SOUTHERN CO/THE (SO) Fundamental Analysis & Valuation

NYSE:SO • US8425871071

96.97 USD
-0.66 (-0.68%)
Last: Mar 5, 2026, 03:29 PM
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This SO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

Overall SO gets a fundamental rating of 4 out of 10. We evaluated SO against 46 industry peers in the Electric Utilities industry. While SO has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, SO is valued expensive at the moment. SO also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

1. SO Profitability Analysis

1.1 Basic Checks

  • In the past year SO was profitable.
  • In the past year SO had a positive cash flow from operations.
  • Each year in the past 5 years SO has been profitable.
  • Each year in the past 5 years SO had a positive operating cash flow.
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 has a Return On Assets of 2.79%. This is comparable to the rest of the industry: SO outperforms 54.35% of its industry peers.
  • Looking at the Return On Equity, with a value of 12.05%, SO is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
  • SO's Return On Invested Capital of 4.30% is fine compared to the rest of the industry. SO outperforms 60.87% 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 4.48%.
  • 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's Profit Margin of 14.69% is fine compared to the rest of the industry. SO outperforms 60.87% of its industry peers.
  • SO's Profit Margin has been stable in the last couple of years.
  • SO has a Operating Margin of 24.65%. This is in the better half of the industry: SO outperforms 69.57% of its industry peers.
  • SO's Operating Margin has been stable in the last couple of years.
  • SO's Gross Margin of 88.95% is amongst the best of the industry. SO outperforms 80.43% of its industry peers.
  • In the last couple of years the Gross Margin of SO has remained more or less at the same level.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SO is destroying value.
  • The number of shares outstanding for SO remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for SO remains at a similar level compared to 5 years ago.
  • SO has a worse debt/assets ratio than last year.
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 0.97. This is a bad value and indicates that SO is not financially healthy and even has some risk of bankruptcy.
  • SO has a better Altman-Z score (0.97) than 60.87% of its industry peers.
  • SO has a Debt/Equity ratio of 1.84. This is a high value indicating a heavy dependency on external financing.
  • SO has a worse Debt to Equity ratio (1.84) than 82.61% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.84
Debt/FCF N/A
Altman-Z 0.97
ROIC/WACC0.66
WACC6.57%
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.
  • SO has a worse Current ratio (0.65) than 71.74% of its industry peers.
  • 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.
  • SO has a worse Quick ratio (0.45) than 76.09% of its industry peers.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. SO Growth Analysis

3.1 Past

  • SO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.91%.
  • 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.
  • SO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.58%.
  • SO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.72% yearly.
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

  • Based on estimates for the next years, SO will show a small growth in Earnings Per Share. The EPS will grow by 7.71% on average per year.
  • Based on estimates for the next years, SO will show a small growth in Revenue. The Revenue will grow by 6.16% on average per year.
EPS Next Y9.22%
EPS Next 2Y8.34%
EPS Next 3Y7.73%
EPS Next 5Y7.71%
Revenue Next Year5.19%
Revenue Next 2Y5.25%
Revenue Next 3Y5.33%
Revenue Next 5Y6.16%

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.
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
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

  • Based on the Price/Earnings ratio of 22.55, the valuation of SO can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of SO indicates a slightly more expensive valuation: SO is more expensive than 71.74% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.03. SO is around the same levels.
  • Based on the Price/Forward Earnings ratio of 20.65, the valuation of SO can be described as rather expensive.
  • 65.22% of the companies in the same industry are cheaper than SO, based on the Price/Forward Earnings ratio.
  • SO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.11.
Industry RankSector Rank
PE 22.55
Fwd PE 20.65
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 the industry average as 65.22% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.35
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.
  • SO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)3.92
EPS Next 2Y8.34%
EPS Next 3Y7.73%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. SO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 5.68%, SO is a good candidate for dividend investing.
  • SO's Dividend Yield is rather good when compared to the industry average which is at 3.15. SO pays more dividend than 93.48% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, SO pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.68%

5.2 History

  • The dividend of SO has a limited annual growth rate of 2.35%.
  • SO has paid a dividend for at least 10 years, which is 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 Years23
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 2Y8.34%
EPS Next 3Y7.73%
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 (3/5/2026, 3:29:05 PM)

96.97

-0.66 (-0.68%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)02-19
Earnings (Next)04-29
Inst Owners74.2%
Inst Owner Change-1.84%
Ins Owners0.09%
Ins Owner Change9.88%
Market Cap106.77B
Revenue(TTM)29.55B
Net Income(TTM)4.34B
Analysts69.38
Price Target100.23 (3.36%)
Short Float %2.23%
Short Ratio3.99
Dividend
Industry RankSector Rank
Dividend Yield 5.68%
Yearly Dividend2.74
Dividend Growth(5Y)2.35%
DP69.45%
Div Incr Years23
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)1.88%
PT rev (3m)-1.32%
EPS NQ rev (1m)-2.16%
EPS NQ rev (3m)-2.74%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)-1.97%
Revenue NQ rev (3m)-1.44%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.03%
Valuation
Industry RankSector Rank
PE 22.55
Fwd PE 20.65
P/S 3.61
P/FCF N/A
P/OCF 10.89
P/B 2.96
P/tB 3.49
EV/EBITDA 13.35
EPS(TTM)4.3
EY4.43%
EPS(NY)4.7
Fwd EY4.84%
FCF(TTM)-2.67
FCFYN/A
OCF(TTM)8.9
OCFY9.18%
SpS26.84
BVpS32.71
TBVpS27.75
PEG (NY)2.44
PEG (5Y)3.92
Graham Number56.25
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 0.97
F-Score4
WACC6.57%
ROIC/WACC0.66
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 Y9.22%
EPS Next 2Y8.34%
EPS Next 3Y7.73%
EPS Next 5Y7.71%
Revenue 1Y (TTM)10.58%
Revenue growth 3Y0.31%
Revenue growth 5Y7.72%
Sales Q2Q%10.09%
Revenue Next Year5.19%
Revenue Next 2Y5.25%
Revenue Next 3Y5.33%
Revenue Next 5Y6.16%
EBIT growth 1Y3.38%
EBIT growth 3Y8.23%
EBIT growth 5Y7.2%
EBIT Next Year80.49%
EBIT Next 3Y28.47%
EBIT Next 5Y19.86%
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 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.


How profitable is SOUTHERN CO/THE (SO) stock?

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


Can you provide the financial health for SO stock?

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


Can you provide the dividend sustainability for SO stock?

The dividend rating of SOUTHERN CO/THE (SO) is 8 / 10 and the dividend payout ratio is 69.45%.