Southwest Airlines CoSTU:SWN -2.97%83 5-Year Yield-on-Cost % is 1.39 as of Jul. 08, 2026, which is 11% above its 10-year median of 1.25. GuruFocus rates STU:SWN with a GF Score™ of 83/100 and a GF Value™ of €36.37 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 661 Transportation companies, Southwest Airlines Co ranks worse than 80.48% on this metric.
Southwest Airlines Co's yield on cost for the quarter that ended in Mar. 2026 was 1.39.
The historical rank and industry rank for Southwest Airlines Co's 5-Year Yield-on-Cost % or its related term are showing as below:
STU:SWN'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.29 Med: 1.25 Max: 3.22
Current: 1.39
During the past 13 years, Southwest Airlines Co's highest Yield on Cost was 3.22. The lowest was 0.29. And the median was 1.25.
STU:SWN's 5-Year Yield-on-Cost % is ranked worse than 80.48% of 661
companies
in the Transportation industry
Industry Median: 4
vs STU:SWN: 1.39
Southwest Airlines Co (STU:SWN) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Southwest Airlines Co 5-Year Yield-on-Cost % Related Terms
STU:SWN vs AAL, UAL, CPA: 5-Year Yield-on-Cost % Comparison
For the Airlines subindustry, Southwest Airlines Co's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's 5-Year Yield-on-Cost % falls into.
Southwest Airlines Co 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Southwest Airlines Co (STU:SWN) has a 5-Year Yield-on-Cost % of 1.39 as of Jul. 08, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Southwest Airlines Co and its competitors. This is 11% above median its historical median of 1.25. Over the past decade, Southwest Airlines Co's 5-Year Yield-on-Cost % has ranged from 0.29 to 3.22. According to the industry distribution chart, Southwest Airlines Co ranks #532 out of 661 companies in the Transportation industry, placing it in the top 80.5%.
Is Southwest Airlines Co's 5-Year Yield-on-Cost % too high?
Southwest Airlines Co's current 5-Year Yield-on-Cost % of 1.39 is 11% above median its 10-year median of 1.25. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 3.22. The Transportation industry median 5-Year Yield-on-Cost % is 4.00. Southwest Airlines Co's value of 1.39 is 65.3% below this industry median. Based on the distribution chart, Southwest Airlines Co ranks #532 out of 661 companies in the Transportation industry, which is in the bottom quartile relative to peers. 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 5-Year Yield-on-Cost % compare to AAL and UAL?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #532 out of 661 companies for 5-Year Yield-on-Cost %. This places Southwest Airlines Co in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.00. Southwest Airlines Co's value of 1.39 is 65.3% below this benchmark. Historically, Southwest Airlines Co's own 5-Year Yield-on-Cost % has ranged from 0.29 to 3.22 over the past decade. While the company's 10-year median is 1.25 vs. the industry median of 4.00, 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 5-Year Yield-on-Cost % for a Transportation company?
The median 5-Year Yield-on-Cost % among Transportation companies is 4.00, based on 661 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current 5-Year Yield-on-Cost % of 1.39 is 65.3% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median 5-Year Yield-on-Cost % is 4.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current 5-Year Yield-on-Cost % is 1.39, which is 11% above median its own 10-year median of 1.25. 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 €36.37, compared to a current price of €43.19 — trading 18.8% above its estimated fair value. The current 5-Year Yield-on-Cost % is 1.39, which is 11% above median its 10-year median of 1.25 and 65.3% below the Transportation industry median of 4.00. Southwest Airlines Co's overall GF Score™ is 83/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Southwest Airlines Co (STU:SWN), the current 5-Year Yield-on-Cost % is 1.39 as of Jul. 08, 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 €43.19 is trading 18.8% above its estimated GF Value™ of €36.37.
GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.
Key valuation signals for STU:SWN:
5-Year Yield-on-Cost %: 1.39 (11% above median its 10-year median of 1.25)
GF Value™: €36.37 vs. price of €43.19 (18.8% above fair value)
Industry Position: 65.3% below the Transportation median (#532 of 661)
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
5-Year Yield-on-Cost % 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 