SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOJD - US8425878001
20.66 USD
-0.01 (-0.05%)
20.49 USD
-0.17 (-0.82%)
SOJD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. SOJD has an excellent profitability rating, but there are concerns on its financial health. SOJD may be a bit undervalued, certainly considering the very reasonable score on growth SOJD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SOJD was profitable.
SOJD had a positive operating cash flow in the past year.
Each year in the past 5 years SOJD has been profitable.
SOJD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SOJD has a better Return On Assets (2.91%) than 60.87% of its industry peers.
SOJD has a Return On Equity of 12.74%. This is in the better half of the industry: SOJD outperforms 76.09% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.62%, SOJD is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
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 4.58%.
The 3 year average ROIC (4.14%) for SOJD is below the current ROIC(4.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 12.74% | ||
| ROIC | 4.62% |
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 15.42%, SOJD is doing good in the industry, outperforming 71.74% of the companies in the same industry.
SOJD's Profit Margin has declined in the last couple of years.
SOJD has a Operating Margin of 25.68%. This is amongst the best in the industry. SOJD outperforms 80.43% of its industry peers.
In the last couple of years the Operating Margin of SOJD has remained more or less at the same level.
The Gross Margin of SOJD (89.28%) is better than 89.13% of its industry peers.
SOJD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.68% | ||
| PM (TTM) | 15.42% | ||
| GM | 89.28% |
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.
The number of shares outstanding for SOJD remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SOJD has about the same amount of shares outstanding.
Compared to 1 year ago, SOJD has a worse debt to assets ratio.
2.2 Solvency
SOJD has an Altman-Z score of 0.57. This is a bad value and indicates that SOJD is not financially healthy and even has some risk of bankruptcy.
SOJD's Altman-Z score of 0.57 is on the low side compared to the rest of the industry. SOJD is outperformed by 80.43% of its industry peers.
A Debt/Equity ratio of 1.85 is on the high side and indicates that SOJD has dependencies on debt financing.
SOJD has a Debt to Equity ratio of 1.85. This is in the lower half of the industry: SOJD underperforms 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.57 |
ROIC/WACC0.93
WACC4.95%
2.3 Liquidity
A Current Ratio of 0.75 indicates that SOJD may have some problems paying its short term obligations.
SOJD has a Current ratio (0.75) which is comparable to the rest of the industry.
A Quick Ratio of 0.56 indicates that SOJD may have some problems paying its short term obligations.
SOJD has a Quick ratio of 0.56. This is in the lower half of the industry: SOJD underperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.19% over the past 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.
The Revenue has grown by 9.40% in the past year. This is quite good.
The Revenue has been growing slightly by 4.53% on average over the past years.
EPS 1Y (TTM)1.19%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%11.89%
Revenue 1Y (TTM)9.4%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%7.55%
3.2 Future
SOJD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.36% yearly.
Based on estimates for the next years, SOJD will show a small growth in Revenue. The Revenue will grow by 6.66% on average per year.
EPS Next Y8.88%
EPS Next 2Y7.76%
EPS Next 3Y7.68%
EPS Next 5Y7.36%
Revenue Next Year8.18%
Revenue Next 2Y6.59%
Revenue Next 3Y6.04%
Revenue Next 5Y6.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.86, the valuation of SOJD can be described as very cheap.
89.13% of the companies in the same industry are more expensive than SOJD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SOJD to the average of the S&P500 Index (27.25), we can say SOJD is valued rather cheaply.
SOJD is valuated cheaply with a Price/Forward Earnings ratio of 4.38.
SOJD's Price/Forward Earnings ratio is rather cheap when compared to the industry. SOJD is cheaper than 91.30% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SOJD to the average of the S&P500 Index (23.98), we can say SOJD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.86 | ||
| Fwd PE | 4.38 |
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 89.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.94 |
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)0.55
PEG (5Y)0.89
EPS Next 2Y7.76%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.38%, SOJD is a good candidate for dividend investing.
SOJD's Dividend Yield is rather good when compared to the industry average which is at 3.46. SOJD pays more dividend than 89.13% of the companies in the same industry.
SOJD's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
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
67.01% of the earnings are spent on dividend by SOJD. This is not a sustainable payout ratio.
SOJD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.01%
EPS Next 2Y7.76%
EPS Next 3Y7.68%
20.66
-0.01 (-0.05%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.2%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap22.75B
Revenue(TTM)28.91B
Net Income(TTM)4.46B
Analysts70
Price Target23.42 (13.36%)
Short Float %0%
Short Ratio0.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP67.01%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-0.3%
Max EPS beat(2)3.1%
EPS beat(4)1
Avg EPS beat(4)-0.4%
Min EPS beat(4)-4.33%
Max EPS beat(4)3.1%
EPS beat(8)5
Avg EPS beat(8)3.95%
EPS beat(12)9
Avg EPS beat(12)4.23%
EPS beat(16)11
Avg EPS beat(16)4.62%
Revenue beat(2)1
Avg Revenue beat(2)3.8%
Min Revenue beat(2)-0.17%
Max Revenue beat(2)7.77%
Revenue beat(4)3
Avg Revenue beat(4)4.4%
Min Revenue beat(4)-0.17%
Max Revenue beat(4)7.77%
Revenue beat(8)4
Avg Revenue beat(8)-1.23%
Revenue beat(12)6
Avg Revenue beat(12)-1.21%
Revenue beat(16)10
Avg Revenue beat(16)3.55%
PT rev (1m)0.86%
PT rev (3m)6.38%
EPS NQ rev (1m)-1.1%
EPS NQ rev (3m)-8.5%
EPS NY rev (1m)0.15%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)-4.81%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.86 | ||
| Fwd PE | 4.38 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | 2.43 | ||
| P/B | 0.65 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 6.94 |
EPS(TTM)4.25
EY20.57%
EPS(NY)4.71
Fwd EY22.82%
FCF(TTM)-1.66
FCFYN/A
OCF(TTM)8.52
OCFY41.22%
SpS26.26
BVpS31.79
TBVpS26.82
PEG (NY)0.55
PEG (5Y)0.89
Graham Number55.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 12.74% | ||
| ROCE | 5.44% | ||
| ROIC | 4.62% | ||
| ROICexc | 4.74% | ||
| ROICexgc | 4.94% | ||
| OM | 25.68% | ||
| PM (TTM) | 15.42% | ||
| GM | 89.28% | ||
| 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%
ROICexgc growth 3Y6.47%
ROICexgc 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-Score5
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.91 | ||
| Cap/Depr | 193.96% | ||
| Cap/Sales | 38.74% | ||
| Interest Coverage | 2.75 | ||
| Cash Conversion | 71.04% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 0.57 |
F-Score5
WACC4.95%
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)1.19%
EPS 3Y5.99%
EPS 5Y5.48%
EPS Q2Q%11.89%
EPS Next Y8.88%
EPS Next 2Y7.76%
EPS Next 3Y7.68%
EPS Next 5Y7.36%
Revenue 1Y (TTM)9.4%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%7.55%
Revenue Next Year8.18%
Revenue Next 2Y6.59%
Revenue Next 3Y6.04%
Revenue Next 5Y6.66%
EBIT growth 1Y6.57%
EBIT growth 3Y10.62%
EBIT growth 5Y5.63%
EBIT Next Year87.46%
EBIT Next 3Y30.06%
EBIT Next 5Y20.12%
FCF growth 1Y6.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.49%
OCF growth 3Y16.63%
OCF growth 5Y11.11%
SOUTHERN CO - SO 4.95 01/30/2080 / SOJD FAQ
What is the fundamental rating for SOJD stock?
ChartMill assigns a fundamental rating of 5 / 10 to SOJD.
What is the valuation status of SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) stock?
ChartMill assigns a valuation rating of 7 / 10 to SOUTHERN CO - SO 4.95 01/30/2080 (SOJD). This can be considered as Undervalued.
What is the profitability of SOJD stock?
SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for SOJD stock?
The Price/Earnings (PE) ratio for SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) is 4.86 and the Price/Book (PB) ratio is 0.65.
What is the financial health of SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) stock?
The financial health rating of SOUTHERN CO - SO 4.95 01/30/2080 (SOJD) is 1 / 10.