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Southwest Airlines Co. (NYSE: LUV) – Is this large market cap stock undervalued?

Southwest Airlines Co. (NYSE: LUV), is firmly in the large market cap category with market cap of 22942.3. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Southwest Airlines Co. is 37.1 (with a change from open of 1.06%), this in conjunction with a target price of 48.25. Volume today has so far reached 1696291, with an average volume of about 7460.03. The GAP for this stock, is 0.33%.

The P/E ratio is 9.68, bringing the forward P/E to a value of 9.43. The current EPS for Southwest Airlines Co., is 3.78, with a EPS growth for this year coming to a value of 99.60%. Performance has been interesting with performance year to date coming to -14.44%.

Looking further into the growth statistics for Southwest Airlines Co., EPS is looking like it will grow 2.21% in the next year. Looking even further it is projected to be 13.94%. Quarter over quarter is 42.00% for EPS growth and for sales growth quarter over quarter it is 5.30%. Looking at past EPS growth statistics we see that for the past five years it has been 39.70%. Sales growth for the past five years has in fact been 10.40%.

Looking at the ownership, we see that the insider ownership is at 0.20% and institutional ownership is 79.20%. Shares outstanding is 627.01, while shares float is at a value of 600.77. Float short for Southwest Airlines Co. is 2.10% and the short ratio is 1.69.

In terms of debt, long term debt/equity is 0.32, while the total debt/equity comes to 0.45. The ability to meet these debts, means that the current ratio is 0.6, and the quick ratio is 0.5. The most recent gross margin is 76.00% and their operating margin is 21.80%. The profit margin is 12.00%.

Southwest Airlines Co. has seen returns on assets of 11.30%, and on investment, 26.30%. Return on equity is 33.10%. Price/Earnings to growth ratio is 0.69. Price/Sales ratio is at a value of 1.12, with Price/book ratio coming to 2.96 and Price/cash is 6.72, and finally Price/Free cash Flow is 13.96.

The simple moving averages are -2.19% and -9.30% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -27.13% and the 52 week low is 10.00%.

Southwest Airlines Co. has a dividend yield of 1.09%, with a current price of 37.1. The ability to pay this means the payout ratio is 8.50%. This is in an industry, Regional Airlines, with equally high dividends from other companies in this sector, which it is Services. Southwest Airlines Co. is based in USA.

Performance in the Regional Airlines industry means that Southwest Airlines Co. has seen performance for the past week of -2.01%, with performance for the month coming to -0.71%. Looking at the data for the quarter it is at a value of -7.68%, and for the half year the performance is -6.56%. Volatility for this week is 2.28% and for the month this is 1.99%.

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.

About the author

Mark Hines

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