SOUTHERN CO - SO 5 1/4 12/01/2077 (SOJC) Stock Fundamental Analysis
NYSE:SOJC - New York Stock Exchange, Inc. - US8425874042 - Currency: USD
Taking everything into account, SOJC scores 5 out of 10 in our fundamental rating. SOJC was compared to 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of SOJC while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on SOJC.
1. Profitability
1.1 Basic Checks
SOJC had positive earnings in the past year.
In the past year SOJC had a positive cash flow from operations.
Each year in the past 5 years SOJC has been profitable.
SOJC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.11%, SOJC perfoms like the industry average, outperforming 55.32% of the companies in the same industry.
With a decent Return On Equity value of 13.61%, SOJC is doing good in the industry, outperforming 78.72% of the companies in the same industry.
SOJC has a Return On Invested Capital of 4.64%. This is in the better half of the industry: SOJC outperforms 63.83% of its industry peers.
SOJC had an Average Return On Invested Capital over the past 3 years of 4.14%. This is significantly below the industry average of 38.54%.
The last Return On Invested Capital (4.64%) for SOJC is above the 3 year average (4.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 13.61% | ||
| ROIC | 4.64% |
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
SOJC has a Profit Margin of 16.54%. This is in the better half of the industry: SOJC outperforms 74.47% of its industry peers.
In the last couple of years the Profit Margin of SOJC has declined.
SOJC has a Operating Margin of 26.40%. This is in the better half of the industry: SOJC outperforms 78.72% of its industry peers.
In the last couple of years the Operating Margin of SOJC has remained more or less at the same level.
With an excellent Gross Margin value of 89.46%, SOJC belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
SOJC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.4% | ||
| PM (TTM) | 16.54% | ||
| GM | 89.46% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOJC is destroying value.
Compared to 1 year ago, SOJC has about the same amount of shares outstanding.
The number of shares outstanding for SOJC remains at a similar level compared to 5 years ago.
Compared to 1 year ago, SOJC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.60, we must say that SOJC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SOJC (0.60) is worse than 74.47% of its industry peers.
The Debt to FCF ratio of SOJC is 653.53, which is on the high side as it means it would take SOJC, 653.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 653.53, SOJC is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
A Debt/Equity ratio of 1.88 is on the high side and indicates that SOJC has dependencies on debt financing.
SOJC has a worse Debt to Equity ratio (1.88) than 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 653.53 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.94
WACC4.95%
2.3 Liquidity
SOJC has a Current Ratio of 0.86. This is a bad value and indicates that SOJC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.86, SOJC perfoms like the industry average, outperforming 46.81% of the companies in the same industry.
SOJC has a Quick Ratio of 0.86. This is a bad value and indicates that SOJC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SOJC (0.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
SOJC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.79%, which is quite good.
Measured over the past 5 years, SOJC shows a small growth in Earnings Per Share. The EPS has been growing by 5.48% on average per year.
SOJC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.58%.
Measured over the past years, SOJC shows a small growth in Revenue. The Revenue has been growing by 4.53% on average per year.
EPS 1Y (TTM)9.79%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%19.42%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%16.99%
3.2 Future
SOJC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.26% yearly.
Based on estimates for the next years, SOJC will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
EPS Next Y8.45%
EPS Next 2Y7.61%
EPS Next 3Y7.43%
EPS Next 5Y7.26%
Revenue Next Year5.55%
Revenue Next 2Y5.01%
Revenue Next 3Y4.73%
Revenue Next 5Y4.87%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.19, which indicates a rather cheap valuation of SOJC.
Compared to the rest of the industry, the Price/Earnings ratio of SOJC indicates a rather cheap valuation: SOJC is cheaper than 87.23% of the companies listed in the same industry.
SOJC is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.70, the valuation of SOJC can be described as very cheap.
Based on the Price/Forward Earnings ratio, SOJC is valued cheaper than 91.49% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SOJC to the average of the S&P500 Index (21.76), we can say SOJC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.19 | ||
| Fwd PE | 4.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOJC indicates a rather cheap valuation: SOJC is cheaper than 80.85% of the companies listed in the same industry.
65.96% of the companies in the same industry are more expensive than SOJC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 231.43 | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
SOJC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SOJC may justify a higher PE ratio.
PEG (NY)0.61
PEG (5Y)0.95
EPS Next 2Y7.61%
EPS Next 3Y7.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.23%, SOJC has a reasonable but not impressive dividend return.
SOJC's Dividend Yield is comparable with the industry average which is at 3.63.
Compared to an average S&P500 Dividend Yield of 2.37, SOJC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
The dividend of SOJC has a limited annual growth rate of 1.87%.
SOJC has been paying a dividend for over 5 years, so it has already some track record.
The dividend of SOJC decreased in the last 3 years.
Dividend Growth(5Y)1.87%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
SOJC pays out 64.20% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SOJC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.2%
EPS Next 2Y7.61%
EPS Next 3Y7.43%
SOUTHERN CO - SO 5 1/4 12/01/2077
NYSE:SOJC (7/11/2025, 8:04:00 PM)
22.11
-0.1 (-0.45%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.1%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap24.30B
Analysts74.48
Price Target23.01 (4.07%)
Short Float %0.01%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP64.2%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.2%
Min EPS beat(2)-4.33%
Max EPS beat(2)-0.07%
EPS beat(4)2
Avg EPS beat(4)3.82%
Min EPS beat(4)-4.33%
Max EPS beat(4)16.06%
EPS beat(8)6
Avg EPS beat(8)4.48%
EPS beat(12)9
Avg EPS beat(12)5.63%
EPS beat(16)11
Avg EPS beat(16)4.5%
Revenue beat(2)2
Avg Revenue beat(2)4.99%
Min Revenue beat(2)4.69%
Max Revenue beat(2)5.3%
Revenue beat(4)3
Avg Revenue beat(4)2.44%
Min Revenue beat(4)-3.09%
Max Revenue beat(4)5.3%
Revenue beat(8)3
Avg Revenue beat(8)-6.24%
Revenue beat(12)7
Avg Revenue beat(12)2.05%
Revenue beat(16)10
Avg Revenue beat(16)2.99%
PT rev (1m)1.38%
PT rev (3m)3.43%
EPS NQ rev (1m)-2.63%
EPS NQ rev (3m)-13.68%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)-1.22%
Revenue NQ rev (3m)-1.17%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.19 | ||
| Fwd PE | 4.7 | ||
| P/S | 0.87 | ||
| P/FCF | 231.43 | ||
| P/OCF | 2.5 | ||
| P/B | 0.72 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 7.06 |
EPS(TTM)4.26
EY19.27%
EPS(NY)4.7
Fwd EY21.26%
FCF(TTM)0.1
FCFY0.43%
OCF(TTM)8.85
OCFY40.03%
SpS25.34
BVpS30.79
TBVpS25.8
PEG (NY)0.61
PEG (5Y)0.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 13.61% | ||
| ROCE | 5.47% | ||
| ROIC | 4.64% | ||
| ROICexc | 4.72% | ||
| ROICexgc | 4.92% | ||
| OM | 26.4% | ||
| PM (TTM) | 16.54% | ||
| GM | 89.46% | ||
| FCFM | 0.38% |
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%
ROICexcg growth 3Y6.47%
ROICexcg 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-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 653.53 | ||
| Debt/EBITDA | 4.97 | ||
| Cap/Depr | 177.66% | ||
| Cap/Sales | 34.55% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 76.17% | ||
| Profit Quality | 2.28% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.6 |
F-Score6
WACC4.95%
ROIC/WACC0.94
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)9.79%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%19.42%
EPS Next Y8.45%
EPS Next 2Y7.61%
EPS Next 3Y7.43%
EPS Next 5Y7.26%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%16.99%
Revenue Next Year5.55%
Revenue Next 2Y5.01%
Revenue Next 3Y4.73%
Revenue Next 5Y4.87%
EBIT growth 1Y17.81%
EBIT growth 3Y10.62%
EBIT growth 5Y5.63%
EBIT Next Year83.12%
EBIT Next 3Y27.71%
EBIT Next 5Y18.82%
FCF growth 1Y103.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y75.14%
OCF growth 3Y16.63%
OCF growth 5Y11.11%