Southwest Airlines CoSTU:SWN +4.13%83 FCF Margin % is 10.87% as of Mar. 2026, which is 199% above its 10-year median of 3.64. 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 1,006 Transportation companies, Southwest Airlines Co ranks worse than 70.18% on this metric.
The historical rank and industry rank for Southwest Airlines Co's FCF Margin % or its related term are showing as below:
STU:SWN'
s FCF Margin % Range Over the Past 10 Years
Min: -18.15 Med: 3.64 Max: 13.28
Current: -1.35
During the past 13 years, the highest FCF Margin % of Southwest Airlines Co was 13.28%. The lowest was -18.15%. And the median was 3.64%.
STU:SWN's FCF Margin % is ranked worse than 70.18% of 1006
companies
in the Transportation industry
Industry Median: 4.38
vs STU:SWN: -1.35
Southwest Airlines Co FCF Margin % Related Terms
Southwest Airlines Co FCF Margin % Historical Data
* Premium members only.
The historical data trend for Southwest Airlines Co's FCF 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.
For the Airlines subindustry, Southwest Airlines Co's FCF Margin %, along with its competitors' market caps and FCF 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 FCF Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's FCF 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 FCF Margin % of 10.87% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Southwest Airlines Co and its competitors. This is 199% above median its historical median of 3.64. According to the industry distribution chart, Southwest Airlines Co ranks #706 out of 1006 companies in the Transportation industry, placing it in the top 70.2%.
Is Southwest Airlines Co's FCF Margin % too high?
Southwest Airlines Co's current FCF Margin % of 10.87% is 199% above median its 10-year median of 3.64. The Transportation industry median FCF Margin % is 4.38. Southwest Airlines Co's value of 10.87% is 148.2% above this industry median. Based on the distribution chart, Southwest Airlines Co ranks #706 out of 1006 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 FCF Margin % compare to AAL and CPA?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #706 out of 1006 companies for FCF Margin %. This places Southwest Airlines Co in the lower half of its industry. The industry median FCF Margin % is 4.38. Southwest Airlines Co's value of 10.87% is 148.2% above this benchmark. While the company's 10-year median is 3.64 vs. the industry median of 4.38, Southwest Airlines Co has consistently been above 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 FCF Margin % for a Transportation company?
The median FCF Margin % among Transportation companies is 4.38, based on 1,006 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current FCF Margin % of 10.87% is 148.2% above 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median FCF Margin % is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current FCF Margin % is 10.87%, which is 199% above median its own 10-year median of 3.64. 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 FCF Margin % is 10.87%, which is 199% above median its 10-year median of 3.64 and 148.2% above the Transportation industry median of 4.38. 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 FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Southwest Airlines Co (STU:SWN), the current FCF Margin % is 10.87% 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:
FCF Margin %: 10.87% (199% above median its 10-year median of 3.64)
GF Value™: €36.52 vs. price of €45.12 (23.5% above fair value)
Industry Position: 148.2% above the Transportation median (#706 of 1006)
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
FCF 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 
