LUV Southwest Airlines
too hard · 41
Owner-earnings value$28.80
Price$39.76
Margin of safety
-27.6%
Quality gate · 41/100
⚠ sub-hurdle returns (median roic 4% < 9%)
Median ROIC3.9%
Gross margin18.0%
Net debt / EBITDA1.0x
FCF conversion-154%
Share count / yr-4.6%
Profitable years4/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 837.00M |
| Owner-earnings yield | 4.3% |
| Free-cash-flow yield | -2.3% |
| Growth used (normalized) | 5.6% |
| Market-implied growth (reverse DCF) | 13.6% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 9.8% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 884.08M | 5.6% | 805.06M |
| 2 | 931.23M | 5.3% | 772.20M |
| 3 | 978.19M | 5.0% | 738.64M |
| 4 | 1.02B | 4.8% | 704.56M |
| 5 | 1.07B | 4.5% | 670.19M |
| 6 | 1.11B | 4.2% | 635.72M |
| 7 | 1.16B | 3.9% | 601.33M |
| 8 | 1.20B | 3.6% | 567.20M |
| 9 | 1.24B | 3.3% | 533.51M |
| 10 | 1.28B | 3.0% | 500.40M |
Recent news
score · 8 articles
- Is RYAAY a Buy as Strong Traffic Faces Higher Costs and Lower Fares?
- Southwest Airlines (LUV) is Reshaping Operations to Unlock Margin Growth
- Is Southwest (LUV) Quietly Redefining Its Investment Story With Earnings Beat, Liquidity Boost, New Directors?
- Southwest Airlines (LUV) Stock Looks Undervalued On Earnings While Returns Raise Questions
- Southwest Airlines (LUV), What Is Driving Fresh Attention Now?
- S&P 500 Posts First Weekly Loss Since July Amid US Warning to Iran
- Southwest (LUV) Down 10.8% Since Last Earnings Report: Can It Rebound?
- JetBlue Stock Sinks After Downgrade Flags Iran Conflict Risks
⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~14%/yr owner-earnings growth over 10y (reverse DCF); model credits 6%.