SOUTHERN CO - SO 6 1/2 03/15/2085 (SOJF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOJF - US8425878670
25.48 USD
-0.06 (-0.23%)
25.48 USD
0 (0%)
SOJF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. SOJF scores excellent on profitability, but there are concerns on its financial health. SOJF scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
In the past 5 years SOJF has always been profitable.
Each year in the past 5 years SOJF had a positive operating cash flow.
1.2 Ratios
SOJF has a Return On Assets (2.91%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 12.74%, SOJF is in the better half of the industry, outperforming 71.74% of the companies in the same industry.
SOJF has a better Return On Invested Capital (4.62%) than 69.57% of its industry peers.
SOJF 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 last Return On Invested Capital (4.62%) for SOJF 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
The Profit Margin of SOJF (15.42%) is better than 67.39% of its industry peers.
In the last couple of years the Profit Margin of SOJF has declined.
SOJF's Operating Margin of 25.68% is fine compared to the rest of the industry. SOJF outperforms 76.09% of its industry peers.
SOJF's Operating Margin has been stable in the last couple of years.
SOJF has a better Gross Margin (89.28%) than 84.78% of its industry peers.
SOJF'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 SOJF is destroying value.
The number of shares outstanding for SOJF remains at a similar level compared to 1 year ago.
The number of shares outstanding for SOJF remains at a similar level compared to 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 0.60, we must say that SOJF is in the distress zone and has some risk of bankruptcy.
SOJF's Altman-Z score of 0.60 is on the low side compared to the rest of the industry. SOJF is outperformed by 71.74% of its industry peers.
A Debt/Equity ratio of 1.85 is on the high side and indicates that SOJF has dependencies on debt financing.
SOJF has a worse Debt to Equity ratio (1.85) than 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.6 |
ROIC/WACC0.91
WACC5.06%
2.3 Liquidity
SOJF has a Current Ratio of 0.75. This is a bad value and indicates that SOJF is not financially healthy enough and could expect problems in meeting its short term obligations.
SOJF has a Current ratio of 0.75. This is in the lower half of the industry: SOJF underperforms 60.87% of its industry peers.
A Quick Ratio of 0.56 indicates that SOJF may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.56, SOJF is doing worse than 65.22% of the companies in the same industry.
| 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.
SOJF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.48% yearly.
Looking at the last year, SOJF shows a quite strong growth in Revenue. The Revenue has grown by 9.40% in the last year.
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
Based on estimates for the next years, SOJF will show a small growth in Earnings Per Share. The EPS will grow by 7.36% on average per year.
The Revenue is expected to grow by 6.66% on average over the next years.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.00, which indicates a rather cheap valuation of SOJF.
Based on the Price/Earnings ratio, SOJF is valued cheaper than 84.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. SOJF is valued rather cheaply when compared to this.
SOJF is valuated cheaply with a Price/Forward Earnings ratio of 5.40.
86.96% of the companies in the same industry are more expensive than SOJF, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SOJF to the average of the S&P500 Index (23.98), we can say SOJF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6 | ||
| Fwd PE | 5.4 |
4.2 Price Multiples
84.78% of the companies in the same industry are more expensive than SOJF, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.34 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.68
PEG (5Y)1.09
EPS Next 2Y7.76%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
SOJF has a Yearly Dividend Yield of 6.38%, which is a nice return.
Compared to an average industry Dividend Yield of 3.46, SOJF pays a better dividend. On top of this SOJF pays more dividend than 93.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, SOJF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
5.2 History
The dividend of SOJF has a limited annual growth rate of 1.87%.
SOJF does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)1.87%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SOJF pays out 67.01% 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.
DP67.01%
EPS Next 2Y7.76%
EPS Next 3Y7.68%
25.48
-0.06 (-0.23%)
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 Cap28.06B
Revenue(TTM)28.91B
Net Income(TTM)4.46B
Analysts70
Price Target29.43 (15.5%)
Short Float %0%
Short Ratio0.34
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 Years0
Ex-DateN/A
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)-2.2%
PT rev (3m)9.37%
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 | 6 | ||
| Fwd PE | 5.4 | ||
| P/S | 0.97 | ||
| P/FCF | N/A | ||
| P/OCF | 2.99 | ||
| P/B | 0.8 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 7.34 |
EPS(TTM)4.25
EY16.68%
EPS(NY)4.71
Fwd EY18.5%
FCF(TTM)-1.66
FCFYN/A
OCF(TTM)8.52
OCFY33.43%
SpS26.26
BVpS31.79
TBVpS26.82
PEG (NY)0.68
PEG (5Y)1.09
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 | 0.6 |
F-Score5
WACC5.06%
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)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 6 1/2 03/15/2085 / SOJF FAQ
What is the ChartMill fundamental rating of SOUTHERN CO - SO 6 1/2 03/15/2085 (SOJF) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SOJF.
Can you provide the valuation status for SOUTHERN CO - SO 6 1/2 03/15/2085?
ChartMill assigns a valuation rating of 7 / 10 to SOUTHERN CO - SO 6 1/2 03/15/2085 (SOJF). This can be considered as Undervalued.
What is the profitability of SOJF stock?
SOUTHERN CO - SO 6 1/2 03/15/2085 (SOJF) has a profitability rating of 7 / 10.
What is the financial health of SOUTHERN CO - SO 6 1/2 03/15/2085 (SOJF) stock?
The financial health rating of SOUTHERN CO - SO 6 1/2 03/15/2085 (SOJF) is 0 / 10.
Can you provide the dividend sustainability for SOJF stock?
The dividend rating of SOUTHERN CO - SO 6 1/2 03/15/2085 (SOJF) is 5 / 10 and the dividend payout ratio is 67.01%.