Southwest Airlines Co. (LUV) Stock Analysis
Last updated Oct 27, 2026
Health Check
Last analyzed Oct 23, 2026
- Financial Health 40
- Profitability 45
- Business Quality 60
- Balance Sheet 40
- Cash Flow 70
Why this rating?
Health 50/100 — Speculative
Timing looks favorable across trend, momentum, valuation, support, and catalysts.
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 21.19
- Forward P/E 10.54
- PEG 0.2
- EV/Revenue 0.77
Profitability
- Revenue Growth 21.2%
- Gross Margin 22.1%
- Operating Margin 4.5%
- Net Margin 3.3%
- ROE 13.9%
Financial strength
- Cash $3.62B
- Debt $6.87B
- Net Cash $-3.25B
- Free Cash Flow $-831.00M
- Current Ratio 0.47
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- Delta Air Lines, Inc. Airlines DAL$81.45 63 Health 63 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- United Airlines Holdings, Inc. Airlines UAL$104.71 53 Health 53 / 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.
- Alaska Air Group, Inc. Airlines ALK$35.91 41 Health 41 / 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$12.61 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.
- Frontier Group Holdings, Inc. Airlines ULCC$5.53 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.
- JetBlue Airways Corporation Airlines JBLU$2.37 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).