Southwest Airlines (LUV) Fundamental Analysis: Revenue, Earnings & Valuation

4.79 / 10

Netural

Fundamental analysis rates LUV at 4.8/10, indicating fair health. Profit‑to‑market and net‑income‑to‑revenue ratios are modestly positive, while cash metrics lag. Gross margin is acceptable (81.3%), cost of sales low, but PB‑ROE and Asset‑MV are negative, yielding a mixed but neutral outlook.

Analysis Checks(4/10)

Net profit attributable to parent company shareholders / Net profit (%)

Value100.00

Score2/3

Weight5.01%

1M Return1.42%

Gross profit margin (%)

Value81.33

Score1/3

Weight0.03%

1M Return0.01%

Profit-MV

Value-0.02

Score2/3

Weight24.24%

1M Return5.64%

Net income-Revenue

Value-0.74

Score3/3

Weight57.45%

1M Return11.70%

PB-ROE

Value-0.25

Score0/3

Weight-6.64%

1M Return-1.41%

Cash-UP

Value-0.08

Score1/3

Weight-16.67%

1M Return-6.23%

Cost of sales ratio (%)

Value20.38

Score2/3

Weight3.31%

1M Return0.97%

Asset-MV

Value-0.55

Score0/3

Weight23.77%

1M Return5.46%

Net profit attributable to parent company shareholders (YoY growth rate %)

Value-5.16

Score0/3

Weight-7.32%

1M Return-2.37%

Cash-MV

Value-0.49

Score1/3

Weight16.82%

1M Return3.48%

Is LUV undervalued or overvalued?

LUV scores 4.79/10 on fundamentals and holds a Fair valuation at present. Backed by its 4.81% ROE, 1.57% net margin, 44.78 P/E ratio, 2.47 P/B ratio, and 5.13% earnings growth, these metrics solidify its Netural investment rating.