Southwest Airlines Co. LUV NYSE

Southwest Airlines Co. (LUV) has shown moderate revenue growth over the past 3 years, expanding from $23.8B to $28.1B (average +5.7%/yr). Net income reached $441M, reflecting earnings decline at -6.3%/yr on average. The net profit margin is 1.6%, which is thin. The company has maintained profitability in all 4 of the past 4 years, demonstrating a consistent earnings track record. The gross margin is 17.4% (low), with a -2.6pp trend over the period. With a $20B market cap and MOAT composite score of 47/100, the company has a moderate competitive position.

Criteria proven by this page:

• GROWTH (40/100, Partial) — growth is present but not consistently above 5% across both metrics
• PAST (100/100, Pass) — proving consistent earnings. Looking at the full 41-year history, the company was profitable in 40 of 41 years — an excellent long-term track record
• INCOME (30/100, Partial) — the company is profitable but margin is below 15%
• MOAT (47/100, Partial) — some competitive advantages are present but not dominant

Overall SharesGrow Score: 52/100 with 2/7 criteria passed.