Southwest Airlines Co (FRA:SWN) Moat Score: 6/10 (As of Jun. 27, 2026)


FRA:SWN Southwest Airlines Co FRA:SWN
81 GF Score
Price €45.14
GF Value €35.85
Valuation Modestly Overvalued
! 6 Warning Signs
View Full Analysis

What is Southwest Airlines Co Moat Score?

Southwest Airlines Co FRA:SWN +1.14% 81 Moat Score is 6 as of Jun. 27, 2026. GuruFocus rates FRA:SWN with a GF Score™ of 81/100 and a GF Value™ of €35.85 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,064 Transportation companies, Southwest Airlines Co ranks better than 97.74% on this metric.

Southwest Airlines Co has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Southwest Airlines Co has Narrow Moat: Southwest Airlines has a strong narrow moat due to its cost advantages, brand strength, and customer loyalty. Its efficient operations and strong market presence provide a competitive edge, but regulatory and competitive pressures prevent a wide moat classification.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Southwest Airlines Co might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Southwest Airlines Co  (FRA:SWN) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Southwest Airlines Co Moat Score Related Terms

FRA:SWN vs AAL, CPA, ALK: Moat Score Comparison

For the Airlines subindustry, Southwest Airlines Co's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Transportation Industry

For the Transportation industry and Industrials sector, Southwest Airlines Co's Moat Score distribution charts can be found below:

* The bar in red indicates where Southwest Airlines Co's Moat Score falls into.


FRA:SWN
81GF Score
Southwest Airlines Co FRA:SWN
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis
Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
Southwest Airlines Co (FRA:SWN) has a Moat Score of 6 as of Jun. 27, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Southwest Airlines Co ranks #24 out of 1064 companies in the Transportation industry, placing it in the top 2.3%.
Is Southwest Airlines Co's Moat Score too high?
Southwest Airlines Co's current Moat Score is 6. Based on the distribution chart, Southwest Airlines Co ranks #24 out of 1064 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Southwest Airlines Co has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's Moat Score compare to AAL and CPA?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #24 out of 1064 companies for Moat Score. This places Southwest Airlines Co in the top 2% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Transportation company?
A good Moat Score depends on the Transportation industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Southwest Airlines Co's current Moat Score is 6. 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 (FRA:SWN) is currently considered Modestly Overvalued. The stock's GF Value™ is €35.85, compared to a current price of €45.14 — trading 25.9% above its estimated fair value. The current Moat Score is 6. Southwest Airlines Co's overall GF Score™ is 81/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Southwest Airlines Co (FRA:SWN), the current Moat Score is 6 as of Jun. 27, 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 (FRA:SWN) Overvalued in 2026?

Based on GuruFocus' analysis, Southwest Airlines Co stock appears to be overvalued. The current stock price of €45.14 is trading 25.9% above its estimated GF Value™ of €35.85. GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.

Key valuation signals for FRA:SWN:

  • Moat Score: 6
  • GF Value™: €35.85 vs. price of €45.14 (25.9% above fair value)
  • GF Score™: 81/100 with 6 warning signs

No single metric tells the full story. See the FRA:SWN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Southwest Airlines Co Business Description

Address P.O. Box 36611, Dallas, TX, USA, 75235-1611
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.
81GF Score

Get the complete analysis for FRA:SWN

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€45.14
Price
€35.85
GF Value