SOUTHERN CO - SO 4.2 10/15/60 (SOJE) Stock Fundamental Analysis
USA - NYSE:SOJE - US8425878837
19.52 USD
-0.02 (-0.1%)
Taking everything into account, SOJE scores 5 out of 10 in our fundamental rating. SOJE was compared to 48 industry peers in the Electric Utilities industry. SOJE has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SOJE.
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.
Each year in the past 5 years SOJE had a positive operating cash flow.
1.2 Ratios
SOJE's Return On Assets of 2.88% is in line compared to the rest of the industry. SOJE outperforms 56.25% of its industry peers.
With a decent Return On Equity value of 12.59%, SOJE is doing good in the industry, outperforming 79.17% of the companies in the same industry.
SOJE has a better Return On Invested Capital (4.53%) than 70.83% of its industry peers.
SOJE 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 3 year average ROIC (4.14%) for SOJE 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
SOJE has a Profit Margin of 15.10%. This is in the better half of the industry: SOJE outperforms 70.83% of its industry peers.
SOJE's Profit Margin has declined in the last couple of years.
SOJE has a Operating Margin of 25.39%. This is amongst the best in the industry. SOJE outperforms 83.33% of its industry peers.
SOJE's Operating Margin has been stable in the last couple of years.
The Gross Margin of SOJE (89.14%) is better than 91.67% of its industry peers.
SOJE's Gross Margin has been stable in the last couple of years.
| 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
SOJE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SOJE has about the same amout of shares outstanding than it did 1 year ago.
SOJE has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for SOJE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.57, we must say that SOJE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.57, SOJE is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
SOJE has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
SOJE has a worse Debt to Equity ratio (1.88) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.57 |
ROIC/WACC0.93
WACC4.89%
2.3 Liquidity
SOJE has a Current Ratio of 0.74. This is a bad value and indicates that SOJE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.74, SOJE perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
A Quick Ratio of 0.53 indicates that SOJE may have some problems paying its short term obligations.
SOJE has a Quick ratio (0.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The earnings per share for SOJE have decreased by -2.63% in the last year.
Measured over the past 5 years, SOJE 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, SOJE shows a quite strong growth in Revenue. The Revenue has grown by 8.53% in the last year.
Measured over the past years, SOJE 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
The Earnings Per Share is expected to grow by 6.73% on average over the next years.
SOJE 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.
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
A Price/Earnings ratio of 4.78 indicates a rather cheap valuation of SOJE.
SOJE's Price/Earnings ratio is rather cheap when compared to the industry. SOJE is cheaper than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, SOJE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.14, the valuation of SOJE can be described as very cheap.
Based on the Price/Forward Earnings ratio, SOJE is valued cheaper than 93.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SOJE to the average of the S&P500 Index (22.86), we can say SOJE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.78 | ||
| Fwd PE | 4.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOJE is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.94 |
4.3 Compensation for Growth
SOJE'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 SOJE may justify a higher PE ratio.
PEG (NY)0.58
PEG (5Y)0.87
EPS Next 2Y7.75%
EPS Next 3Y7.5%
5. Dividend
5.1 Amount
SOJE has a Yearly Dividend Yield of 5.37%, which is a nice return.
Compared to an average industry Dividend Yield of 3.77, SOJE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, SOJE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
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 69.13% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SOJE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP69.13%
EPS Next 2Y7.75%
EPS Next 3Y7.5%
NYSE:SOJE (9/19/2025, 8:04:01 PM)
19.52
-0.02 (-0.1%)
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 Cap21.47B
Analysts75.17
Price Target20.7 (6.05%)
Short Float %0.01%
Short Ratio1.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP69.13%
Div Incr Years0
Div Non Decr Years2
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)12.04%
PT rev (3m)10.84%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.78 | ||
| Fwd PE | 4.14 | ||
| P/S | 0.76 | ||
| P/FCF | N/A | ||
| P/OCF | 2.33 | ||
| P/B | 0.63 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 6.94 |
EPS(TTM)4.08
EY20.9%
EPS(NY)4.71
Fwd EY24.15%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)8.38
OCFY42.94%
SpS25.78
BVpS30.92
TBVpS25.94
PEG (NY)0.58
PEG (5Y)0.87
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 | 0.57 |
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%