Southwest Airlines Co (LUV) Files 10-K for the Fiscal Year Ended on December 31, 2017

GuruFocus.com
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Southwest Airlines Co (LUV) files its latest 10-K with SEC for the fiscal year ended on December 31, 2017. Southwest Airlines Co is one of largest domestic carrier in the United States. The company operates approximately 700 aircraft constituting an all-Boeing fleet and specializes in short-haul flights and several international locations. Southwest Airlines Co has a market cap of $34.65 billion; its shares were traded at around $58.39 with a P/E ratio of 10.03 and P/S ratio of 1.67. The dividend yield of Southwest Airlines Co stocks is 0.76%. Southwest Airlines Co had annual average EBITDA growth of 20.10% over the past ten years. GuruFocus rated Southwest Airlines Co the business predictability rank of 2.5-star.


For the last quarter Southwest Airlines Co reported a revenue of $5.3 billion, compared with the revenue of $5.1 billion during the same period a year ago. For the latest fiscal year the company reported a revenue of $21.2 billion, an increase of 3.7% from last year. For the last five years Southwest Airlines Co had an average revenue growth rate of 4.6% a year.

The reported diluted earnings per share was $5.79 for the year, an increase of 63.1% from previous year. Over the last five years Southwest Airlines Co had an EPS growth rate of 58.1% a year. The Southwest Airlines Co had a decent operating margin of 16.6%, compared with the operating margin of 18.41% a year before. The 10-year historical median operating margin of Southwest Airlines Co is 7.69%. The profitability rank of the company is 8 (out of 10).

At the end of the fiscal year, Southwest Airlines Co has the cash and cash equivalents of $1.5 billion, compared with $1.7 billion in the previous year. The long term debt was $3.3 billion, compared with $2.8 billion in the previous year. The interest coverage to the debt is at a comfortable level of 54.1. Southwest Airlines Co has a financial strength rank of 7 (out of 10).

At the current stock price of $58.39, Southwest Airlines Co is traded at 80.6% premium to its historical median P/S valuation band of $32.33. The P/S ratio of the stock is 1.67, while the historical median P/S ratio is 0.92. The intrinsic value of the stock is $165.69 a share, according to GuruFocus DCF Calculator. The stock gained 10.40% during the past 12 months.

For the complete 20-year historical financial data of LUV, click here.

This article first appeared on GuruFocus.


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