SOUTHWEST AIRLINES CO (SWN.DE) Stock Fundamental Analysis

FRA:SWN • US8447411088

42.015 EUR
-0.93 (-2.17%)
Last: Feb 27, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

4

Overall SWN gets a fundamental rating of 4 out of 10. We evaluated SWN against 14 industry peers in the Passenger Airlines industry. There are concerns on the financial health of SWN while its profitability can be described as average. SWN is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • SWN had positive earnings in the past year.
  • In the past year SWN had a positive cash flow from operations.
  • Each year in the past 5 years SWN has been profitable.
  • Each year in the past 5 years SWN had a positive operating cash flow.
SWN.DE Yearly Net Income VS EBIT VS OCF VS FCFSWN.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B

1.2 Ratios

  • SWN's Return On Assets of 1.52% is on the low side compared to the rest of the industry. SWN is outperformed by 85.71% of its industry peers.
  • SWN has a Return On Equity of 5.53%. This is amonst the worse of the industry: SWN underperforms 85.71% of its industry peers.
  • The Return On Invested Capital of SWN (1.84%) is worse than 92.86% of its industry peers.
  • SWN had an Average Return On Invested Capital over the past 3 years of 1.36%. This is significantly below the industry average of 9.75%.
  • The last Return On Invested Capital (1.84%) for SWN is above the 3 year average (1.36%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.52%
ROE 5.53%
ROIC 1.84%
ROA(3y)1.39%
ROA(5y)1.68%
ROE(3y)4.81%
ROE(5y)5.77%
ROIC(3y)1.36%
ROIC(5y)N/A
SWN.DE Yearly ROA, ROE, ROICSWN.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

1.3 Margins

  • SWN has a worse Profit Margin (1.57%) than 85.71% of its industry peers.
  • SWN's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 1.53%, SWN is doing worse than 92.86% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SWN has declined.
  • Looking at the Gross Margin, with a value of 73.57%, SWN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • SWN's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 1.53%
PM (TTM) 1.57%
GM 73.57%
OM growth 3Y-29.69%
OM growth 5YN/A
PM growth 3Y-11.45%
PM growth 5YN/A
GM growth 3Y2.37%
GM growth 5Y2.24%
SWN.DE Yearly Profit, Operating, Gross MarginsSWN.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60

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3

2. Health

2.1 Basic Checks

  • SWN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • SWN has less shares outstanding than it did 1 year ago.
  • SWN has less shares outstanding than it did 5 years ago.
  • SWN has a better debt/assets ratio than last year.
SWN.DE Yearly Shares OutstandingSWN.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
SWN.DE Yearly Total Debt VS Total AssetsSWN.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • SWN has an Altman-Z score of 2.30. This is not the best score and indicates that SWN is in the grey zone with still only limited risk for bankruptcy at the moment.
  • SWN has a Altman-Z score of 2.30. This is amongst the best in the industry. SWN outperforms 85.71% of its industry peers.
  • A Debt/Equity ratio of 0.57 indicates that SWN is somewhat dependend on debt financing.
  • The Debt to Equity ratio of SWN (0.57) is better than 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF N/A
Altman-Z 2.3
ROIC/WACC0.21
WACC8.85%
SWN.DE Yearly LT Debt VS Equity VS FCFSWN.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 0.52 indicates that SWN may have some problems paying its short term obligations.
  • The Current ratio of SWN (0.52) is worse than 85.71% of its industry peers.
  • A Quick Ratio of 0.45 indicates that SWN may have some problems paying its short term obligations.
  • SWN's Quick ratio of 0.45 is on the low side compared to the rest of the industry. SWN is outperformed by 78.57% of its industry peers.
Industry RankSector Rank
Current Ratio 0.52
Quick Ratio 0.45
SWN.DE Yearly Current Assets VS Current LiabilitesSWN.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.45% over the past year.
  • Measured over the past years, SWN shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.45% on average per year.
  • Looking at the last year, SWN shows a small growth in Revenue. The Revenue has grown by 2.11% in the last year.
  • Measured over the past years, SWN shows a very strong growth in Revenue. The Revenue has been growing by 25.41% on average per year.
EPS 1Y (TTM)6.45%
EPS 3Y-3.45%
EPS 5YN/A
EPS Q2Q%3.57%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y5.63%
Revenue growth 5Y25.41%
Sales Q2Q%7.39%

3.2 Future

  • Based on estimates for the next years, SWN will show a very strong growth in Earnings Per Share. The EPS will grow by 47.38% on average per year.
  • SWN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.37% yearly.
EPS Next Y323.46%
EPS Next 2Y126.78%
EPS Next 3Y77.99%
EPS Next 5Y47.38%
Revenue Next Year12.74%
Revenue Next 2Y8.8%
Revenue Next 3Y7.19%
Revenue Next 5Y6.37%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
SWN.DE Yearly Revenue VS EstimatesSWN.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
SWN.DE Yearly EPS VS EstimatesSWN.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 -2 4 -4 6 -6

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3

4. Valuation

4.1 Price/Earnings Ratio

  • SWN is valuated quite expensively with a Price/Earnings ratio of 50.02.
  • SWN's Price/Earnings ratio is rather expensive when compared to the industry. SWN is more expensive than 92.86% of the companies in the same industry.
  • SWN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.10.
  • The Price/Forward Earnings ratio is 11.84, which indicates a very decent valuation of SWN.
  • 92.86% of the companies in the same industry are cheaper than SWN, based on the Price/Forward Earnings ratio.
  • SWN is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 50.02
Fwd PE 11.84
SWN.DE Price Earnings VS Forward Price EarningsSWN.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWN indicates a slightly more expensive valuation: SWN is more expensive than 78.57% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.38
SWN.DE Per share dataSWN.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

  • SWN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • SWN's earnings are expected to grow with 77.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y126.78%
EPS Next 3Y77.99%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • SWN has a Yearly Dividend Yield of 1.38%.
  • Compared to an average industry Dividend Yield of 1.42, SWN has a dividend in line with its industry peers.
  • SWN's Dividend Yield is slightly below the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 1.38%

5.2 History

  • On average, the dividend of SWN grows each year by 16.25%, which is quite nice.
Dividend Growth(5Y)16.25%
Div Incr YearsN/A
Div Non Decr YearsN/A
SWN.DE Yearly Dividends per shareSWN.DE Yearly Dividends per shareYearly Dividends per share 2019 2020 2025 2026 0.05 0.1 0.15

5.3 Sustainability

  • 90.48% of the earnings are spent on dividend by SWN. This is not a sustainable payout ratio.
  • The dividend of SWN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP90.48%
EPS Next 2Y126.78%
EPS Next 3Y77.99%
SWN.DE Yearly Income VS Free CF VS DividendSWN.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B
SWN.DE Dividend Payout.SWN.DE Dividend Payout, showing the Payout Ratio.SWN.DE Dividend Payout.PayoutRetained Earnings

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SOUTHWEST AIRLINES CO

FRA:SWN (2/27/2026, 7:00:00 PM)

42.015

-0.93 (-2.17%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)01-28
Earnings (Next)04-22
Inst Owners101.39%
Inst Owner ChangeN/A
Ins Owners0.9%
Ins Owner ChangeN/A
Market Cap20.64B
Revenue(TTM)28.06B
Net Income(TTM)441.00M
Analysts66
Price Target38.84 (-7.56%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.38%
Yearly Dividend0.61
Dividend Growth(5Y)16.25%
DP90.48%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)216.06%
Min EPS beat(2)-0.64%
Max EPS beat(2)432.76%
EPS beat(4)2
Avg EPS beat(4)111.2%
Min EPS beat(4)-16.06%
Max EPS beat(4)432.76%
EPS beat(8)5
Avg EPS beat(8)560.05%
EPS beat(12)6
Avg EPS beat(12)389.99%
EPS beat(16)8
Avg EPS beat(16)279.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.26%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-0.59%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)2
Avg Revenue beat(12)-0.92%
Revenue beat(16)2
Avg Revenue beat(16)-0.87%
PT rev (1m)9.6%
PT rev (3m)N/A
EPS NQ rev (1m)55.54%
EPS NQ rev (3m)N/A
EPS NY rev (1m)29.2%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)2.82%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.25%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 50.02
Fwd PE 11.84
P/S 0.87
P/FCF N/A
P/OCF 13.24
P/B 3.06
P/tB 3.63
EV/EBITDA 13.38
EPS(TTM)0.84
EY2%
EPS(NY)3.55
Fwd EY8.45%
FCF(TTM)-1.43
FCFYN/A
OCF(TTM)3.17
OCFY7.55%
SpS48.35
BVpS13.75
TBVpS11.57
PEG (NY)0.15
PEG (5Y)N/A
Graham Number16.12
Profitability
Industry RankSector Rank
ROA 1.52%
ROE 5.53%
ROCE 2.36%
ROIC 1.84%
ROICexc 2.24%
ROICexgc 2.45%
OM 1.53%
PM (TTM) 1.57%
GM 73.57%
FCFM N/A
ROA(3y)1.39%
ROA(5y)1.68%
ROE(3y)4.81%
ROE(5y)5.77%
ROIC(3y)1.36%
ROIC(5y)N/A
ROICexc(3y)2.08%
ROICexc(5y)N/A
ROICexgc(3y)2.29%
ROICexgc(5y)N/A
ROCE(3y)1.74%
ROCE(5y)N/A
ROICexgc growth 3Y-29.98%
ROICexgc growth 5YN/A
ROICexc growth 3Y-29.6%
ROICexc growth 5YN/A
OM growth 3Y-29.69%
OM growth 5YN/A
PM growth 3Y-11.45%
PM growth 5YN/A
GM growth 3Y2.37%
GM growth 5Y2.24%
F-Score7
Asset Turnover0.97
Health
Industry RankSector Rank
Debt/Equity 0.57
Debt/FCF N/A
Debt/EBITDA 2.3
Cap/Depr 171.35%
Cap/Sales 9.53%
Interest Coverage 3.96
Cash Conversion 92.66%
Profit Quality N/A
Current Ratio 0.52
Quick Ratio 0.45
Altman-Z 2.3
F-Score7
WACC8.85%
ROIC/WACC0.21
Cap/Depr(3y)176.77%
Cap/Depr(5y)172.51%
Cap/Sales(3y)10.24%
Cap/Sales(5y)10.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.45%
EPS 3Y-3.45%
EPS 5YN/A
EPS Q2Q%3.57%
EPS Next Y323.46%
EPS Next 2Y126.78%
EPS Next 3Y77.99%
EPS Next 5Y47.38%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y5.63%
Revenue growth 5Y25.41%
Sales Q2Q%7.39%
Revenue Next Year12.74%
Revenue Next 2Y8.8%
Revenue Next 3Y7.19%
Revenue Next 5Y6.37%
EBIT growth 1Y33.33%
EBIT growth 3Y-25.74%
EBIT growth 5YN/A
EBIT Next Year604.21%
EBIT Next 3Y105.3%
EBIT Next 5Y62.48%
FCF growth 1Y48.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y298.7%
OCF growth 3Y-21.38%
OCF growth 5YN/A

SOUTHWEST AIRLINES CO / SWN.DE FAQ

What is the ChartMill fundamental rating of SOUTHWEST AIRLINES CO (SWN.DE) stock?

ChartMill assigns a fundamental rating of 4 / 10 to SWN.DE.


What is the valuation status for SWN stock?

ChartMill assigns a valuation rating of 3 / 10 to SOUTHWEST AIRLINES CO (SWN.DE). This can be considered as Overvalued.


What is the profitability of SWN stock?

SOUTHWEST AIRLINES CO (SWN.DE) has a profitability rating of 4 / 10.


What is the expected EPS growth for SOUTHWEST AIRLINES CO (SWN.DE) stock?

The Earnings per Share (EPS) of SOUTHWEST AIRLINES CO (SWN.DE) is expected to grow by 323.46% in the next year.


Is the dividend of SOUTHWEST AIRLINES CO sustainable?

The dividend rating of SOUTHWEST AIRLINES CO (SWN.DE) is 3 / 10 and the dividend payout ratio is 90.48%.