SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOJD - US8425878001
20.54 USD
-0.31 (-1.49%)
Overall SOJD gets a fundamental rating of 5 out of 10. We evaluated SOJD against 46 industry peers in the Electric Utilities industry. SOJD has an excellent profitability rating, 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
- SOJD had positive earnings in the past year.
- 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 2.91%, SOJD is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
- With a decent Return On Equity value of 12.74%, SOJD is doing good in the industry, outperforming 76.09% of the companies in the same industry.
- The Return On Invested Capital of SOJD (4.62%) is better than 73.91% 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 4.57%.
- The last Return On Invested Capital (4.62%) for SOJD 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
- Looking at the Profit Margin, with a value of 15.42%, SOJD is in the better half of the industry, outperforming 71.74% of the companies in the same industry.
- SOJD's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 25.68%, SOJD belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.
- SOJD's Operating Margin has been stable in the last couple of years.
- SOJD has a better Gross Margin (89.28%) than 89.13% of its industry peers.
- SOJD's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOJD is destroying value.
- Compared to 1 year ago, SOJD has about the same amount of shares outstanding.
- SOJD has about the same amout of shares outstanding than it did 5 years ago.
- SOJD has a worse debt/assets ratio than last year.
2.2 Solvency
- SOJD has an Altman-Z score of 0.57. 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 0.57. This is amonst the worse of the industry: SOJD underperforms 80.43% of its industry peers.
- A Debt/Equity ratio of 1.85 is on the high side and indicates that SOJD has dependencies on debt financing.
- SOJD's Debt to Equity ratio of 1.85 is on the low side compared to the rest of the industry. SOJD is outperformed by 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.57 |
ROIC/WACC0.95
WACC4.85%
2.3 Liquidity
- SOJD has a Current Ratio of 0.75. 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 Current ratio, with a value of 0.75, SOJD is in line with its industry, outperforming 43.48% of the companies in the same industry.
- A Quick Ratio of 0.56 indicates that SOJD may have some problems paying its short term obligations.
- SOJD has a Quick ratio of 0.56. This is in the lower half of the industry: SOJD underperforms 60.87% 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.
- Measured over the past 5 years, SOJD shows a small growth in Earnings Per Share. The EPS has been growing by 5.48% on average per year.
- SOJD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.40%.
- SOJD 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
- The Earnings Per Share is expected to grow by 7.36% on average over the next years.
- The Revenue is expected to grow by 6.66% on average over the next years.
EPS Next Y8.88%
EPS Next 2Y7.77%
EPS Next 3Y7.68%
EPS Next 5Y7.36%
Revenue Next Year8.51%
Revenue Next 2Y6.82%
Revenue Next 3Y6.3%
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 4.83, the valuation of SOJD can be described as very cheap.
- Based on the Price/Earnings ratio, SOJD is valued cheaper than 89.13% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, SOJD is valued rather cheaply.
- The Price/Forward Earnings ratio is 4.36, which indicates a rather cheap valuation of SOJD.
- SOJD's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOJD is cheaper than 91.30% of the companies in the same industry.
- SOJD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.83 | ||
| Fwd PE | 4.36 |
4.2 Price Multiples
- 89.13% of the companies in the same industry are more expensive than SOJD, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.95 |
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.
- SOJD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.54
PEG (5Y)0.88
EPS Next 2Y7.77%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
- SOJD has a Yearly Dividend Yield of 3.38%. Purely for dividend investing, there may be better candidates out there.
- SOJD's Dividend Yield is comparable with the industry average which is at 2.90.
- Compared to an average S&P500 Dividend Yield of 1.82, SOJD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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 67.01% 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.
DP67.01%
EPS Next 2Y7.77%
EPS Next 3Y7.68%
SOUTHERN CO - SO 4.95 01/30/2080 / SOJD FAQ
What is the fundamental rating for SOJD stock?
ChartMill assigns a fundamental rating of 5 / 10 to SOJD.
What is the valuation status of SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) stock?
ChartMill assigns a valuation rating of 7 / 10 to SOUTHERN CO - SO 4.95 01/30/2080 (SOJD). This can be considered as Undervalued.
What is the profitability of SOJD stock?
SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for SOJD stock?
The Price/Earnings (PE) ratio for SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) is 4.83 and the Price/Book (PB) ratio is 0.65.
What is the financial health of SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) stock?
The financial health rating of SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) is 1 / 10.