SOUTHWEST AIRLINES's gross profit margin for the first quarter of its fiscal year 2015 has significantly increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. SOUTHWEST AIRLINES has weak liquidity. Currently, the Quick Ratio is 0.57 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.00% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||4414.0||4166.0|
|Net Income ($mil)||453.0||152.0|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||3438.0||3498.0|
|Total Assets ($mil)||21163.0||19976.0|
|Total Debt ($mil)||2687.0||2814.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||34.98||23.52|
|Return on Assets||6.79||4.24|
|Return on Equity||20.82||11.78|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||668.3||691.84|
|Div / share||0.06||0.04|
|Book value / share||10.33||10.39|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||9137923.0||7697901.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 17.97 for the Airlines industry and a discount compared to the S&P 500 average of 20.31. Conducting a second comparison, its price-to-book ratio of 3.16 indicates a premium versus the S&P 500 average of 2.80 and a significant discount versus the industry average of 4.97. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SOUTHWEST AIRLINES proves to trade at a discount to investment alternatives within the industry.
|LUV 15.61||Peers 17.97||LUV 6.72||Peers 7.01|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
LUV is trading at a discount to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
LUV is trading at a valuation on par to its peers.
|LUV 9.59||Peers 11.46||LUV 0.15||Peers 0.30|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
LUV is trading at a discount to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
LUV trades at a significant discount to its peers.
|LUV 3.16||Peers 4.97||LUV 74.16||Peers 107.72|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
LUV is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, LUV is expected to significantly trail its peers on the basis of its earnings growth rate.
|LUV 1.16||Peers 1.20||LUV 6.02||Peers 9.07|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
LUV is trading at a valuation on par with its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
LUV significantly trails its peers on the basis of sales growth
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV