SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) Stock Fundamental Analysis
NYSE:SOJD - New York Stock Exchange, Inc. - US8425878001 - Currency: USD
SOJD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. SOJD has an excellent profitability rating, but there are concerns on its financial health. SOJD 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 SOJD was profitable.
SOJD had a positive operating cash flow in the past year.
In the past 5 years SOJD has always been profitable.
SOJD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SOJD has a Return On Assets (3.11%) which is in line with its industry peers.
With an excellent Return On Equity value of 13.61%, SOJD belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.64%, SOJD is doing good in the industry, outperforming 65.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SOJD is significantly below the industry average of 38.54%.
The last Return On Invested Capital (4.64%) for SOJD 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
SOJD has a better Profit Margin (16.54%) than 76.60% of its industry peers.
In the last couple of years the Profit Margin of SOJD has declined.
Looking at the Operating Margin, with a value of 26.40%, SOJD belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
In the last couple of years the Operating Margin of SOJD has remained more or less at the same level.
With an excellent Gross Margin value of 89.46%, SOJD belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
In the last couple of years the Gross Margin of SOJD 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 SOJD is destroying value.
Compared to 1 year ago, SOJD has about the same amount of shares outstanding.
SOJD has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, SOJD has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.59, we must say that SOJD is in the distress zone and has some risk of bankruptcy.
SOJD has a worse Altman-Z score (0.59) than 76.60% of its industry peers.
The Debt to FCF ratio of SOJD is 653.53, which is on the high side as it means it would take SOJD, 653.53 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SOJD (653.53) is better than 65.96% of its industry peers.
SOJD has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
SOJD has a Debt to Equity ratio of 1.88. This is in the lower half of the industry: SOJD underperforms 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 653.53 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.91
WACC5.07%
2.3 Liquidity
A Current Ratio of 0.86 indicates that SOJD may have some problems paying its short term obligations.
With a Current ratio value of 0.86, SOJD perfoms like the industry average, outperforming 48.94% of the companies in the same industry.
SOJD has a Quick Ratio of 0.86. This is a bad value and indicates that SOJD is not financially healthy enough and could expect problems in meeting its short term obligations.
SOJD has a Quick ratio of 0.64. This is comparable to the rest of the industry: SOJD outperforms 42.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
SOJD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.79%, which is quite good.
Measured over the past 5 years, SOJD shows a small growth in Earnings Per Share. The EPS has been growing by 5.48% on average per year.
The Revenue has grown by 9.58% in the past year. This is quite good.
SOJD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.53% yearly.
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
SOJD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.26% yearly.
The Revenue is expected to grow by 4.87% on average over the next years.
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
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
With a Price/Earnings ratio of 4.80, the valuation of SOJD can be described as very cheap.
Based on the Price/Earnings ratio, SOJD is valued cheaper than 89.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of SOJD to the average of the S&P500 Index (28.04), we can say SOJD is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.35, the valuation of SOJD can be described as very cheap.
SOJD's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOJD is cheaper than 93.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.64, SOJD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.8 | ||
| Fwd PE | 4.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOJD indicates a rather cheap valuation: SOJD is cheaper than 82.98% of the companies listed in the same industry.
SOJD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SOJD is cheaper than 68.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 214.16 | ||
| EV/EBITDA | 6.91 |
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 SOJD may justify a higher PE ratio.
PEG (NY)0.57
PEG (5Y)0.88
EPS Next 2Y7.61%
EPS Next 3Y7.43%
5. Dividend
5.1 Amount
SOJD has a Yearly Dividend Yield of 3.11%. Purely for dividend investing, there may be better candidates out there.
SOJD's Dividend Yield is comparable with the industry average which is at 3.69.
Compared to an average S&P500 Dividend Yield of 2.31, SOJD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
The dividend of SOJD has a limited annual growth rate of 1.87%.
SOJD has been paying a dividend for over 5 years, so it has already some track record.
SOJD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.87%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
64.20% of the earnings are spent on dividend by SOJD. This is not a sustainable payout ratio.
The dividend of SOJD 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 4.95 01/30/2080
NYSE:SOJD (7/25/2025, 8:26:11 PM)
20.46
+0.19 (+0.94%)
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 Cap22.49B
Analysts74.48
Price Target20.95 (2.39%)
Short Float %0%
Short Ratio0.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP64.2%
Div Incr Years0
Div Non Decr Years4
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)-1.61%
PT rev (3m)-0.78%
EPS NQ rev (1m)-6.87%
EPS NQ rev (3m)-17.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)-2.85%
Revenue NQ rev (3m)-2.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.8 | ||
| Fwd PE | 4.35 | ||
| P/S | 0.81 | ||
| P/FCF | 214.16 | ||
| P/OCF | 2.31 | ||
| P/B | 0.66 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 6.91 |
EPS(TTM)4.26
EY20.82%
EPS(NY)4.7
Fwd EY22.98%
FCF(TTM)0.1
FCFY0.47%
OCF(TTM)8.85
OCFY43.26%
SpS25.34
BVpS30.79
TBVpS25.8
PEG (NY)0.57
PEG (5Y)0.88
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 | 0.59 |
F-Score6
WACC5.07%
ROIC/WACC0.91
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%