SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) Stock Fundamental Analysis
NYSE:SOJD - New York Stock Exchange, Inc. - US8425878001 - Currency: USD
Overall SOJD gets a fundamental rating of 5 out of 10. We evaluated SOJD against 47 industry peers in the Electric Utilities industry. While SOJD has a great profitability rating, there are quite some concerns on its financial health. SOJD is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year SOJD was profitable.
In the past year SOJD had a positive cash flow from operations.
In the past 5 years SOJD has always been profitable.
Each year in the past 5 years SOJD had a positive operating cash flow.
1.2 Ratios
SOJD's Return On Assets of 3.11% is in line compared to the rest of the industry. SOJD outperforms 57.45% of its industry peers.
Looking at the Return On Equity, with a value of 13.61%, SOJD belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
SOJD's Return On Invested Capital of 4.64% is fine compared to the rest of the industry. SOJD outperforms 65.96% of its industry peers.
SOJD had an Average Return On Invested Capital over the past 3 years of 4.14%. This is significantly below the industry average of 38.54%.
The last Return On Invested Capital (4.64%) for SOJD is above the 3 year average (4.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 13.61% | ||
| ROIC | 4.64% |
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
SOJD has a Profit Margin of 16.54%. This is in the better half of the industry: SOJD outperforms 76.60% of its industry peers.
SOJD's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 26.40%, SOJD belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
SOJD's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 89.46%, SOJD belongs to the top of the industry, outperforming 89.36% 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 | 26.4% | ||
| PM (TTM) | 16.54% | ||
| GM | 89.46% |
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.
Compared to 1 year ago, SOJD has about the same amount of shares outstanding.
The number of shares outstanding for SOJD remains at a similar level compared to 5 years ago.
The debt/assets ratio for SOJD is higher compared to a year ago.
2.2 Solvency
SOJD has an Altman-Z score of 0.59. This is a bad value and indicates that SOJD is not financially healthy and even has some risk of bankruptcy.
SOJD has a Altman-Z score of 0.59. This is in the lower half of the industry: SOJD underperforms 76.60% of its industry peers.
SOJD has a debt to FCF ratio of 653.53. This is a negative value and a sign of low solvency as SOJD would need 653.53 years to pay back of all of its debts.
SOJD's Debt to FCF ratio of 653.53 is fine compared to the rest of the industry. SOJD outperforms 65.96% of its industry peers.
SOJD has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.88, SOJD is not doing good in the industry: 78.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 653.53 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.7
WACC6.61%
2.3 Liquidity
SOJD has a Current Ratio of 0.86. This is a bad value and indicates that SOJD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.86, SOJD perfoms like the industry average, outperforming 48.94% of the companies in the same industry.
SOJD has a Quick Ratio of 0.86. This is a bad value and indicates that SOJD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.64, SOJD perfoms like the industry average, outperforming 42.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.79% over the past year.
SOJD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.48% yearly.
SOJD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.58%.
SOJD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.53% yearly.
EPS 1Y (TTM)9.79%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%19.42%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%16.99%
3.2 Future
Based on estimates for the next years, SOJD will show a small growth in Earnings Per Share. The EPS will grow by 7.26% on average per year.
The Revenue is expected to grow by 4.87% on average over the next years.
EPS Next Y8.45%
EPS Next 2Y7.61%
EPS Next 3Y7.43%
EPS Next 5Y7.26%
Revenue Next Year5.55%
Revenue Next 2Y5.01%
Revenue Next 3Y4.73%
Revenue Next 5Y4.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.73, the valuation of SOJD can be described as very cheap.
91.49% of the companies in the same industry are more expensive than SOJD, based on the Price/Earnings ratio.
SOJD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
The Price/Forward Earnings ratio is 4.29, which indicates a rather cheap valuation of SOJD.
93.62% of the companies in the same industry are more expensive than SOJD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SOJD to the average of the S&P500 Index (21.70), we can say SOJD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.73 | ||
| Fwd PE | 4.29 |
4.2 Price Multiples
SOJD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SOJD is cheaper than 82.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SOJD is valued a bit cheaper than the industry average as 68.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 210.91 | ||
| EV/EBITDA | 6.86 |
4.3 Compensation for Growth
SOJD'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 SOJD may justify a higher PE ratio.
PEG (NY)0.56
PEG (5Y)0.86
EPS Next 2Y7.61%
EPS Next 3Y7.43%
5. Dividend
5.1 Amount
SOJD has a Yearly Dividend Yield of 3.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.67, SOJD has a dividend in line with its industry peers.
SOJD's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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 Years4
5.3 Sustainability
SOJD pays out 64.20% of its income as dividend. This is not a sustainable payout ratio.
SOJD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.2%
EPS Next 2Y7.61%
EPS Next 3Y7.43%
20.1499
+0.35 (+1.77%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.1%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap22.15B
Analysts72.14
Price Target21.29 (5.66%)
Short Float %0%
Short Ratio0.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP64.2%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.2%
Min EPS beat(2)-4.33%
Max EPS beat(2)-0.07%
EPS beat(4)2
Avg EPS beat(4)3.82%
Min EPS beat(4)-4.33%
Max EPS beat(4)16.06%
EPS beat(8)6
Avg EPS beat(8)4.48%
EPS beat(12)9
Avg EPS beat(12)5.63%
EPS beat(16)11
Avg EPS beat(16)4.5%
Revenue beat(2)2
Avg Revenue beat(2)4.99%
Min Revenue beat(2)4.69%
Max Revenue beat(2)5.3%
Revenue beat(4)3
Avg Revenue beat(4)2.44%
Min Revenue beat(4)-3.09%
Max Revenue beat(4)5.3%
Revenue beat(8)3
Avg Revenue beat(8)-6.24%
Revenue beat(12)7
Avg Revenue beat(12)2.05%
Revenue beat(16)10
Avg Revenue beat(16)2.99%
PT rev (1m)0.92%
PT rev (3m)-2.94%
EPS NQ rev (1m)-0.62%
EPS NQ rev (3m)-11.35%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.73 | ||
| Fwd PE | 4.29 | ||
| P/S | 0.8 | ||
| P/FCF | 210.91 | ||
| P/OCF | 2.28 | ||
| P/B | 0.65 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 6.86 |
EPS(TTM)4.26
EY21.14%
EPS(NY)4.7
Fwd EY23.33%
FCF(TTM)0.1
FCFY0.47%
OCF(TTM)8.85
OCFY43.92%
SpS25.34
BVpS30.79
TBVpS25.8
PEG (NY)0.56
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 13.61% | ||
| ROCE | 5.47% | ||
| ROIC | 4.64% | ||
| ROICexc | 4.72% | ||
| ROICexgc | 4.92% | ||
| OM | 26.4% | ||
| PM (TTM) | 16.54% | ||
| GM | 89.46% | ||
| FCFM | 0.38% |
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-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 653.53 | ||
| Debt/EBITDA | 4.97 | ||
| Cap/Depr | 177.66% | ||
| Cap/Sales | 34.55% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 76.17% | ||
| Profit Quality | 2.28% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.59 |
F-Score6
WACC6.61%
ROIC/WACC0.7
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)9.79%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%19.42%
EPS Next Y8.45%
EPS Next 2Y7.61%
EPS Next 3Y7.43%
EPS Next 5Y7.26%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%16.99%
Revenue Next Year5.55%
Revenue Next 2Y5.01%
Revenue Next 3Y4.73%
Revenue Next 5Y4.87%
EBIT growth 1Y17.81%
EBIT growth 3Y10.62%
EBIT growth 5Y5.63%
EBIT Next Year83.12%
EBIT Next 3Y27.71%
EBIT Next 5Y18.82%
FCF growth 1Y103.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y75.14%
OCF growth 3Y16.63%
OCF growth 5Y11.11%