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.

LUV Free Cash Flow Trend

Free Cash Flow trendline for LUV
Free Cash Flow trendline for Southwest Airlines Co.

Based on historical returns, we believe that Southwest Airlines Co. can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantages
  • This company is very stable.
  • This company has fluctuating growth.
  • This company has a low dividend yield.
  • This company is making money at a modest rate.
  • This stock looks overpriced.

Inside the LUV Numbers

LUV Price
(Southwest Airlines Co. stock price per share)
$51.19
[?] LUV Fair Price
(based on intrinsic value)
$42.74
[?] LUV Safety Price (based on a variable margin of safety) $34.19
[?] PE Ratio versus Sector 9% lower than other Industrial Goods stocks
[?] PE Ratio versus Industry 52% lower than other Airlines stocks
[?] Cash Yield 8.03%
[?] Free Cash Flow Jitter 33%
[?] Dividend Yield 1%

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 overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

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.