SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) Stock Fundamental Analysis
USA - NYSE:SOJD - US8425878001
21.33 USD
+0.08 (+0.38%)
We assign a fundamental rating of 5 out of 10 to SOJD. SOJD was compared to 47 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 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
The Return On Assets of SOJD (2.88%) is comparable to the rest of the industry.
With a decent Return On Equity value of 12.59%, SOJD is doing good in the industry, outperforming 76.60% of the companies in the same industry.
SOJD's Return On Invested Capital of 4.53% is fine compared to the rest of the industry. SOJD outperforms 72.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOJD is in line with the industry average of 4.90%.
The 3 year average ROIC (4.14%) for SOJD is below the current ROIC(4.53%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 15.10%, SOJD is doing good in the industry, outperforming 68.09% of the companies in the same industry.
SOJD's Profit Margin has declined in the last couple of years.
SOJD's Operating Margin of 25.39% is amongst the best of the industry. SOJD outperforms 80.85% of its industry peers.
SOJD's Operating Margin has been stable in the last couple of years.
The Gross Margin of SOJD (89.14%) is better than 89.36% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOJD is destroying value.
SOJD has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, SOJD has about the same amount of shares outstanding.
SOJD has a worse debt/assets ratio than last year.
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 worse Altman-Z score (0.58) than 80.85% of its industry peers.
A Debt/Equity ratio of 1.88 is on the high side and indicates that SOJD has dependencies on debt financing.
The Debt to Equity ratio of SOJD (1.88) is worse than 82.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.58 |
ROIC/WACC0.89
WACC5.07%
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's Quick ratio of 0.53 is in line compared to the rest of the industry. SOJD outperforms 42.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
SOJD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.63%.
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 8.53% in the past year. This is quite good.
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
SOJD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.85% yearly.
SOJD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.64% yearly.
EPS Next Y8.23%
EPS Next 2Y7.69%
EPS Next 3Y7.47%
EPS Next 5Y6.85%
Revenue Next Year6.83%
Revenue Next 2Y5.74%
Revenue Next 3Y5.31%
Revenue Next 5Y4.64%
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
SOJD is valuated cheaply with a Price/Earnings ratio of 5.23.
Based on the Price/Earnings ratio, SOJD is valued cheaply inside the industry as 87.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.69, SOJD is valued rather cheaply.
The Price/Forward Earnings ratio is 4.53, which indicates a rather cheap valuation of SOJD.
SOJD's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOJD is cheaper than 91.49% 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 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.23 | ||
| Fwd PE | 4.53 |
4.2 Price Multiples
87.23% of the companies in the same industry are more expensive than SOJD, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.09 |
4.3 Compensation for Growth
SOJD'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 SOJD may justify a higher PE ratio.
PEG (NY)0.64
PEG (5Y)0.95
EPS Next 2Y7.69%
EPS Next 3Y7.47%
5. Dividend
5.1 Amount
SOJD has a Yearly Dividend Yield of 3.01%.
Compared to an average industry Dividend Yield of 3.24, SOJD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, SOJD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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.
SOJD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP69.13%
EPS Next 2Y7.69%
EPS Next 3Y7.47%
SOUTHERN CO - SO 4.95 01/30/2080
NYSE:SOJD (10/21/2025, 9:33:54 AM)
21.33
+0.08 (+0.38%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners71.62%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap23.46B
Analysts75.71
Price Target22.01 (3.19%)
Short Float %0.02%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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)-7.01%
PT rev (3m)5.09%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)3.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.23 | ||
| Fwd PE | 4.53 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 2.54 | ||
| P/B | 0.69 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 7.09 |
EPS(TTM)4.08
EY19.13%
EPS(NY)4.71
Fwd EY22.08%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)8.38
OCFY39.29%
SpS25.78
BVpS30.92
TBVpS25.94
PEG (NY)0.64
PEG (5Y)0.95
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
WACC5.07%
ROIC/WACC0.89
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 Y8.23%
EPS Next 2Y7.69%
EPS Next 3Y7.47%
EPS Next 5Y6.85%
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 5Y4.64%
EBIT growth 1Y4.8%
EBIT growth 3Y10.62%
EBIT growth 5Y5.63%
EBIT Next Year84.89%
EBIT Next 3Y28.4%
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%