SOUTHERN CO/THE (SO) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:SO • US8425871071

90.97 USD
+0.84 (+0.93%)
Last: Feb 4, 2026, 02:31 PM
Fundamental Rating

4

Overall SO gets a fundamental rating of 4 out of 10. We evaluated SO against 46 industry peers in the Electric Utilities industry. While SO has a great profitability rating, there are quite some concerns on its financial health. SO is quite expensive at the moment. It does show a decent growth rate. SO also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

1. Profitability

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 0 2B -2B 4B 6B 8B

1.2 Ratios

  • SO has a Return On Assets (2.91%) which is comparable to the rest of the industry.
  • SO has a Return On Equity of 12.74%. This is in the better half of the industry: SO outperforms 67.39% of its industry peers.
  • SO has a better Return On Invested Capital (4.62%) than 65.22% 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 4.57%.
  • The last Return On Invested Capital (4.62%) for SO is above the 3 year average (4.14%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.91%
ROE 12.74%
ROIC 4.62%
ROA(3y)2.83%
ROA(5y)2.58%
ROE(3y)12.5%
ROE(5y)11.4%
ROIC(3y)4.14%
ROIC(5y)4.02%
SO Yearly ROA, ROE, ROICSO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • SO has a better Profit Margin (15.42%) than 63.04% of its industry peers.
  • In the last couple of years the Profit Margin of SO has declined.
  • The Operating Margin of SO (25.68%) is better than 71.74% of its industry peers.
  • SO's Operating Margin has been stable in the last couple of years.
  • SO has a Gross Margin of 89.28%. This is amongst the best in the industry. SO outperforms 80.43% of its industry peers.
  • In the last couple of years the Gross Margin of SO has remained more or less at the same level.
Industry RankSector Rank
OM 25.68%
PM (TTM) 15.42%
GM 89.28%
OM growth 3Y5.39%
OM growth 5Y1.06%
PM growth 3Y16.73%
PM growth 5Y-5.73%
GM growth 3Y0.95%
GM growth 5Y0.39%
SO Yearly Profit, Operating, Gross MarginsSO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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1

2. Health

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.
  • SO has about the same amout of shares outstanding than it did 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 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 50B 100B

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.
  • SO has a Altman-Z score (0.96) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.85 is on the high side and indicates that SO has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 1.85, SO is doing worse than 84.78% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.85
Debt/FCF N/A
Altman-Z 0.96
ROIC/WACC0.68
WACC6.77%
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 0 20B 40B

2.3 Liquidity

  • SO has a Current Ratio of 0.75. This is a bad value and indicates that SO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Current ratio of SO (0.75) is worse than 65.22% of its industry peers.
  • SO has a Quick Ratio of 0.75. 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 Quick ratio, with a value of 0.56, SO is doing worse than 69.57% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.75
Quick Ratio 0.56
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 5B 10B 15B

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5

3. Growth

3.1 Past

  • SO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.19%.
  • SO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.48% yearly.
  • SO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.40%.
  • SO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.53% yearly.
EPS 1Y (TTM)1.19%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%11.89%
Revenue 1Y (TTM)9.4%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%7.55%

3.2 Future

  • The Earnings Per Share is expected to grow by 7.36% on average over the next years.
  • The Revenue is expected to grow by 6.66% on average over the next years.
EPS Next Y8.88%
EPS Next 2Y7.77%
EPS Next 3Y7.68%
EPS Next 5Y7.36%
Revenue Next Year8.51%
Revenue Next 2Y6.82%
Revenue Next 3Y6.3%
Revenue Next 5Y6.66%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better 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 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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2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 21.40, which indicates a rather expensive current valuation of SO.
  • Based on the Price/Earnings ratio, SO is valued a bit more expensive than 67.39% of the companies in the same industry.
  • SO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.18.
  • Based on the Price/Forward Earnings ratio of 19.29, the valuation of SO can be described as rather expensive.
  • 60.87% of the companies in the same industry are cheaper than SO, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, SO is valued a bit cheaper.
Industry RankSector Rank
PE 21.4
Fwd PE 19.29
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 the industry average as 63.04% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.73
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.
  • SO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.41
PEG (5Y)3.91
EPS Next 2Y7.77%
EPS Next 3Y7.68%

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7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 3.32%, SO has a reasonable but not impressive dividend return.
  • SO's Dividend Yield is a higher than the industry average which is at 2.90.
  • SO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
Industry RankSector Rank
Dividend Yield 3.32%

5.2 History

  • The dividend of SO has a limited annual growth rate of 1.87%.
  • 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)1.87%
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 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 67.01% 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.
DP67.01%
EPS Next 2Y7.77%
EPS Next 3Y7.68%
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 0 2B -2B 4B
SO Dividend Payout.SO Dividend Payout, showing the Payout Ratio.SO Dividend Payout.PayoutRetained Earnings

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SOUTHERN CO/THE

NYSE:SO (2/4/2026, 2:31:04 PM)

90.97

+0.84 (+0.93%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-30
Earnings (Next)02-19
Inst Owners74.2%
Inst Owner Change-1.91%
Ins Owners0.09%
Ins Owner Change-1.06%
Market Cap100.17B
Revenue(TTM)28.91B
Net Income(TTM)4.46B
Analysts70
Price Target98.38 (8.15%)
Short Float %2.35%
Short Ratio4.6
Dividend
Industry RankSector Rank
Dividend Yield 3.32%
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP67.01%
Div Incr Years23
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-0.3%
Max EPS beat(2)3.1%
EPS beat(4)1
Avg EPS beat(4)-0.4%
Min EPS beat(4)-4.33%
Max EPS beat(4)3.1%
EPS beat(8)5
Avg EPS beat(8)3.95%
EPS beat(12)9
Avg EPS beat(12)4.23%
EPS beat(16)11
Avg EPS beat(16)4.62%
Revenue beat(2)1
Avg Revenue beat(2)3.8%
Min Revenue beat(2)-0.17%
Max Revenue beat(2)7.77%
Revenue beat(4)3
Avg Revenue beat(4)4.4%
Min Revenue beat(4)-0.17%
Max Revenue beat(4)7.77%
Revenue beat(8)4
Avg Revenue beat(8)-1.23%
Revenue beat(12)6
Avg Revenue beat(12)-1.21%
Revenue beat(16)10
Avg Revenue beat(16)3.55%
PT rev (1m)0%
PT rev (3m)-3.58%
EPS NQ rev (1m)-1.55%
EPS NQ rev (3m)-8.89%
EPS NY rev (1m)0%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)1.08%
Valuation
Industry RankSector Rank
PE 21.4
Fwd PE 19.29
P/S 3.46
P/FCF N/A
P/OCF 10.68
P/B 2.86
P/tB 3.39
EV/EBITDA 12.73
EPS(TTM)4.25
EY4.67%
EPS(NY)4.72
Fwd EY5.18%
FCF(TTM)-1.66
FCFYN/A
OCF(TTM)8.52
OCFY9.36%
SpS26.26
BVpS31.79
TBVpS26.82
PEG (NY)2.41
PEG (5Y)3.91
Graham Number55.13
Profitability
Industry RankSector Rank
ROA 2.91%
ROE 12.74%
ROCE 5.44%
ROIC 4.62%
ROICexc 4.74%
ROICexgc 4.94%
OM 25.68%
PM (TTM) 15.42%
GM 89.28%
FCFM N/A
ROA(3y)2.83%
ROA(5y)2.58%
ROE(3y)12.5%
ROE(5y)11.4%
ROIC(3y)4.14%
ROIC(5y)4.02%
ROICexc(3y)4.18%
ROICexc(5y)4.06%
ROICexgc(3y)4.38%
ROICexgc(5y)4.26%
ROCE(3y)4.95%
ROCE(5y)4.79%
ROICexgc growth 3Y6.47%
ROICexgc growth 5Y1.27%
ROICexc growth 3Y6.72%
ROICexc growth 5Y1.53%
OM growth 3Y5.39%
OM growth 5Y1.06%
PM growth 3Y16.73%
PM growth 5Y-5.73%
GM growth 3Y0.95%
GM growth 5Y0.39%
F-Score5
Asset Turnover0.19
Health
Industry RankSector Rank
Debt/Equity 1.85
Debt/FCF N/A
Debt/EBITDA 4.91
Cap/Depr 193.96%
Cap/Sales 38.74%
Interest Coverage 2.75
Cash Conversion 71.04%
Profit Quality N/A
Current Ratio 0.75
Quick Ratio 0.56
Altman-Z 0.96
F-Score5
WACC6.77%
ROIC/WACC0.68
Cap/Depr(3y)182.47%
Cap/Depr(5y)184.04%
Cap/Sales(3y)32.2%
Cap/Sales(5y)32.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.19%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%11.89%
EPS Next Y8.88%
EPS Next 2Y7.77%
EPS Next 3Y7.68%
EPS Next 5Y7.36%
Revenue 1Y (TTM)9.4%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%7.55%
Revenue Next Year8.51%
Revenue Next 2Y6.82%
Revenue Next 3Y6.3%
Revenue Next 5Y6.66%
EBIT growth 1Y6.57%
EBIT growth 3Y10.62%
EBIT growth 5Y5.63%
EBIT Next Year85.59%
EBIT Next 3Y29.87%
EBIT Next 5Y20.12%
FCF growth 1Y6.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.49%
OCF growth 3Y16.63%
OCF growth 5Y11.11%

SOUTHERN CO/THE / SO 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.


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 67.01%.