NYSE:SO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

6 star dividend payer with proven track record.


Similar Companies

Share Price & News

How has Southern's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

SO

1.0%

US Electric Utilities

-0.02%

US Market


1 Year Return

38.7%

SO

19.5%

US Electric Utilities

1.6%

US Market

SO outperformed the Electric Utilities industry which returned 19.5% over the past year.

SO outperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

SOIndustryMarket
7 Day1.5%1.0%-0.02%
30 Day5.4%3.5%2.7%
90 Day8.5%4.0%1.4%
1 Year45.5%38.7%23.5%19.5%3.8%1.6%
3 Year31.9%14.1%37.2%23.4%45.2%35.8%
5 Year78.1%40.5%82.5%51.3%61.8%44.1%

Price Volatility Vs. Market

How volatile is Southern's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Southern undervalued based on future cash flows and its price relative to the stock market?

14.28x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Southern's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Southern's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

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

Southern is overvalued based on assets compared to the US Electric Utilities industry average.


Next Steps

Future Growth

How is Southern expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

-10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Southern's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Southern's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Southern's revenue growth is positive but not above the United States of America market average.

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 earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Southern is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Southern performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Southern's year on year earnings growth rate has been positive over the past 5 years.

Southern's 1-year earnings growth exceeds its 5-year average (88.3% vs 4.3%)

Southern's earnings growth has exceeded the US Electric Utilities industry average in the past year (88.3% vs 4.2%).


Return on Equity

Southern has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Southern used its assets more efficiently than the US Electric Utilities industry average last year based on Return on Assets.


Return on Capital Employed

Southern's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Southern's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Southern's level of debt (140.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (118.5% vs 140.8% 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 2.8x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

4.17%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Southern's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Southern's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

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

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

What is the CEO of Southern's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average management tenure


CEO

Tom Fanning (62yo)

8.8yrs

Tenure

US$13,097,691

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. Mr. Fa ...


CEO Compensation Analysis

Tom's remuneration is about average for companies of similar size in United States of America.

Tom's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.5yrs

Average Tenure

56yo

Average Age

The average tenure for the Southern management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.3yrs

Average Tenure

62.5yo

Average Age

The tenure for the Southern board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$63,34507 Jun 19
Anthony Earley
EntityIndividual
Shares1,261
Max PriceUS$51.83
SellUS$952,91208 Mar 19
Christopher Womack
EntityIndividual
Shares18,922
Max PriceUS$50.36
BuyUS$100,38006 Mar 19
Henry Clark
EntityIndividual
Shares2,000
Max PriceUS$50.19
SellUS$428,20706 Dec 18
Mark Lantrip
EntityIndividual
Shares9,000
Max PriceUS$47.58
SellUS$705,45004 Dec 18
Kimberly Greene
EntityIndividual
Role
Unit Chairman
Chairman
Shares15,000
Max PriceUS$47.03

Ownership Breakdown


Management Team

  • William Bowers (63yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$5.38m
  • Drew Evans (52yo)

    Executive VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$4.39m
  • Tom Fanning (62yo)

    Chairman

    • Tenure: 8.8yrs
    • Compensation: US$13.10m
  • Martin Davis (55yo)

    Chief Information Officer & Executive VP

    • Tenure: 4.2yrs
  • Mark Crosswhite (57yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$4.96m
  • Stephen Kuczynski (57yo)

    Chairman

    • Tenure: 8.2yrs
    • Compensation: US$6.46m
  • Ann Daiss (51yo)

    Chief Accounting Officer & Comptroller

    • Tenure: 6.5yrs
  • James Kerr (55yo)

    Executive VP

    • Tenure: 5.5yrs
  • Stacy Kilcoyne

    Vice President of Human Resources

    • Tenure: 8.9yrs
  • Scott Gammill

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Jon Boscia (67yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$250.00k
  • Bill Smith (66yo)

    Director

    • Tenure: 13.6yrs
    • Compensation: US$260.00k
  • William Bowers (63yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$5.38m
  • Tom Fanning (62yo)

    Chairman

    • Tenure: 8.8yrs
    • Compensation: US$13.10m
  • Larry Thompson (74yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$275.00k
  • Kim Greene (53yo)

    Chairman

    • Tenure: 1.3yrs
    • Compensation: US$3.47m
  • Mark Crosswhite (57yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$4.96m
  • Stephen Kuczynski (57yo)

    Chairman

    • Tenure: 8.2yrs
    • Compensation: US$6.46m
  • Steven Specker (74yo)

    Lead Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$285.00k
  • Anthony Wilson (55yo)

    Chairman

    • Tenure: 3.1yrs

Company Information

The Southern Company's company bio, 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$63.808b
  • Shares outstanding: 1.05b
  • Website: https://www.southerncompany.com

Number of Employees


Location

  • The Southern Company
  • 30 Ivan Allen Jr Boulevard NW
  • 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
SOUTWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:21
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.