(SO) Southern - Overview
Sector: Utilities | Industry: Utilities - Regulated Electric | Exchange: NYSE (USA) | Market Cap: 106.237m USD | Total Return: 8.1% in 12m
Avg Turnover: 477M
EPS Trend: 86.0%
Qual. Beats: 1
Rev. Trend: 80.2%
Qual. Beats: 2
Warnings
High Debt while negative Cash Flow
Altman Z'' 0.65 < 1.0 - financial distress zone
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
The Southern Company (NYSE: SO) is a major energy holding company based in Atlanta, Georgia, providing electric and natural gas services across multiple states. Its operations include electricity generation and retail distribution, wholesale energy sales, and the management of natural gas infrastructure in Illinois, Georgia, Virginia, and Tennessee. The company also develops renewable energy assets, battery storage projects, and microgrid solutions for diverse customer segments.
Operating as a regulated utility, the company benefits from a business model where state commissions approve rates to ensure a return on infrastructure investments. This sector is characterized by high capital intensity and significant barriers to entry due to the extensive physical networks required for energy transmission. For a deeper look at the companys valuation metrics, consider reviewing the data on ValueRay.
In addition to its core utility operations, the Southern Company maintains interests in telecommunications and resilience solutions. The firm manages a diverse power generation portfolio that includes nuclear, coal, natural gas, and solar assets to meet regional energy demands.
- Vogtle nuclear expansion completion stabilizes long-term capital expenditure and cash flow
- Regulatory rate case outcomes in Georgia and Alabama dictate utility revenue growth
- Decarbonization shift toward natural gas and renewables increases infrastructure investment requirements
- Interest rate fluctuations impact financing costs for capital-intensive utility operations projects
- Customer base expansion in Southeastern United States drives residential and industrial demand
| Net Income: 4.36b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.02 > 0.02 and ΔFCF/TA -2.40 > 1.0 |
| NWC/Revenue: -17.75% < 20% (prev -7.01%; Δ -10.74% < -1%) |
| CFO/TA 0.06 > 3% & CFO 9.78b > Net Income 4.36b |
| Net Debt (76.5b) to EBITDA (14.4b): 5.30 < 3 |
| Current Ratio: 0.65 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.13b) vs 12m ago 2.08% < -2% |
| Gross Margin: 43.11% > 18% (prev 0.50%; Δ 4.26k% > 0.5%) |
| Asset Turnover: 19.78% > 50% (prev 18.81%; Δ 0.97% > 0%) |
| Interest Coverage Ratio: 2.49 > 6 (EBITDA TTM 14.4b / Interest Expense TTM 3.37b) |
| A: -0.03 (Total Current Assets 9.96b - Total Current Liabilities 15.3b) / Total Assets 157b |
| B: 0.10 (Retained Earnings 15.4b / Total Assets 157b) |
| C: 0.05 (EBIT TTM 8.38b / Avg Total Assets 153b) |
| D: 0.18 (Book Value of Equity 20.9b / Total Liabilities 117b) |
| Altman-Z'' = 0.65 = B |
| DSRI: 0.84 (Receivables 3.87b/4.27b, Revenue 30.2b/27.9b) |
| GMI: 1.15 (GM 43.11% / 49.69%) |
| AQI: 0.98 (AQ_t 0.18 / AQ_t-1 0.19) |
| SGI: 1.08 (Revenue 30.2b / 27.9b) |
| TATA: -0.03 (NI 4.36b - CFO 9.78b) / TA 157b) |
| Beneish M = -3.01 (Cap -4..+1) = AA |
As of May 27, 2026, the stock is trading at USD 94.09 with a total of 4,169,000 shares traded.
Over the past week, the price has changed by +0.41%,
over one month by +1.17%,
over three months by -1.54% and
over the past year by +8.06%.
Southern has received a consensus analysts rating of 3.42. Therefore, it is recommended to hold SO.
- StrongBuy: 6
- Buy: 1
- Hold: 15
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 101.8 | 8.2% |
P/E Trailing = 23.9188
P/E Forward = 20.4918
P/S = 3.5207
P/B = 2.843
P/EG = 2.6605
Revenue TTM = 30.2b USD
EBIT TTM = 8.38b USD
EBITDA TTM = 14.4b USD
Long Term Debt = 67.1b USD (from longTermDebt, last quarter)
Short Term Debt = 7.58b USD (from shortTermDebt, last quarter)
Debt = 77.5b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.48b
Net Debt = 76.5b USD (calculated: Debt 77.5b - CCE 981.0m)
Enterprise Value = 183b USD (106b + Debt 77.5b - CCE 981.0m)
Interest Coverage Ratio = 2.49 (Ebit TTM 8.38b / Interest Expense TTM 3.37b)
EV/FCF = -47.88x (Enterprise Value 183b / FCF TTM -3.82b)
FCF Yield = -2.09% (FCF TTM -3.82b / Enterprise Value 183b)
FCF Margin = -12.65% (FCF TTM -3.82b / Revenue TTM 30.2b)
Net Margin = 14.46% (Net Income TTM 4.36b / Revenue TTM 30.2b)
Gross Margin = 43.11% ((Revenue TTM 30.2b - Cost of Revenue TTM 17.2b) / Revenue TTM)
Gross Margin QoQ = 46.47% (prev 18.81%)
Tobins Q-Ratio = 1.16 (Enterprise Value 183b / Total Assets 157b)
Interest Expense / Debt = 4.35% (Interest Expense 3.37b / Debt 77.5b)
Taxrate = 14.56% (228.0m / 1.57b)
NOPAT = 7.16b (EBIT 8.38b * (1 - 14.56%))
Current Ratio = 0.65 (Total Current Assets 9.96b / Total Current Liabilities 15.3b)
Debt / Equity = 2.09 (Debt 77.5b / totalStockholderEquity, last quarter 37.1b)
Debt / EBITDA = 5.30 (Net Debt 76.5b / EBITDA 14.4b)
Debt / FCF = -20.04 (negative FCF - burning cash) (Net Debt 76.5b / FCF TTM -3.82b)
Total Stockholder Equity = 35.5b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.86% (Net Income 4.36b / Total Assets 157b)
RoE = 12.28% (Net Income TTM 4.36b / Total Stockholder Equity 35.5b)
RoCE = 8.16% (EBIT 8.38b / Capital Employed (Equity 35.5b + L.T.Debt 67.1b))
RoIC = 4.83% (NOPAT 7.16b / Invested Capital 148b)
WACC = 4.45% (E(106b)/V(184b) * Re(4.98%) + D(77.5b)/V(184b) * Rd(4.35%) * (1-Tc(0.15)))
Discount Rate = 4.98% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 71.91 | Cagr: 1.18%
[DCF] Fair Price = unknown (Cash Flow -3.82b)
EPS Correlation: 86.00 | EPS CAGR: 10.93% | SUE: 1.60 | # QB: 1
Revenue Correlation: 80.16 | Revenue CAGR: 5.34% | SUE: 0.85 | # QB: 2
EPS current Quarter (2026-06-30): EPS=1.02 | Chg30d=-3.20% | Revisions=-60% | Analysts=8
EPS next Quarter (2026-09-30): EPS=1.69 | Chg30d=-0.16% | Revisions=-43% | Analysts=7
EPS current Year (2026-12-31): EPS=4.57 | Chg30d=+0.00% | Revisions=+14% | GrowthEPS=+6.2% | GrowthRev=+5.3%
EPS next Year (2027-12-31): EPS=4.92 | Chg30d=+0.02% | Revisions=-33% | GrowthEPS=+7.7% | GrowthRev=+5.1%
[Analyst] Revisions Ratio: -60%