Fundamental analysis · SEC EDGAR · TTM through 30/09/2026
LUV · NYSE · Industrial
Fundamental quality
64
out of 100
Southwest Airlines Co earns a fundamental-quality score of 64 out of 100, profiling it as a company of reasonable quality. Its score rests mainly on its growth (revenue +24.3%/yr). Its weakest area is its profitability (net margin 3.3%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Southwest Airlines is the original low-cost carrier: decades of cheap point-to-point flights, nothing but Boeing 737s and a famous culture. Pushed by an activist investor, it is breaking its historic taboos: assigned seats, premium fares and bag fees.
EPS growth: 5.2% · Revenue growth: 24.3%
Net margin: 3.3% · ROE: 14.4% · ROIC: 14.5%
Net debt/EBITDA: 0.04x · FCF: -1.4%
Source: SEC EDGAR · TTM through 30/09/2026
The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its profitability drags it down the most.
Percentile against the other 69 Industrial companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2020 | 9,048 | -3,074 | -1,642 | -682 |
| 2021 | 15,790 | 977 | 1,817 | -2,206 |
| 2022 | 23,814 | 539 | -134 | -1,395 |
| 2023 | 26,091 | 465 | -356 | -1,276 |
| 2024 | 27,483 | 465 | -1,592 | -812 |
| 2025 | 28,063 | 441 | -831 | 1,698 |
Between 2020 and 2025, revenue went from $9,048M to $28,063M (+210%) and net income went from -$3,074M to $441M (+114%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Latest results
Figures for the nine months ended September 30, 2026, versus the nine months ended September 30, 2025 (SEC filings):
Compared with the previous close (June 30, 2026), this is what moved in its accounts:
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
$0.72
per share, yearly
90.5% of earnings
Payout
The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →
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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).
Compute the valuation →Is Southwest Airlines Co a good company to invest in?
In terms of business quality, Southwest Airlines Co scores 64 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Southwest Airlines Co a profitable company?
Southwest Airlines Co is profitable, with a net margin of 3.3%, though a thin one.
Does Southwest Airlines Co have a lot of debt?
Not particularly. Its net debt is 0.04 times its EBITDA, a low level.
Is Southwest Airlines Co growing?
Its revenue has grown 24.3% annualized in recent years and its earnings per share 5.2%, and without interruption since 2020.
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.
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Who's behind the methodology and model · how the score is computed
Data: see Southwest Airlines Co's filings on EDGAR
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