SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) Stock Fundamental Analysis
NYSE:SOJD - New York Stock Exchange, Inc. - US8425878001 - Currency: USD
SOJD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. While SOJD has a great profitability rating, there are quite some concerns on its financial health. SOJD may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
SOJD had positive earnings in the past year.
In the past year SOJD had a positive cash flow from operations.
In the past 5 years SOJD has always been profitable.
SOJD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SOJD (3.03%) is better than 71.74% of its industry peers.
SOJD has a better Return On Equity (13.25%) than 84.78% of its industry peers.
SOJD's Return On Invested Capital of 4.59% is amongst the best of the industry. SOJD outperforms 80.43% of its industry peers.
SOJD had an Average Return On Invested Capital over the past 3 years of 4.14%. This is in line with the industry average of 4.94%.
The last Return On Invested Capital (4.59%) for SOJD is above the 3 year average (4.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 13.25% | ||
| ROIC | 4.59% |
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
The Profit Margin of SOJD (16.47%) is better than 86.96% of its industry peers.
SOJD's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 26.37%, SOJD belongs to the best of the industry, outperforming 89.13% of the companies in the same industry.
In the last couple of years the Operating Margin of SOJD has remained more or less at the same level.
Looking at the Gross Margin, with a value of 89.72%, SOJD belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
SOJD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.37% | ||
| PM (TTM) | 16.47% | ||
| GM | 89.72% |
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 SOJD is destroying value.
SOJD has about the same amout of shares outstanding than it did 1 year ago.
SOJD has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, SOJD has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.56, we must say that SOJD is in the distress zone and has some risk of bankruptcy.
SOJD has a Altman-Z score of 0.56. This is in the lower half of the industry: SOJD underperforms 63.04% of its industry peers.
The Debt to FCF ratio of SOJD is 77.82, which is on the high side as it means it would take SOJD, 77.82 years of fcf income to pay off all of its debts.
SOJD has a Debt to FCF ratio of 77.82. This is in the better half of the industry: SOJD outperforms 73.91% of its industry peers.
A Debt/Equity ratio of 1.81 is on the high side and indicates that SOJD has dependencies on debt financing.
With a Debt to Equity ratio value of 1.81, SOJD perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 77.82 | ||
| Altman-Z | 0.56 |
ROIC/WACC0.9
WACC5.09%
2.3 Liquidity
SOJD has a Current Ratio of 0.67. This is a bad value and indicates that SOJD is not financially healthy enough and could expect problems in meeting its short term obligations.
SOJD has a Current ratio (0.67) which is comparable to the rest of the industry.
SOJD has a Quick Ratio of 0.67. This is a bad value and indicates that SOJD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.46, SOJD is in line with its industry, outperforming 52.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
SOJD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.54%, which is quite good.
The Earnings Per Share has been growing slightly by 5.48% on average over the past years.
SOJD shows a small growth in Revenue. In the last year, the Revenue has grown by 5.83%.
Measured over the past years, SOJD shows a small growth in Revenue. The Revenue has been growing by 4.53% on average per year.
EPS 1Y (TTM)11.54%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%-21.88%
Revenue 1Y (TTM)5.83%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%4.9%
3.2 Future
SOJD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.14% yearly.
The Revenue is expected to grow by 2.27% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.14, the valuation of SOJD can be described as very cheap.
Based on the Price/Earnings ratio, SOJD is valued cheaply inside the industry as 93.48% of the companies are valued more expensively.
SOJD is valuated cheaply when we compare the Price/Earnings ratio to 29.71, which is the current average of the S&P500 Index.
SOJD is valuated cheaply with a Price/Forward Earnings ratio of 4.71.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOJD indicates a rather cheap valuation: SOJD is cheaper than 93.48% of the companies listed in the same industry.
SOJD is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.14 | ||
| Fwd PE | 4.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOJD is valued cheaper than 91.30% of the companies in the same industry.
SOJD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SOJD is cheaper than 84.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.46 | ||
| EV/EBITDA | 6.93 |
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.
The excellent profitability rating of SOJD may justify a higher PE ratio.
PEG (NY)0.55
PEG (5Y)0.94
EPS Next 2Y7.92%
EPS Next 3Y7.16%
5. Dividend
5.1 Amount
SOJD has a Yearly Dividend Yield of 3.26%.
Compared to an average industry Dividend Yield of 3.48, SOJD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, SOJD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
The dividend of SOJD has a limited annual growth rate of 1.87%.
SOJD has been paying a dividend for over 5 years, so it has already some track record.
SOJD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.87%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
67.12% of the earnings are spent on dividend by SOJD. This is not a sustainable payout ratio.
SOJD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.12%
EPS Next 2Y7.92%
EPS Next 3Y7.16%
SOUTHERN CO - SO 4.95 01/30/2080
NYSE:SOJD (3/5/2025, 8:26:16 PM)
20.88
0 (0%)
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 Cap22.88B
Analysts73.33
Price Target24.33 (16.52%)
Short Float %0%
Short Ratio0.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP67.12%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.34%
Min EPS beat(2)-4.33%
Max EPS beat(2)3.64%
EPS beat(4)3
Avg EPS beat(4)6.38%
Min EPS beat(4)-4.33%
Max EPS beat(4)16.06%
EPS beat(8)7
Avg EPS beat(8)5.52%
EPS beat(12)10
Avg EPS beat(12)5.99%
EPS beat(16)12
Avg EPS beat(16)5.39%
Revenue beat(2)1
Avg Revenue beat(2)0.8%
Min Revenue beat(2)-3.09%
Max Revenue beat(2)4.69%
Revenue beat(4)2
Avg Revenue beat(4)0.72%
Min Revenue beat(4)-3.09%
Max Revenue beat(4)4.69%
Revenue beat(8)3
Avg Revenue beat(8)-6.6%
Revenue beat(12)7
Avg Revenue beat(12)2.25%
Revenue beat(16)10
Avg Revenue beat(16)2.94%
PT rev (1m)0%
PT rev (3m)3.48%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)7.64%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)-1.73%
Revenue NQ rev (3m)5.7%
Revenue NY rev (1m)-1.44%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.14 | ||
| Fwd PE | 4.71 | ||
| P/S | 0.86 | ||
| P/FCF | 27.46 | ||
| P/OCF | 2.34 | ||
| P/B | 0.69 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 6.93 |
EPS(TTM)4.06
EY19.44%
EPS(NY)4.44
Fwd EY21.25%
FCF(TTM)0.76
FCFY3.64%
OCF(TTM)8.93
OCFY42.78%
SpS24.39
BVpS30.31
TBVpS25.29
PEG (NY)0.55
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 13.25% | ||
| ROCE | 5.45% | ||
| ROIC | 4.59% | ||
| ROICexc | 4.63% | ||
| ROICexgc | 4.83% | ||
| OM | 26.37% | ||
| PM (TTM) | 16.47% | ||
| GM | 89.72% | ||
| FCFM | 3.12% |
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-Score7
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 77.82 | ||
| Debt/EBITDA | 4.88 | ||
| Cap/Depr | 170.05% | ||
| Cap/Sales | 33.51% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 79.49% | ||
| Profit Quality | 18.93% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 0.56 |
F-Score7
WACC5.09%
ROIC/WACC0.9
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)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)5.83%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%4.9%
Revenue Next Year3.09%
Revenue Next 2Y3.09%
Revenue Next 3Y4.23%
Revenue Next 5Y2.27%
EBIT growth 1Y23.31%
EBIT growth 3Y10.62%
EBIT growth 5Y5.63%
EBIT Next Year80.6%
EBIT Next 3Y26.08%
EBIT Next 5Y20.76%
FCF growth 1Y154.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y29.59%
OCF growth 3Y16.63%
OCF growth 5Y11.11%