SOUTHERN CO/THE (SO) Fundamental Analysis & Valuation

NYSE:SO • US8425871071

Current stock price

93.75 USD
+0.36 (+0.39%)
At close:
93.75 USD
0 (0%)
After Hours:

This SO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. SO Profitability Analysis

1.1 Basic Checks

  • SO had positive earnings in the past year.
  • SO had a positive operating cash flow in the past year.
  • In the past 5 years SO has always been profitable.
  • SO had a positive operating cash flow in each of the past 5 years.
SO Yearly Net Income VS EBIT VS OCF VS FCFSO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B 6B 8B

1.2 Ratios

  • SO has a Return On Assets of 2.79%. This is comparable to the rest of the industry: SO outperforms 55.32% of its industry peers.
  • The Return On Equity of SO (12.05%) is better than 72.34% of its industry peers.
  • SO has a better Return On Invested Capital (4.30%) than 61.70% of its industry peers.
  • SO had an Average Return On Invested Capital over the past 3 years of 4.15%. This is in line with the industry average of 4.52%.
  • The last Return On Invested Capital (4.30%) for SO is above the 3 year average (4.15%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.79%
ROE 12.05%
ROIC 4.3%
ROA(3y)2.89%
ROA(5y)2.63%
ROE(3y)12.65%
ROE(5y)11.61%
ROIC(3y)4.15%
ROIC(5y)4%
SO Yearly ROA, ROE, ROICSO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • SO has a better Profit Margin (14.69%) than 61.70% of its industry peers.
  • In the last couple of years the Profit Margin of SO has remained more or less at the same level.
  • The Operating Margin of SO (24.65%) is better than 70.21% of its industry peers.
  • In the last couple of years the Operating Margin of SO has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 88.95%, SO belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
  • SO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 24.65%
PM (TTM) 14.69%
GM 88.95%
OM growth 3Y7.89%
OM growth 5Y-0.48%
PM growth 3Y6.87%
PM growth 5Y-0.82%
GM growth 3Y2.36%
GM growth 5Y-0.17%
SO Yearly Profit, Operating, Gross MarginsSO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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1

2. SO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SO is destroying value.
  • Compared to 1 year ago, SO has about the same amount of shares outstanding.
  • The number of shares outstanding for SO remains at a similar level compared to 5 years ago.
  • The debt/assets ratio for SO is higher compared to a year ago.
SO Yearly Shares OutstandingSO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
SO Yearly Total Debt VS Total AssetsSO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

2.2 Solvency

  • Based on the Altman-Z score of 0.96, we must say that SO is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of 0.96, SO perfoms like the industry average, outperforming 59.57% of the companies in the same industry.
  • SO has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of SO (1.84) is worse than 82.98% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.84
Debt/FCF N/A
Altman-Z 0.96
ROIC/WACC0.64
WACC6.74%
SO Yearly LT Debt VS Equity VS FCFSO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B 40B 60B

2.3 Liquidity

  • SO has a Current Ratio of 0.65. This is a bad value and indicates that SO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 0.65, SO is doing worse than 72.34% of the companies in the same industry.
  • A Quick Ratio of 0.45 indicates that SO may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.45, SO is not doing good in the industry: 76.60% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.45
SO Yearly Current Assets VS Current LiabilitesSO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. SO Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 5.91% over the past year.
  • SO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.76% yearly.
  • SO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.58%.
  • SO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.72% yearly.
EPS 1Y (TTM)5.91%
EPS 3Y6%
EPS 5Y5.76%
EPS Q2Q%10%
Revenue 1Y (TTM)10.58%
Revenue growth 3Y0.31%
Revenue growth 5Y7.72%
Sales Q2Q%10.09%

3.2 Future

  • SO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.00% yearly.
  • Based on estimates for the next years, SO will show a small growth in Revenue. The Revenue will grow by 6.80% on average per year.
EPS Next Y9.44%
EPS Next 2Y8.5%
EPS Next 3Y8.58%
EPS Next 5Y8%
Revenue Next Year8.79%
Revenue Next 2Y7.21%
Revenue Next 3Y7.06%
Revenue Next 5Y6.8%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
SO Yearly Revenue VS EstimatesSO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 10B 20B 30B 40B
SO Yearly EPS VS EstimatesSO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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1

4. SO Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 21.80 indicates a rather expensive valuation of SO.
  • 70.21% of the companies in the same industry are cheaper than SO, based on the Price/Earnings ratio.
  • SO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.54, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 19.92 indicates a rather expensive valuation of SO.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SO indicates a slightly more expensive valuation: SO is more expensive than 63.83% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of SO to the average of the S&P500 Index (22.70), we can say SO is valued inline with the index average.
Industry RankSector Rank
PE 21.8
Fwd PE 19.92
SO Price Earnings VS Forward Price EarningsSO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SO indicates a slightly more expensive valuation: SO is more expensive than 68.09% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.13
SO Per share dataSO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • SO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)3.79
EPS Next 2Y8.5%
EPS Next 3Y8.58%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. SO Dividend Analysis

5.1 Amount

  • SO has a Yearly Dividend Yield of 3.08%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.84, SO pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, SO pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.08%

5.2 History

  • The dividend of SO has a limited annual growth rate of 2.35%.
  • SO has been paying a dividend for at least 10 years, so it has a reliable track record.
  • SO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.35%
Div Incr Years23
Div Non Decr Years34
SO Yearly Dividends per shareSO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 69.45% of the earnings are spent on dividend by SO. This is not a sustainable payout ratio.
  • The dividend of SO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP69.45%
EPS Next 2Y8.5%
EPS Next 3Y8.58%
SO Yearly Income VS Free CF VS DividendSO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B
SO Dividend Payout.SO Dividend Payout, showing the Payout Ratio.SO Dividend Payout.PayoutRetained Earnings

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SO Fundamentals: All Metrics, Ratios and Statistics

SOUTHERN CO/THE

NYSE:SO (3/23/2026, 8:19:24 PM)

After market: 93.75 0 (0%)

93.75

+0.36 (+0.39%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-19
Earnings (Next)04-29
Inst Owners72.72%
Inst Owner Change-1.83%
Ins Owners0.12%
Ins Owner Change8.91%
Market Cap104.94B
Revenue(TTM)29.55B
Net Income(TTM)4.34B
Analysts70.63
Price Target100.23 (6.91%)
Short Float %2.12%
Short Ratio3.75
Dividend
Industry RankSector Rank
Dividend Yield 3.08%
Yearly Dividend2.74
Dividend Growth(5Y)2.35%
DP69.45%
Div Incr Years23
Div Non Decr Years34
Ex-Date02-17
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.9%
Min EPS beat(2)-6.91%
Max EPS beat(2)3.1%
EPS beat(4)1
Avg EPS beat(4)-1.04%
Min EPS beat(4)-6.91%
Max EPS beat(4)3.1%
EPS beat(8)4
Avg EPS beat(8)2.67%
EPS beat(12)8
Avg EPS beat(12)3.33%
EPS beat(16)11
Avg EPS beat(16)4.23%
Revenue beat(2)1
Avg Revenue beat(2)2.15%
Min Revenue beat(2)-0.17%
Max Revenue beat(2)4.47%
Revenue beat(4)3
Avg Revenue beat(4)4.34%
Min Revenue beat(4)-0.17%
Max Revenue beat(4)7.77%
Revenue beat(8)5
Avg Revenue beat(8)2.53%
Revenue beat(12)6
Avg Revenue beat(12)-2.95%
Revenue beat(16)10
Avg Revenue beat(16)2.77%
PT rev (1m)3.15%
PT rev (3m)1.88%
EPS NQ rev (1m)-4.53%
EPS NQ rev (3m)-4.49%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)3.42%
Revenue NY rev (3m)3.9%
Valuation
Industry RankSector Rank
PE 21.8
Fwd PE 19.92
P/S 3.55
P/FCF N/A
P/OCF 10.71
P/B 2.91
P/tB 3.43
EV/EBITDA 13.13
EPS(TTM)4.3
EY4.59%
EPS(NY)4.71
Fwd EY5.02%
FCF(TTM)-2.62
FCFYN/A
OCF(TTM)8.76
OCFY9.34%
SpS26.4
BVpS32.17
TBVpS27.3
PEG (NY)2.31
PEG (5Y)3.79
Graham Number55.79
Profitability
Industry RankSector Rank
ROA 2.79%
ROE 12.05%
ROCE 5.25%
ROIC 4.3%
ROICexc 4.36%
ROICexgc 4.53%
OM 24.65%
PM (TTM) 14.69%
GM 88.95%
FCFM N/A
ROA(3y)2.89%
ROA(5y)2.63%
ROE(3y)12.65%
ROE(5y)11.61%
ROIC(3y)4.15%
ROIC(5y)4%
ROICexc(3y)4.19%
ROICexc(5y)4.04%
ROICexgc(3y)4.37%
ROICexgc(5y)4.23%
ROCE(3y)5.09%
ROCE(5y)4.91%
ROICexgc growth 3Y3.03%
ROICexgc growth 5Y2.27%
ROICexc growth 3Y3.28%
ROICexc growth 5Y2.54%
OM growth 3Y7.89%
OM growth 5Y-0.48%
PM growth 3Y6.87%
PM growth 5Y-0.82%
GM growth 3Y2.36%
GM growth 5Y-0.17%
F-Score4
Asset Turnover0.19
Health
Industry RankSector Rank
Debt/Equity 1.84
Debt/FCF N/A
Debt/EBITDA 4.98
Cap/Depr 211.23%
Cap/Sales 43.1%
Interest Coverage 2.71
Cash Conversion 73.62%
Profit Quality N/A
Current Ratio 0.65
Quick Ratio 0.45
Altman-Z 0.96
F-Score4
WACC6.74%
ROIC/WACC0.64
Cap/Depr(3y)187.9%
Cap/Depr(5y)188.18%
Cap/Sales(3y)37.54%
Cap/Sales(5y)34.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.91%
EPS 3Y6%
EPS 5Y5.76%
EPS Q2Q%10%
EPS Next Y9.44%
EPS Next 2Y8.5%
EPS Next 3Y8.58%
EPS Next 5Y8%
Revenue 1Y (TTM)10.58%
Revenue growth 3Y0.31%
Revenue growth 5Y7.72%
Sales Q2Q%10.09%
Revenue Next Year8.79%
Revenue Next 2Y7.21%
Revenue Next 3Y7.06%
Revenue Next 5Y6.8%
EBIT growth 1Y3.38%
EBIT growth 3Y8.23%
EBIT growth 5Y7.2%
EBIT Next Year83.86%
EBIT Next 3Y29.67%
EBIT Next 5Y20.51%
FCF growth 1Y-452.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.14%
OCF growth 3Y15.86%
OCF growth 5Y7.92%

SOUTHERN CO/THE / SO Fundamental Analysis FAQ

What is the fundamental rating for SO stock?

ChartMill assigns a fundamental rating of 4 / 10 to SO.


What is the valuation status of SOUTHERN CO/THE (SO) stock?

ChartMill assigns a valuation rating of 1 / 10 to SOUTHERN CO/THE (SO). This can be considered as Overvalued.


How profitable is SOUTHERN CO/THE (SO) stock?

SOUTHERN CO/THE (SO) has a profitability rating of 7 / 10.


Can you provide the financial health for SO stock?

The financial health rating of SOUTHERN CO/THE (SO) is 1 / 10.


Can you provide the dividend sustainability for SO stock?

The dividend rating of SOUTHERN CO/THE (SO) is 7 / 10 and the dividend payout ratio is 69.45%.