SOUTHERN CO/THE (SO) Fundamental Analysis & Valuation

NYSE:SO • US8425871071

Current stock price

96.94 USD
-0.51 (-0.52%)
At close:
96.94 USD
0 (0%)
After Hours:

This SO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. SO Profitability Analysis

1.1 Basic Checks

  • SO had positive earnings in the past year.
  • SO had a positive operating cash flow in the past year.
  • SO had positive earnings in each of the past 5 years.
  • In the past 5 years SO always reported a positive cash flow from operatings.
SO Yearly Net Income VS EBIT VS OCF VS FCFSO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B 6B 8B

1.2 Ratios

  • SO's Return On Assets of 2.79% is in line compared to the rest of the industry. SO outperforms 55.32% of its industry peers.
  • With a decent Return On Equity value of 12.05%, SO is doing good in the industry, outperforming 72.34% of the companies in the same industry.
  • SO has a better Return On Invested Capital (4.30%) than 61.70% of its industry peers.
  • SO had an Average Return On Invested Capital over the past 3 years of 4.15%. This is in line with the industry average of 4.52%.
  • The 3 year average ROIC (4.15%) for SO is below the current ROIC(4.30%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.79%
ROE 12.05%
ROIC 4.3%
ROA(3y)2.89%
ROA(5y)2.63%
ROE(3y)12.65%
ROE(5y)11.61%
ROIC(3y)4.15%
ROIC(5y)4%
SO Yearly ROA, ROE, ROICSO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • SO has a better Profit Margin (14.69%) than 61.70% of its industry peers.
  • SO's Profit Margin has been stable in the last couple of years.
  • With a decent Operating Margin value of 24.65%, SO is doing good in the industry, outperforming 70.21% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SO has remained more or less at the same level.
  • SO's Gross Margin of 88.95% is amongst the best of the industry. SO outperforms 80.85% of its industry peers.
  • SO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 24.65%
PM (TTM) 14.69%
GM 88.95%
OM growth 3Y7.89%
OM growth 5Y-0.48%
PM growth 3Y6.87%
PM growth 5Y-0.82%
GM growth 3Y2.36%
GM growth 5Y-0.17%
SO Yearly Profit, Operating, Gross MarginsSO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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1

2. SO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SO is destroying value.
  • SO has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for SO remains at a similar level compared to 5 years ago.
  • Compared to 1 year ago, SO has a worse debt to assets ratio.
SO Yearly Shares OutstandingSO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
SO Yearly Total Debt VS Total AssetsSO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

2.2 Solvency

  • SO has an Altman-Z score of 0.98. This is a bad value and indicates that SO is not financially healthy and even has some risk of bankruptcy.
  • SO has a Altman-Z score (0.98) which is in line with its industry peers.
  • SO has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.84, SO is doing worse than 82.98% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.84
Debt/FCF N/A
Altman-Z 0.98
ROIC/WACC0.64
WACC6.76%
SO Yearly LT Debt VS Equity VS FCFSO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B 40B 60B

2.3 Liquidity

  • SO has a Current Ratio of 0.65. This is a bad value and indicates that SO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.65, SO is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
  • SO has a Quick Ratio of 0.65. This is a bad value and indicates that SO is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.45, SO is doing worse than 76.60% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.45
SO Yearly Current Assets VS Current LiabilitesSO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

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5

3. SO Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 5.91% over the past year.
  • Measured over the past 5 years, SO shows a small growth in Earnings Per Share. The EPS has been growing by 5.76% on average per year.
  • The Revenue has grown by 10.58% in the past year. This is quite good.
  • Measured over the past years, SO shows a small growth in Revenue. The Revenue has been growing by 7.72% on average per year.
EPS 1Y (TTM)5.91%
EPS 3Y6%
EPS 5Y5.76%
EPS Q2Q%10%
Revenue 1Y (TTM)10.58%
Revenue growth 3Y0.31%
Revenue growth 5Y7.72%
Sales Q2Q%10.09%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.00% on average over the next years. This is quite good.
  • Based on estimates for the next years, SO will show a small growth in Revenue. The Revenue will grow by 6.80% on average per year.
EPS Next Y9.44%
EPS Next 2Y8.5%
EPS Next 3Y8.58%
EPS Next 5Y8%
Revenue Next Year8.98%
Revenue Next 2Y7.4%
Revenue Next 3Y7.16%
Revenue Next 5Y6.8%

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.
  • 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.
SO Yearly Revenue VS EstimatesSO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 10B 20B 30B 40B
SO Yearly EPS VS EstimatesSO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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1

4. SO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 22.54, which indicates a rather expensive current valuation of SO.
  • Compared to the rest of the industry, the Price/Earnings ratio of SO indicates a slightly more expensive valuation: SO is more expensive than 70.21% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.17, SO is valued at the same level.
  • With a Price/Forward Earnings ratio of 20.60, SO is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, SO is valued a bit more expensive than the industry average as 63.83% of the companies are valued more cheaply.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, SO is valued at the same level.
Industry RankSector Rank
PE 22.54
Fwd PE 20.6
SO Price Earnings VS Forward Price EarningsSO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SO is valued a bit more expensive than 65.96% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.47
SO Per share dataSO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SO does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of SO may justify a higher PE ratio.
PEG (NY)2.39
PEG (5Y)3.91
EPS Next 2Y8.5%
EPS Next 3Y8.58%

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7

5. SO Dividend Analysis

5.1 Amount

  • SO has a Yearly Dividend Yield of 3.10%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.85, SO pays a bit more dividend than its industry peers.
  • SO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 3.1%

5.2 History

  • The dividend of SO has a limited annual growth rate of 2.35%.
  • SO has been paying a dividend for at least 10 years, so it has a reliable track record.
  • SO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.35%
Div Incr Years24
Div Non Decr Years34
SO Yearly Dividends per shareSO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 69.45% of the earnings are spent on dividend by SO. This is not a sustainable payout ratio.
  • SO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP69.45%
EPS Next 2Y8.5%
EPS Next 3Y8.58%
SO Yearly Income VS Free CF VS DividendSO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B
SO Dividend Payout.SO Dividend Payout, showing the Payout Ratio.SO Dividend Payout.PayoutRetained Earnings

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SO Fundamentals: All Metrics, Ratios and Statistics

SOUTHERN CO/THE

NYSE:SO (4/6/2026, 3:43:06 PM)

After market: 96.94 0 (0%)

96.94

-0.51 (-0.52%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-19
Earnings (Next)04-30
Inst Owners72.72%
Inst Owner Change0%
Ins Owners0.12%
Ins Owner Change8.36%
Market Cap108.51B
Revenue(TTM)29.55B
Net Income(TTM)4.34B
Analysts71.25
Price Target101.35 (4.55%)
Short Float %2.15%
Short Ratio3.73
Dividend
Industry RankSector Rank
Dividend Yield 3.1%
Yearly Dividend2.74
Dividend Growth(5Y)2.35%
DP69.45%
Div Incr Years24
Div Non Decr Years34
Ex-Date02-17
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.9%
Min EPS beat(2)-6.91%
Max EPS beat(2)3.1%
EPS beat(4)1
Avg EPS beat(4)-1.04%
Min EPS beat(4)-6.91%
Max EPS beat(4)3.1%
EPS beat(8)4
Avg EPS beat(8)2.67%
EPS beat(12)8
Avg EPS beat(12)3.33%
EPS beat(16)11
Avg EPS beat(16)4.23%
Revenue beat(2)1
Avg Revenue beat(2)2.15%
Min Revenue beat(2)-0.17%
Max Revenue beat(2)4.47%
Revenue beat(4)3
Avg Revenue beat(4)4.34%
Min Revenue beat(4)-0.17%
Max Revenue beat(4)7.77%
Revenue beat(8)5
Avg Revenue beat(8)2.53%
Revenue beat(12)6
Avg Revenue beat(12)-2.95%
Revenue beat(16)10
Avg Revenue beat(16)2.77%
PT rev (1m)1.11%
PT rev (3m)3.01%
EPS NQ rev (1m)-1.89%
EPS NQ rev (3m)-3.97%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)2.29%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)3.6%
Revenue NY rev (3m)4.08%
Valuation
Industry RankSector Rank
PE 22.54
Fwd PE 20.6
P/S 3.67
P/FCF N/A
P/OCF 11.07
P/B 3.01
P/tB 3.55
EV/EBITDA 13.47
EPS(TTM)4.3
EY4.44%
EPS(NY)4.71
Fwd EY4.85%
FCF(TTM)-2.62
FCFYN/A
OCF(TTM)8.76
OCFY9.03%
SpS26.4
BVpS32.17
TBVpS27.3
PEG (NY)2.39
PEG (5Y)3.91
Graham Number55.79
Profitability
Industry RankSector Rank
ROA 2.79%
ROE 12.05%
ROCE 5.25%
ROIC 4.3%
ROICexc 4.36%
ROICexgc 4.53%
OM 24.65%
PM (TTM) 14.69%
GM 88.95%
FCFM N/A
ROA(3y)2.89%
ROA(5y)2.63%
ROE(3y)12.65%
ROE(5y)11.61%
ROIC(3y)4.15%
ROIC(5y)4%
ROICexc(3y)4.19%
ROICexc(5y)4.04%
ROICexgc(3y)4.37%
ROICexgc(5y)4.23%
ROCE(3y)5.09%
ROCE(5y)4.91%
ROICexgc growth 3Y3.03%
ROICexgc growth 5Y2.27%
ROICexc growth 3Y3.28%
ROICexc growth 5Y2.54%
OM growth 3Y7.89%
OM growth 5Y-0.48%
PM growth 3Y6.87%
PM growth 5Y-0.82%
GM growth 3Y2.36%
GM growth 5Y-0.17%
F-Score4
Asset Turnover0.19
Health
Industry RankSector Rank
Debt/Equity 1.84
Debt/FCF N/A
Debt/EBITDA 4.98
Cap/Depr 211.23%
Cap/Sales 43.1%
Interest Coverage 2.71
Cash Conversion 73.62%
Profit Quality N/A
Current Ratio 0.65
Quick Ratio 0.45
Altman-Z 0.98
F-Score4
WACC6.76%
ROIC/WACC0.64
Cap/Depr(3y)187.9%
Cap/Depr(5y)188.18%
Cap/Sales(3y)37.54%
Cap/Sales(5y)34.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.91%
EPS 3Y6%
EPS 5Y5.76%
EPS Q2Q%10%
EPS Next Y9.44%
EPS Next 2Y8.5%
EPS Next 3Y8.58%
EPS Next 5Y8%
Revenue 1Y (TTM)10.58%
Revenue growth 3Y0.31%
Revenue growth 5Y7.72%
Sales Q2Q%10.09%
Revenue Next Year8.98%
Revenue Next 2Y7.4%
Revenue Next 3Y7.16%
Revenue Next 5Y6.8%
EBIT growth 1Y3.38%
EBIT growth 3Y8.23%
EBIT growth 5Y7.2%
EBIT Next Year83.86%
EBIT Next 3Y29.67%
EBIT Next 5Y20.51%
FCF growth 1Y-452.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.14%
OCF growth 3Y15.86%
OCF growth 5Y7.92%

SOUTHERN CO/THE / SO Fundamental Analysis FAQ

What is the fundamental rating for SO stock?

ChartMill assigns a fundamental rating of 4 / 10 to SO.


What is the valuation status of SOUTHERN CO/THE (SO) stock?

ChartMill assigns a valuation rating of 1 / 10 to SOUTHERN CO/THE (SO). This can be considered as Overvalued.


Can you provide the profitability details for SOUTHERN CO/THE?

SOUTHERN CO/THE (SO) has a profitability rating of 7 / 10.


How financially healthy is SOUTHERN CO/THE?

The financial health rating of SOUTHERN CO/THE (SO) is 1 / 10.


What is the expected EPS growth for SOUTHERN CO/THE (SO) stock?

The Earnings per Share (EPS) of SOUTHERN CO/THE (SO) is expected to grow by 9.44% in the next year.