Analysis Southwest Airlines Co (LUV)
6/3/2024
Analysis of Southwest Airlines Co (LUV)
Southwest Airlines Co (LUV) has shown some volatility in its stock price recently. The Relative Strength Index (RSI) values have been fluctuating around the 30-70 range, indicating some indecision in the market. The Moving Average Convergence Divergence (MACD) indicator has been negative, suggesting a bearish trend.The stock price has been moving around the Simple Moving Average (SMA), Exponential Moving Average (EMA), and Weighted Moving Average (WMA) values, indicating a lack of clear direction in the short term.
Overall, Southwest Airlines Co seems to be experiencing some uncertainty in its stock price movement, possibly influenced by broader market conditions or company-specific factors. Investors may want to closely monitor the RSI, MACD, and moving averages for potential signals of a more defined trend in the future.
Earnings estimate
Based on the analysts' estimates for future quarterly and annual earnings per share (EPS):1. For the current quarter ending on June 30, 2024, the average EPS estimate is $1.23, with a low estimate of $1.18 and a high estimate of $1.26. This shows an improvement compared to the EPS of $1.17 from the same quarter a year ago.
2. For the next quarter ending on September 30, 2024, the average EPS estimate is $1.42, with a low estimate of $1.33 and a high estimate of $1.51. The EPS estimate is also higher than the $1.35 reported in the same quarter last year.
3. Looking at the estimates for the current fiscal year ending on September 30, 2024, the average EPS estimate is $6.10, ranging from a low estimate of $5.95 to a high estimate of $6.41. This indicates growth from the EPS of $5.67 in the previous fiscal year.
4. For the next fiscal year ending on September 30, 2025, the average EPS estimate is $6.69, with a low estimate of $5.92 and a high estimate of $7.31. This forecast suggests a further increase from the EPS of $6.10 in the current fiscal year.
Overall, the analysts' estimates point towards a positive trend of increasing earnings per share for both the upcoming quarters and the next fiscal years.
Earnings
The company's results for the most recent quarter ending on April 30, 2025, have not been provided yet. The previous results were reported on February 27, 2025, through the Transfer Agent. Before that, on January 31, 2025, the results were released after hours. The results for the quarter ending on October 31, 2024, were not provided on time. However, on August 1, 2024, the company reported an earnings per share (EPS) estimate of 1.32.Main Statystic ðŸ§
The data provided includes financials, stock statistics, valuation metrics, stock price summary, and dividends and splits information for a specific company.In terms of financials, the company has strong cash flow with operating cash flow at $110.56 billion and levered free cash flow at $84.73 billion. The balance sheet shows a total cash of $67.15 billion, total debt of $104.59 billion, and a current ratio of 1.037. The profit margin is 26.31%, with a return on assets of 22.07% and return on equity of 147.25%. The company's fiscal year ends on September 30, 2023.
Moving on to stock statistics, the short ratio is 1.53, with 99.29 million shares shorted out of 15.31 billion float shares. The company has a market capitalization of $2.92 trillion, with 57.59% held by institutions and 5.22% held by insiders.
Valuation metrics show a PEG ratio of 26.32, forward P/E of 26.32, and trailing P/E of 29.59. The enterprise value is $2.95 trillion, with a price to book ratio of 39.34 and price to sales ratio of 7.65.
The stock price summary includes a beta of 1.26, 50-day moving average of $176.26, and 200-day moving average of $181.04. The stock's 52-week low is $164.08, high is $199.62, with a 52-week change of 6.85%.
Lastly, dividends and splits information shows a payout ratio of 14.93%, with a forward annual dividend rate of $1 and a trailing annual dividend rate of $0.97. The company's dividend yield is 0.53% and the 5-year average dividend yield is 0.73%. The most recent dividend date was on May 16, 2024, with an ex-dividend date of May 10, 2024. The last split date was on August 31, 2020, with a 4-for-1 split.
Income statement 💸
These are the revenue figures. Here are the conclusions:1. The company's sales revenue has been increasing steadily over the years, from $274.5 billion in 2020 to $383.3 billion in 2023.
2. Despite the increase in sales, the cost of goods sold has also been rising, indicating a potential challenge in managing production or procurement costs.
3. The gross profit margin has remained relatively stable over the years, indicating that the company has been able to maintain profitability despite the increase in sales and cost of goods sold.
4. Operating income has also shown a positive trend, reaching $114.3 billion in 2023 from $66.3 billion in 2020, indicating efficient management of operating expenses.
5. Net income has been increasing over the years, reaching $97 billion in 2023 from $57.4 billion in 2020, showing overall growth in profitability.
6. Earnings per share (EPS) have also been on the rise, indicating that the company's profitability growth is being distributed among shareholders.
7. The company has been able to generate consistent EBITDA and EBIT figures, reflecting its operational stability and efficiency.
8. The company has been able to effectively manage its income tax expenses, ensuring that a significant portion of its earnings is retained for growth and investment.
9. Overall, the financial performance of the company seems to be strong, with a focus on revenue growth, cost management, and profitability.
Balance Sheet
These are balance sheets. Here are the conclusions:1. The total assets have been increasing over the years, reaching $365,725,000,000 in 2018.
2. Current assets fluctuate, with the highest value in 2019 at $162,819,000,000.
3. Non-current assets have been increasing steadily, with the highest value in 2019 at $175,697,000,000.
4. Total liabilities have also been increasing, reaching $255,355,000,000 in 2018.
5. Shareholders' equity has been fluctuating, with the highest value in 2018 at $107,147,000,000.
Cash Flow 💶
This is the cash flow statement. Here are some conclusions we can draw from the data:1. The company's free cash flow has been fluctuating over the years, with the highest value in 2022 and the lowest in 2020.
2. Operating cash flow has been relatively stable over the years, indicating consistent operational performance.
3. The company has been consistently paying interest and income taxes, with varying amounts each year.
4. The end cash position has also been fluctuating, reaching its highest value in 2020.
5. Financing activities show significant variability, with large amounts being spent on common stock repurchase and debt issuance and payments.
6. Investing activities also vary, with significant amounts being spent on the sale and purchase of investments, as well as capital expenditures.
7. Overall, the company's financial activities show a mix of stability in operations and variability in financing and investing decisions.
Revenue estimate
Based on the analysts' estimates for the future quarterly and annual sales of the company, we can draw the following conclusions:1. For the current quarter ending on June 30, 2024, the average sales estimate is $77,545,400,000, with a sales growth of 2% compared to the same quarter last year. The number of analysts providing estimates is 25.
2. For the next quarter ending on September 30, 2024, the average sales estimate is $85,501,800,000, with a sales growth of 3% compared to the same quarter last year. The number of analysts providing estimates is 25.
3. For the current fiscal year ending on September 30, 2024, the average sales estimate is $357,772,000,000, with a sales growth of 1% compared to the previous fiscal year. The number of analysts providing estimates is 38.
4. For the next fiscal year ending on September 30, 2025, the average sales estimate is $380,772,000,000, with a sales growth of 6% compared to the current fiscal year. The number of analysts providing estimates is 38.
These estimates suggest a moderate growth trend in both quarterly and annual sales for the company, with slightly higher growth expected in the next fiscal year compared to the current one.
Growth estimates
Based on the consensus estimates provided by analysts, we can draw the following conclusions regarding the growth rate of the company for different periods:1. Current Quarter: The estimated growth rate for the current quarter is 5.1%.
2. Next Quarter: The estimated growth rate for the next quarter is 5.2%.
3. Current Year: The estimated growth rate for the current year is 7.6%.
4. Next Year: The estimated growth rate for the next year is 9.7%.
5. Past 5 Years (per annum): The average annual growth rate for the past 5 years is 20.1%.
6. Next 5 Years (per annum): The estimated average annual growth rate for the next 5 years is 9.7%.
These estimates suggest a positive growth trend for the company, with a slight decrease in growth rate compared to the past 5 years but still showing healthy growth prospects in the near future.
Price target
The analysts' forecast for the future price of the security is as follows:- Low: $164
- High: $275
- Median: $201.43
- Average: $204.58
- Current price: $192.25
Based on these forecasts, it appears that the analysts are generally optimistic about the future price of the security, with a median forecast of $201.43 and an average forecast of $204.58. However, it's worth noting that there is a wide range of forecasts, from a low of $164 to a high of $275. The current price of the security is $192.25.
MACD of LUV
This is not investment advice. Remember to verify the information provided here.
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