SOUTHERN CO - SO 4.2 10/15/60 (SOJE) Stock Fundamental Analysis
USA - NYSE:SOJE - US8425878837
18.42 USD
-0.1 (-0.54%)
18.45 USD
+0.03 (+0.16%)
SOJE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. While SOJE has a great profitability rating, there are quite some concerns on its financial health. SOJE is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
SOJE had positive earnings in the past year.
In the past year SOJE had a positive cash flow from operations.
In the past 5 years SOJE has always been profitable.
In the past 5 years SOJE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.91%, SOJE is in line with its industry, outperforming 59.57% of the companies in the same industry.
SOJE has a Return On Equity of 12.74%. This is in the better half of the industry: SOJE outperforms 78.72% of its industry peers.
With a decent Return On Invested Capital value of 4.62%, SOJE is doing good in the industry, outperforming 72.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SOJE is in line with the industry average of 5.02%.
The last Return On Invested Capital (4.62%) for SOJE is above the 3 year average (4.14%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 15.42%, SOJE is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
SOJE's Profit Margin has declined in the last couple of years.
SOJE's Operating Margin of 25.68% is amongst the best of the industry. SOJE outperforms 80.85% of its industry peers.
SOJE's Operating Margin has been stable in the last couple of years.
SOJE has a Gross Margin of 89.28%. This is amongst the best in the industry. SOJE outperforms 91.49% of its industry peers.
SOJE'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOJE is destroying value.
Compared to 1 year ago, SOJE has about the same amount of shares outstanding.
SOJE has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, SOJE has a worse debt to assets ratio.
2.2 Solvency
SOJE has an Altman-Z score of 0.56. This is a bad value and indicates that SOJE is not financially healthy and even has some risk of bankruptcy.
SOJE has a Altman-Z score of 0.56. This is amonst the worse of the industry: SOJE underperforms 82.98% of its industry peers.
A Debt/Equity ratio of 1.85 is on the high side and indicates that SOJE has dependencies on debt financing.
SOJE has a worse Debt to Equity ratio (1.85) than 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.56 |
ROIC/WACC0.94
WACC4.89%
2.3 Liquidity
SOJE has a Current Ratio of 0.75. This is a bad value and indicates that SOJE is not financially healthy enough and could expect problems in meeting its short term obligations.
SOJE has a Current ratio (0.75) which is in line with its industry peers.
A Quick Ratio of 0.56 indicates that SOJE may have some problems paying its short term obligations.
The Quick ratio of SOJE (0.56) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
SOJE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.19%.
The Earnings Per Share has been growing slightly by 5.48% on average over the past years.
SOJE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.40%.
SOJE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.53% yearly.
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
Based on estimates for the next years, SOJE will show a small growth in Earnings Per Share. The EPS will grow by 7.15% on average per year.
SOJE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.35% yearly.
EPS Next Y8.37%
EPS Next 2Y7.72%
EPS Next 3Y7.6%
EPS Next 5Y7.15%
Revenue Next Year7.63%
Revenue Next 2Y6.29%
Revenue Next 3Y5.88%
Revenue Next 5Y6.35%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SOJE is valuated cheaply with a Price/Earnings ratio of 4.33.
Based on the Price/Earnings ratio, SOJE is valued cheaper than 93.62% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. SOJE is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 3.91, the valuation of SOJE can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOJE indicates a rather cheap valuation: SOJE is cheaper than 93.62% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SOJE to the average of the S&P500 Index (34.43), we can say SOJE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.33 | ||
| Fwd PE | 3.91 |
4.2 Price Multiples
89.36% of the companies in the same industry are more expensive than SOJE, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.76 |
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 SOJE may justify a higher PE ratio.
PEG (NY)0.52
PEG (5Y)0.79
EPS Next 2Y7.72%
EPS Next 3Y7.6%
5. Dividend
5.1 Amount
SOJE has a Yearly Dividend Yield of 3.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.23, SOJE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, SOJE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
The dividend of SOJE has a limited annual growth rate of 1.87%.
SOJE has been paying a dividend for over 5 years, so it has already some track record.
The dividend of SOJE decreased in the last 3 years.
Dividend Growth(5Y)1.87%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
SOJE pays out 67.01% of its income as dividend. This is not a sustainable payout ratio.
SOJE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.01%
EPS Next 2Y7.72%
EPS Next 3Y7.6%
18.42
-0.1 (-0.54%)
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 Cap20.26B
Revenue(TTM)28.91B
Net Income(TTM)4.46B
Analysts72.12
Price Target20.38 (10.64%)
Short Float %0%
Short Ratio0.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP67.01%
Div Incr Years0
Div Non Decr Years2
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)4.56%
PT rev (3m)10.32%
EPS NQ rev (1m)-7.1%
EPS NQ rev (3m)-7.53%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)-2.96%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.33 | ||
| Fwd PE | 3.91 | ||
| P/S | 0.7 | ||
| P/FCF | N/A | ||
| P/OCF | 2.16 | ||
| P/B | 0.58 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 6.76 |
EPS(TTM)4.25
EY23.07%
EPS(NY)4.71
Fwd EY25.58%
FCF(TTM)-1.66
FCFYN/A
OCF(TTM)8.53
OCFY46.28%
SpS26.28
BVpS31.82
TBVpS26.85
PEG (NY)0.52
PEG (5Y)0.79
Graham Number55.16
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 | 0.56 |
F-Score5
WACC4.89%
ROIC/WACC0.94
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 Y8.37%
EPS Next 2Y7.72%
EPS Next 3Y7.6%
EPS Next 5Y7.15%
Revenue 1Y (TTM)9.4%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%7.55%
Revenue Next Year7.63%
Revenue Next 2Y6.29%
Revenue Next 3Y5.88%
Revenue Next 5Y6.35%
EBIT growth 1Y6.57%
EBIT growth 3Y10.62%
EBIT growth 5Y5.63%
EBIT Next Year84.89%
EBIT Next 3Y28.4%
EBIT Next 5Y19.8%
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 4.2 10/15/60 / SOJE FAQ
What is the ChartMill fundamental rating of SOUTHERN CO - SO 4.2 10/15/60 (SOJE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SOJE.
What is the valuation status of SOUTHERN CO - SO 4.2 10/15/60 (SOJE) stock?
ChartMill assigns a valuation rating of 7 / 10 to SOUTHERN CO - SO 4.2 10/15/60 (SOJE). This can be considered as Undervalued.
Can you provide the profitability details for SOUTHERN CO - SO 4.2 10/15/60?
SOUTHERN CO - SO 4.2 10/15/60 (SOJE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of SOUTHERN CO - SO 4.2 10/15/60 (SOJE) stock?
The Price/Earnings (PE) ratio for SOUTHERN CO - SO 4.2 10/15/60 (SOJE) is 4.33 and the Price/Book (PB) ratio is 0.58.
How sustainable is the dividend of SOUTHERN CO - SO 4.2 10/15/60 (SOJE) stock?
The dividend rating of SOUTHERN CO - SO 4.2 10/15/60 (SOJE) is 4 / 10 and the dividend payout ratio is 67.01%.