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 46 industry peers in the Electric Utilities industry. While SOJC has a great profitability rating, there are quite some concerns on its financial health. SOJC is valued quite cheap, but it does not seem to be growing.
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.
Of the past 5 years SOJC 4 years were profitable.
Of the past 5 years SOJC 4 years had a positive operating cash flow.
1.2 Ratios
SOJC has a better Return On Assets (3.28%) than 70.27% of its industry peers.
SOJC's Return On Equity of 14.18% is amongst the best of the industry. SOJC outperforms 81.08% of its industry peers.
The Return On Invested Capital of SOJC (4.46%) is better than 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 4.62%.
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
Looking at the Profit Margin, with a value of 17.87%, SOJC belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
SOJC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 26.37%, SOJC belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
In the last couple of years the Operating Margin of SOJC has remained more or less at the same level.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOJC is destroying value.
SOJC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SOJC has an Altman-Z score of 0.60. 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 0.60, 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.
SOJC's Debt to FCF ratio of 92.47 is fine compared to the rest of the industry. SOJC outperforms 64.86% of its industry peers.
SOJC has a Debt/Equity ratio of 1.86. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SOJC (1.86) is worse than 81.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 92.47 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.89
WACC5.01%
2.3 Liquidity
A Current Ratio of 0.91 indicates that SOJC may have some problems paying its short term obligations.
The Current ratio of SOJC (0.91) is comparable to the rest of the industry.
A Quick Ratio of 0.63 indicates that SOJC may have some problems paying its short term obligations.
SOJC's Quick ratio of 0.63 is on the low side compared to the rest of the industry. SOJC is outperformed by 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
SOJC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.54%, 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.
EPS 1Y (TTM)11.54%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%-21.88%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.9%
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 7.14% on average per year.
SOJC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.27% yearly.
EPS Next Y9.27%
EPS Next 2Y7.92%
EPS Next 3Y7.16%
EPS Next 5Y7.14%
Revenue Next Year3.09%
Revenue Next 2Y3.09%
Revenue Next 3Y4.23%
Revenue Next 5Y2.27%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.48, the valuation of SOJC can be described as very cheap.
Based on the Price/Earnings ratio, SOJC is valued cheaply inside the industry as 89.19% of the companies are valued more expensively.
SOJC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 5.02, which indicates a rather cheap valuation of SOJC.
Based on the Price/Forward Earnings ratio, SOJC is valued cheaply inside the industry as 89.19% of the companies are valued more expensively.
SOJC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.48 | ||
| Fwd PE | 5.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOJC is valued cheaper than 86.49% of the companies in the same industry.
72.97% 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 | 35.43 | ||
| EV/EBITDA | 7.08 |
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.
SOJC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.59
PEG (5Y)1
EPS Next 2Y7.92%
EPS Next 3Y7.16%
5. Dividend
5.1 Amount
SOJC has a Yearly Dividend Yield of 3.28%.
SOJC's Dividend Yield is comparable with the industry average which is at 3.53.
SOJC's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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
63.19% of the earnings are spent on dividend by SOJC. This is not a sustainable payout ratio.
The dividend of SOJC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.19%
EPS Next 2Y7.92%
EPS Next 3Y7.16%
SOUTHERN CO - SO 5 1/4 12/01/2077
NYSE:SOJC (2/21/2025, 8:04:00 PM)
22.25
+0.05 (+0.23%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners70.79%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap24.38B
Analysts73.33
Price Target25.55 (14.83%)
Short Float %0%
Short Ratio0.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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)0%
PT rev (3m)3.5%
EPS NQ rev (1m)-5.68%
EPS NQ rev (3m)-4.83%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)-4.39%
Revenue NQ rev (3m)-4.39%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.48 | ||
| Fwd PE | 5.02 | ||
| P/S | 0.92 | ||
| P/FCF | 35.43 | ||
| P/OCF | 2.59 | ||
| P/B | 0.73 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 7.08 |
EPS(TTM)4.06
EY18.25%
EPS(NY)4.44
Fwd EY19.94%
FCF(TTM)0.63
FCFY2.82%
OCF(TTM)8.6
OCFY38.67%
SpS24.12
BVpS30.39
TBVpS25.37
PEG (NY)0.59
PEG (5Y)1
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 | 0.6 |
F-Score6
WACC5.01%
ROIC/WACC0.89
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)11.54%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%-21.88%
EPS Next Y9.27%
EPS Next 2Y7.92%
EPS Next 3Y7.16%
EPS Next 5Y7.14%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.9%
Revenue Next Year3.09%
Revenue Next 2Y3.09%
Revenue Next 3Y4.23%
Revenue Next 5Y2.27%
EBIT growth 1Y30.93%
EBIT growth 3Y3.82%
EBIT growth 5Y2.03%
EBIT Next Year90.5%
EBIT Next 3Y29.34%
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%