Southwest Airlines Co. logo LUV - Southwest Airlines Co.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 19
HOLD 21
SELL 5
STRONG
SELL
0
| PRICE TARGET: $54.46 DETAILS
HIGH: $65.00
LOW: $36.10
MEDIAN: $60.00
CONSENSUS: $54.46
UPSIDE: 34.87%
AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C- 50.7 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 20%
F 21.5
  • 5yr Avg ROIC 4.2% 31/100
  • Operating Margin Trend -2.19 pp/yr 0/100
Contributes 4.3 pts toward composite.

Capital Efficiency

Weight: 15%
C- 49.3
  • 5yr Avg ROE 5.8% 39/100
  • 5yr Share-Count CAGR -0.2% 69/100
Contributes 7.4 pts toward composite.

Growth Quality

Weight: 15%
A+ 100.0
  • 5yr Revenue CAGR 25.4% 100/100
  • Revenue-Growth Years (5) 5/5 100/100
Contributes 15.0 pts toward composite.

Cash Generation

Weight: 15%
F 14.1
  • 5yr FCF Margin 0.1% 26/100
  • 5yr FCF/NI Conversion -0.91x 0/100
Contributes 2.1 pts toward composite.

Balance Sheet

Weight: 20%
B 69.1
  • Net Debt / EBITDA 1.23x 82/100
  • Interest Coverage (EBIT/Int) 5.98x 69/100
  • Altman Z-Score 2.18 47/100
Contributes 13.8 pts toward composite.

Stability

Weight: 15%
C 54.0
  • EPS Volatility (σ/μ) 0.72 13/100
  • Negative-Revenue Years (5) 0/5 100/100
  • Piotroski F-Score 7 78/100
Contributes 8.1 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Accumulating

4 of 4 gurus held; 4 added.

Holders
4
Avg Δ position
+64.8%
New buys
0
Full exits
0
As of Q2 2026
How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

  • Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
  • Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (15%) — 5yr Revenue CAGR, Revenue-Growth Years (5)
  • Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
  • Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
  • Stability (15%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.