SOUTHERN CO - SO 6 1/2 03/15/2085 (SOJF) Stock Fundamental Analysis
NYSE:SOJF - New York Stock Exchange, Inc. - US8425878670 - Currency: USD
We assign a fundamental rating of 5 out of 10 to SOJF. SOJF was compared to 46 industry peers in the Electric Utilities industry. SOJF scores excellent on profitability, but there are concerns on its financial health. SOJF may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
SOJF had positive earnings in the past year.
In the past year SOJF had a positive cash flow from operations.
Each year in the past 5 years SOJF has been profitable.
Each year in the past 5 years SOJF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.11%, SOJF is in the better half of the industry, outperforming 71.74% of the companies in the same industry.
With an excellent Return On Equity value of 13.61%, SOJF belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
SOJF has a Return On Invested Capital of 4.64%. This is in the better half of the industry: SOJF outperforms 78.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOJF is in line with the industry average of 4.68%.
The 3 year average ROIC (4.14%) for SOJF is below the current ROIC(4.64%), indicating increased profibility in the last year.
| 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
SOJF has a Profit Margin of 16.54%. This is amongst the best in the industry. SOJF outperforms 82.61% of its industry peers.
SOJF's Profit Margin has declined in the last couple of years.
SOJF's Operating Margin of 26.40% is amongst the best of the industry. SOJF outperforms 84.78% of its industry peers.
SOJF's Operating Margin has been stable in the last couple of years.
SOJF's Gross Margin of 89.46% is amongst the best of the industry. SOJF outperforms 84.78% of its industry peers.
In the last couple of years the Gross Margin of SOJF 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOJF is destroying value.
SOJF has about the same amout of shares outstanding than it did 1 year ago.
SOJF has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for SOJF is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.62, we must say that SOJF is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.62, SOJF is in line with its industry, outperforming 41.30% of the companies in the same industry.
The Debt to FCF ratio of SOJF is 653.53, which is on the high side as it means it would take SOJF, 653.53 years of fcf income to pay off all of its debts.
SOJF's Debt to FCF ratio of 653.53 is fine compared to the rest of the industry. SOJF outperforms 71.74% of its industry peers.
A Debt/Equity ratio of 1.88 is on the high side and indicates that SOJF has dependencies on debt financing.
SOJF has a Debt to Equity ratio of 1.88. This is in the lower half of the industry: SOJF underperforms 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 653.53 | ||
| Altman-Z | 0.62 |
ROIC/WACC0.91
WACC5.12%
2.3 Liquidity
A Current Ratio of 0.86 indicates that SOJF may have some problems paying its short term obligations.
The Current ratio of SOJF (0.86) is comparable to the rest of the industry.
A Quick Ratio of 0.64 indicates that SOJF may have some problems paying its short term obligations.
SOJF has a Quick ratio of 0.64. This is comparable to the rest of the industry: SOJF outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
SOJF 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, SOJF 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
SOJF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.33% yearly.
SOJF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.75% yearly.
EPS Next Y8.73%
EPS Next 2Y7.69%
EPS Next 3Y7.4%
EPS Next 5Y7.33%
Revenue Next Year4.23%
Revenue Next 2Y4.09%
Revenue Next 3Y3.97%
Revenue Next 5Y4.75%
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
Based on the Price/Earnings ratio of 6.03, the valuation of SOJF can be described as very cheap.
Based on the Price/Earnings ratio, SOJF is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
SOJF is valuated cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
SOJF is valuated cheaply with a Price/Forward Earnings ratio of 5.46.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOJF indicates a rather cheap valuation: SOJF is cheaper than 89.13% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, SOJF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.03 | ||
| Fwd PE | 5.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOJF is valued cheaply inside the industry as 84.78% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SOJF is valued a bit cheaper than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 269.28 | ||
| EV/EBITDA | 7.36 |
4.3 Compensation for Growth
SOJF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SOJF has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.69
PEG (5Y)1.1
EPS Next 2Y7.69%
EPS Next 3Y7.4%
5. Dividend
5.1 Amount
SOJF has a Yearly Dividend Yield of 3.25%. Purely for dividend investing, there may be better candidates out there.
SOJF's Dividend Yield is comparable with the industry average which is at 3.43.
Compared to an average S&P500 Dividend Yield of 2.43, SOJF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
5.2 History
The dividend of SOJF has a limited annual growth rate of 1.87%.
SOJF is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)1.87%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
SOJF pays out 64.20% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SOJF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.2%
EPS Next 2Y7.69%
EPS Next 3Y7.4%
SOUTHERN CO - SO 6 1/2 03/15/2085
NYSE:SOJF (5/6/2025, 3:08:28 PM)
25.7
+0.03 (+0.12%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners70.79%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap28.27B
Analysts72.86
Price Target26.49 (3.07%)
Short Float %0.01%
Short Ratio0.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP64.2%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
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)-2.09%
PT rev (3m)N/A
EPS NQ rev (1m)2.02%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.02%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)1.03%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.03 | ||
| Fwd PE | 5.46 | ||
| P/S | 1.02 | ||
| P/FCF | 269.28 | ||
| P/OCF | 2.91 | ||
| P/B | 0.84 | ||
| P/tB | 1 | ||
| EV/EBITDA | 7.36 |
EPS(TTM)4.26
EY16.58%
EPS(NY)4.71
Fwd EY18.32%
FCF(TTM)0.1
FCFY0.37%
OCF(TTM)8.84
OCFY34.4%
SpS25.32
BVpS30.76
TBVpS25.77
PEG (NY)0.69
PEG (5Y)1.1
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 | 0.62 |
F-Score6
WACC5.12%
ROIC/WACC0.91
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 Y8.73%
EPS Next 2Y7.69%
EPS Next 3Y7.4%
EPS Next 5Y7.33%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y4.96%
Revenue growth 5Y4.53%
Sales Q2Q%16.99%
Revenue Next Year4.23%
Revenue Next 2Y4.09%
Revenue Next 3Y3.97%
Revenue Next 5Y4.75%
EBIT growth 1Y17.81%
EBIT growth 3Y10.62%
EBIT growth 5Y5.63%
EBIT Next Year82.06%
EBIT Next 3Y27.66%
EBIT Next 5Y21.45%
FCF growth 1Y103.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y75.14%
OCF growth 3Y16.63%
OCF growth 5Y11.11%