Southwest Airlines CoLUV +3.10%82 OCF Margin % is 19.56% as of Mar. 2026, which is 28% above its 10-year median of 15.32. GuruFocus rates LUV with a GF Score™ of 82/100 and a GF Value™ of $41.23 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,006 Transportation companies, Southwest Airlines Co ranks worse than 62.82% on this metric.
The historical rank and industry rank for Southwest Airlines Co's OCF Margin % or its related term are showing as below:
LUV'
s OCF Margin % Range Over the Past 10 Years
Min: -12.46 Med: 15.32 Max: 22.28
Current: 8.31
During the past 13 years, the highest OCF Margin % of Southwest Airlines Co was 22.28%. The lowest was -12.46%. And the median was 15.32%.
LUV's OCF Margin % is ranked worse than 62.82% of 1006
companies
in the Transportation industry
Industry Median: 12.945
vs LUV: 8.31
Southwest Airlines Co OCF Margin % Related Terms
Southwest Airlines Co OCF Margin % Historical Data
* Premium members only.
The historical data trend for Southwest Airlines Co's OCF 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 OCF Margin %, along with its competitors' market caps and OCF 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 OCF Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's OCF Margin % distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's OCF 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 (LUV) has a OCF Margin % of 19.56% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Southwest Airlines Co and its competitors. This is 28% above median its historical median of 15.32. According to the industry distribution chart, Southwest Airlines Co ranks #632 out of 1006 companies in the Transportation industry, placing it in the top 62.8%.
Is Southwest Airlines Co's OCF Margin % too high?
Southwest Airlines Co's current OCF Margin % of 19.56% is 28% above median its 10-year median of 15.32. The Transportation industry median OCF Margin % is 12.95. Southwest Airlines Co's value of 19.56% is 51.1% above this industry median. Based on the distribution chart, Southwest Airlines Co ranks #632 out of 1006 companies in the Transportation industry, which is below the industry midpoint. Overall, Southwest Airlines Co has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's OCF Margin % compare to AAL and CPA?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #632 out of 1006 companies for OCF Margin %. This places Southwest Airlines Co in the lower half of its industry. The industry median OCF Margin % is 12.95. Southwest Airlines Co's value of 19.56% is 51.1% above this benchmark. While the company's 10-year median is 15.32 vs. the industry median of 12.95, 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 OCF Margin % for a Transportation company?
The median OCF Margin % among Transportation companies is 12.95, based on 1,006 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current OCF Margin % of 19.56% is 51.1% 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 OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median OCF Margin % is 12.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current OCF Margin % is 19.56%, which is 28% above median its own 10-year median of 15.32. 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 (LUV) is currently considered Modestly Overvalued. The stock's GF Value™ is $41.23, compared to a current price of $50.94 — trading 23.6% above its estimated fair value. The current OCF Margin % is 19.56%, which is 28% above median its 10-year median of 15.32 and 51.1% above the Transportation industry median of 12.95. Southwest Airlines Co's overall GF Score™ is 82/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For Southwest Airlines Co (LUV), the current OCF Margin % is 19.56% 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 (LUV) Overvalued in 2026?
Based on GuruFocus' analysis, Southwest Airlines Co stock appears to be overvalued.
The current stock price of $50.94 is trading 23.6% above its estimated GF Value™ of $41.23.
GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.
Key valuation signals for LUV:
OCF Margin %: 19.56% (28% above median its 10-year median of 15.32)
GF Value™: $41.23 vs. price of $50.94 (23.6% above fair value)
Industry Position: 51.1% above the Transportation median (#632 of 1006)
No single metric tells the full story. See the LUV 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.
82GF Score
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