JBLU$4.52 31 Health 31 / 100
Weaker fundamentals relative to higher-quality names in the universe.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Frontier Group Holdings, Inc. Airlines ULCC$5.73 31 Health 31 / 100
Weaker fundamentals relative to higher-quality names in the universe.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
FAQ
How Compound Radar scores and tracks Southwest Airlines Co. (LUV).