SOUTHERN CO/THE (SO) Fundamental Analysis & Valuation

NYSE:SO • US8425871071

Current stock price

96.23 USD
-0.31 (-0.32%)
At close:
97 USD
+0.77 (+0.8%)
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.
  • Each year in the past 5 years SO has 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's Return On Assets of 2.79% is in line compared to the rest of the industry. SO outperforms 54.35% of its industry peers.
  • SO has a better Return On Equity (12.05%) than 69.57% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 4.30%, SO is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for SO is in line with the industry average of 4.49%.
  • 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

  • With a decent Profit Margin value of 14.69%, SO is doing good in the industry, outperforming 60.87% of the companies in the same industry.
  • In the last couple of years the Profit Margin of SO has remained more or less at the same level.
  • SO has a better Operating Margin (24.65%) than 69.57% of its industry peers.
  • In the last couple of years the Operating Margin of SO has remained more or less at the same level.
  • SO has a Gross Margin of 88.95%. This is amongst the best in the industry. SO outperforms 80.43% of its industry peers.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. SO Health Analysis

2.1 Basic Checks

  • SO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for SO remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, SO has about the same amount of shares outstanding.
  • 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

  • SO has an Altman-Z score of 0.97. This is a bad value and indicates that SO is not financially healthy and even has some risk of bankruptcy.
  • SO has a Altman-Z score of 0.97. This is in the better half of the industry: SO outperforms 63.04% of its industry peers.
  • A Debt/Equity ratio of 1.84 is on the high side and indicates that SO has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.84, SO is not doing good in the industry: 82.61% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.84
Debt/FCF N/A
Altman-Z 0.97
ROIC/WACC0.64
WACC6.69%
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

  • A Current Ratio of 0.65 indicates that SO may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.65, SO is doing worse than 71.74% 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.
  • SO has a worse Quick ratio (0.45) than 76.09% of its industry peers.
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

More info and screens

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

5

3. SO Growth Analysis

3.1 Past

  • SO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.91%.
  • 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%.
  • Measured over the past years, SO shows a small growth in Revenue. The Revenue has been growing by 7.72% on average per year.
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

  • The Earnings Per Share is expected to grow by 8.00% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 6.80% on average over the next years.
EPS Next Y9.44%
EPS Next 2Y8.5%
EPS Next 3Y8.58%
EPS Next 5Y8%
Revenue Next Year8.73%
Revenue Next 2Y7.16%
Revenue Next 3Y7.14%
Revenue Next 5Y6.8%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

1

4. SO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 22.38, the valuation of SO can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of SO indicates a slightly more expensive valuation: SO is more expensive than 73.91% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.73, SO is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 20.45, the valuation of SO can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, SO is valued a bit more expensive than 67.39% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.72. SO is around the same levels.
Industry RankSector Rank
PE 22.38
Fwd PE 20.45
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

  • Based on the Enterprise Value to EBITDA ratio, SO is valued a bit more expensive than 69.57% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.36
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 SO does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of SO may justify a higher PE ratio.
PEG (NY)2.37
PEG (5Y)3.89
EPS Next 2Y8.5%
EPS Next 3Y8.58%

More info and screens

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

6

5. SO Dividend Analysis

5.1 Amount

  • SO has a Yearly Dividend Yield of 3.03%. Purely for dividend investing, there may be better candidates out there.
  • SO's Dividend Yield is comparable with the industry average which is at 2.87.
  • SO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 3.03%

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 their dividend for at least 10 years, which is a reliable track record.
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

More info and screens

Find the best dividend stocksShow peers with best dividend

SO Fundamentals: All Metrics, Ratios and Statistics

SOUTHERN CO/THE

NYSE:SO (3/19/2026, 8:04:00 PM)

After market: 97 +0.77 (+0.8%)

96.23

-0.31 (-0.32%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-19
Earnings (Next)04-29
Inst Owners72.72%
Inst Owner Change-1.84%
Ins Owners0.12%
Ins Owner Change9.46%
Market Cap107.72B
Revenue(TTM)29.55B
Net Income(TTM)4.34B
Analysts70.63
Price Target100.23 (4.16%)
Short Float %2.12%
Short Ratio3.75
Dividend
Industry RankSector Rank
Dividend Yield 3.03%
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)-0.94%
EPS NQ rev (1m)-4.53%
EPS NQ rev (3m)-5.09%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)3.37%
Revenue NY rev (3m)4.07%
Valuation
Industry RankSector Rank
PE 22.38
Fwd PE 20.45
P/S 3.65
P/FCF N/A
P/OCF 10.99
P/B 2.99
P/tB 3.53
EV/EBITDA 13.36
EPS(TTM)4.3
EY4.47%
EPS(NY)4.71
Fwd EY4.89%
FCF(TTM)-2.62
FCFYN/A
OCF(TTM)8.76
OCFY9.1%
SpS26.4
BVpS32.17
TBVpS27.3
PEG (NY)2.37
PEG (5Y)3.89
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 0.97
F-Score4
WACC6.69%
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 Year8.73%
Revenue Next 2Y7.16%
Revenue Next 3Y7.14%
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 6 / 10 and the dividend payout ratio is 69.45%.