SOUTHERN CO/THE (SO) Fundamental Analysis & Valuation

NYSE:SO • US8425871071

Current stock price

93.77 USD
+0.28 (+0.3%)
At close:
94.23 USD
+0.46 (+0.49%)
Pre-Market:

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.
  • Each year in the past 5 years SO had a positive operating cash flow.
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

  • With a Return On Assets value of 2.79%, SO perfoms like the industry average, outperforming 55.32% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 12.05%, SO is in the better half of the industry, outperforming 72.34% of the companies in the same industry.
  • The Return On Invested Capital of SO (4.30%) is better than 61.70% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SO is in line with the industry average of 4.52%.
  • The 3 year average ROIC (4.15%) for SO is below the current ROIC(4.30%), indicating increased profibility in the last year.
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

  • Looking at the Profit Margin, with a value of 14.69%, SO is in the better half of the industry, outperforming 61.70% of the companies in the same industry.
  • SO's Profit Margin has been stable in the last couple of years.
  • SO has a better Operating Margin (24.65%) than 70.21% of its industry peers.
  • SO's Operating Margin has been stable in the last couple of years.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • SO has a worse debt/assets ratio than last year.
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 0.96. This is a bad value and indicates that SO is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of SO (0.96) is comparable to the rest of the industry.
  • SO has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
  • SO has a worse Debt to Equity ratio (1.84) 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
WACC6.7%
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.
  • SO has a worse Current ratio (0.65) than 72.34% of its industry peers.
  • 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 74.47% 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

4

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%.
  • The Earnings Per Share has been growing slightly by 5.76% on average over the past years.
  • 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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.90% yearly.
  • The Revenue is expected to grow by 6.33% on average over the next years.
EPS Next Y9.42%
EPS Next 2Y8.55%
EPS Next 3Y8.64%
EPS Next 5Y7.9%
Revenue Next Year8.18%
Revenue Next 2Y6.87%
Revenue Next 3Y6.63%
Revenue Next 5Y6.33%

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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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
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

2

4. SO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 21.81, which indicates a rather expensive current valuation of SO.
  • Based on the Price/Earnings ratio, SO is valued a bit more expensive than 65.96% of the companies in the same industry.
  • SO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.15.
  • SO is valuated rather expensively with a Price/Forward Earnings ratio of 19.93.
  • The rest of the industry has a similar Price/Forward Earnings ratio as SO.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.12, SO is valued at the same level.
Industry RankSector Rank
PE 21.81
Fwd PE 19.93
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 is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.21
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)2.31
PEG (5Y)3.79
EPS Next 2Y8.55%
EPS Next 3Y8.64%

More info and screens

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 3.24%.
  • Compared to an average industry Dividend Yield of 2.83, SO pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, SO pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.24%

5.2 History

  • The dividend of SO has a limited annual growth rate of 2.35%.
  • SO has paid a dividend for at least 10 years, which is 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 Years24
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

  • SO pays out 69.45% of its income as dividend. 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 2Y8.55%
EPS Next 3Y8.64%
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 (4/27/2026, 8:18:18 PM)

Premarket: 94.23 +0.46 (+0.49%)

93.77

+0.28 (+0.3%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-19
Earnings (Next)04-30
Inst Owners72.64%
Inst Owner Change0.08%
Ins Owners0.12%
Ins Owner Change8.36%
Market Cap105.71B
Revenue(TTM)29.55B
Net Income(TTM)4.34B
Analysts71.25
Price Target101.35 (8.08%)
Short Float %2.23%
Short Ratio4.47
Dividend
Industry RankSector Rank
Dividend Yield 3.24%
Yearly Dividend2.74
Dividend Growth(5Y)2.35%
DP69.45%
Div Incr Years24
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)1.11%
PT rev (3m)3.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.01%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)2.88%
Valuation
Industry RankSector Rank
PE 21.81
Fwd PE 19.93
P/S 3.58
P/FCF N/A
P/OCF 10.78
P/B 2.93
P/tB 3.46
EV/EBITDA 13.21
EPS(TTM)4.3
EY4.59%
EPS(NY)4.71
Fwd EY5.02%
FCF(TTM)-2.6
FCFYN/A
OCF(TTM)8.7
OCFY9.27%
SpS26.21
BVpS31.95
TBVpS27.1
PEG (NY)2.31
PEG (5Y)3.79
Graham Number55.5973 (-40.71%)
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
WACC6.7%
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 Y9.42%
EPS Next 2Y8.55%
EPS Next 3Y8.64%
EPS Next 5Y7.9%
Revenue 1Y (TTM)10.58%
Revenue growth 3Y0.31%
Revenue growth 5Y7.72%
Sales Q2Q%10.09%
Revenue Next Year8.18%
Revenue Next 2Y6.87%
Revenue Next 3Y6.63%
Revenue Next 5Y6.33%
EBIT growth 1Y3.38%
EBIT growth 3Y8.23%
EBIT growth 5Y7.2%
EBIT Next Year83.92%
EBIT Next 3Y30.23%
EBIT Next 5Y19.66%
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 2 / 10 to SOUTHERN CO/THE (SO). This can be considered as Overvalued.


Can you provide the profitability details for SOUTHERN CO/THE?

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


How financially healthy is SOUTHERN CO/THE?

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


What is the expected EPS growth for SOUTHERN CO/THE (SO) stock?

The Earnings per Share (EPS) of SOUTHERN CO/THE (SO) is expected to grow by 9.42% in the next year.