SO Stock Overview
The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$74.99|
|52 Week High||US$80.57|
|52 Week Low||US$60.99|
|1 Month Change||-5.22%|
|3 Month Change||7.39%|
|1 Year Change||18.73%|
|3 Year Change||21.40%|
|5 Year Change||52.61%|
|Change since IPO||414.95%|
Recent News & Updates
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.
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...
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...
|SO||US Electric Utilities||US Market|
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.
|SO Average Weekly Movement||2.8%|
|Electric Utilities Industry Average Movement||3.0%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
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
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
|SO fundamental statistics|
Is SO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SO income statement (TTM)|
|Cost of Revenue||US$15.39b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||2.84|
|Net Profit Margin||11.69%|
How did SO perform over the long term?See historical performance and comparison
3.6%Current Dividend Yield
Is SO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is SO's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does SO's PE Ratio compare to its peers?
|SO PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
DUK Duke Energy
AEP American Electric Power Company
XEL Xcel Energy
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.
|Current PE Ratio||26.4x|
|Fair PE Ratio||24.9x|
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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How is Southern forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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%).
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How has Southern performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
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.
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How is Southern's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
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 ($86.0B).
Debt to Equity History and Analysis
Debt Level: SO's net debt to equity ratio (160.1%) is considered high.
Reducing Debt: SO's debt to equity ratio has reduced from 196.8% to 165.3% over the past 5 years.
Debt Coverage: SO's debt is not well covered by operating cash flow (12.4%).
Interest Coverage: SO's interest payments on its debt are not well covered by EBIT (2.6x coverage).
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What is Southern current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SO's dividend (3.63%) is higher than the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: SO's dividend (3.63%) is low compared to the top 25% of dividend payers in the US market (4.57%).
Stability and Growth of Payments
Stable Dividend: SO's dividends per share have been stable in the past 10 years.
Growing Dividend: SO's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (93.5%), SO's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: SO is paying a dividend but the company has no free cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Fanning (65 yo)
Mr. Thomas A. Fanning, also known as Tom, has been the Chairman and Chief Executive Officer of The Southern Company since December 1, 2010 and its President of Southern Company since August 1, 2010. He ser...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($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.
Experienced Management: SO's management team is seasoned and experienced (8.5 years average tenure).
Experienced Board: SO's board of directors are considered experienced (9.1 years average tenure).
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
|04 Mar 22||SellUS$506,025||Ann Daiss||Individual||7,500||US$67.47|
|23 Feb 22||SellUS$57,821||Christopher Cummiskey||Individual||909||US$63.61|
|10 Nov 21||SellUS$149,507||Daniel Tucker||Individual||2,350||US$63.62|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
The Southern Company's employee growth, exchange listings and data sources
- 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
- The Southern Company
- 30 Ivan Allen Jr. Boulevard, N.W.
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SO||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|SOT||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|0L8A||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|SOT||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Jan 1968|
|SOUT||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Jan 1968|
|SO *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1968|
|T1SO34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH REPR 1 COM||BR||BRL||Dec 2019|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/24 00:00|
|End of Day Share Price||2022/09/23 00:00|
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.