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. While SOJD has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SOJD.
1. Profitability
1.1 Basic Checks
SOJD had positive earnings in the past year.
SOJD had a positive operating cash flow in the past year.
Each year in the past 5 years SOJD has been profitable.
In the past 5 years SOJD always reported a positive cash flow from operatings.
1.2 Ratios
SOJD has a Return On Assets of 3.11%. This is comparable to the rest of the industry: SOJD outperforms 57.45% of its industry peers.
SOJD has a Return On Equity of 13.61%. This is amongst the best in the industry. SOJD outperforms 80.85% of its industry peers.
SOJD has a better Return On Invested Capital (4.64%) than 65.96% of its industry peers.
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's Profit Margin of 16.54% is fine compared to the rest of the industry. SOJD outperforms 76.60% of its industry peers.
SOJD's Profit Margin has declined in the last couple of years.
SOJD's Operating Margin of 26.40% is amongst the best of the industry. SOJD outperforms 80.85% of its industry peers.
In the last couple of years the Operating Margin of SOJD has remained more or less at the same level.
SOJD has a Gross Margin of 89.46%. This is amongst the best in the industry. SOJD outperforms 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOJD is destroying value.
Compared to 1 year ago, SOJD has about the same amount of shares outstanding.
Compared to 5 years ago, SOJD has about the same amount of shares outstanding.
The debt/assets ratio for SOJD is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 0.59, SOJD is doing worse than 76.60% of the companies in the same industry.
SOJD has a debt to FCF ratio of 653.53. This is a negative value and a sign of low solvency as SOJD would need 653.53 years to pay back of all of its debts.
SOJD has a Debt to FCF ratio of 653.53. This is in the better half of the industry: SOJD outperforms 65.96% 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.
SOJD's Debt to Equity ratio of 1.88 is on the low side compared to the rest of the industry. SOJD is outperformed by 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 653.53 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.7
WACC6.61%
2.3 Liquidity
SOJD has a Current 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 Current ratio (0.86) which is comparable to the rest of the industry.
A Quick Ratio of 0.64 indicates that SOJD may have some problems paying its short term obligations.
SOJD has a Quick ratio (0.64) which is in line with 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.
The Revenue has been growing slightly by 4.53% on average over the past years.
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
The Earnings Per Share is expected to grow by 7.26% on average over the next years.
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
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.
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
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 cheaply inside the industry as 89.36% of the companies are valued more expensively.
SOJD is valuated cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.35, the valuation of SOJD can be described as very cheap.
93.62% of the companies in the same industry are more expensive than SOJD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SOJD to the average of the S&P500 Index (21.76), we can say SOJD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.8 | ||
| Fwd PE | 4.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOJD is valued cheaply inside the industry as 82.98% of the companies are valued more expensively.
68.09% of the companies in the same industry are more expensive than SOJD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 213.95 | ||
| EV/EBITDA | 6.91 |
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)0.57
PEG (5Y)0.88
EPS Next 2Y7.61%
EPS Next 3Y7.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.28%, SOJD has a reasonable but not impressive dividend return.
SOJD's Dividend Yield is comparable with the industry average which is at 3.67.
SOJD's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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 (7/3/2025, 11:03:06 AM)
20.44
+0.02 (+0.1%)
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 Cap22.46B
Analysts72.14
Price Target21.29 (4.16%)
Short Float %0%
Short Ratio0.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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)0.92%
PT rev (3m)-2.94%
EPS NQ rev (1m)-0.62%
EPS NQ rev (3m)-11.35%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.8 | ||
| Fwd PE | 4.35 | ||
| P/S | 0.81 | ||
| P/FCF | 213.95 | ||
| P/OCF | 2.31 | ||
| P/B | 0.66 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 6.91 |
EPS(TTM)4.26
EY20.84%
EPS(NY)4.7
Fwd EY23%
FCF(TTM)0.1
FCFY0.47%
OCF(TTM)8.85
OCFY43.3%
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
WACC6.61%
ROIC/WACC0.7
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%