tickrz reports
Southwest Airlines Co (LUV)
Services | Transportation
65.46  0.17%
LUV vs TRANSPORTATION SECTOR & S&P 500
VALUATION
LUVSECTORS&P 500
P/E RATIO18.4122.421.12
EV/EBITDA RATIO8.4911.212.66
P/S RATIO1.862.32.25
P/B RATIO4.4410.33.45
QUALITY
RETURN ON EQUITY25.2%24.33%13.64%
RETURN ON CAPITAL27.39%19.79%10.09%
NET MARGIN11%7.87%9.73%
DIVIDEND ANALYSIS
DIVIDEND YIELD
0.73%
PAYOUT RATIO12.91%
3 YR DIVIDEND GROWTH42.35%
FINANCIAL STRENGTH
PIOTROSKI F SCORE
6 OUT OF 9
DEBT-TO-EQUITY35%
INTEREST COVERAGE36.5x
CURRENT RATIO0.61
GROWTH
5 YR EPS GROWTH72.86%
5 YR SPS GROWTH5.46%
5 YR BPS GROWTH7.93%
About tickrz
Key Concepts
Great Investors
Southwest Airlines Co ranks well on valuation
TICKRZBOT SUMMARY
Southwest Airlines Co receives an A ranking in our multi-factor model that blends valuation, moat, operational performance, and financial strength. View the tickrz MFM Screener here. Here's a summary of Southwest Airlines Co's factor rankings that are combined together to calculate the tickrz MFM ranking:

FACTOR RANKINGSFACTOR SCREENER 
TICKRZ MFM RANK A / 19PURE VALUE RANKA / 116
DIVIDEND RANKB / 168MOAT RANKA / 31
FINANCIAL STRENGTH RANKA / 65GROWTH RANKA / 65
MOMENTUM RANKB / 158
GURU ANALYSIS
Buffett Rank A / 35Peter Lynch Rank A / 15
Southwest Airlines Co ranks 35 out of the S&P 500 constituents in our multi-factor Warren Buffett ranking methodology. This is a strong score, meaning it ranks highly on valuation, moat, volatility, and financial strength factors. If you're looking for undervalued stocks with high moats and strong competitive advantages, Southwest Airlines Co warrants further investigation.Our Peter Lynch mutli-factor model ranks stocks on their PEG ratio, Financial Strength, margin profile, and their P/Es relative to their respective industry groups. Southwest Airlines Co ranks 15, a relatively strong ranking. Of note is Southwest Airlines Co's PEG ratio of 0.25x places it in the top 25% of S&P 500 stocks.
Alex Roepers Rank A / 5Joel Greenblatt Rank A / 16
Alex Roepers, founder of Atlantic Investment Management, looks for stocks trading at low EV/EBITDA multiples with strong and consistent free cash flow. Southwest Airlines Co ranks 5 out of the S&P 500 constituents on our Roepers-inspired multi-factor model.In his best-selling The Little Book that Beats the Market, Greenblatt introduced the Magic Formula, a straightforward approach that ranks stocks on earnings yield and return on invested capital. Southwest Airlines Co places 16 out the S&P 500 consitituents on this ranking methodology.
FACTOR RANKINGS
Value
Pure Value Ranking A / 116
Valuation is the most heavily weighted component in our tickrz ranking methodology. Numerous academic and practitioner studies have found that a value approach outperforms the market over the long-run. Southwest Airlines Co's valuation score is comprised of a P/E ratio of 18.4x, a P/B ratio of 4.4x, a P/S ratio of 1.9x, and an EV/EBITDA ratio of 8.5x. Southwest Airlines Co ranks 116 out of the S&P 500 constituents on valuation--a relatively strong score.

Quality
Moat A / 31Financial Strength A / 65
To calculate a company's Moat Score, we look at its historical earnings growth, historical average return on equity, the volatility of its earnings stream, and also factor in the strength of its balance sheet. Our approach concludes the company's business moat is strong. Southwest Airlines Co appears to have a durable competitive advantage within the Services sector. Southwest Airlines Co has a Piotroski F Score of 6 out of 9. The F Score examines changes in profitability, leverage, liquidity, and operating efficiency. Interest coverage of 36.5x, a debt/equity ratio of 35% and a Moat Rank of 31 translate to a strong Financial Strength score.


Momentum B / 158
Investment research has shown that stocks with strong performance over the last 6 to 12 months tend to perform better in the medium term than stocks with poor performance over the same period. In fact, the momentum factor is one of the strongest of all the investment factors. The company has seen its stock appreciate by 24.35% over the last 12 months. This performance is average compared to other stocks in the S&P 500, earning it a rank of 158. Based on its 12 month stock performance, Southwest Airlines Co will not appeal to momentum investors.

Yield B / 168
Value + Yield
Shares currently yield 0.73%. Our dividend ranking approach looks at a company's dividend growth rate, payout ratio, business moat, and valuation. Based on our methodology, Southwest Airlines Co ranks 168 among the S&P 500 constituents. Investors looking for undervalued dividend stocks will probably want to look elsewhere.

Growth A / 65
A company's growth metrics are less important than its valuation, moat, and financial strength. However, a check on growth can be a good way to avoid companies in secular decline. The company's growth in sales, earnings, and book value places it among the top third of S&P 500 companies. Its 72.9% 5 year annualized EPS growth, 5.5% 5 year annualized sales-per-share growth, and 5 year annualized book value-per-share growth of 7.9% speak to its impressive growth ranking.

Southwest Airlines Co (LUV)
Services | Transportation
65.46  0.17%


tickrz rank
A
VALUATION RATIOS
P/E Ratio18.41x
P/B Ratio4.44x
P/S Ratio1.86x
EV/EBITDA Ratio8.49x
DIVIDEND ANALYSIS
DIVIDEND YIELD
0.73%
PAYOUT RATIO12.91%
3 YR DIVIDEND GROWTH42.35%
FINANCIAL STRENGTH
PIOTROSKI F SCORE
6 OUT OF 9
DEBT-TO-EQUITY35%
INTEREST COVERAGE36.5x
CURRENT RATIO0.61
MOAT
ROE25.2%
ROIC27.39%
Net Margin11%
GROWTH
5 YR EPS GROWTH72.86%
5 YR SPS GROWTH5.46%
5 YR BPS GROWTH7.93%

TICKRZ RANK
Southwest Airlines Co receives an A ranking in our multi-factor model that blends valuation, moat, operational performance, and financial strength. View the tickrz MFM Screener here.

PURE VALUE
Valuation is the most heavily weighted component in our tickrz ranking methodology. Numerous academic and practitioner studies have found that a value approach outperforms the market over the long-run. Southwest Airlines Co's valuation score is comprised of a P/E ratio of 18.4x, a P/B ratio of 4.4x, a P/S ratio of 1.9x, and an EV/EBITDA ratio of 8.5x. Southwest Airlines Co ranks 116 out of the S&P 500 constituents on valuation--a relatively strong score.

WARREN BUFFETT RANKING
Southwest Airlines Co ranks 35 out of the S&P 500 constituents in our multi-factor Warren Buffett ranking methodology. This is a strong score, meaning it ranks highly on valuation, moat, volatility, and financial strength factors. If you're looking for undervalued stocks with high moats and strong competitive advantages, Southwest Airlines Co warrants further investigation.

MOAT
To calculate a company's Moat Score, we look at its historical earnings growth, historical average return on equity, the volatility of its earnings stream, and also factor in the strength of its balance sheet. Our approach concludes the company's business moat is strong. Southwest Airlines Co appears to have a durable competitive advantage within the Services sector.

FINANCIAL STRENGTH
Southwest Airlines Co has a Piotroski F Score of 6 out of 9. The F Score examines changes in profitability, leverage, liquidity, and operating efficiency. Interest coverage of 36.5x, a debt/equity ratio of 35% and a Moat Rank of 31 translate to a strong Financial Strength score.

MOMENTUM
Investment research has shown that stocks with strong performance over the last 6 to 12 months tend to perform better in the medium term than stocks with poor performance over the same period. In fact, the momentum factor is one of the strongest of all the investment factors. The company has seen its stock appreciate by 24.35% over the last 12 months. This performance is average compared to other stocks in the S&P 500, earning it a rank of 158. Based on its 12 month stock performance, Southwest Airlines Co will not appeal to momentum investors.

VALUE + YIELD
Shares currently yield 0.73%. Our dividend ranking approach looks at a company's dividend growth rate, payout ratio, business moat, and valuation. Based on our methodology, Southwest Airlines Co ranks 168 among the S&P 500 constituents. Investors looking for undervalued dividend stocks will probably want to look elsewhere.

GROWTH
A company's growth metrics are less important than its valuation, moat, and financial strength. However, a check on growth can be a good way to avoid companies in secular decline. The company's growth in sales, earnings, and book value places it among the top third of S&P 500 companies. Its 72.9% 5 year annualized EPS growth, 5.5% 5 year annualized sales-per-share growth, and 5 year annualized book value-per-share growth of 7.9% speak to its impressive growth ranking.