Southwest Airlines Co. [NYSE: LUV] opened at $50.09 and closed at $49.66 a share within trading session on 02/26/20. That means that the stock dropped by -1.53% compared to the closing price from a day before, when the stock touched $48.90.

Between the start and the closing of the latest trading session, Southwest Airlines Co. [NYSE: LUV] had 9.29 million shares being bought and sold. In the last three months, average trading volumes hovered around 4.10M shares. During the last week, volatility in the share price was set at 4.38%, which placed the metric for the last 30 days at 2.39%. The price of the stock additionally went down to $47.40 during that period and LUV managed to take a rebound to $58.83 in the last 52 weeks.

Southwest Airlines Co. [NYSE:LUV]: Analyst Rating and Earnings

Its stock price has been found in the range of 47.40 to 58.83. This is compared to its latest closing price of $49.66.

Pay attention for this company’s financial results, of which the next release is scheduled to happen on 04/23/2020.

Fundamental Analysis of Southwest Airlines Co. [LUV]

Now let’s turn to look at profitability: with a current Operating Margin for Southwest Airlines Co. [LUV] sitting at +13.40 and its Gross Margin at +26.89, this company’s Net Margin is now 10.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 22.17, and its Return on Invested Capital has reached 18.20%. Its Return on Equity is 23.37, and its Return on Assets is 8.47. These metrics all suggest that Southwest Airlines Co. is doing well at using the money it earns to generate returns.

Turning to investigate this organization’s capital structure, Southwest Airlines Co. [LUV] has generated a Total Debt to Total Equity ratio of 40.64. Similarly, its Total Debt to Total Capital is 28.90, while its Total Debt to Total Assets stands at 14.79. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 33.76, and its Long-Term Debt to Total Capital is 28.72.

What about valuation? This company’s Enterprise Value to EBITDA is 6.72 and its Total Debt to EBITDA Value is 0.63. The Enterprise Value to Sales for this firm is now 1.26, and its Total Debt to Enterprise Value stands at 0.14. Southwest Airlines Co. [LUV] has a Price to Book Ratio of 2.85, a Price to Cash Flow Ratio of 7.30 and P/E Ratio of 11.43. These metrics all suggest that Southwest Airlines Co. is more likely to generate a positive ROI.

Shifting the focus to workforce efficiency, Southwest Airlines Co. [LUV] earns $368,882 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 27.12 and its Total Asset Turnover is 0.83. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.61 and its Current Ratio is 0.67. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.

Southwest Airlines Co. [LUV] has 521.05M shares outstanding, amounting to a total market cap of $25.48B. Its stock price has been found in the range of 47.40 to 58.83. At its current price, it has moved down by -16.88% from its 52-week high, and it has moved up 3.18% from its 52-week low.

This stock’s Beta value is currently 1.53, which indicates that it is 4.38% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 22.19. This stock, according to these metrics, is currently Oversold.

Conclusion: Is Southwest Airlines Co. [LUV] a Reliable Buy?

Southwest Airlines Co. [LUV] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.