Southwest Airlines Co. Stock Price and Value Analysis

Should you buy Southwest Airlines Co. stock? (NYSE:LUV). Let's see how it does in our automated value investing analysis system.

  • This company has fluctuating growth.
  • This stock is on sale.
  • This company is very stable.
  • This company is making money at a modest rate.
  • This company pays no dividend.

Inside the LUV Numbers

LUV Price
(Southwest Airlines Co. stock price per share)
[?] LUV Fair Price
(based on intrinsic value)
[?] LUV Safety Price (based on a variable margin of safety) $34.19
[?] PE Ratio versus Sector 117% higher than other Industrial Goods stocks
[?] PE Ratio versus Industry 52% lower than other Airlines stocks
[?] Cash Yield 10.01%
[?] Free Cash Flow Jitter 27%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 9,965,807 shares shorted. With 591,030,162 shares available for purchase and an average trading volume over the past 10 trading days of 5,822,560, it would take at least 1.712 days for all of the short holders to cover their shorts.

Is Southwest Airlines Co. Stock on Sale?

We believe that Southwest Airlines Co. may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Southwest Airlines Co. looks like a price in the fair value range. Based on our analysis—if the company keeps making money the way it has been—you could be looking at a good stock. See Before You Buy for your next steps.

Should You Buy LUV Stock?

Does Southwest Airlines Co. have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.