SOUTHERN CO/THE (SO) Stock Fundamental Analysis

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

90.72 USD
+1.34 (+1.5%)
At close: Feb 10, 2026
90.44 USD
-0.28 (-0.31%)
After Hours: 2/10/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
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.
  • In the past year SO had a positive cash flow from operations.
  • 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 0 2B -2B 4B 6B 8B

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.
  • With a decent Return On Equity value of 12.74%, SO is doing good in the industry, outperforming 71.74% of the companies in the same industry.
  • 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 3 year average ROIC (4.14%) for SO is below the current ROIC(4.62%), indicating increased profibility in the last year.
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.
  • SO's Profit Margin has declined in the last couple of years.
  • With a decent Operating Margin value of 25.68%, SO is doing good in the industry, outperforming 71.74% of the companies in the same industry.
  • 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 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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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. Health

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.
  • SO has about the same amout of shares outstanding than it did 1 year ago.
  • 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 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.
  • Looking at the Altman-Z score, with a value of 0.96, SO is in line with its industry, outperforming 58.70% of the companies in the same industry.
  • SO has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.85, SO is not doing good in the industry: 84.78% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.85
Debt/FCF N/A
Altman-Z 0.96
ROIC/WACC0.69
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 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.
  • Looking at the Current ratio, with a value of 0.75, SO is doing worse than 65.22% of the companies in the same industry.
  • A Quick Ratio of 0.56 indicates that SO may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.56, SO is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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%.
  • The Earnings Per Share has been growing slightly by 5.48% on average over the past years.
  • The Revenue has grown by 9.40% in the past year. This is quite good.
  • 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

  • Based on estimates for the next years, SO will show a small growth in Earnings Per Share. The EPS will grow by 7.36% on average per year.
  • Based on estimates for the next years, SO will show a small growth in Revenue. The Revenue will grow by 6.66% on average per year.
EPS Next Y8.85%
EPS Next 2Y7.56%
EPS Next 3Y7.53%
EPS Next 5Y7.36%
Revenue Next Year8.51%
Revenue Next 2Y6.84%
Revenue Next 3Y6.33%
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.
  • 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.
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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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 21.35, which indicates a rather expensive current valuation of SO.
  • 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.
  • The average S&P500 Price/Earnings ratio is at 28.03. SO is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 19.32, 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 63.04% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.97. SO is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 21.35
Fwd PE 19.32
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

  • SO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SO is more expensive than 63.04% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.67
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)3.9
EPS Next 2Y7.56%
EPS Next 3Y7.53%

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

7

5. Dividend

5.1 Amount

  • SO has a Yearly Dividend Yield of 3.25%.
  • SO's Dividend Yield is a higher than the industry average which is at 2.92.
  • SO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 3.25%

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 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 2026 0.5 1 1.5 2 2.5

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 2Y7.56%
EPS Next 3Y7.53%
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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Find the best dividend stocksShow peers with best dividend

SOUTHERN CO/THE

NYSE:SO (2/10/2026, 8:04:00 PM)

After market: 90.44 -0.28 (-0.31%)

90.72

+1.34 (+1.5%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-30
Earnings (Next)02-19
Inst Owners74.2%
Inst Owner Change-1.89%
Ins Owners0.09%
Ins Owner Change0.29%
Market Cap99.89B
Revenue(TTM)28.91B
Net Income(TTM)4.46B
Analysts70
Price Target97.17 (7.11%)
Short Float %2.35%
Short Ratio4.6
Dividend
Industry RankSector Rank
Dividend Yield 3.25%
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP67.01%
Div Incr Years23
Div Non Decr Years34
Ex-Date02-17
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)-1.23%
PT rev (3m)-4.77%
EPS NQ rev (1m)-1.09%
EPS NQ rev (3m)-10.33%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)1.09%
Valuation
Industry RankSector Rank
PE 21.35
Fwd PE 19.32
P/S 3.46
P/FCF N/A
P/OCF 10.65
P/B 2.85
P/tB 3.38
EV/EBITDA 12.67
EPS(TTM)4.25
EY4.68%
EPS(NY)4.7
Fwd EY5.18%
FCF(TTM)-1.66
FCFYN/A
OCF(TTM)8.52
OCFY9.39%
SpS26.26
BVpS31.79
TBVpS26.82
PEG (NY)2.41
PEG (5Y)3.9
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
WACC6.74%
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 Y8.85%
EPS Next 2Y7.56%
EPS Next 3Y7.53%
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 2Y6.84%
Revenue Next 3Y6.33%
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%.