Southern
The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. The last earnings update was 77 days ago. More info.
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SO Share Price and Events
7 Day Returns
1 Year Returns
SO Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Southern (SO) | -2% | 0.5% | 7.4% | 17.3% | 4.6% | 24.5% |
| US Electric Utilities | -0.9% | 0.3% | 5.4% | 14.5% | 15.3% | 42.5% |
| US Market | 0.6% | 3.8% | 2.8% | 4.1% | 37.3% | 42.5% |
1 Year Return vs Industry and Market
- SO outperformed the Electric Utilities industry which returned 14.5% over the past year.
- SO outperformed the Market in United States of America which returned 4.1% over the past year.
Price Volatility
Related Companies
SO Value
Is Southern undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Southern
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Southern.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 13 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 7.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Electric Utilities Unlevered Beta | Simply Wall St/ S&P Global | 0.26 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.262 (1 + (1- 21%) (79.2%)) |
0.615 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%) |
7.5% |
Discounted Cash Flow Calculation for NYSE:SO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Southern is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 7.5%) |
|
|---|---|---|---|
| 2020 | 927.00 | Analyst x1 | 862.34 |
| 2021 | 1,062.50 | Analyst x2 | 919.45 |
| 2022 | 1,172.58 | Est @ 10.36% | 943.93 |
| 2023 | 1,267.22 | Est @ 8.07% | 948.97 |
| 2024 | 1,349.20 | Est @ 6.47% | 939.88 |
| 2025 | 1,421.34 | Est @ 5.35% | 921.08 |
| 2026 | 1,486.18 | Est @ 4.56% | 895.92 |
| 2027 | 1,545.82 | Est @ 4.01% | 866.87 |
| 2028 | 1,601.89 | Est @ 3.63% | 835.66 |
| 2029 | 1,655.69 | Est @ 3.36% | 803.48 |
| Present value of next 10 years cash flows | $8,937.58 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2029
× (1 + g) ÷ (Discount Rate – g)
= $1,655.69 × (1 + 2.73%) ÷ (7.5% – 2.73%) |
$35,673.06 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $35,673.06 ÷ (1 + 7.5%)10 |
$17,311.57 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $8,937.58 + $17,311.57 |
$26,249.15 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $26,249.15 / 1,040.30 |
$25.23 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $25.23 |
| Current discount | Discount to share price of
$55.79
= -1 x ($55.79 - $25.23) / $25.23 |
-121.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Southern is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Southern's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Southern's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $3.28 |
| NYSE:SO Share Price ** | NYSE (2019-07-17) in USD | $55.79 |
| United States of America Electric Utilities Industry PE Ratio | Median Figure of 26 Publicly-Listed Electric Utilities Companies | 22.65x |
| United States of America Market PE Ratio | Median Figure of 3,082 Publicly-Listed Companies | 17.98x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Southern.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:SO Share Price ÷ EPS (both in USD) = 55.79 ÷ 3.28 |
16.99x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Southern is good value based on earnings compared to the US Electric Utilities industry average.
- Southern is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Southern's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 16.99x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts |
-5.4%per year |
| United States of America Electric Utilities Industry PEG Ratio | Median Figure of 22 Publicly-Listed Electric Utilities Companies | 3.2x |
| United States of America Market PEG Ratio | Median Figure of 2,122 Publicly-Listed Companies | 1.59x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 16.99x ÷ -5.4% |
-3.16x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Southern earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Southern's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $25.41 |
| NYSE:SO Share Price * | NYSE (2019-07-17) in USD | $55.79 |
| United States of America Electric Utilities Industry PB Ratio | Median Figure of 29 Publicly-Listed Electric Utilities Companies | 2.21x |
| United States of America Market PB Ratio | Median Figure of 5,241 Publicly-Listed Companies | 1.81x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:SO Share Price ÷ Book Value per Share (both in USD) = 55.79 ÷ 25.41 |
2.2x |
* Primary Listing of Southern.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Southern is good value based on assets compared to the US Electric Utilities industry average.
Value checks
We assess Southern's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check) Southern has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
SO Future Performance
How is Southern expected to perform in the next 1 to 3 years based on estimates from 13 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Southern's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
- Southern's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
- Southern's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:SO Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts | -5.4% |
| NYSE:SO Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts | 2.7% |
| United States of America Electric Utilities Industry Earnings Growth Rate | Market Cap Weighted Average | 8.1% |
| United States of America Electric Utilities Industry Revenue Growth Rate | Market Cap Weighted Average | 2.4% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.1% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | 25,486 | 1 | ||
| 2021-12-31 | 23,249 | 7,181 | 3,441 | 10 |
| 2020-12-31 | 22,734 | 6,915 | 3,294 | 13 |
| 2019-12-31 | 22,160 | 5,513 | 3,924 | 11 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 22,535 | 6,180 | 3,372 |
| 2018-12-31 | 23,495 | 6,945 | 2,226 |
| 2018-09-30 | 23,786 | 6,728 | 2,443 |
| 2018-06-30 | 23,828 | 6,912 | 2,349 |
| 2018-03-31 | 23,632 | 7,007 | 1,122 |
| 2017-12-31 | 23,031 | 6,394 | 842 |
| 2017-09-30 | 22,584 | 5,849 | 544 |
| 2017-06-30 | 22,647 | 5,495 | 613 |
| 2017-03-31 | 21,675 | 4,912 | 2,617 |
| 2016-12-31 | 19,896 | 4,894 | 2,448 |
| 2016-09-30 | 18,283 | 5,482 | 2,522 |
| 2016-06-30 | 17,420 | 6,307 | 2,341 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
All data from Southern Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | ||||
| 2021-12-31 | 3.24 | 3.36 | 3.18 | 5.00 |
| 2020-12-31 | 3.16 | 3.25 | 3.04 | 8.00 |
| 2019-12-31 | 3.58 | 4.35 | 3.00 | 7.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 3.28 |
| 2018-12-31 | 2.18 |
| 2018-09-30 | 2.41 |
| 2018-06-30 | 2.33 |
| 2018-03-31 | 1.12 |
| 2017-12-31 | 0.84 |
| 2017-09-30 | 0.55 |
| 2017-06-30 | 0.62 |
| 2017-03-31 | 2.70 |
| 2016-12-31 | 2.57 |
| 2016-09-30 | 2.70 |
| 2016-06-30 | 2.55 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Southern's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Southern has a total score of 0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
SO Past Performance
How has Southern performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Southern's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
- Southern's 1-year earnings growth exceeds its 5-year average (200.5% vs -1.1%)
- Southern's earnings growth has exceeded the US Electric Utilities industry average in the past year (200.5% vs 9.7%).
Earnings and Revenue History
All data from Southern Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 22,535.00 | 3,372.00 | ||
| 2018-12-31 | 23,495.00 | 2,226.00 | ||
| 2018-09-30 | 23,786.00 | 2,443.00 | ||
| 2018-06-30 | 23,828.00 | 2,349.00 | ||
| 2018-03-31 | 23,632.00 | 1,122.00 | ||
| 2017-12-31 | 23,031.00 | 842.00 | ||
| 2017-09-30 | 22,584.00 | 544.00 | ||
| 2017-06-30 | 22,647.00 | 613.00 | ||
| 2017-03-31 | 21,675.00 | 2,617.00 | ||
| 2016-12-31 | 19,896.00 | 2,448.00 | ||
| 2016-09-30 | 18,283.00 | 2,522.00 | ||
| 2016-06-30 | 17,420.00 | 2,341.00 | ||
| 2016-03-31 | 17,298.00 | 2,348.00 | ||
| 2015-12-31 | 17,489.00 | 2,367.00 | ||
| 2015-09-30 | 17,938.00 | 2,379.00 | ||
| 2015-06-30 | 17,876.00 | 2,139.00 | ||
| 2015-03-31 | 18,006.00 | 2,120.00 | ||
| 2014-12-31 | 18,467.00 | 1,963.00 | ||
| 2014-09-30 | 18,377.00 | 2,094.00 | ||
| 2014-06-30 | 18,055.00 | 2,228.00 | ||
| 2014-03-31 | 17,834.00 | 1,914.00 | ||
| 2013-12-31 | 17,087.00 | 1,644.00 | ||
| 2013-09-30 | 16,863.00 | 1,613.00 | ||
| 2013-06-30 | 16,895.00 | 1,737.00 | ||
| 2013-03-31 | 16,830.00 | 2,063.00 | ||
| 2012-12-31 | 16,537.00 | 2,350.00 | ||
| 2012-09-30 | 16,530.00 | 2,228.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Southern has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Southern used its assets more efficiently than the US Electric Utilities industry average last year based on Return on Assets.
- Southern's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Southern's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Southern has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
SO Health
How is Southern's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Southern's finances.
The net worth of a company is the difference between its assets and liabilities.
- Southern's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Southern's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Southern Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 30,978.00 | 44,023.00 | 1,361.00 |
| 2018-12-31 | 29,330.00 | 46,652.00 | 1,396.00 |
| 2018-09-30 | 28,389.00 | 47,002.00 | 1,847.00 |
| 2018-06-30 | 27,016.00 | 49,701.00 | 1,980.00 |
| 2018-03-31 | 26,349.00 | 51,952.00 | 2,284.00 |
| 2017-12-31 | 25,852.00 | 50,589.00 | 2,130.00 |
| 2017-09-30 | 26,359.00 | 50,126.00 | 1,841.00 |
| 2017-06-30 | 25,410.00 | 50,190.00 | 1,433.00 |
| 2017-03-31 | 27,278.00 | 48,873.00 | 1,094.00 |
| 2016-12-31 | 26,894.00 | 47,321.00 | 1,975.00 |
| 2016-09-30 | 26,347.00 | 45,474.00 | 2,669.00 |
| 2016-06-30 | 23,611.00 | 39,471.00 | 1,908.00 |
| 2016-03-31 | 22,346.00 | 29,871.00 | 773.00 |
| 2015-12-31 | 22,143.00 | 28,622.00 | 1,426.00 |
| 2015-09-30 | 22,082.00 | 27,165.00 | 1,120.00 |
| 2015-06-30 | 21,305.00 | 27,388.00 | 824.00 |
| 2015-03-31 | 21,409.00 | 26,124.00 | 1,119.00 |
| 2014-12-31 | 21,340.00 | 24,641.00 | 717.00 |
| 2014-09-30 | 20,988.00 | 24,462.00 | 1,416.00 |
| 2014-06-30 | 20,557.00 | 24,523.00 | 583.00 |
| 2014-03-31 | 20,201.00 | 23,654.00 | 593.00 |
| 2013-12-31 | 20,139.00 | 23,132.00 | 662.00 |
| 2013-09-30 | 19,909.00 | 23,110.00 | 689.00 |
| 2013-06-30 | 19,171.00 | 23,615.00 | 430.00 |
| 2013-03-31 | 19,119.00 | 23,286.00 | 522.00 |
| 2012-12-31 | 19,379.00 | 22,354.00 | 635.00 |
| 2012-09-30 | 19,721.00 | 21,755.00 | 1,262.00 |
- Southern's level of debt (142.1%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (117.1% vs 142.1% today).
- Debt is not well covered by operating cash flow (14%, less than 20% of total debt).
- Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).
Financial health checks
We assess Southern's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Southern has a total score of 0/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
SO Dividends
What is Southern's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Southern
shares you are expected to receive
$89
in your first year as a dividend.
Dividend Amount
- Southern's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
- Southern's dividend is above the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 13 Analyst Estimates (S&P Global) | See Below |
| United States of America Electric Utilities Industry Average Dividend Yield | Market Cap Weighted Average of 27 Stocks | 3.3% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2017 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | 2.72 | 1.00 |
| 2021-12-31 | 2.62 | 10.00 |
| 2020-12-31 | 2.54 | 13.00 |
| 2019-12-31 | 2.47 | 13.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-07-15 | 2.480 | 4.440 |
| 2019-04-15 | 2.480 | 4.575 |
| 2019-01-17 | 2.400 | 4.792 |
| 2018-10-15 | 2.400 | 5.243 |
| 2018-07-16 | 2.400 | 5.286 |
| 2018-04-16 | 2.400 | 5.311 |
| 2018-01-19 | 2.320 | 5.263 |
| 2017-10-16 | 2.320 | 4.639 |
| 2017-04-17 | 2.320 | 4.706 |
| 2017-01-13 | 2.240 | 4.522 |
| 2016-10-17 | 2.240 | 4.578 |
| 2016-07-18 | 2.240 | 4.307 |
| 2016-04-18 | 2.240 | 4.414 |
| 2016-01-14 | 2.170 | 4.403 |
| 2015-10-19 | 2.170 | 4.761 |
| 2015-04-20 | 2.170 | 4.956 |
| 2015-01-16 | 2.100 | 4.532 |
| 2014-10-20 | 2.100 | 4.365 |
| 2014-07-21 | 2.100 | 4.763 |
| 2014-04-21 | 2.100 | 4.747 |
| 2014-01-17 | 2.030 | 4.764 |
| 2013-10-21 | 2.030 | 4.929 |
| 2013-07-15 | 2.030 | 4.776 |
| 2013-04-15 | 2.030 | 4.468 |
| 2013-01-18 | 1.960 | 4.336 |
| 2012-10-15 | 1.960 | 4.480 |
| 2012-07-16 | 1.960 | 4.234 |
| 2012-04-16 | 1.960 | 4.239 |
| 2012-01-13 | 1.890 | 4.229 |
| 2011-10-17 | 1.890 | 4.291 |
| 2011-07-18 | 1.890 | 4.608 |
| 2011-04-18 | 1.890 | 4.757 |
| 2011-01-13 | 1.820 | 4.802 |
| 2010-10-18 | 1.820 | 4.781 |
| 2010-07-19 | 1.820 | 4.965 |
| 2010-04-19 | 1.820 | 5.373 |
| 2010-01-15 | 1.750 | 5.357 |
| 2009-10-19 | 1.750 | 5.355 |
| 2009-07-20 | 1.750 | 5.526 |
| 2009-04-20 | 1.750 | 5.889 |
| 2009-01-16 | 1.680 | 5.440 |
| 2008-10-20 | 1.680 | 4.733 |
| 2008-07-21 | 1.680 | 4.588 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Southern's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.4x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
Income/ dividend checks
We assess Southern's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Southern afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Southern has a total score of 6/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
SO Management
CEO
| COMPENSATION | $13,097,691 |
| AGE | 62 |
| TENURE AS CEO | 8.6 years |
CEO Bio
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. Mr. Fanning served the Chair of Federal Reserve Bank of Atlanta (the “Company”) since November 2014 until January 2018. He served as the Chief Financial Officer of Southern Company Energy Solutions LLC and served as its Executive Vice President. He served as an Executive Vice President of Southern Company since April 2003 and its Chief Operating Officer since February 1, 2008. Since joining Southern Company in 1980 as Financial Analyst, he served various Executive positions in several Southern Company subsidiaries, including Chief Financial Officer of Mississippi Power Company since June 12, 1999. Mr. Fanning served as the Chief Information Officer and Senior Vice President of Strategy for the parent company and leadership roles at Southern Company Services. He served as the Chief Financial Officer of Southern Company from April 2003 to January 2008 and its Treasurer from April 2003 to May 2007. He served as the Chief Executive Officer and President of Southern Power Company. He served as the President and Chief Executive Officer of Gulf Power from May 2002 to April 2003, Executive Vice President, Treasurer and Chief Financial Officer of Georgia Power Company of Alabama Power Co., from June 1999 to 2002. Mr. Fanning served as the Chairman of Southern Power Company. He served as Vice Chairman of The St. Joe Company since 2011 and served as an Independent Director since May 17, 2005. He was a Director of Federal Reserve Bank of Atlanta until December 31, 2018. He served as Deputy Chairman of Federal Reserve Bank of Atlanta until November 2014. He served as a Director of Federal Reserve Bank of Atlanta since February 27, 2012. He has been a Director at Southern Power Company since November 4, 2003, Vulcan Materials Company since February 13, 2015 and Southern Company since 2010. He served as a Director at Georgia Power Co. since 2010 until February 11, 2015. He serves as a Trustee of Southern Center for International Studies and The Georgia Institute of Technology Advisory Board. He served as a Director of Gulf Power Co., from May 2002 to April 2003 and Alabama Power Co. since 2010. He served as a Director of The Electric Power Research Institute Inc. Mr. Fanning holds Bachelors degree and a Masters degree in Industrial Management from the Georgia Institute of Technology. His executive education includes programs at the International Institute for Management Development in Lausanne, Switzerland, Harvard University School of Business and the University of Virginia's Darden School of Business. He serves as Chairman of both the Electricity Subsector Coordinating Council (ESCC) and Strategic Infrastructure Coordinating Council (SICC).
CEO Compensation
- Tom's compensation has been consistent with company performance over the past year, both up more than 20%.
- Tom's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Southern management team in years:
- The average tenure for the Southern management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Tom Fanning
Chairman
$13M
62
8.6 yrs
Drew Evans
Executive VP & CFO
$4M
52
1.1 yrs
William Bowers
Executive Vice President
$5M
63
Mark Crosswhite
Executive Vice President
$5M
57
8.6 yrs
Stephen Kuczynski
Chairman of Southern Nuclear Operating Co.
$6M
57
8 yrs
Ann Daiss
Chief Accounting Officer & Comptroller
51
6.3 yrs
Martin Davis
Chief Information Officer & Executive VP
55
4 yrs
Scott Gammill
Head of Investor Relations
James Kerr
Executive VP
55
5.3 yrs
Stacy Kilcoyne
Vice President of Human Resources
8.8 yrs
Board of Directors Tenure
Average tenure and age of the Southern board of directors in years:
- The tenure for the Southern board of directors is about average.
Board of Directors
Stephen Kuczynski
Chairman of Southern Nuclear Operating Co.
$6M
57
8 yrs
Mark Lantrip
Chairman of Southern Co. Svcs Inc.
65
5.3 yrs
Anthony Wilson
Chairman of Mississippi Power
55
2.9 yrs
Bill Smith
Director
$260K
66
13.4 yrs
Tom Fanning
Chairman
$13M
62
8.6 yrs
Jon Boscia
Director
$250K
67
11.6 yrs
Larry Thompson
Director
$275K
74
4.6 yrs
Steven Specker
Lead Independent Director
$285K
74
1.2 yrs
David Grain
Director
$270K
57
6.6 yrs
Johnny Johns
Director
$270K
67
4.4 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 07. Jun 19 | Buy | Anthony Earley | Individual | 06. Feb 19 | 14. Mar 19 | 1,261 | $51.83 | $63,345 | ||
| 08. Mar 19 | Sell | Christopher Womack | Individual | 07. Mar 19 | 07. Mar 19 | -18,922 | $50.36 | $-952,912 | ||
| 06. Mar 19 | Buy | Henry Clark | Individual | 05. Mar 19 | 05. Mar 19 | 2,000 | $50.19 | $100,380 | ||
| 06. Dec 18 | Sell | Mark Lantrip | Individual | 04. Dec 18 | 04. Dec 18 | -9,000 | $47.58 | $-428,207 | ||
| 04. Dec 18 | Sell | Kimberly Greene | Individual | 03. Dec 18 | 03. Dec 18 | -15,000 | $47.03 | $-705,450 | ||
| 17. Aug 18 | Sell | Christopher Womack | Individual | 16. Aug 18 | 16. Aug 18 | -16,371 | $47.40 | $-776,025 | ||
Management checks
We assess Southern's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Southern has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
SO News
Simply Wall St News
Read This Before You Buy The Southern Company (NYSE:SO) Because Of Its P/E Ratio
View our latest analysis for Southern How Do I Calculate Southern's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Southern: P/E of 16.95 = $55.66 ÷ $3.28 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings.
Simply Wall St - – Full articleWho Has Been Selling The Southern Company (NYSE:SO) Shares?
So we'll take a look at whether insiders have been buying or selling shares in The Southern Company (NYSE:SO). … Over the last year we saw more insider selling of Southern shares, than buying. … NYSE:SO Recent Insider Trading, July 8th 2019 Insider Ownership of Southern I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.
Simply Wall St - – Full articleShould Southern (NYSE:SO) Be Disappointed With Their 25% Profit?
But The Southern Company (NYSE:SO) has fallen short of that second goal, with a share price rise of 25% over five years, which is below the market return. … During five years of share price growth, Southern achieved compound earnings per share (EPS) growth of 8.6% per year. … As well as measuring the share price return, investors should also consider the total shareholder return (TSR).
Simply Wall St - – Full articleWhat does The Southern Company's (NYSE:SO) Balance Sheet Tell Us About Its Future?
Check out our latest analysis for Southern SO’s Debt (And Cash Flows) SO has shrunk its total debt levels in the last twelve months, from US$52b to US$46b , which includes long-term debt. … Additionally, SO has generated cash from operations of US$6.2b in the last twelve months, resulting in an operating cash to total debt ratio of 13%, meaning that SO’s operating cash is less than its debt. … We can assess the sustainability of SO’s debt levels to the test by looking at how well interest payments are covered by earnings.
Simply Wall St - – Full articleIf You Like EPS Growth Then Check Out Southern (NYSE:SO) Before It's Too Late
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Southern (NYSE:SO). … View our latest analysis for Southern Southern's Earnings Per Share Are Growing. … But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months.
Simply Wall St - – Full articleWhy The Southern Company's (NYSE:SO) CEO Pay Matters To You
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. … How Does Tom Fanning's Compensation Compare With Similar Sized Companies?
Simply Wall St - – Full articleAre The Southern Company’s Returns On Capital Worth Investigating?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … First up, we'll look at what ROCE is and how we calculate it. … Return On Capital Employed (ROCE): What is it?
Simply Wall St - – Full articleWhat Are Analysts Saying About The Future Of The Southern Company's (NYSE:SO)?
Since The Southern Company (NYSE:SO) released its earnings in December 2018,. … as a 42% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of -3.9%
Simply Wall St - – Full articleHave Insiders Been Selling The Southern Company (NYSE:SO) Shares?
So we'll take a look at whether insiders have been buying or selling shares in The Southern Company (NYSE:SO). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … Over the last year we saw more insider selling of Southern shares, than buying
Simply Wall St - – Full articleThe Southern Company (NYSE:SO): What Can We Expect From This High Growth Stock?
The latest earnings update The Southern Company (NYSE:SO) released in December 2018a … indicated
Simply Wall St - – Full articleSO Company Info
Description
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 facilities 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. It owns and/or operates 33 hydroelectric generating stations, 26 fossil fuel generating stations, 3 nuclear generating stations, 13 combined cycle/cogeneration stations, 40 solar facilities, 9 wind facilities, and 1 biomass facility; and constructs, operates, and maintains 75,200 miles of natural gas pipelines and 14 storage facilities with total capacity of 158 Bcf to provide natural gas to residential, commercial, and industrial customers. The company serves approximately 9 million electric and gas utility customers. It also provides products and services in the areas of distributed generation infrastructure, energy efficiency, and utility infrastructure. In addition, the company offers digital wireless communications services with various communication options, including push to talk, cellular service, text messaging, wireless Internet access, and wireless data. The Southern Company was founded in 1945 and is headquartered in Atlanta, Georgia.
Details
| Name: | The Southern Company |
| SO | |
| Exchange: | NYSE |
| Founded: | 1945 |
| $58,038,098,888 | |
| 1,040,295,732 | |
| Website: | http://www.southerncompany.com |
| Address: |
The Southern Company 30 Ivan Allen Jr Boulevard NW, Atlanta, Georgia, 30308, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | SO | Common Stock | New York Stock Exchange | US | USD | 02. Jan 1968 | |
| DB | SOT | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1968 | |
| LSE | 0L8A | Common Stock | London Stock Exchange | GB | USD | 02. Jan 1968 | |
| WBAG | SOUT | Common Stock | Wiener Boerse AG | AT | EUR | 02. Jan 1968 |
Number of employees
Current staff
Industry
| Electric Utilities | |
| Utilities |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/07/17 23:44 |
| End of day share price update: | 2019/07/17 00:00 |
| Last estimates confirmation: | 2019/07/17 |
| Last earnings filing: | 2019/05/01 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
