SOUTHERN CO - SO 5 1/4 12/01/2077 (SOJC) Stock Fundamental Analysis
NYSE:SOJC - New York Stock Exchange, Inc. - US8425874042 - Currency: USD
We assign a fundamental rating of 5 out of 10 to SOJC. SOJC was compared to 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
SOJC had positive earnings in the past year.
In the past year SOJC had a positive cash flow from operations.
Each year in the past 5 years SOJC has been profitable.
SOJC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SOJC's Return On Assets of 3.11% is in line compared to the rest of the industry. SOJC outperforms 55.32% of its industry peers.
With a decent Return On Equity value of 13.61%, SOJC is doing good in the industry, outperforming 78.72% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.64%, SOJC is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SOJC 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 Profit Margin of 16.54%. This is in the better half of the industry: SOJC outperforms 74.47% of its industry peers.
In the last couple of years the Profit Margin of SOJC has declined.
The Operating Margin of SOJC (26.40%) is better than 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.
SOJC has a Gross Margin of 89.46%. This is amongst the best in the industry. SOJC outperforms 87.23% of its industry peers.
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.
The number of shares outstanding for SOJC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SOJC has about the same amount of shares outstanding.
The debt/assets ratio for SOJC is higher compared to a year ago.
2.2 Solvency
SOJC has an Altman-Z score of 0.60. This is a bad value and indicates that SOJC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.60, SOJC is doing worse than 74.47% of the companies in the same industry.
SOJC has a debt to FCF ratio of 653.53. This is a negative value and a sign of low solvency as SOJC would need 653.53 years to pay back of 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.
Looking at the Debt to Equity ratio, with a value of 1.88, SOJC is doing worse than 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 653.53 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.94
WACC4.94%
2.3 Liquidity
A Current Ratio of 0.86 indicates that SOJC may have some problems paying its short term obligations.
With a Current ratio value of 0.86, SOJC perfoms like the industry average, outperforming 46.81% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that SOJC may have some problems paying its short term obligations.
With a Quick ratio value of 0.64, SOJC perfoms like the industry average, 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
SOJC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.86%.
The Earnings Per Share has been growing slightly by 5.48% on average over the past years.
SOJC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.83%.
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)-2.86%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%-17.27%
Revenue 1Y (TTM)5.83%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%7.89%
3.2 Future
The Earnings Per Share is expected to grow by 7.26% on average over the next years.
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 Year5.23%
Revenue Next 2Y4.94%
Revenue Next 3Y4.67%
Revenue Next 5Y4.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.55, which indicates a rather cheap valuation of SOJC.
Based on the Price/Earnings ratio, SOJC is valued cheaply inside the industry as 87.23% of the companies are valued more expensively.
SOJC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.82.
A Price/Forward Earnings ratio of 4.80 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.
SOJC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.55 | ||
| Fwd PE | 4.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOJC indicates a rather cheap valuation: SOJC is cheaper than 80.85% of the companies listed in the same industry.
65.96% of the companies in the same industry are more expensive than SOJC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 236.25 | ||
| EV/EBITDA | 7.09 |
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.
SOJC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.66
PEG (5Y)1.01
EPS Next 2Y7.61%
EPS Next 3Y7.43%
5. Dividend
5.1 Amount
SOJC has a Yearly Dividend Yield of 3.12%. Purely for dividend investing, there may be better candidates out there.
SOJC's Dividend Yield is comparable with the industry average which is at 3.66.
SOJC's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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.
The dividend of SOJC decreased in the last 3 years.
Dividend Growth(5Y)1.87%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
SOJC pays out 64.20% of its income as dividend. This is not a sustainable payout ratio.
SOJC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.2%
EPS Next 2Y7.61%
EPS Next 3Y7.43%
SOUTHERN CO - SO 5 1/4 12/01/2077
NYSE:SOJC (8/1/2025, 8:04:00 PM)
22.57
+0.06 (+0.27%)
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 Cap24.81B
Analysts74.48
Price Target22.78 (0.93%)
Short Float %0.01%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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%
PT rev (3m)2.64%
EPS NQ rev (1m)-4.43%
EPS NQ rev (3m)-17.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)-1.67%
Revenue NQ rev (3m)-2.82%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.55 | ||
| Fwd PE | 4.8 | ||
| P/S | 0.89 | ||
| P/FCF | 236.25 | ||
| P/OCF | 2.55 | ||
| P/B | 0.73 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 7.09 |
EPS(TTM)4.07
EY18.03%
EPS(NY)4.7
Fwd EY20.83%
FCF(TTM)0.1
FCFY0.42%
OCF(TTM)8.85
OCFY39.21%
SpS25.34
BVpS30.79
TBVpS25.8
PEG (NY)0.66
PEG (5Y)1.01
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
WACC4.94%
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)-2.86%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%-17.27%
EPS Next Y8.45%
EPS Next 2Y7.61%
EPS Next 3Y7.43%
EPS Next 5Y7.26%
Revenue 1Y (TTM)5.83%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%7.89%
Revenue Next Year5.23%
Revenue Next 2Y4.94%
Revenue Next 3Y4.67%
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%