Southwest Airlines Co. (LUV) intrinsic value & 10-year financials
Southwest Airlines Co. (LUV) has no Graham intrinsic value right now because the formula needs positive earnings. Over the last 10 fiscal years revenue grew 3.7% a year to $28.1B, with an average return on invested capital of 10.1%.
- Graham intrinsic value
- —
- Share price (Oct 17, 2026)
- $39.50
- Market cap
- $22.0B
- Revenue (FY2025)
- $28.1B
- Revenue growth (10-yr CAGR)
- 3.7%
- ROIC (10-yr avg)
- 10.1%
- Free cash flow (FY2025)
- -$831.0M
LUV 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $28.1B | $441.0M | $0.79 | -$831.0M | 1.5% | 3.5% |
| FY2024 | $27.5B | $465.0M | $0.76 | -$1.6B | 1.2% | 2.7% |
| FY2023 | $26.1B | $465.0M | $0.76 | -$356.0M | 0.9% | 1.8% |
| FY2022 | $23.8B | $539.0M | $0.87 | -$134.0M | 4.3% | 8.4% |
| FY2021 | $15.8B | $977.0M | $1.61 | $1.8B | 10.9% | 15.0% |
| FY2020 | $9.0B | -$3.1B | -$5.44 | -$1.6B | -42.2% | -31.8% |
| FY2019 | $22.4B | $2.3B | $4.27 | $3.0B | 13.2% | 23.1% |
| FY2018 | $22.0B | $2.5B | $4.29 | $3.0B | 14.6% | 21.7% |
| FY2017 | $21.1B | $3.5B | $5.79 | $1.8B | 16.6% | 32.2% |
| FY2016 | $20.3B | $2.2B | $3.55 | $2.3B | 18.5% | 24.8% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Southwest Airlines has demonstrated mature, steady growth, with revenue compounding at 3.7% annually over the past decade.
Southwest Airlines returns on capital have been average, hovering around 10.1% ROIC over the decade.
Over the decade, Southwest Airlines shows that management has aggressively returned capital to shareholders by retiring 11.8% of outstanding shares.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Southwest Airlines is modeled at -15.4% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $-15.17 per share.