Southwest Airlines Stock Performance
| LUV Stock | USD 29.06 0.28 0.97% |
The entity has a beta of 1.0, which indicates possible diversification benefits within a given portfolio. Southwest Airlines returns are very sensitive to returns on the market. As the market goes up or down, Southwest Airlines is expected to follow. Southwest Airlines has an expected return of -0.0168%. Please make sure to validate Southwest Airlines total risk alpha, downside variance, as well as the relationship between the Downside Variance and daily balance of power , to decide if Southwest Airlines performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
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Over the last 90 days Southwest Airlines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Southwest Airlines is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors. ...more
Actual Historical Performance (%)
One Day Return 0.97 | Five Day Return 3.67 | Year To Date Return 2.04 | Ten Year Return 23.19 | All Time Return 14.2 K |
Forward Dividend Yield 0.025 | Payout Ratio 0.4586 | Last Split Factor 3:2 | Forward Dividend Rate 0.72 | Dividend Date 2024-03-27 |
1 | Will Boeing leadership shake-up redeem plane-maker with airlines and fliers | 03/26/2024 |
| Southwest Airlines dividend paid on 27th of March 2024 | 03/27/2024 |
2 | JetBlue to cut this local route as part of larger changes | 04/01/2024 |
3 | Boeing 737 Max diverts to Idaho after in-flight emergency | 04/10/2024 |
4 | Jobys 3.5B Air Taxi Dream Worth Less Than Trumps Truth Social Nightmare | 04/11/2024 |
5 | Southwest Faces Further Reductions In Expected Boeing Jet Deliveries Report | 04/12/2024 |
6 | Southwest Airlines to launch nonstop flight from Nashville this spring | 04/15/2024 |
7 | United Airlines results top estimates despite 200 million hit from Boeing grounding | 04/16/2024 |
8 | UTulsas Friends of Finance to celebrate 40 years | 04/17/2024 |
| Begin Period Cash Flow | 9.5 B |
Southwest |
Southwest Airlines Relative Risk vs. Return Landscape
If you would invest 3,000 in Southwest Airlines on January 20, 2024 and sell it today you would lose (94.00) from holding Southwest Airlines or give up 3.13% of portfolio value over 90 days. Southwest Airlines is generating negative expected returns assuming volatility of 2.5465% on return distribution over 90 days investment horizon. In other words, 22% of stocks are less volatile than Southwest, and above 99% of all equities are expected to generate higher returns over the next 90 days. Expected Return |
| Risk |
Southwest Airlines Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Southwest Airlines' investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Southwest Airlines, and traders can use it to determine the average amount a Southwest Airlines' price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0066
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| Negative Returns | LUV |
Estimated Market Risk
| 2.55 actual daily | 22 78% of assets are more volatile |
Expected Return
| -0.02 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.01 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Southwest Airlines is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Southwest Airlines by adding Southwest Airlines to a well-diversified portfolio.
Southwest Airlines Fundamentals Growth
Southwest Stock prices reflect investors' perceptions of the future prospects and financial health of Southwest Airlines, and Southwest Airlines fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Southwest Stock performance.
| Return On Equity | 0.0439 | ||||
| Return On Asset | 0.0153 | ||||
| Profit Margin | 0.02 % | ||||
| Operating Margin | 0.04 % | ||||
| Current Valuation | 15.07 B | ||||
| Shares Outstanding | 598.25 M | ||||
| Price To Earning | 29.96 X | ||||
| Price To Book | 1.57 X | ||||
| Price To Sales | 0.63 X | ||||
| Revenue | 26.09 B | ||||
| Gross Profit | 5.98 B | ||||
| EBITDA | 2.33 B | ||||
| Net Income | 465 M | ||||
| Cash And Equivalents | 9.49 B | ||||
| Cash Per Share | 23.03 X | ||||
| Total Debt | 9.2 B | ||||
| Debt To Equity | 0.93 % | ||||
| Current Ratio | 1.58 X | ||||
| Book Value Per Share | 17.63 X | ||||
| Cash Flow From Operations | 3.16 B | ||||
| Earnings Per Share | 0.76 X | ||||
| Market Capitalization | 17.39 B | ||||
| Total Asset | 36.49 B | ||||
| Retained Earnings | 16.3 B | ||||
| Working Capital | 1.7 B | ||||
| Current Asset | 2.23 B | ||||
| Current Liabilities | 1.43 B | ||||
About Southwest Airlines Performance
To evaluate Southwest Airlines Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Southwest Airlines generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Southwest Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Southwest Airlines market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Southwest's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.| Last Reported | Projected for Next Year | ||
| Days Of Inventory On Hand | 13.47 | 9.81 | |
| Return On Tangible Assets | 0.01 | 0.01 | |
| Return On Capital Employed | 0.01 | 0.01 | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | 0.04 | 0.04 |
Things to note about Southwest Airlines performance evaluation
Checking the ongoing alerts about Southwest Airlines for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Southwest Airlines help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| Southwest Airlines generated a negative expected return over the last 90 days | |
| Over 82.0% of the company shares are owned by institutional investors | |
| On 27th of March 2024 Southwest Airlines paid $ 0.18 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: UTulsas Friends of Finance to celebrate 40 years |
- Analyzing Southwest Airlines' financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Southwest Airlines' stock is overvalued or undervalued compared to its peers.
- Examining Southwest Airlines' industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating Southwest Airlines' management team can have a significant impact on its success or failure. Reviewing the track record and experience of Southwest Airlines' management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of Southwest Airlines' stock. These opinions can provide insight into Southwest Airlines' potential for growth and whether the stock is currently undervalued or overvalued.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Southwest Airlines. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment. For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Complementary Tools for Southwest Stock analysis
When running Southwest Airlines' price analysis, check to measure Southwest Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Southwest Airlines is operating at the current time. Most of Southwest Airlines' value examination focuses on studying past and present price action to predict the probability of Southwest Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southwest Airlines' price. Additionally, you may evaluate how the addition of Southwest Airlines to your portfolios can decrease your overall portfolio volatility.
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Is Southwest Airlines' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Southwest Airlines. If investors know Southwest will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Southwest Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.30) | Dividend Share 0.72 | Earnings Share 0.76 | Revenue Per Share 43.85 | Quarterly Revenue Growth 0.105 |
The market value of Southwest Airlines is measured differently than its book value, which is the value of Southwest that is recorded on the company's balance sheet. Investors also form their own opinion of Southwest Airlines' value that differs from its market value or its book value, called intrinsic value, which is Southwest Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Southwest Airlines' market value can be influenced by many factors that don't directly affect Southwest Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Southwest Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if Southwest Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Southwest Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.