SOUTHERN CO/THE (SO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SO - US8425871071 - Common Stock
87.07 USD
+0.33 (+0.38%)
Taking everything into account, SO scores 4 out of 10 in our fundamental rating. SO was compared to 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. Finally SO also has an excellent dividend rating.
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.
In the past 5 years SO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.91%, SO perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
SO's Return On Equity of 12.74% is fine compared to the rest of the industry. SO outperforms 67.39% of its industry peers.
SO's Return On Invested Capital of 4.62% is fine compared to the rest of the industry. SO outperforms 65.22% of its industry peers.
SO had an Average Return On Invested Capital over the past 3 years of 4.14%. This is in line with the industry average of 4.58%.
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 Rank | Sector 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%
1.3 Margins
With a decent Profit Margin value of 15.42%, SO is doing good in the industry, outperforming 63.04% of the companies in the same industry.
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 better Gross Margin (89.28%) than 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SO is destroying value.
The number of shares outstanding for SO remains at a similar level compared to 1 year ago.
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.
2.2 Solvency
SO has an Altman-Z score of 0.94. 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 (0.94) 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.
SO has a Debt to Equity ratio of 1.85. This is amonst the worse of the industry: SO underperforms 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.94 |
ROIC/WACC0.69
WACC6.66%
2.3 Liquidity
A Current Ratio of 0.75 indicates that SO may have some problems paying its short term obligations.
SO has a worse Current ratio (0.75) than 65.22% of its industry peers.
A Quick Ratio of 0.56 indicates that SO may have some problems paying 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.19% over the past year.
SO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.48% yearly.
Looking at the last year, SO shows a quite strong growth in Revenue. The Revenue has grown by 9.40% in the last year.
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 2Y7.76%
EPS Next 3Y7.68%
EPS Next 5Y7.36%
Revenue Next Year8.18%
Revenue Next 2Y6.59%
Revenue Next 3Y6.04%
Revenue Next 5Y6.66%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.49, the valuation of SO can be described as rather expensive.
Based on the Price/Earnings ratio, SO is valued a bit more expensive than the industry average as 67.39% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of SO to the average of the S&P500 Index (27.25), we can say SO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.47, 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 the industry average as 60.87% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of SO to the average of the S&P500 Index (23.98), we can say SO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 18.47 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.45 |
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)3.74
EPS Next 2Y7.76%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
SO has a Yearly Dividend Yield of 6.38%, which is a nice return.
SO's Dividend Yield is rather good when compared to the industry average which is at 3.46. SO pays more dividend than 97.83% of the companies in the same industry.
SO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
5.2 History
The dividend of SO has a limited annual growth rate of 1.87%.
SO has paid a dividend for at least 10 years, which is 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)1.87%
Div Incr Years23
Div Non Decr Years34
5.3 Sustainability
SO pays out 67.01% 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.
DP67.01%
EPS Next 2Y7.76%
EPS Next 3Y7.68%
NYSE:SO (1/13/2026, 1:45:04 PM)
87.07
+0.33 (+0.38%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.2%
Inst Owner Change-0.07%
Ins Owners0.09%
Ins Owner Change-1.53%
Market Cap95.87B
Revenue(TTM)28.91B
Net Income(TTM)4.46B
Analysts70
Price Target98.38 (12.99%)
Short Float %2.32%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
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)-2.77%
PT rev (3m)-0.06%
EPS NQ rev (1m)-1.1%
EPS NQ rev (3m)-8.5%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)-4.81%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 18.47 | ||
| P/S | 3.32 | ||
| P/FCF | N/A | ||
| P/OCF | 10.22 | ||
| P/B | 2.74 | ||
| P/tB | 3.25 | ||
| EV/EBITDA | 12.45 |
EPS(TTM)4.25
EY4.88%
EPS(NY)4.71
Fwd EY5.41%
FCF(TTM)-1.66
FCFYN/A
OCF(TTM)8.52
OCFY9.78%
SpS26.26
BVpS31.79
TBVpS26.82
PEG (NY)2.31
PEG (5Y)3.74
Graham Number55.13
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.94 |
F-Score5
WACC6.66%
ROIC/WACC0.69
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 2Y7.76%
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 Year8.18%
Revenue Next 2Y6.59%
Revenue Next 3Y6.04%
Revenue Next 5Y6.66%
EBIT growth 1Y6.57%
EBIT growth 3Y10.62%
EBIT growth 5Y5.63%
EBIT Next Year87.46%
EBIT Next 3Y30.06%
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 8 / 10 and the dividend payout ratio is 67.01%.