SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) Stock Fundamental Analysis
NYSE:SOJD - New York Stock Exchange, Inc. - US8425878001
SOJD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. SOJD scores excellent on profitability, but there are concerns on its financial health. SOJD 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 SOJD was profitable.
In the past year SOJD had a positive cash flow from operations.
SOJD had positive earnings in each of the past 5 years.
SOJD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.28%, SOJD is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
SOJD has a Return On Equity of 14.18%. This is amongst the best in the industry. SOJD outperforms 83.78% of its industry peers.
The Return On Invested Capital of SOJD (4.46%) is better than 81.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOJD is in line with the industry average of 4.61%.
The last Return On Invested Capital (4.46%) for SOJD is above the 3 year average (3.85%), which is a sign of increasing profitability.
| 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
SOJD's Profit Margin of 17.87% is amongst the best of the industry. SOJD outperforms 89.19% of its industry peers.
SOJD's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 26.37%, SOJD belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
SOJD's Operating Margin has been stable in the last couple of years.
SOJD's Gross Margin of 89.36% is amongst the best of the industry. SOJD outperforms 86.49% of its industry peers.
SOJD's Gross Margin has been stable in the last couple of years.
| 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), SOJD is destroying value.
The number of shares outstanding for SOJD remains at a similar level compared to 1 year ago.
SOJD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SOJD has a worse debt to assets ratio.
2.2 Solvency
SOJD has an Altman-Z score of 0.60. 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 0.60. This is in the lower half of the industry: SOJD underperforms 75.68% of its industry peers.
SOJD has a debt to FCF ratio of 92.47. This is a negative value and a sign of low solvency as SOJD would need 92.47 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 92.47, SOJD is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
A Debt/Equity ratio of 1.86 is on the high side and indicates that SOJD has dependencies on debt financing.
The Debt to Equity ratio of SOJD (1.86) is worse than 75.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 92.47 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.92
WACC4.84%
2.3 Liquidity
SOJD has a Current Ratio of 0.91. 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 (0.91) which is in line with its industry peers.
A Quick Ratio of 0.63 indicates that SOJD may have some problems paying its short term obligations.
SOJD has a Quick ratio (0.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
SOJD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.83%, which is quite impressive.
The Earnings Per Share has been growing slightly by 3.46% on average over the past years.
SOJD shows a small growth in Revenue. In the last year, the Revenue has grown by 0.66%.
SOJD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.45% yearly.
EPS 1Y (TTM)28.83%
EPS 3Y3.85%
EPS 5Y3.46%
EPS Q2Q%0.7%
Revenue 1Y (TTM)0.66%
Revenue growth 3Y7.42%
Revenue growth 5Y1.45%
Sales Q2Q%4.21%
3.2 Future
The Earnings Per Share is expected to grow by 7.82% on average over the next years.
Based on estimates for the next years, SOJD will show a small growth in Revenue. The Revenue will grow by 2.99% on average per year.
EPS Next Y14.39%
EPS Next 2Y10.59%
EPS Next 3Y9.23%
EPS Next 5Y7.82%
Revenue Next Year-1.31%
Revenue Next 2Y1.16%
Revenue Next 3Y1.83%
Revenue Next 5Y2.99%
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
SOJD is valuated cheaply with a Price/Earnings ratio of 5.15.
SOJD's Price/Earnings ratio is rather cheap when compared to the industry. SOJD is cheaper than 91.89% of the companies in the same industry.
SOJD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 4.86, the valuation of SOJD can be described as very cheap.
SOJD's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOJD is cheaper than 91.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SOJD to the average of the S&P500 Index (24.44), we can say SOJD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.15 | ||
| Fwd PE | 4.86 |
4.2 Price Multiples
SOJD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SOJD is cheaper than 89.19% of the companies in the same industry.
78.38% of the companies in the same industry are more expensive than SOJD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.43 | ||
| EV/EBITDA | 7.03 |
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 excellent profitability rating of SOJD may justify a higher PE ratio.
PEG (NY)0.36
PEG (5Y)1.49
EPS Next 2Y10.59%
EPS Next 3Y9.23%
5. Dividend
5.1 Amount
SOJD has a Yearly Dividend Yield of 3.43%. Purely for dividend investing, there may be better candidates out there.
SOJD's Dividend Yield is comparable with the industry average which is at 3.61.
SOJD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
The dividend of SOJD has a limited annual growth rate of 2.61%.
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)2.61%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
63.19% 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.
DP63.19%
EPS Next 2Y10.59%
EPS Next 3Y9.23%
SOUTHERN CO - SO 4.95 01/30/2080
NYSE:SOJD (1/21/2025, 8:04:00 PM)
21.62
+0.31 (+1.45%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners69.78%
Inst Owner ChangeN/A
Ins Owners0.08%
Ins Owner ChangeN/A
Market Cap23.69B
Analysts74.67
Price Target24.33 (12.53%)
Short Float %0%
Short Ratio0.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend2.76
Dividend Growth(5Y)2.61%
DP63.19%
Div Incr Years0
Div Non Decr Years3
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)4.45%
PT rev (3m)1.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.85%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.15 | ||
| Fwd PE | 4.86 | ||
| P/S | 0.9 | ||
| P/FCF | 34.43 | ||
| P/OCF | 2.51 | ||
| P/B | 0.71 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 7.03 |
EPS(TTM)4.2
EY19.43%
EPS(NY)4.45
Fwd EY20.59%
FCF(TTM)0.63
FCFY2.9%
OCF(TTM)8.6
OCFY39.8%
SpS24.12
BVpS30.39
TBVpS25.37
PEG (NY)0.36
PEG (5Y)1.49
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
WACC4.84%
ROIC/WACC0.92
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)28.83%
EPS 3Y3.85%
EPS 5Y3.46%
EPS Q2Q%0.7%
EPS Next Y14.39%
EPS Next 2Y10.59%
EPS Next 3Y9.23%
EPS Next 5Y7.82%
Revenue 1Y (TTM)0.66%
Revenue growth 3Y7.42%
Revenue growth 5Y1.45%
Sales Q2Q%4.21%
Revenue Next Year-1.31%
Revenue Next 2Y1.16%
Revenue Next 3Y1.83%
Revenue Next 5Y2.99%
EBIT growth 1Y30.93%
EBIT growth 3Y3.82%
EBIT growth 5Y2.03%
EBIT Next Year92.66%
EBIT Next 3Y29.65%
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%