Southwest Airlines Co
LUV
Market Cap$14.2B
Close$
Earnings Call Q4 2024
January 30, 2025 - AI Summary
Strong Operational Performance: Southwest Airlines finished 2024 with an industry-leading completion factor, less than 1% of flights canceled. The fourth quarter saw a year-over-year increase in unit revenue (RASM) of 8%, which exceeded guidance expectations and demonstrates positive revenue momentum.
Strategic Initiatives: The Southwest Even Better plan is on track, with a focus on efficiency and enhancing customer experience. The company is implementing tactical improvements and optimizing revenue management systems, which are yielding faster-than-expected results.
Cost Challenges and Mitigation: CASM-X (cost per available seat mile excluding special items) increased by 11.1% year-over-year in Q4 due to inflationary pressures and elevated operating expenses. The company is targeting a $500 million multiyear cost plan to mitigate these challenges and expects improvement as initiatives take effect.
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$15.20
38.6% downside
Current Fair Value
38.6% downsideOvervalued by 38.6% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $14.20 Billion |
|---|---|
| Enterprise Value | $9.68 Billion |
| Dividend Yield | $0.72 (2.91026677445433%) |
| Earnings per Share | $0.78 |
| Beta | 0.94 |
| Outstanding Shares | 628,952,035 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 33.54 |
|---|---|
| PEG | -16.47 |
| Price to Sales | 0.58 |
| Price to Book Ratio | 1.55 |
| Enterprise Value to Revenue | 0.35 |
| Enterprise Value to EBIT | 16.57 |
| Enterprise Value to Net Income | 20 |
| Total Debt to Enterprise | 0.31 |
| Debt to Equity | 0.29 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Southwest Airlines Co
CEO: Gary Kelly In its 50th year of service, Dallas-based Southwest Airlines Co. continues to differentiate itself from other air carriers with exemplary Customer Service to a Customer base topping 130 million passengers in 2019. Southwest became the na...