SOUTHERN CO - SO 5 1/4 12/01/2077 (SOJC) Stock Fundamental Analysis
NYSE:SOJC - US8425874042
22.97 USD
+0.16 (+0.7%)
We assign a fundamental rating of 4 out of 10 to SOJC. SOJC was compared to 47 industry peers in the Electric Utilities industry. SOJC scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SOJC.
1. Profitability
1.1 Basic Checks
In the past year SOJC was profitable.
In the past year SOJC had a positive cash flow from operations.
SOJC had positive earnings in each of the past 5 years.
In the past 5 years SOJC always reported a positive cash flow from operatings.
1.2 Ratios
SOJC's Return On Assets of 2.88% is in line compared to the rest of the industry. SOJC outperforms 53.19% of its industry peers.
SOJC has a Return On Equity of 12.59%. This is in the better half of the industry: SOJC outperforms 76.60% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.53%, SOJC is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SOJC is in line with the industry average of 5.06%.
The last Return On Invested Capital (4.53%) for SOJC is above the 3 year average (4.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 12.59% | ||
| ROIC | 4.53% |
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 15.10%. This is in the better half of the industry: SOJC outperforms 65.96% of its industry peers.
SOJC's Profit Margin has declined in the last couple of years.
SOJC's Operating Margin of 25.39% is fine compared to the rest of the industry. SOJC outperforms 76.60% 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 better Gross Margin (89.14%) than 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 | 25.39% | ||
| PM (TTM) | 15.1% | ||
| GM | 89.14% |
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
SOJC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SOJC remains at a similar level compared to 1 year ago.
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 0.59, we must say that SOJC is in the distress zone and has some risk of bankruptcy.
SOJC's Altman-Z score of 0.59 is on the low side compared to the rest of the industry. SOJC is outperformed by 76.60% 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.
With a Debt to Equity ratio value of 1.88, SOJC is not doing good in the industry: 85.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.59 |
ROIC/WACC0.88
WACC5.13%
2.3 Liquidity
A Current Ratio of 0.74 indicates that SOJC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.74, SOJC is in line with its industry, outperforming 40.43% of the companies in the same industry.
A Quick Ratio of 0.53 indicates that SOJC may have some problems paying its short term obligations.
SOJC's Quick ratio of 0.53 is in line compared to the rest of the industry. SOJC outperforms 40.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The earnings per share for SOJC have decreased by -2.63% in the last 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 8.53%.
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)-2.63%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%-16.36%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%7.89%
3.2 Future
SOJC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.87% yearly.
The Revenue is expected to grow by 4.31% on average over the next years.
EPS Next Y8.18%
EPS Next 2Y7.75%
EPS Next 3Y7.5%
EPS Next 5Y6.87%
Revenue Next Year6.82%
Revenue Next 2Y5.75%
Revenue Next 3Y5.32%
Revenue Next 5Y4.31%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 5.63, which indicates a rather cheap valuation of SOJC.
Based on the Price/Earnings ratio, SOJC is valued cheaper than 85.11% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. SOJC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 4.87, the valuation of SOJC can be described as very cheap.
Based on the Price/Forward Earnings ratio, SOJC is valued cheaply inside the industry as 89.36% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.48. SOJC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.63 | ||
| Fwd PE | 4.87 |
4.2 Price Multiples
80.85% of the companies in the same industry are more expensive than SOJC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.23 |
4.3 Compensation for Growth
SOJC's 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)0.69
PEG (5Y)1.03
EPS Next 2Y7.75%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
SOJC has a Yearly Dividend Yield of 3.21%.
SOJC's Dividend Yield is comparable with the industry average which is at 3.51.
SOJC's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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 69.13% 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.
DP69.13%
EPS Next 2Y7.75%
EPS Next 3Y7.5%
SOUTHERN CO - SO 5 1/4 12/01/2077
NYSE:SOJC (9/3/2025, 8:04:00 PM)
22.97
+0.16 (+0.7%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.53%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap25.27B
Analysts74.48
Price Target24.12 (5.01%)
Short Float %0.01%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP69.13%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.19%
Min EPS beat(2)-0.3%
Max EPS beat(2)-0.07%
EPS beat(4)1
Avg EPS beat(4)-0.26%
Min EPS beat(4)-4.33%
Max EPS beat(4)3.64%
EPS beat(8)5
Avg EPS beat(8)4.09%
EPS beat(12)8
Avg EPS beat(12)3.62%
EPS beat(16)10
Avg EPS beat(16)4.3%
Revenue beat(2)2
Avg Revenue beat(2)6.53%
Min Revenue beat(2)5.3%
Max Revenue beat(2)7.77%
Revenue beat(4)3
Avg Revenue beat(4)3.67%
Min Revenue beat(4)-3.09%
Max Revenue beat(4)7.77%
Revenue beat(8)4
Avg Revenue beat(8)-3.54%
Revenue beat(12)7
Avg Revenue beat(12)0.31%
Revenue beat(16)10
Avg Revenue beat(16)3.47%
PT rev (1m)5.87%
PT rev (3m)6.25%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)2.48%
Revenue NQ rev (3m)4.35%
Revenue NY rev (1m)1.51%
Revenue NY rev (3m)2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.63 | ||
| Fwd PE | 4.87 | ||
| P/S | 0.89 | ||
| P/FCF | N/A | ||
| P/OCF | 2.74 | ||
| P/B | 0.74 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 7.23 |
EPS(TTM)4.08
EY17.76%
EPS(NY)4.71
Fwd EY20.52%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)8.38
OCFY36.49%
SpS25.78
BVpS30.92
TBVpS25.94
PEG (NY)0.69
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 12.59% | ||
| ROCE | 5.36% | ||
| ROIC | 4.53% | ||
| ROICexc | 4.57% | ||
| ROICexgc | 4.76% | ||
| OM | 25.39% | ||
| PM (TTM) | 15.1% | ||
| GM | 89.14% | ||
| FCFM | N/A |
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-Score4
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 185.4% | ||
| Cap/Sales | 36.3% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 72.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 0.59 |
F-Score4
WACC5.13%
ROIC/WACC0.88
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)-2.63%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%-16.36%
EPS Next Y8.18%
EPS Next 2Y7.75%
EPS Next 3Y7.5%
EPS Next 5Y6.87%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%7.89%
Revenue Next Year6.82%
Revenue Next 2Y5.75%
Revenue Next 3Y5.32%
Revenue Next 5Y4.31%
EBIT growth 1Y4.8%
EBIT growth 3Y10.62%
EBIT growth 5Y5.63%
EBIT Next Year84.71%
EBIT Next 3Y28.42%
EBIT Next 5Y15.94%
FCF growth 1Y63.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y63.97%
OCF growth 3Y16.63%
OCF growth 5Y11.11%