Southwest Airlines Story

LUV -- USA Stock  

USD 55.79  0.81  1.47%

Macroaxis News
By Achuva Shats
In this post I will focus on Southwest Airlines. I will evaluate if Southwest Airlines shares are reasonably priced going into October. This firm Piotroski F Score is 4 - Ordinary. Considering 30-days investment horizon, Southwest Airlines is not expected to generate positive returns. However, the company is as risky as the market. It waists most of its returns potential to compensate for thr risk taken. The market is generating roughly 0.0 per unit of risk. Macroaxis considers Southwest Airlines to be very steady. Southwest Airlines owns Efficiency Ratio (i.e. Sharpe Ratio) of -0.0083 which indicates the firm had -0.0083% of return per unit of risk over the last 1 month. Macroaxis philosophy towards measuring risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. Southwest Airlines Company exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Southwest Airlines Coefficient Of Variation of (11,483) and Risk Adjusted Performance of 0.01 to confirm risk estimate we provide.
Should I still rely on Southwest Airlines management in October 2019?

SOUTHWEST AIRLINE has roughly 3.99B in cash with 2.13B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 7.42. Southwest Airlines dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.3 per share. Lets now take a look at Southwest Airlines Price to Book. Based on latest financial disclosure the price to book indicator of Southwest Airlines Company is roughly 2.69 times. This is 54.41% lower than that of the Industrials sector, and 49.44% higher than that of Airlines industry, The Price to Book for all stocks is 71.71% higher than the firm.

The small decline in market price for the last few months may encourage investors to take a closer look at the company as it closed today at a share price of 50.91 on 3786268.000 in trading volume. The company executives did not add much value to Southwest Airlines investors in August. However, diversifying your holdings with Southwest Airlines Company or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.4942. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Southwest Airlines is trading at 51.38 which is 0.98 percent decrease. Today lowest is 50.91. Southwest Airlines Total Assets is decreasing over the last 4 years. The previous year value of Southwest Airlines Total Assets was 8,954,000,000. Moreover, Southwest Airlines Revenue to Assets is fairly stable at the moment.

Share Based CompensationNet Cash Flow from Operations
 2008 0.00  0.00 
 2009 0.00  0.00 
 2018 0.00  0.00 
 2019 (projected) 0.00  0.00 

The bottom line, I belive Southwest Airlines is currently fairly valued. It Ignores market trends and projects low probability of distress in the next two years. Our present buy vs. sell advice on the venture is Strong Hold.

Sale by Wright Laura of 1500 shares of Southwest Airlines

Southwest Airlines Company insider trading alert for sale of common stock by Wright Laura, Chief Financial Officer, on September 14, 2019. This event was filed by Southwest Airlines Co with SEC on 2007-08-14. Statement of changes in beneficial ownership - SEC Form 4 [view details]   

About Contributor

Achuva Shats
   Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the prospective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce View Profile
This story should be regarded as informational only and should not be considered as solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Southwest Airlines Company. Please refer to our Terms of Use for any information regarding our disclosure principles.

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Shares Owned by Insiders Comparative Analysis

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Southwest Airlines is rated fifth overall in shares owned by insiders category among related companies. Shares Owned by Insiders show percentage of outstanding shares owned by insiders (such as key officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.
Please see also Southwest Airlines Hype Analysis, Southwest Airlines Correlation and Southwest Airlines Performance. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.