Southwest Airlines CoLUV +3.10%82 OCF Yield % is 9.64 as of Jun. 24, 2026, which is 20% below its 10-year median of 12.05. 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 1,012 Transportation companies, Southwest Airlines Co ranks worse than 57.11% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high operating cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Southwest Airlines Co OCF Yield % Related Terms
Southwest Airlines Co OCF Yield % Historical Data
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The historical data trend for Southwest Airlines Co's OCF Yield % 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 Yield %, along with its competitors' market caps and OCF Yield % 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 Yield % vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's OCF Yield % distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's OCF Yield % 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 Yield % of 9.64 as of Jun. 24, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Southwest Airlines Co and its competitors. This is 20% below median its historical median of 12.05. According to the industry distribution chart, Southwest Airlines Co ranks #578 out of 1012 companies in the Transportation industry, placing it in the top 57.1%.
Is Southwest Airlines Co's OCF Yield % too high?
Southwest Airlines Co's current OCF Yield % of 9.64 is 20% below median its 10-year median of 12.05. The Transportation industry median OCF Yield % is 11.86. Southwest Airlines Co's value of 9.64 is 18.7% below this industry median. Based on the distribution chart, Southwest Airlines Co ranks #578 out of 1012 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 Yield % compare to AAL and CPA?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #578 out of 1012 companies for OCF Yield %. This places Southwest Airlines Co in the lower half of its industry. The industry median OCF Yield % is 11.86. Southwest Airlines Co's value of 9.64 is 18.7% below this benchmark. While the company's 10-year median is 12.05 vs. the industry median of 11.86, 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 OCF Yield % for a Transportation company?
The median OCF Yield % among Transportation companies is 11.86, based on 1,012 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current OCF Yield % of 9.64 is 18.7% 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median OCF Yield % is 11.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current OCF Yield % is 9.64, which is 20% below median its own 10-year median of 12.05. 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 Yield % is 9.64, which is 20% below median its 10-year median of 12.05 and 18.7% below the Transportation industry median of 11.86. 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 Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For Southwest Airlines Co (LUV), the current OCF Yield % is 9.64 as of Jun. 24, 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 Yield %: 9.64 (20% below median its 10-year median of 12.05)
GF Value™: $41.23 vs. price of $50.94 (23.6% above fair value)
Industry Position: 18.7% below the Transportation median (#578 of 1012)
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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