Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Southwest Airlines Co

LUV · NYSE · Industrial

Fundamental quality

REASONABLE

59

out of 100

Breakdown by area

I.GrowthEPS growth: 18.3% · Revenue growth: 6.1%
66
II.ProfitabilityNet margin: 2.8% · ROE: 11.9%
50
III.Financial healthNet debt/EBITDA: 0.73x · FCF: -1.3%
62

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its profitability drags it down the most.

Strengths

  • Growing earnings per share (18.3% annualized).
  • Low leverage (net debt of 0.73× EBITDA).

Risks and weaknesses

  • Thin margins (net margin of 2.8%).
  • Negative free cash flow.

Historical evolution

YearRevenueNet incomeFree cash flowNet debt
202115,7909771,817-12,480
202223,814539-134-1,395
202326,091465-356-1,276
202427,483465-1,592-812
202528,063441-8311,698

Between 2021 and 2025, revenue went from $15,790M to $28,063M (+78%) and net income went from $977M to $441M (-55%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Frequently asked questions

Is Southwest Airlines Co a profitable company?

Southwest Airlines Co is profitable, with a net margin of 2.8%, though a thin one.

Does Southwest Airlines Co have a lot of debt?

Not particularly. Its net debt is 0.73 times its EBITDA, a low level.

Is Southwest Airlines Co growing?

Its revenue has grown 6.1% annualized in recent years and its earnings per share 18.3%.

Does Southwest Airlines Co generate cash?

Over the last twelve months its free cash flow was negative.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

Is Southwest Airlines Co cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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