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A look at a High Market Cap Stock: Southwest Airlines Co., LUV

Southwest Airlines Co., LUV is in the exchange NYSE and its industry is Regional Airlines in the sector of Services. Based in USA, Southwest Airlines Co., LUV  has a market cap of 25383.6. Since its IPO date on the 01/02/1980, Southwest Airlines Co., LUV performance year to date is -7.65%. Today Southwest Airlines Co., LUV has gained -1.31%, with a current price of 39.08.

Ownership of the company is 0.20% for insider ownership while institutional ownership is 80.30%. The management of the company have seen the company have a payout ratio of 8.70%. Return of assets are at 10.50%, with return on investment at 26.30%.

In terms of debt levels and profit levels, Southwest Airlines Co., LUV is seeing a long-term debt/equity of 0.33. While Total debt/equity is 0.46. With a profit margin of 11.10%, this is combined with a gross margin of 75.20%, and operating margin of 21.20%. Southwest Airlines Co. ability to meet debt levels, with a current ratio of 0.6, while the quick ratio is 0.5.

For the last year Southwest Airlines Co., LUV has seen a EPS growth of 99.60%. A performance for the year of 22.73%. The 52-week high is -23.44%, and the 52-week low is 22.10%. The average volume for Southwest Airlines Co., LUV is 2863059.

With a target price of 52.73, can Southwest Airlines Co., LUV reach this target? Looking at the value indicators of Southwest Airlines Co., LUV. Southwest Airlines Co. has a P/E of 11.65 and a forward P/E of 9.02. Perhaps the more useful indicator than P/E, is PEG which has a value of 0.66. Southwest Airlines Co. also has a P/S and a P/B of 1.25 and 3.39 respectively. For P/cash, Southwest Airlines Co. has a value of 7.09, while it is 20.98 for P/free cash flow.

At the current price of 39.08, Southwest Airlines Co. has a dividend yield of 1.01%. We see a return on equity of 31.00%.

Looking more long-term Southwest Airlines Co., is projected to get an EPS growth for the next five years of 17.60%. In the short-term an EPS growth of 7.34% in the next year is forecasted. This is after a EPS growth of 99.60% for this year and for the last five years a 39.70% growth has been seen.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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