SOUTHERN CO - SO 5 1/4 12/01/2077 (SOJC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOJC - US8425874042
22.23 USD
+0.09 (+0.41%)
Overall SOJC gets a fundamental rating of 5 out of 10. We evaluated SOJC 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
- In the past year SOJC was profitable.
- In the past year SOJC had a positive cash flow from operations.
- SOJC had positive earnings in each of the past 5 years.
- Each year in the past 5 years SOJC had a positive operating cash flow.
1.2 Ratios
- SOJC's Return On Assets of 2.91% is in line compared to the rest of the industry. SOJC outperforms 58.70% of its industry peers.
- With a decent Return On Equity value of 12.74%, SOJC is doing good in the industry, outperforming 73.91% of the companies in the same industry.
- The Return On Invested Capital of SOJC (4.62%) is better than 71.74% of its industry peers.
- SOJC 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 last Return On Invested Capital (4.62%) for SOJC is above the 3 year average (4.14%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- With a decent Profit Margin value of 15.42%, SOJC is doing good in the industry, outperforming 69.57% of the companies in the same industry.
- SOJC's Profit Margin has declined in the last couple of years.
- SOJC has a Operating Margin of 25.68%. This is in the better half of the industry: SOJC outperforms 78.26% of its industry peers.
- SOJC's Operating Margin has been stable in the last couple of years.
- SOJC has a Gross Margin of 89.28%. This is amongst the best in the industry. SOJC outperforms 86.96% 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 | 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%
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.
- The number of shares outstanding for SOJC remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, SOJC has about the same amount of shares outstanding.
- The debt/assets ratio for SOJC is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.58, we must say that SOJC is in the distress zone and has some risk of bankruptcy.
- SOJC's Altman-Z score of 0.58 is on the low side compared to the rest of the industry. SOJC is outperformed by 76.09% of its industry peers.
- SOJC 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, SOJC is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.58 |
ROIC/WACC0.91
WACC5.07%
2.3 Liquidity
- A Current Ratio of 0.75 indicates that SOJC may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.75, SOJC is in line with its industry, outperforming 41.30% of the companies in the same industry.
- A Quick Ratio of 0.56 indicates that SOJC may have some problems paying its short term obligations.
- SOJC's Quick ratio of 0.56 is on the low side compared to the rest of the industry. SOJC is outperformed by 63.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.19% over the past year.
- SOJC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.48% yearly.
- Looking at the last year, SOJC shows a quite strong growth in Revenue. The Revenue has grown by 9.40% in the last year.
- SOJC 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
- SOJC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.36% yearly.
- The Revenue is expected to grow by 6.66% on average over the next years.
EPS Next Y8.88%
EPS Next 2Y7.76%
EPS Next 3Y7.68%
EPS Next 5Y7.36%
Revenue Next Year7.91%
Revenue Next 2Y6.46%
Revenue Next 3Y5.96%
Revenue Next 5Y6.66%
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
- With a Price/Earnings ratio of 5.23, the valuation of SOJC can be described as very cheap.
- Based on the Price/Earnings ratio, SOJC is valued cheaper than 86.96% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, SOJC is valued rather cheaply.
- SOJC is valuated cheaply with a Price/Forward Earnings ratio of 4.72.
- SOJC's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOJC is cheaper than 89.13% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, SOJC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.23 | ||
| Fwd PE | 4.72 |
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 86.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| 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.
- SOJC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.59
PEG (5Y)0.96
EPS Next 2Y7.76%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
- SOJC has a Yearly Dividend Yield of 3.38%.
- Compared to an average industry Dividend Yield of 2.91, SOJC has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, SOJC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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.
- SOJC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.87%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- 67.01% 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.
DP67.01%
EPS Next 2Y7.76%
EPS Next 3Y7.68%
SOUTHERN CO - SO 5 1/4 12/01/2077 / SOJC FAQ
Can you provide the ChartMill fundamental rating for SOUTHERN CO - SO 5 1/4 12/01/2077?
ChartMill assigns a fundamental rating of 5 / 10 to SOJC.
What is the valuation status of SOUTHERN CO - SO 5 1/4 12/01/2077 (SOJC) stock?
ChartMill assigns a valuation rating of 7 / 10 to SOUTHERN CO - SO 5 1/4 12/01/2077 (SOJC). This can be considered as Undervalued.
Can you provide the profitability details for SOUTHERN CO - SO 5 1/4 12/01/2077?
SOUTHERN CO - SO 5 1/4 12/01/2077 (SOJC) has a profitability rating of 7 / 10.
What are the PE and PB ratios of SOUTHERN CO - SO 5 1/4 12/01/2077 (SOJC) stock?
The Price/Earnings (PE) ratio for SOUTHERN CO - SO 5 1/4 12/01/2077 (SOJC) is 5.23 and the Price/Book (PB) ratio is 0.7.
Can you provide the expected EPS growth for SOJC stock?
The Earnings per Share (EPS) of SOUTHERN CO - SO 5 1/4 12/01/2077 (SOJC) is expected to grow by 8.88% in the next year.