SO

SouthernNYSE:SO Stock Report

Market Cap

US$67.9b

7D

-3.1%

1Y

21.5%

Updated

18 Sep, 2021

Data

Company Financials +
SO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance2/6
Financial Health2/6
Dividends6/6

SO 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$64.14
52 Week HighUS$52.01
52 Week LowUS$67.54
Beta0.45
1 Month Change-3.38%
3 Month Change4.38%
1 Year Change21.45%
3 Year Change45.74%
5 Year Change19.82%
Change since IPO340.45%

Recent News & Updates

Sep 05
The Southern Company's (NYSE:SO) Intrinsic Value Is Potentially 25% Below Its Share Price

The Southern Company's (NYSE:SO) Intrinsic Value Is Potentially 25% Below Its Share Price

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

Sep 02

Southern Company: A Utility With Bullish Fundamentals

Southern Company’s adjusted earnings grew in the second quarter as economic activity increased. The company continues to see a long-term EPS growth rate in the 5% to 7% range. Several top funds we track increased their positions for the filing period ended June 30, 2021.

Aug 01

The Southern Company: What To Expect Next?

My last articles performed analyses focusing on the specifics and ROCE of the Southern Company. This article reviews the return drivers in the past decade, and then provides an outlook for the next one. The results unfortunately suggest that it is unlikely that the past decade's performance can be repeated for the next one.

Shareholder Returns

SOUS Electric UtilitiesUS Market
7D-3.1%-3.1%-0.6%
1Y21.5%16.2%33.8%

Return vs Industry: SO exceeded the US Electric Utilities industry which returned 16.2% over the past year.

Return vs Market: SO underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is SO's price volatile compared to industry and market?
SO volatility
SO Beta0.45
Industry Beta0.43
Market Beta1

Stable Share Price: SO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SO's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194527,839Tom Fanninghttps://www.southerncompany.com

The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. It operates in four segments: Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services. The company also constructs, acquires, owns, and manages power generation assets, including renewable energy and battery energy storage 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.

Valuation

Is Southern undervalued compared to its fair value and its price relative to the market?

21.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SO ($64.14) is trading above our estimate of fair value ($49.9)

Significantly Below Fair Value: SO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SO is good value based on its PE Ratio (21.6x) compared to the US Electric Utilities industry average (21.8x).

PE vs Market: SO is poor value based on its PE Ratio (21.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SO is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: SO is overvalued based on its PB Ratio (2.4x) compared to the US Electric Utilities industry average (2x).


Future Growth

How is Southern forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SO's forecast earnings growth (9.5% per year) is above the savings rate (2%).

Earnings vs Market: SO's earnings (9.5% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: SO's revenue (3.5% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: SO's revenue (3.5% 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 (13.2%).


Past Performance

How has Southern performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SO has high quality earnings.

Growing Profit Margin: SO's current net profit margins (14.4%) are lower than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: SO's earnings have grown by 16.7% 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 (-2.8%) over the past year, making it difficult to compare to the Electric Utilities industry average (1.6%).


Return on Equity

High ROE: SO's Return on Equity (9.4%) is considered low.


Financial Health

How is Southern's financial position?


Financial Position Analysis

Short Term Liabilities: SO's short term assets ($9.6B) do not cover its short term liabilities ($11.7B).

Long Term Liabilities: SO's short term assets ($9.6B) do not cover its long term liabilities ($81.2B).


Debt to Equity History and Analysis

Debt Level: SO's debt to equity ratio (157.6%) is considered high.

Reducing Debt: SO's debt to equity ratio has reduced from 166.6% to 157.6% over the past 5 years.

Debt Coverage: SO's debt is not well covered by operating cash flow (13%).

Interest Coverage: SO's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

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

4.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SO's dividend (4.12%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: SO's dividend (4.12%) is in the top 25% of dividend payers in the US market (3.6%)


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.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.9%), SO's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SO's dividends in 3 years are forecast to be covered by earnings (71.9% payout ratio).


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

Tom Fanning (64 yo)

10.75yrs

Tenure

US$22,366,850

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 ($USD22.37M) is above average for companies of similar size in the US market ($USD11.36M).

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 years average tenure).


Board Members

Experienced Board: SO's board of directors are considered experienced (6.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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
  • Market Cap: US$67.913b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.