SOUTHERN CO - SO 7 1/8 12/15/28 (SOMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SOMN -
50.02 USD
-1.06 (-2.08%)
49.7115 USD
-0.31 (-0.62%)
Taking everything into account, SOMN scores 4 out of 10 in our fundamental rating. SOMN was compared to 48 industry peers in the Electric Utilities industry. SOMN scores excellent on profitability, but there are concerns on its financial health. SOMN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SOMN had positive earnings in the past year.
SOMN had a positive operating cash flow in the past year.
SOMN had positive earnings in each of the past 5 years.
SOMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SOMN's Return On Assets of 2.91% is in line compared to the rest of the industry. SOMN outperforms 54.17% of its industry peers.
With a decent Return On Equity value of 12.74%, SOMN is doing good in the industry, outperforming 70.83% of the companies in the same industry.
SOMN's Return On Invested Capital of 4.62% is fine compared to the rest of the industry. SOMN outperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SOMN is in line with the industry average of 4.92%.
The last Return On Invested Capital (4.62%) for SOMN 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%, SOMN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of SOMN has declined.
SOMN has a better Operating Margin (25.68%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of SOMN has remained more or less at the same level.
The Gross Margin of SOMN (89.28%) is better than 81.25% of its industry peers.
In the last couple of years the Gross Margin of SOMN has remained more or less at the same level.
| 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 SOMN is destroying value.
The number of shares outstanding for SOMN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SOMN has about the same amount of shares outstanding.
Compared to 1 year ago, SOMN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.74, we must say that SOMN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.74, SOMN is doing worse than 64.58% of the companies in the same industry.
SOMN has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.85, SOMN is doing worse than 85.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC0.79
WACC5.85%
2.3 Liquidity
SOMN has a Current Ratio of 0.75. This is a bad value and indicates that SOMN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.75, SOMN is not doing good in the industry: 64.58% of the companies in the same industry are doing better.
A Quick Ratio of 0.56 indicates that SOMN may have some problems paying its short term obligations.
The Quick ratio of SOMN (0.56) is worse than 68.75% of its industry peers.
| 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.
SOMN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.48% yearly.
The Revenue has grown by 9.40% in the past year. This is quite good.
SOMN 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
The Earnings Per Share is expected to grow by 7.18% on average over the next years.
The Revenue is expected to grow by 6.32% on average over the next years.
EPS Next Y8.37%
EPS Next 2Y7.72%
EPS Next 3Y7.6%
EPS Next 5Y7.18%
Revenue Next Year7.63%
Revenue Next 2Y6.29%
Revenue Next 3Y5.88%
Revenue Next 5Y6.32%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.77, the valuation of SOMN can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SOMN indicates a somewhat cheap valuation: SOMN is cheaper than 68.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.11, SOMN is valued rather cheaply.
The Price/Forward Earnings ratio is 10.62, which indicates a very decent valuation of SOMN.
Based on the Price/Forward Earnings ratio, SOMN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
SOMN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 10.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SOMN is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.47 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SOMN may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)2.15
EPS Next 2Y7.72%
EPS Next 3Y7.6%
5. Dividend
5.1 Amount
SOMN has a Yearly Dividend Yield of 3.28%.
SOMN's Dividend Yield is comparable with the industry average which is at 3.33.
Compared to an average S&P500 Dividend Yield of 2.32, SOMN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
The dividend of SOMN has a limited annual growth rate of 1.87%.
SOMN does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)1.87%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
67.01% of the earnings are spent on dividend by SOMN. This is not a sustainable payout ratio.
SOMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.01%
EPS Next 2Y7.72%
EPS Next 3Y7.6%
SOUTHERN CO - SO 7 1/8 12/15/28
NYSE:SOMN (12/1/2025, 8:04:00 PM)
After market: 49.7115 -0.31 (-0.62%)50.02
-1.06 (-2.08%)
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 Cap55.08B
Revenue(TTM)28.91B
Net Income(TTM)4.46B
Analysts72.12
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Yearly Dividend2.69
Dividend Growth(5Y)1.87%
DP67.01%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 10.62 | ||
| P/S | 1.9 | ||
| P/FCF | N/A | ||
| P/OCF | 5.87 | ||
| P/B | 1.57 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 9.47 |
EPS(TTM)4.25
EY8.5%
EPS(NY)4.71
Fwd EY9.42%
FCF(TTM)-1.66
FCFYN/A
OCF(TTM)8.52
OCFY17.03%
SpS26.26
BVpS31.79
TBVpS26.82
PEG (NY)1.41
PEG (5Y)2.15
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 | 0.74 |
F-Score5
WACC5.85%
ROIC/WACC0.79
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 5Y7.18%
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 5Y6.32%
EBIT growth 1Y6.57%
EBIT growth 3Y10.62%
EBIT growth 5Y5.63%
EBIT Next Year84.89%
EBIT Next 3Y28.4%
EBIT Next 5Y19.79%
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 7 1/8 12/15/28 / SOMN FAQ
Can you provide the ChartMill fundamental rating for SOUTHERN CO - SO 7 1/8 12/15/28?
ChartMill assigns a fundamental rating of 4 / 10 to SOMN.
What is the valuation status for SOMN stock?
ChartMill assigns a valuation rating of 5 / 10 to SOUTHERN CO - SO 7 1/8 12/15/28 (SOMN). This can be considered as Fairly Valued.
How profitable is SOUTHERN CO - SO 7 1/8 12/15/28 (SOMN) stock?
SOUTHERN CO - SO 7 1/8 12/15/28 (SOMN) has a profitability rating of 7 / 10.
Can you provide the financial health for SOMN stock?
The financial health rating of SOUTHERN CO - SO 7 1/8 12/15/28 (SOMN) is 0 / 10.
What is the expected EPS growth for SOUTHERN CO - SO 7 1/8 12/15/28 (SOMN) stock?
The Earnings per Share (EPS) of SOUTHERN CO - SO 7 1/8 12/15/28 (SOMN) is expected to grow by 8.37% in the next year.