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Southwest Airlines Co. (LUV) Stock Grade

LUV · Industrials

B
Grade updated: September 29, 2026
Computed by the GradeMyInvestments scoring model from revenue growth, profitability, balance-sheet strength, and analyst targets.
Market Cap
$20.7B
P/E Ratio
50.6
Revenue Growth (YoY)
+2.1%
Net Margin
1.6%
Return on Equity
5.5%
Dividend Yield
1.7%

About Southwest Airlines Co.'s fundamentals

Southwest Airlines has a market capitalization of $20.7 billion with modest revenue growth of 2.1% year-over-year, reflecting limited expansion in the airline industry. The company's net margin of 1.6% indicates thin profitability typical of airlines, while its return on equity of 5.5% suggests relatively modest returns on shareholder capital. Trading at a P/E ratio of 50.6, the valuation is elevated relative to earnings, and the company offers a modest dividend yield of 1.7%.

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