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This video’s transcript was generated by a third party. It is not curated or reviewed and is provided for convenience and information purposes only. The accuracy and completeness of the transcript are not guaranteed.
Welcome to 2 Minute Analysis. Our goal is to not only entertain, but provide value and insights about the investments you care about. So, let’s throw two minutes on the clock and dive-in.
Today, we are looking at Southwest Airlines Co., ticker symbol, LUV. Kicking things off here with the Quant rating system, it is currently a Strong Buy rating on this stock, and we’re going to dive into some of these nice valuation and growth metrics in just a moment.
Jumping over to the Seeking Alpha Analysts, they currently have a Hold in aggregate on this stock, and that’s from 3 analysts providing coverage in the last 90-days. And lastly, Wall Street is currently a Hold rating on this stock as well, and that’s from 25 analysts providing coverage in the last 90-days. To learn more about how the Seeking Alpha Quant system and Seeking Alpha Analysts outperform the market, visit the link in the description of this video.
Now, let’s dive deeper. This is a $26.66 billion market capitalization company found within the industrial sector and the passenger airlines industry. Kicking things off here with the Valuation grades, currently an A-, and we’ll see that the PEG non-GAAP Forward ratio is 0.19, compared to the sector at 1.91, which is very favorable for investors looking for that factored in growth. Next up, price-to-cash flow is currently 7.71, compared to the sector at 16.92, which is very favorable as well.
The Growth grade is currently an A+. And if we check out that operating cash flow year-over-year, 298.7%, compared to the sector at just 7.17%. Looking at some Forward EPS diluted growth here, 70.33%, compared to the sector at just 9.67%.
Profitability grade is currently a C. The net income margin, I want to point out here, 1.57% is under the sector at 6.57%, and the EBITDA margin as well, 6.13%, is under the sector median at 14.66%, something to keep an eye on.
Momentum grade is currently an A+. That one year price performance is up 74.53%. And even the last three months price performance is 72.20%, showcasing a sharp rise in the more recent days.
Lastly, Revision grade is an A, and that’s 19 up revisions and zero down revisions for earnings per share over the last three months and 16 up revisions and zero down revisions for revenue over the last three months.
Now, this stock does pay a small dividend. That yield is 1.33% with a payout ratio of 72.73% and a five-year growth rate of 31.95%. However, let’s look at the grades here. Dividend safety is a B+, dividend growth is a D-, dividend yield is a C-, and dividend consistency is an F grade. Why are we seeing that F grade here? If we dive deeper, two years of consecutive dividend payments and zero years of growth, something you’re going to want to keep an eye on. And if we look at dividend yield here, you’ll see that mainly this dividend yield is in-line with the sector.
Alright. That’s going to wrap it up for this episode. Now, everyone, come over to Seeking Alpha. Add Southwest Airlines to one of your Seeking Alpha portfolios, get those free breaking news alerts. And if you have a ticker you want us to cover, add it to the comment section below. And don’t forget to follow Seeking Alpha so you get notified when the next 2 Minute Analysis gets published.
Past performance is no guarantee of future results. Content provided for informational purposes only. Seeking Alpha does not offer any personalized investment advice and is not a licensed securities dealer, broker, US investment adviser, or investment bank.
Follow Southwest Airlines on Seeking Alpha!
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