Southern Company
Exchange: NYSESector: UtilitiesIndustry: Utilities - Regulated Electric
Southern Company is a leading energy provider serving 9 million customers across the Southeast and beyond through its family of companies. The company has electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company, a leading distributed energy solutions provider with national capabilities, a fiber optics network and telecommunications services. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and are the key to our sustained success, driven by our nearly 30,000 employees dedicated to delivering exceptional service.
Did you know?
A large-cap company with a $107.5B market cap.
Current Price
$95.99
-0.74%GoodMoat Value
$64.51
32.8% overvaluedProfile
Valuation (TTM)
Market Cap$107.45B
P/E24.63
EV$175.66B
P/B2.76
Shares Out1.12B
P/Sales3.56
Revenue$30.17B
EV/EBITDA12.46
Southern Company (SO) Stock Analysis
GoodMoat Analysis
Southern Company is a regulated electric utility with a strong regional monopoly but limited growth and a valuation that appears stretched. Based on the GoodMoat framework, its low moat score and unfavourable valuation suggest it is not a compelling candidate for further value investing analysis.
Read full analysis
Southern Company (SO) is a regulated electric utility operating in the Southeastern United States. Its primary competitive advantages stem from its status as a regulated monopoly, which provides a stable, predictable revenue stream within its service territories. Applying the GoodMoat Moat Identification framework, it likely scores points for Regulatory Barriers (criterion 5) and possibly Scale Privilege (criterion 8) in its local markets. However, it would score poorly on most other moat criteria like Network Effects, Switching Costs, or Proprietary Data. A reasonable estimated Moat Score would be low, likely below the framework's threshold of 5 needed to proceed. The company's financials show a solid ROE of 12.1% and operating margin of 24.7%, but it exhibits a negative Free Cash Flow Yield of -2.5% and high Debt/Equity of 2.06, which are quality concerns. The valuation is a key issue: with a P/E of 24.0 and the provided GoodMoat Target price of $64.51, the current price of $94.61 implies the stock is trading at a significant premium to the platform's estimated fair value. Following the Decision Framework, the low estimated Moat Score likely fails the 'Moat & Quality Gate' in Step 1. Even if it passed, the extreme disparity between the market price and the target value, alongside the negative FCF and high leverage, would place it in the 'Unfavourable' category in Step 2. For a value investor seeking a margin of safety, Southern Company does not appear to meet the necessary criteria for further investigation at this price. Analysis based on data as of 2024-05-15.
Market Cap$107.45B
Current Price$95.99
P/E Ratio24.63
Forward P/E—
PEG Ratio—
EPS$3.92
Book Value$34.72
P/B Ratio2.76
SO Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 72.4B
Revenue
21.4B
FY19
20.4B
FY20
23.1B
FY21
29.3B
FY22
25.3B
FY23
26.7B
FY24
29.6B
FY25
Net Income
4.8B
FY19
3.1B
FY20
2.4B
FY21
3.5B
FY22
4.0B
FY23
4.4B
FY24
4.3B
FY25
SO 52-Week Range
$82.21
$99.11
50-Day MA: $95.89200-Day MA: $91.79
Did you know?
Pays a 2.81% dividend yield.
Southern Company (SO) Financial Summary
Southern Company (SO) is a Utilities company in the Utilities - Regulated Electric industry, listed on NYSE. The stock currently trades at $95.99 with a market capitalization of $107.45B.
Key valuation metrics include a P/E ratio of 24.63, price-to-book ratio of 2.76, and EPS of $3.92. The company reports a profit margin of 14.5% and return on equity of 11.2%.
SO Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $107.45B |
| P/E Ratio | 24.63 |
| EPS | $3.92 |
| P/B Ratio | 2.76 |
| P/S Ratio | 3.56 |
| EV/EBITDA | 12.46 |
| Dividend Yield | 2.81% |
| Profit Margin | 14.5% |
| Return on Equity | 11.2% |
| Debt/Equity | 1.91 |
SO Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $21.42B | $4.75B |
| FY20 | $20.38B | $3.13B |
| FY21 | $23.11B | $2.41B |
| FY22 | $29.28B | $3.54B |
| FY23 | $25.25B | $3.98B |
| FY24 | $26.72B | $4.40B |
| FY25 | $29.55B | $4.34B |
Southern Company (SO) Valuation
Based on GoodMoat's DCF model, Southern Company has a fair value estimate of $64.51. At the current price of $95.99, the stock appears 48.8% overvalued relative to our intrinsic value estimate.
SO Quality Indicators
Southern Company maintains a profit margin of 14.5% and an operating margin of 24.7%. Return on equity stands at 11.2%. The current ratio is 0.65. Debt-to-equity ratio is 1.91.
About Southern Company
Southern Company is a leading energy provider serving 9 million customers across the Southeast and beyond through its family of companies. The company has electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company, a leading distributed energy solutions provider with national capabilities, a fiber optics network and telecommunications services. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and are the key to our sustained success, driven by our nearly 30,000 employees dedicated to delivering exceptional service.
SO Free Cash Flow
Southern Company generated $-2.63B in trailing twelve-month free cash flow, representing an FCF yield of -2.45%. This low FCF yield may reflect heavy reinvestment or growth spending.
SO Shares Outstanding
Southern Company has 1.12 billion shares outstanding at a share price of $95.99, giving it a market capitalization of $107.45B.
SO Recent Insider Trades
Recent insider transactions at Southern Company include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Kim Matthew M. (Comptroller) | SELL | 100 | $9657.00 |
| Greene Kimberly S, (Chairman, President & CEO, GPC) | SELL | 25,000 | $2.42M |
| Cummiskey Christopher (EVP) | SELL | 6,669 | $643891.95 |