SOUTHERN CO - SO 5 1/4 12/01/2077 (SOJC) Stock Fundamental Analysis
NYSE:SOJC - New York Stock Exchange, Inc. - US8425874042
SOJC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. While SOJC belongs to the best of the industry regarding profitability, there are concerns on its financial health. SOJC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
SOJC had positive earnings in the past year.
SOJC had a positive operating cash flow in the past year.
In the past 5 years SOJC has always been profitable.
In the past 5 years SOJC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.28%, SOJC is doing good in the industry, outperforming 70.27% of the companies in the same industry.
SOJC has a Return On Equity of 14.18%. This is amongst the best in the industry. SOJC outperforms 81.08% of its industry peers.
SOJC's Return On Invested Capital of 4.46% is fine compared to the rest of the industry. SOJC outperforms 78.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOJC is in line with the industry average of 4.61%.
The 3 year average ROIC (3.85%) for SOJC is below the current ROIC(4.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 14.18% | ||
| ROIC | 4.46% |
ROA(3y)2.45%
ROA(5y)2.77%
ROE(3y)10.91%
ROE(5y)12.16%
ROIC(3y)3.85%
ROIC(5y)3.94%
1.3 Margins
SOJC has a Profit Margin of 17.87%. This is amongst the best in the industry. SOJC outperforms 86.49% of its industry peers.
In the last couple of years the Profit Margin of SOJC has grown nicely.
SOJC's Operating Margin of 26.37% is amongst the best of the industry. SOJC outperforms 83.78% of its industry peers.
SOJC's Operating Margin has been stable in the last couple of years.
SOJC's Gross Margin of 89.36% is amongst the best of the industry. SOJC outperforms 83.78% of its industry peers.
In the last couple of years the Gross Margin of SOJC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.37% | ||
| PM (TTM) | 17.87% | ||
| GM | 89.36% |
OM growth 3Y-3.35%
OM growth 5Y0.57%
PM growth 3Y0.94%
PM growth 5Y10.69%
GM growth 3Y-0.72%
GM growth 5Y0.44%
2. Health
2.1 Basic Checks
SOJC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SOJC has about the same amount of shares outstanding.
SOJC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SOJC has a worse debt to assets ratio.
2.2 Solvency
SOJC has an Altman-Z score of 0.61. This is a bad value and indicates that SOJC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.61, SOJC is doing worse than 72.97% of the companies in the same industry.
SOJC has a debt to FCF ratio of 92.47. This is a negative value and a sign of low solvency as SOJC would need 92.47 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 92.47, SOJC is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
A Debt/Equity ratio of 1.86 is on the high side and indicates that SOJC has dependencies on debt financing.
SOJC has a worse Debt to Equity ratio (1.86) than 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 92.47 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.91
WACC4.91%
2.3 Liquidity
A Current Ratio of 0.91 indicates that SOJC may have some problems paying its short term obligations.
SOJC has a Current ratio (0.91) which is comparable to the rest of the industry.
SOJC has a Quick Ratio of 0.91. This is a bad value and indicates that SOJC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.63, SOJC is doing worse than 62.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.83% over the past year.
The Earnings Per Share has been growing slightly by 3.46% on average over the past years.
Looking at the last year, SOJC shows a small growth in Revenue. The Revenue has grown by 0.66% in the last year.
SOJC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.45% yearly.
EPS 1Y (TTM)28.83%
EPS 3Y3.85%
EPS 5Y3.46%
EPS Q2Q%0.7%
Revenue 1Y (TTM)0.66%
Revenue growth 3Y7.42%
Revenue growth 5Y1.45%
Sales Q2Q%4.21%
3.2 Future
Based on estimates for the next years, SOJC will show a small growth in Earnings Per Share. The EPS will grow by 7.82% on average per year.
SOJC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y14.39%
EPS Next 2Y10.59%
EPS Next 3Y9.23%
EPS Next 5Y7.82%
Revenue Next Year-1.31%
Revenue Next 2Y1.16%
Revenue Next 3Y1.83%
Revenue Next 5Y2.99%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.44, which indicates a rather cheap valuation of SOJC.
Based on the Price/Earnings ratio, SOJC is valued cheaper than 86.49% of the companies in the same industry.
SOJC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 5.13, the valuation of SOJC can be described as very cheap.
Based on the Price/Forward Earnings ratio, SOJC is valued cheaply inside the industry as 89.19% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.44. SOJC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.44 | ||
| Fwd PE | 5.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOJC is valued cheaply inside the industry as 83.78% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SOJC is valued a bit cheaper than the industry average as 75.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.41 | ||
| EV/EBITDA | 7.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SOJC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.38
PEG (5Y)1.57
EPS Next 2Y10.59%
EPS Next 3Y9.23%
5. Dividend
5.1 Amount
SOJC has a Yearly Dividend Yield of 3.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.61, SOJC has a dividend in line with its industry peers.
SOJC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
The dividend of SOJC has a limited annual growth rate of 2.61%.
SOJC has been paying a dividend for over 5 years, so it has already some track record.
SOJC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.61%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
SOJC pays out 63.19% of its income as dividend. This is not a sustainable payout ratio.
SOJC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP63.19%
EPS Next 2Y10.59%
EPS Next 3Y9.23%
SOUTHERN CO - SO 5 1/4 12/01/2077
NYSE:SOJC (1/21/2025, 8:04:00 PM)
After market: 21.95 -0.91 (-3.98%)22.86
+0.31 (+1.37%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners69.78%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap25.05B
Analysts74.67
Price Target25.55 (11.77%)
Short Float %0%
Short Ratio0.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend2.76
Dividend Growth(5Y)2.61%
DP63.19%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.85%
Min EPS beat(2)3.64%
Max EPS beat(2)16.06%
EPS beat(4)4
Avg EPS beat(4)8.3%
Min EPS beat(4)3.37%
Max EPS beat(4)16.06%
EPS beat(8)8
Avg EPS beat(8)6.55%
EPS beat(12)10
Avg EPS beat(12)6.29%
EPS beat(16)13
Avg EPS beat(16)6.27%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-3.09%
Max Revenue beat(2)2.88%
Revenue beat(4)1
Avg Revenue beat(4)-6.85%
Min Revenue beat(4)-25.58%
Max Revenue beat(4)2.88%
Revenue beat(8)3
Avg Revenue beat(8)-4.01%
Revenue beat(12)7
Avg Revenue beat(12)3.27%
Revenue beat(16)9
Avg Revenue beat(16)1.76%
PT rev (1m)3.47%
PT rev (3m)4.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.85%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.44 | ||
| Fwd PE | 5.13 | ||
| P/S | 0.95 | ||
| P/FCF | 36.41 | ||
| P/OCF | 2.66 | ||
| P/B | 0.75 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 7.14 |
EPS(TTM)4.2
EY18.37%
EPS(NY)4.45
Fwd EY19.48%
FCF(TTM)0.63
FCFY2.75%
OCF(TTM)8.6
OCFY37.64%
SpS24.12
BVpS30.39
TBVpS25.37
PEG (NY)0.38
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 14.18% | ||
| ROCE | 5.29% | ||
| ROIC | 4.46% | ||
| ROICexc | 4.5% | ||
| ROICexgc | 4.69% | ||
| OM | 26.37% | ||
| PM (TTM) | 17.87% | ||
| GM | 89.36% | ||
| FCFM | 2.6% |
ROA(3y)2.45%
ROA(5y)2.77%
ROE(3y)10.91%
ROE(5y)12.16%
ROIC(3y)3.85%
ROIC(5y)3.94%
ROICexc(3y)3.9%
ROICexc(5y)3.99%
ROICexgc(3y)4.09%
ROICexgc(5y)4.2%
ROCE(3y)4.62%
ROCE(5y)4.71%
ROICexcg growth 3Y-1.33%
ROICexcg growth 5Y-2.28%
ROICexc growth 3Y-1.02%
ROICexc growth 5Y-2%
OM growth 3Y-3.35%
OM growth 5Y0.57%
PM growth 3Y0.94%
PM growth 5Y10.69%
GM growth 3Y-0.72%
GM growth 5Y0.44%
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 92.47 | ||
| Debt/EBITDA | 5.09 | ||
| Cap/Depr | 167.98% | ||
| Cap/Sales | 33.07% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 77.46% | ||
| Profit Quality | 14.57% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.61 |
F-Score6
WACC4.91%
ROIC/WACC0.91
Cap/Depr(3y)186.53%
Cap/Depr(5y)195.39%
Cap/Sales(3y)31.47%
Cap/Sales(5y)33.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.83%
EPS 3Y3.85%
EPS 5Y3.46%
EPS Q2Q%0.7%
EPS Next Y14.39%
EPS Next 2Y10.59%
EPS Next 3Y9.23%
EPS Next 5Y7.82%
Revenue 1Y (TTM)0.66%
Revenue growth 3Y7.42%
Revenue growth 5Y1.45%
Sales Q2Q%4.21%
Revenue Next Year-1.31%
Revenue Next 2Y1.16%
Revenue Next 3Y1.83%
Revenue Next 5Y2.99%
EBIT growth 1Y30.93%
EBIT growth 3Y3.82%
EBIT growth 5Y2.03%
EBIT Next Year92.66%
EBIT Next 3Y29.65%
EBIT Next 5Y19.01%
FCF growth 1Y148.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y54.43%
OCF growth 3Y4.1%
OCF growth 5Y1.69%