SOUTHERN CO - SO 5 1/4 12/01/2077 (SOJC) Stock Fundamental Analysis
NYSE:SOJC - New York Stock Exchange, Inc. - US8425874042 - Currency: USD
SOJC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. While SOJC is still in line with the averages on profitability rating, there are concerns on its financial health. SOJC 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 SOJC was profitable.
SOJC had a positive operating cash flow in the past year.
Each year in the past 5 years SOJC has been profitable.
In the past 5 years SOJC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.11%, SOJC is in line with its industry, outperforming 55.32% of the companies in the same industry.
SOJC has a Return On Equity of 13.61%. This is in the better half of the industry: SOJC outperforms 78.72% of its industry peers.
SOJC has a better Return On Invested Capital (4.64%) than 63.83% of its industry peers.
SOJC 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 SOJC 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
SOJC has a better Profit Margin (16.54%) than 74.47% of its industry peers.
SOJC's Profit Margin has declined in the last couple of years.
SOJC's Operating Margin of 26.40% is fine compared to the rest of the industry. SOJC outperforms 78.72% of its industry peers.
In the last couple of years the Operating Margin of SOJC has remained more or less at the same level.
With an excellent Gross Margin value of 89.46%, SOJC belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
In the last couple of years the Gross Margin of SOJC has remained more or less at the same level.
| 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 SOJC is destroying value.
Compared to 1 year ago, SOJC has about the same amount of shares outstanding.
The number of shares outstanding for SOJC remains at a similar level compared to 5 years ago.
The debt/assets ratio for SOJC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.60, we must say that SOJC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SOJC (0.60) is worse than 74.47% of its industry peers.
The Debt to FCF ratio of SOJC is 653.53, which is on the high side as it means it would take SOJC, 653.53 years of fcf income to pay off all of its debts.
SOJC's Debt to FCF ratio of 653.53 is fine compared to the rest of the industry. SOJC outperforms 63.83% of its industry peers.
SOJC has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
SOJC has a Debt to Equity ratio of 1.88. This is amonst the worse of the industry: SOJC underperforms 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 653.53 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.94
WACC4.93%
2.3 Liquidity
SOJC has a Current Ratio of 0.86. This is a bad value and indicates that SOJC is not financially healthy enough and could expect problems in meeting its short term obligations.
SOJC has a Current ratio (0.86) which is in line with its industry peers.
SOJC has a Quick Ratio of 0.86. This is a bad value and indicates that SOJC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.64, SOJC is in line with its industry, outperforming 40.43% 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.
Measured over the past 5 years, SOJC shows a small growth in Earnings Per Share. The EPS has been growing by 5.48% on average per year.
SOJC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.58%.
Measured over the past years, SOJC shows a small growth in Revenue. The Revenue has been growing by 4.53% on average per year.
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
SOJC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.26% yearly.
SOJC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.87% yearly.
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SOJC is valuated cheaply with a Price/Earnings ratio of 5.10.
SOJC's Price/Earnings ratio is rather cheap when compared to the industry. SOJC is cheaper than 87.23% of the companies in the same industry.
SOJC is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.62, which indicates a rather cheap valuation of SOJC.
91.49% of the companies in the same industry are more expensive than SOJC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, SOJC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.1 | ||
| Fwd PE | 4.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOJC is valued cheaply inside the industry as 80.85% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SOJC is valued a bit cheaper than the industry average as 65.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 227.56 | ||
| EV/EBITDA | 7.02 |
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.
The decent profitability rating of SOJC may justify a higher PE ratio.
PEG (NY)0.6
PEG (5Y)0.93
EPS Next 2Y7.61%
EPS Next 3Y7.43%
5. Dividend
5.1 Amount
SOJC has a Yearly Dividend Yield of 3.23%.
Compared to an average industry Dividend Yield of 3.67, SOJC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, SOJC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
The dividend of SOJC has a limited annual growth rate of 1.87%.
SOJC has been paying a dividend for over 5 years, so it has already some track record.
SOJC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.87%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
64.20% of the earnings are spent on dividend by SOJC. This is not a sustainable payout ratio.
The dividend of SOJC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.2%
EPS Next 2Y7.61%
EPS Next 3Y7.43%
SOUTHERN CO - SO 5 1/4 12/01/2077
NYSE:SOJC (7/3/2025, 8:10:05 PM)
21.74
-0.1 (-0.46%)
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 Cap23.89B
Analysts74.48
Price Target23.01 (5.84%)
Short Float %0.01%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP64.2%
Div Incr Years0
Div Non Decr Years2
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)1.38%
PT rev (3m)-0.51%
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 | 5.1 | ||
| Fwd PE | 4.62 | ||
| P/S | 0.86 | ||
| P/FCF | 227.56 | ||
| P/OCF | 2.46 | ||
| P/B | 0.71 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 7.02 |
EPS(TTM)4.26
EY19.6%
EPS(NY)4.7
Fwd EY21.63%
FCF(TTM)0.1
FCFY0.44%
OCF(TTM)8.85
OCFY40.71%
SpS25.34
BVpS30.79
TBVpS25.8
PEG (NY)0.6
PEG (5Y)0.93
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 | 0.6 |
F-Score6
WACC4.93%
ROIC/WACC0.94
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%