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SO

Southern NYSE:SO Stock Report

Last Price

US$74.99

Market Cap

US$79.7b

7D

-2.9%

1Y

18.7%

Updated

24 Sep, 2022

Data

Company Financials +
SO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health1/6
Dividends3/6

SO Stock Overview

The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity.

Southern Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Southern
Historical stock prices
Current Share PriceUS$74.99
52 Week HighUS$80.57
52 Week LowUS$60.99
Beta0.50
1 Month Change-5.22%
3 Month Change7.39%
1 Year Change18.73%
3 Year Change21.40%
5 Year Change52.61%
Change since IPO414.95%

Recent News & Updates

Sep 05

What Makes Southern Company's High Yield So Special

Summary Southern Company is doing very well as it moves closer to the completion of nuclear unit Vogtle 3 in early 2023. As both Vogtle 3 and 4 are close to completion, Southern Company is in a good spot to accelerate EPS growth, reduce leverage, and improve shareholder distributions. The company has a decent yield, very consistent dividend growth, and a healthy balance sheet. The stock remains a top pick for income-oriented investors as well as everyone looking to add some low-volatility yield.

Aug 23
These 4 Measures Indicate That Southern (NYSE:SO) Is Using Debt Extensively

These 4 Measures Indicate That Southern (NYSE:SO) Is Using Debt Extensively

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 10
The Southern Company's (NYSE:SO) Intrinsic Value Is Potentially 99% Above Its Share Price

The Southern Company's (NYSE:SO) Intrinsic Value Is Potentially 99% Above Its Share Price

Today we will run through one way of estimating the intrinsic value of The Southern Company ( NYSE:SO ) by taking the...

Shareholder Returns

SOUS Electric UtilitiesUS Market
7D-2.9%-3.0%-5.2%
1Y18.7%5.8%-23.0%

Return vs Industry: SO exceeded the US Electric Utilities industry which returned 5.8% over the past year.

Return vs Market: SO exceeded the US Market which returned -23.1% over the past year.

Price Volatility

Is SO's price volatile compared to industry and market?
SO volatility
SO Average Weekly Movement2.8%
Electric Utilities Industry Average Movement3.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: SO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SO's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194527,164Tom Fanninghttps://www.southerncompany.com

The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. It operates through Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services segments. The company also develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, wholesale gas services, and gas pipeline investments operations.

Southern Fundamentals Summary

How do Southern's earnings and revenue compare to its market cap?
SO fundamental statistics
Market CapUS$79.71b
Earnings (TTM)US$3.02b
Revenue (TTM)US$25.86b

26.4x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SO income statement (TTM)
RevenueUS$25.86b
Cost of RevenueUS$15.39b
Gross ProfitUS$10.47b
Other ExpensesUS$7.44b
EarningsUS$3.02b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.84
Gross Margin40.47%
Net Profit Margin11.69%
Debt/Equity Ratio165.3%

How did SO perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

94%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SO?

Other financial metrics that can be useful for relative valuation.

SO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.4x
Enterprise Value/EBITDA15.6x
PEG Ratio3.4x

Price to Earnings Ratio vs Peers

How does SO's PE Ratio compare to its peers?

SO PE Ratio vs Peers
The above table shows the PE ratio for SO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.6x
DUK Duke Energy
21x7.5%US$79.9b
AEP American Electric Power Company
19.5x7.8%US$50.2b
XEL Xcel Energy
24x6.7%US$39.1b
EXC Exelon
21.8x8.6%US$41.4b
SO Southern
26.4x7.8%US$79.7b

Price-To-Earnings vs Peers: SO is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the peer average (21.6x).


Price to Earnings Ratio vs Industry

How does SO's PE Ratio compare vs other companies in the US Electric Utilities Industry?

Price-To-Earnings vs Industry: SO is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the US Electric Utilities industry average (19.5x)


Price to Earnings Ratio vs Fair Ratio

What is SO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.4x
Fair PE Ratio24.9x

Price-To-Earnings vs Fair Ratio: SO is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the estimated Fair Price-To-Earnings Ratio (24.9x).


Share Price vs Fair Value

What is the Fair Price of SO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SO ($74.99) is trading below our estimate of fair value ($155.68)

Significantly Below Fair Value: SO is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Southern forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SO's forecast earnings growth (7.8% per year) is above the savings rate (1.9%).

Earnings vs Market: SO's earnings (7.8% per year) are forecast to grow slower than the US market (14.7% per year).

High Growth Earnings: SO's earnings are forecast to grow, but not significantly.

Revenue vs Market: SO's revenue (2.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SO's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SO's Return on Equity is forecast to be low in 3 years time (14.3%).


Discover growth companies

Past Performance

How has Southern performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SO has high quality earnings.

Growing Profit Margin: SO's current net profit margins (11.7%) are lower than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: SO's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: SO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SO had negative earnings growth (-3.9%) over the past year, making it difficult to compare to the Electric Utilities industry average (10.1%).


Return on Equity

High ROE: SO's Return on Equity (8.7%) is considered low.


Discover strong past performing companies

Financial Health

How is Southern's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SO's short term assets ($9.8B) do not cover its short term liabilities ($11.5B).

Long Term Liabilities: SO's short term assets ($9.8B) do not cover its long term liabilities ($86.0B).


Debt to Equity History and Analysis

Debt Level: SO's net debt to equity ratio (160.1%) is considered high.

Reducing Debt: SO's debt to equity ratio has reduced from 196.8% to 165.3% over the past 5 years.

Debt Coverage: SO's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: SO's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


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Dividend

What is Southern current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.63%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SO's dividend (3.63%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: SO's dividend (3.63%) is low compared to the top 25% of dividend payers in the US market (4.57%).


Stability and Growth of Payments

Stable Dividend: SO's dividends per share have been stable in the past 10 years.

Growing Dividend: SO's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (93.5%), SO's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: SO is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.5yrs

Average management tenure


CEO

Tom Fanning (65 yo)

12.08yrs

Tenure

US$21,243,559

Compensation

Mr. Thomas A. Fanning, also known as Tom, has been the Chairman and Chief Executive Officer of The Southern Company since December 1, 2010 and its President of Southern Company since August 1, 2010. He ser...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD21.24M) is above average for companies of similar size in the US market ($USD13.05M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SO's management team is seasoned and experienced (8.5 years average tenure).


Board Members

Experienced Board: SO's board of directors are considered experienced (9.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:SO Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
04 Mar 22SellUS$506,025Ann DaissIndividual7,500US$67.47
23 Feb 22SellUS$57,821Christopher CummiskeyIndividual909US$63.61
10 Nov 21SellUS$149,507Daniel TuckerIndividual2,350US$63.62

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 45.96% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.77%
The Vanguard Group, Inc.
93,260,760$7.0b1.76%0.16%
7.12%
BlackRock, Inc.
75,637,432$5.7b8.78%0.14%
6%
State Street Global Advisors, Inc.
63,755,513$4.8b1.68%0.26%
5.58%
T. Rowe Price Group, Inc.
59,348,519$4.5b3.45%0.52%
2.66%
Massachusetts Financial Services Company
28,272,264$2.1b-3.49%0.55%
2.55%
FMR LLC
27,068,060$2.0b7.67%0.19%
1.72%
Geode Capital Management, LLC
18,278,734$1.4b3.98%0.18%
1.54%
Franklin Resources, Inc.
16,324,829$1.2b-30.81%0.52%
1.12%
Northern Trust Global Investments
11,895,604$892.1m6.91%0.18%
1.07%
Capital Research and Management Company
11,405,289$855.3m0.01%0.06%
0.93%
Legal & General Investment Management Limited
9,924,668$744.3m-0.06%0.22%
0.8%
BNY Mellon Asset Management
8,523,379$639.2m10.33%0.14%
0.74%
Strategic Advisers LLC
7,849,002$588.6m9.12%0.49%
0.73%
California Public Employees' Retirement System
7,773,673$582.9m-1.78%0.54%
0.52%
Charles Schwab Investment Management, Inc.
5,478,270$410.8m0.47%0.11%
0.49%
Federated Hermes, Inc.
5,213,696$391.0m-5.24%1.17%
0.44%
Invesco Capital Management LLC
4,711,141$353.3m-9.5%0.27%
0.43%
Swiss National Bank, Asset Management Arm
4,599,147$344.9m0.19%0.23%
0.43%
Morgan Stanley, Investment Banking and Brokerage Investments
4,598,605$344.8m-3.71%0.07%
0.42%
UBS Asset Management
4,497,154$337.2m-4.19%0.06%
0.42%
Managed Account Advisors LLC
4,481,838$336.1m-0.84%0.09%
0.38%
Eaton Vance Management
4,005,910$300.4m5.31%0.11%
0.37%
Pictet Asset Management Limited
3,908,636$293.1m1.64%0.26%
0.37%
Norges Bank Investment Management
3,908,316$293.1m0%0.04%
0.37%
Goldman Sachs Asset Management, L.P.
3,880,891$291.0m3.01%0.12%

Company Information

The Southern Company's employee growth, exchange listings and data sources


Key Information

  • Name: The Southern Company
  • Ticker: SO
  • Exchange: NYSE
  • Founded: 1945
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: US$79.714b
  • Shares outstanding: 1.06b
  • Website: https://www.southerncompany.com

Number of Employees


Location

  • The Southern Company
  • 30 Ivan Allen Jr. Boulevard, N.W.
  • Atlanta
  • Georgia
  • 30308
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SONYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
SOTDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0L8ALSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
SOTETLX (Eurotlx)YesCommon StockITEURJan 1968
SOUTWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
SO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
T1SO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.