SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) Stock Fundamental Analysis
USA - NYSE:SOJD - US8425878001
22.3 USD
-0.02 (-0.11%)
Overall SOJD gets a fundamental rating of 5 out of 10. We evaluated SOJD against 48 industry peers in the Electric Utilities industry. While SOJD belongs to the best of the industry regarding profitability, there are concerns on its financial health. SOJD scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
SOJD had positive earnings in each of the past 5 years.
Each year in the past 5 years SOJD had a positive operating cash flow.
1.2 Ratios
SOJD has a Return On Assets (2.88%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 12.59%, SOJD is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
SOJD has a Return On Invested Capital of 4.53%. This is in the better half of the industry: SOJD outperforms 66.67% of its industry peers.
SOJD had an Average Return On Invested Capital over the past 3 years of 4.14%. This is in line with the industry average of 5.43%.
The last Return On Invested Capital (4.53%) for SOJD 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
Looking at the Profit Margin, with a value of 15.10%, SOJD is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
SOJD's Profit Margin has declined in the last couple of years.
SOJD has a better Operating Margin (25.39%) than 79.17% of its industry peers.
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 89.14%, SOJD belongs to the best of the industry, outperforming 89.58% 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 | 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
SOJD 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 SOJD remains at a similar level compared to 1 year ago.
The number of shares outstanding for SOJD remains at a similar level compared to 5 years ago.
Compared to 1 year ago, SOJD has a worse debt to assets ratio.
2.2 Solvency
SOJD has an Altman-Z score of 0.58. This is a bad value and indicates that SOJD is not financially healthy and even has some risk of bankruptcy.
SOJD has a Altman-Z score of 0.58. This is in the lower half of the industry: SOJD underperforms 79.17% 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.
With a Debt to Equity ratio value of 1.88, SOJD is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.58 |
ROIC/WACC0.93
WACC4.89%
2.3 Liquidity
SOJD has a Current Ratio of 0.74. 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 Current ratio (0.74) which is in line with its industry peers.
A Quick Ratio of 0.53 indicates that SOJD may have some problems paying its short term obligations.
SOJD has a Quick ratio (0.53) which is in line with 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 SOJD have decreased by -2.63% in the last year.
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.
Looking at the last year, SOJD shows a quite strong growth in Revenue. The Revenue has grown by 8.53% in the last year.
Measured over the past years, SOJD 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
Based on estimates for the next years, SOJD will show a small growth in Earnings Per Share. The EPS will grow by 6.73% on average per year.
SOJD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.39% yearly.
EPS Next Y8.18%
EPS Next 2Y7.75%
EPS Next 3Y7.5%
EPS Next 5Y6.73%
Revenue Next Year6.83%
Revenue Next 2Y5.74%
Revenue Next 3Y5.31%
Revenue Next 5Y4.39%
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
SOJD is valuated cheaply with a Price/Earnings ratio of 5.47.
SOJD's Price/Earnings ratio is rather cheap when compared to the industry. SOJD is cheaper than 87.50% of the companies in the same industry.
SOJD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
With a Price/Forward Earnings ratio of 4.73, the valuation of SOJD can be described as very cheap.
Based on the Price/Forward Earnings ratio, SOJD is valued cheaper than 91.67% of the companies in the same industry.
SOJD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.47 | ||
| Fwd PE | 4.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOJD is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.19 |
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.
SOJD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.67
PEG (5Y)1
EPS Next 2Y7.75%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
SOJD has a Yearly Dividend Yield of 3.21%. Purely for dividend investing, there may be better candidates out there.
SOJD's Dividend Yield is comparable with the industry average which is at 3.47.
Compared to an average S&P500 Dividend Yield of 2.38, SOJD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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
SOJD pays out 69.13% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SOJD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP69.13%
EPS Next 2Y7.75%
EPS Next 3Y7.5%
SOUTHERN CO - SO 4.95 01/30/2080
NYSE:SOJD (9/16/2025, 8:04:00 PM)
22.3
-0.02 (-0.11%)
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 Cap24.53B
Analysts75.17
Price Target23.67 (6.14%)
Short Float %0.02%
Short Ratio2.71
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 Years4
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)11.86%
PT rev (3m)12.25%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.47 | ||
| Fwd PE | 4.73 | ||
| P/S | 0.86 | ||
| P/FCF | N/A | ||
| P/OCF | 2.66 | ||
| P/B | 0.72 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 7.19 |
EPS(TTM)4.08
EY18.3%
EPS(NY)4.71
Fwd EY21.14%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)8.38
OCFY37.58%
SpS25.78
BVpS30.92
TBVpS25.94
PEG (NY)0.67
PEG (5Y)1
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 | 0.58 |
F-Score4
WACC4.89%
ROIC/WACC0.93
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 5Y6.73%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%7.89%
Revenue Next Year6.83%
Revenue Next 2Y5.74%
Revenue Next 3Y5.31%
Revenue Next 5Y4.39%
EBIT growth 1Y4.8%
EBIT growth 3Y10.62%
EBIT growth 5Y5.63%
EBIT Next Year84.71%
EBIT Next 3Y28.42%
EBIT Next 5Y16.78%
FCF growth 1Y63.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y63.97%
OCF growth 3Y16.63%
OCF growth 5Y11.11%