Summary: Southwest Airlines Co.

  • According to Refinitiv, the company's ESG score for its industry is good.

Highlights: Southwest Airlines Co.

  • The company's earnings per share (EPS) are expected to grow significantly over the next few years according to the consensus of analysts covering the stock.
  • The stock, which is currently worth 2024 to 0.5 times its sales, is clearly overvalued in comparison with peers.

Weaknesses: Southwest Airlines Co.

  • As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
  • The company does not generate enough profits, which is an alarming weak point.
  • The firm trades with high earnings multiples: 28.86 times its 2024 earnings per share.
  • For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
  • For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
  • For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
  • The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
  • Over the past four months, analysts' average price target has been revised downwards significantly.
  • The overall consensus opinion of analysts has deteriorated sharply over the past four months.
  • Over the past twelve months, analysts' consensus has been significantly revised downwards.
  • Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
  • The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.

Ratings Chart: Southwest Airlines Co.

Source: Surperformance

ESG chart: Southwest Airlines Co.

Source: Refinitiv

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Composite Fundamentals Composite Valuation Composite Momentum Capi. ($)
16.27B
6.88B
3.33B
1.66B
1.14B
1.03B
868M
842M
Average 4B
Weighted average by Cap.
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Investor Rating
Trading Rating
ESG Refinitiv
C

Financials

Sales growth
Earnings Growth
EBITDA / Sales
Profitability
Finances

Valuation

P/E ratio
EV / Sales
Price to Book
Price to Free Cash Flow
-
Yield

Momentum

1 year Revenue revision
4 months Revenue revision
7 days Revenue revision
1 year EPS revision
4 months EPS revision

Consensus

Analyst Opinion
Potential Price Target
4m Target Price Revision
4m Revision of opinion
12m Revision of opinion

Business Predictability

Analyst Coverage
Divergence of Estimates
Divergence of analysts' opinions
Divergence of Target Price
Earnings quality

Environment

Emissions
Innovation
Use of resources

Social

Social commitment
Human Rights
Product liability
Human Resources

Governance

CSR Strategy
Management
Shareholders

Controversy

Controversy

Technical analysis

ST Timing
MT Timing
LT Timing
RSI
Bollinger Spread
Unusual volumes
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  4. Ratings Southwest Airlines Co.