SOUTHERN CO - SO 5 1/4 12/01/2077 (SOJC) Stock Fundamental Analysis
USA - NYSE:SOJC - US8425874042
23.89 USD
-0.06 (-0.26%)
22.82 USD
-1.07 (-4.48%)
SOJC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SOJC.
1. Profitability
1.1 Basic Checks
In the past year SOJC was profitable.
SOJC had a positive operating cash flow in the past year.
SOJC had positive earnings in each of the past 5 years.
In the past 5 years SOJC always reported a positive cash flow from operatings.
1.2 Ratios
SOJC's Return On Assets of 2.88% is in line compared to the rest of the industry. SOJC outperforms 52.08% of its industry peers.
The Return On Equity of SOJC (12.59%) is better than 77.08% of its industry peers.
SOJC has a better Return On Invested Capital (4.53%) than 64.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOJC is in line with the industry average of 5.43%.
The last Return On Invested Capital (4.53%) for SOJC is above the 3 year average (4.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 12.59% | ||
| ROIC | 4.53% |
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's Profit Margin of 15.10% is fine compared to the rest of the industry. SOJC outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of SOJC has declined.
SOJC has a Operating Margin of 25.39%. This is in the better half of the industry: SOJC outperforms 77.08% of its industry peers.
In the last couple of years the Operating Margin of SOJC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 89.14%, SOJC belongs to the top of the industry, outperforming 87.50% 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 | 25.39% | ||
| PM (TTM) | 15.1% | ||
| GM | 89.14% |
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.
Compared to 1 year ago, SOJC has about the same amount of shares outstanding.
SOJC has about the same amout of 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 0.59. 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 0.59, SOJC is doing worse than 77.08% 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.
The Debt to Equity ratio of SOJC (1.88) is worse than 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.59 |
ROIC/WACC0.91
WACC4.96%
2.3 Liquidity
A Current Ratio of 0.74 indicates that SOJC may have some problems paying its short term obligations.
SOJC has a worse Current ratio (0.74) than 60.42% of its industry peers.
SOJC has a Quick Ratio of 0.74. 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 (0.53) is worse than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
SOJC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.63%.
SOJC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.48% yearly.
The Revenue has grown by 8.53% in the past year. This is quite good.
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)-2.63%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%-16.36%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%7.89%
3.2 Future
The Earnings Per Share is expected to grow by 6.73% on average over the next years.
Based on estimates for the next years, SOJC will show a small growth in Revenue. The Revenue will grow by 4.39% on average per year.
EPS Next Y8.18%
EPS Next 2Y7.75%
EPS Next 3Y7.5%
EPS Next 5Y6.73%
Revenue Next Year6.83%
Revenue Next 2Y5.74%
Revenue Next 3Y5.31%
Revenue Next 5Y4.39%
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
Based on the Price/Earnings ratio of 5.86, the valuation of SOJC can be described as very cheap.
SOJC's Price/Earnings ratio is rather cheap when compared to the industry. SOJC is cheaper than 85.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. SOJC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 5.07, the valuation of SOJC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOJC indicates a rather cheap valuation: SOJC is cheaper than 89.58% of the companies listed in the same industry.
SOJC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 5.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOJC is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.33 |
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)0.72
PEG (5Y)1.07
EPS Next 2Y7.75%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
SOJC has a Yearly Dividend Yield of 3.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, SOJC has a dividend in line with its industry peers.
SOJC's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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
SOJC pays out 69.13% 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.
DP69.13%
EPS Next 2Y7.75%
EPS Next 3Y7.5%
SOUTHERN CO - SO 5 1/4 12/01/2077
NYSE:SOJC (9/16/2025, 4:10:04 PM)
After market: 22.82 -1.07 (-4.48%)23.89
-0.06 (-0.26%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.53%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap26.28B
Analysts75.17
Price Target25.27 (5.78%)
Short Float %0.01%
Short Ratio5.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP69.13%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.19%
Min EPS beat(2)-0.3%
Max EPS beat(2)-0.07%
EPS beat(4)1
Avg EPS beat(4)-0.26%
Min EPS beat(4)-4.33%
Max EPS beat(4)3.64%
EPS beat(8)5
Avg EPS beat(8)4.09%
EPS beat(12)8
Avg EPS beat(12)3.62%
EPS beat(16)10
Avg EPS beat(16)4.3%
Revenue beat(2)2
Avg Revenue beat(2)6.53%
Min Revenue beat(2)5.3%
Max Revenue beat(2)7.77%
Revenue beat(4)3
Avg Revenue beat(4)3.67%
Min Revenue beat(4)-3.09%
Max Revenue beat(4)7.77%
Revenue beat(8)4
Avg Revenue beat(8)-3.54%
Revenue beat(12)7
Avg Revenue beat(12)0.31%
Revenue beat(16)10
Avg Revenue beat(16)3.47%
PT rev (1m)8.21%
PT rev (3m)12.17%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 5.07 | ||
| P/S | 0.93 | ||
| P/FCF | N/A | ||
| P/OCF | 2.85 | ||
| P/B | 0.77 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 7.33 |
EPS(TTM)4.08
EY17.08%
EPS(NY)4.71
Fwd EY19.73%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)8.38
OCFY35.08%
SpS25.78
BVpS30.92
TBVpS25.94
PEG (NY)0.72
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 12.59% | ||
| ROCE | 5.36% | ||
| ROIC | 4.53% | ||
| ROICexc | 4.57% | ||
| ROICexgc | 4.76% | ||
| OM | 25.39% | ||
| PM (TTM) | 15.1% | ||
| GM | 89.14% | ||
| FCFM | N/A |
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-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 185.4% | ||
| Cap/Sales | 36.3% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 72.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 0.59 |
F-Score4
WACC4.96%
ROIC/WACC0.91
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)-2.63%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%-16.36%
EPS Next Y8.18%
EPS Next 2Y7.75%
EPS Next 3Y7.5%
EPS Next 5Y6.73%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%7.89%
Revenue Next Year6.83%
Revenue Next 2Y5.74%
Revenue Next 3Y5.31%
Revenue Next 5Y4.39%
EBIT growth 1Y4.8%
EBIT growth 3Y10.62%
EBIT growth 5Y5.63%
EBIT Next Year84.71%
EBIT Next 3Y28.42%
EBIT Next 5Y16.78%
FCF growth 1Y63.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y63.97%
OCF growth 3Y16.63%
OCF growth 5Y11.11%