SOUTHERN CO/THE (SO) Fundamental Analysis & Valuation

NYSE:SO • US8425871071

Current stock price

95.55 USD
+0.13 (+0.14%)
At close:
95.8 USD
+0.25 (+0.26%)
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.
  • 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

  • SO has a Return On Assets of 2.79%. This is comparable to the rest of the industry: SO outperforms 55.32% of its industry peers.
  • SO has a Return On Equity of 12.05%. This is in the better half of the industry: SO outperforms 72.34% of its industry peers.
  • With a decent Return On Invested Capital value of 4.30%, SO is doing good in the industry, outperforming 61.70% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for SO is in line with the industry average of 4.52%.
  • 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

  • SO has a better Profit Margin (14.69%) than 61.70% of its industry peers.
  • In the last couple of years the Profit Margin of SO has remained more or less at the same level.
  • SO has a Operating Margin of 24.65%. This is in the better half of the industry: SO outperforms 70.21% of its industry peers.
  • In the last couple of years the Operating Margin of SO has remained more or less at the same level.
  • 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

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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.
  • SO has about the same amout of shares outstanding than it did 1 year ago.
  • SO has about the same amout of shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, SO has a worse debt to assets ratio.
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.
  • With a Altman-Z score value of 0.97, SO perfoms like the industry average, outperforming 59.57% of the companies in the same industry.
  • SO has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.84, SO is not doing good in the industry: 82.98% 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/WACC0.63
WACC6.79%
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

  • SO has a Current Ratio of 0.65. 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 (0.65) is worse 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 Quick ratio of 0.45. This is in the lower half of the industry: SO underperforms 76.60% 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

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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.
  • Looking at the last year, SO shows a quite strong growth in Revenue. The Revenue has grown by 10.58% in the last year.
  • 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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.00% yearly.
  • Based on estimates for the next years, SO will show a small growth in Revenue. The Revenue will grow by 6.80% on average per year.
EPS Next Y9.44%
EPS Next 2Y8.5%
EPS Next 3Y8.58%
EPS Next 5Y8%
Revenue Next Year8.79%
Revenue Next 2Y7.21%
Revenue Next 3Y7.06%
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

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1

4. SO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.22, SO is valued on the expensive side.
  • 72.34% of the companies in the same industry are cheaper than SO, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 24.89. SO is around the same levels.
  • A Price/Forward Earnings ratio of 20.30 indicates a rather expensive valuation of SO.
  • Based on the Price/Forward Earnings ratio, SO is valued a bit more expensive than 65.96% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. SO is around the same levels.
Industry RankSector Rank
PE 22.22
Fwd PE 20.3
SO Price Earnings VS Forward Price EarningsSO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

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 68.09% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.3
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 an expensive valuation of the company.
  • The decent profitability rating of SO may justify a higher PE ratio.
PEG (NY)2.35
PEG (5Y)3.86
EPS Next 2Y8.5%
EPS Next 3Y8.58%

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

7

5. SO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.10%, SO has a reasonable but not impressive dividend return.
  • SO's Dividend Yield is a higher than the industry average which is at 2.86.
  • SO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 3.1%

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

  • 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 2Y8.5%
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

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SO Fundamentals: All Metrics, Ratios and Statistics

SOUTHERN CO/THE

NYSE:SO (3/27/2026, 8:04:00 PM)

After market: 95.8 +0.25 (+0.26%)

95.55

+0.13 (+0.14%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-19
Earnings (Next)04-23
Inst Owners72.72%
Inst Owner Change-1.83%
Ins Owners0.12%
Ins Owner Change8.91%
Market Cap106.96B
Revenue(TTM)29.55B
Net Income(TTM)4.34B
Analysts70.63
Price Target101.35 (6.07%)
Short Float %2.12%
Short Ratio3.75
Dividend
Industry RankSector Rank
Dividend Yield 3.1%
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)1.88%
EPS NQ rev (1m)-4.53%
EPS NQ rev (3m)-4.49%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)3.42%
Revenue NY rev (3m)3.9%
Valuation
Industry RankSector Rank
PE 22.22
Fwd PE 20.3
P/S 3.62
P/FCF N/A
P/OCF 10.91
P/B 2.97
P/tB 3.5
EV/EBITDA 13.3
EPS(TTM)4.3
EY4.5%
EPS(NY)4.71
Fwd EY4.92%
FCF(TTM)-2.62
FCFYN/A
OCF(TTM)8.76
OCFY9.16%
SpS26.4
BVpS32.17
TBVpS27.3
PEG (NY)2.35
PEG (5Y)3.86
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
WACC6.79%
ROIC/WACC0.63
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 Year8.79%
Revenue Next 2Y7.21%
Revenue Next 3Y7.06%
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 7 / 10 and the dividend payout ratio is 69.45%.