Southwest Airlines CoSTU:SWN +4.13%83 EBITDA Margin % is 10.00% as of Mar. 2026, which is 31% below its 10-year median of 14.49. GuruFocus rates STU:SWN with a GF Score™ of 83/100 and a GF Value™ of €36.52 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,007 Transportation companies, Southwest Airlines Co ranks worse than 62.36% on this metric.
Southwest Airlines Co (STU:SWN) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Southwest Airlines Co EBITDA Margin % Related Terms
Southwest Airlines Co EBITDA Margin % Historical Data
* Premium members only.
The historical data trend for Southwest Airlines Co's EBITDA Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:SWN vs AAL, CPA, ALK: EBITDA Margin % Comparison
For the Airlines subindustry, Southwest Airlines Co's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Southwest Airlines Co EBITDA Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's EBITDA Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Southwest Airlines Co (STU:SWN) has a EBITDA Margin % of 10.00% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Southwest Airlines Co and its competitors. This is 31% below median its historical median of 14.49. According to the industry distribution chart, Southwest Airlines Co ranks #628 out of 1007 companies in the Transportation industry, placing it in the top 62.4%.
Is Southwest Airlines Co's EBITDA Margin % too high?
Southwest Airlines Co's current EBITDA Margin % of 10.00% is 31% below median its 10-year median of 14.49. The Transportation industry median EBITDA Margin % is 13.68. Southwest Airlines Co's value of 10.00% is 26.9% below this industry median. Based on the distribution chart, Southwest Airlines Co ranks #628 out of 1007 companies in the Transportation industry, which is below the industry midpoint. Overall, Southwest Airlines Co has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's EBITDA Margin % compare to AAL and CPA?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #628 out of 1007 companies for EBITDA Margin %. This places Southwest Airlines Co in the lower half of its industry. The industry median EBITDA Margin % is 13.68. Southwest Airlines Co's value of 10.00% is 26.9% below this benchmark. While the company's 10-year median is 14.49 vs. the industry median of 13.68, Southwest Airlines Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBITDA Margin % for a Transportation company?
The median EBITDA Margin % among Transportation companies is 13.68, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current EBITDA Margin % of 10.00% is 26.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median EBITDA Margin % is 13.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current EBITDA Margin % is 10.00%, which is 31% below median its own 10-year median of 14.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southwest Airlines Co stock overvalued right now?
Based on GuruFocus' analysis, Southwest Airlines Co (STU:SWN) is currently considered Modestly Overvalued. The stock's GF Value™ is €36.52, compared to a current price of €45.12 — trading 23.5% above its estimated fair value. The current EBITDA Margin % is 10.00%, which is 31% below median its 10-year median of 14.49 and 26.9% below the Transportation industry median of 13.68. Southwest Airlines Co's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Southwest Airlines Co (STU:SWN), the current EBITDA Margin % is 10.00% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Southwest Airlines Co (STU:SWN) Overvalued in 2026?
Based on GuruFocus' analysis, Southwest Airlines Co stock appears to be overvalued.
The current stock price of €45.12 is trading 23.5% above its estimated GF Value™ of €36.52.
GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.
Key valuation signals for STU:SWN:
EBITDA Margin %: 10.00% (31% below median its 10-year median of 14.49)
GF Value™: €36.52 vs. price of €45.12 (23.5% above fair value)
Industry Position: 26.9% below the Transportation median (#628 of 1007)
No single metric tells the full story. See the STU:SWN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated with a simple cabin configuration in a point-to-point network. In early 2026, Southwest modified its cabins to offer some rows with extra legroom, its ticketing process and merchandising to offer assigned seats, and more fare categories to include a basic economy class that appears for the first time in travel aggregators' search results and more directly competes with other airlines' offerings.
83GF Score
Get the complete analysis for STU:SWN
EBITDA Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:SWN has been successfully added to your 
