(SO) Southern - Overview
Stock: Electricity, Gas, Transmission, Pipelines, Renewables
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 3.29% |
| Yield on Cost 5y | 7.32% |
| Yield CAGR 5y | 2.92% |
| Payout Consistency | 99.3% |
| Payout Ratio | 78.9% |
| Risk 5d forecast | |
|---|---|
| Volatility | 17.3% |
| Relative Tail Risk | 0.51% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.48 |
| Alpha | 6.74 |
| Character TTM | |
|---|---|
| Beta | 0.014 |
| Beta Downside | 0.053 |
| Drawdowns 3y | |
|---|---|
| Max DD | 15.46% |
| CAGR/Max DD | 0.95 |
Description: SO Southern January 28, 2026
The Southern Company (NYSE:SO) is a vertically integrated utility that generates, transmits, and distributes electricity, while also operating an extensive natural-gas pipeline network (≈78,500 mi) and storage assets. Its portfolio includes conventional generation, growing renewable projects, retail electric services, distributed-energy solutions, microgrids, and digital communications infrastructure, serving customers across the Southeast and select Midwest states.
Recent performance metrics (Q3 2024) show adjusted earnings per share of $1.23 and total revenue of $22.5 billion, with capital expenditures of $5.2 billion-of which roughly 30 % is earmarked for renewable-energy and grid-modernization projects. The company now operates about 5,600 MW of renewable capacity, up 12 % year-over-year, and its natural-gas pipelines moved 1.9 billion cubic feet per day in the latest quarter, reflecting steady demand for heating and industrial fuel.
Key drivers for SO’s outlook include: (1) regulated rate-case outcomes that set the allowed return on equity and can offset inflationary cost pressures; (2) federal and state clean-energy policies that accelerate renewable-capacity additions and incentivize microgrid deployments; and (3) macro-economic factors such as interest-rate trends, which influence the cost of capital for large-scale infrastructure projects and affect utility-rate adjustments.
For a deeper, data-driven assessment of Southern Company’s valuation and risk profile, a quick look at ValueRay’s analyst framework can be a useful next step.
Piotroski VR‑10 (Strict, 0-10) 4.0
| Net Income: 4.46b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA -1.59 > 1.0 |
| NWC/Revenue: -14.18% < 20% (prev -4.26%; Δ -9.92% < -1%) |
| CFO/TA 0.06 > 3% & CFO 9.38b > Net Income 4.46b |
| Net Debt (70.40b) to EBITDA (14.02b): 5.02 < 3 |
| Current Ratio: 0.75 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.11b) vs 12m ago 0.63% < -2% |
| Gross Margin: 49.10% > 18% (prev 0.50%; Δ 4860 % > 0.5%) |
| Asset Turnover: 19.46% > 50% (prev 18.36%; Δ 1.10% > 0%) |
| Interest Coverage Ratio: 2.76 > 6 (EBITDA TTM 14.02b / Interest Expense TTM 3.04b) |
Altman Z'' 0.72
| A: -0.03 (Total Current Assets 12.63b - Total Current Liabilities 16.73b) / Total Assets 153.25b |
| B: 0.10 (Retained Earnings 15.25b / Total Assets 153.25b) |
| C: 0.06 (EBIT TTM 8.38b / Avg Total Assets 148.60b) |
| D: 0.18 (Book Value of Equity 20.64b / Total Liabilities 114.97b) |
| Altman-Z'' Score: 0.72 = B |
Beneish M -3.16
| DSRI: 0.81 (Receivables 3.90b/4.42b, Revenue 28.91b/26.43b) |
| GMI: 1.01 (GM 49.10% / 49.83%) |
| AQI: 0.95 (AQ_t 0.19 / AQ_t-1 0.19) |
| SGI: 1.09 (Revenue 28.91b / 26.43b) |
| TATA: -0.03 (NI 4.46b - CFO 9.38b) / TA 153.25b) |
| Beneish M-Score: -3.16 (Cap -4..+1) = AA |
What is the price of SO shares?
Over the past week, the price has changed by +0.86%, over one month by +2.93%, over three months by -0.09% and over the past year by +11.10%.
Is SO a buy, sell or hold?
- StrongBuy: 5
- Buy: 4
- Hold: 10
- Sell: 1
- StrongSell: 1
What are the forecasts/targets for the SO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 95.8 | 6.3% |
| Analysts Target Price | 95.8 | 6.3% |
| ValueRay Target Price | 104.1 | 15.6% |
SO Fundamental Data Overview February 03, 2026
P/E Forward = 19.4932
P/S = 3.3586
P/B = 2.8095
P/EG = 3.1932
Revenue TTM = 28.91b USD
EBIT TTM = 8.38b USD
EBITDA TTM = 14.02b USD
Long Term Debt = 64.62b USD (from longTermDebt, last quarter)
Short Term Debt = 7.88b USD (from shortTermDebt, last quarter)
Debt = 73.75b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 70.40b USD (from netDebt column, last quarter)
Enterprise Value = 167.51b USD (97.11b + Debt 73.75b - CCE 3.34b)
Interest Coverage Ratio = 2.76 (Ebit TTM 8.38b / Interest Expense TTM 3.04b)
EV/FCF = -83.84x (Enterprise Value 167.51b / FCF TTM -2.00b)
FCF Yield = -1.19% (FCF TTM -2.00b / Enterprise Value 167.51b)
FCF Margin = -6.91% (FCF TTM -2.00b / Revenue TTM 28.91b)
Net Margin = 15.42% (Net Income TTM 4.46b / Revenue TTM 28.91b)
Gross Margin = 49.10% ((Revenue TTM 28.91b - Cost of Revenue TTM 14.72b) / Revenue TTM)
Gross Margin QoQ = 55.02% (prev 50.05%)
Tobins Q-Ratio = 1.09 (Enterprise Value 167.51b / Total Assets 153.25b)
Interest Expense / Debt = 1.02% (Interest Expense 755.0m / Debt 73.75b)
Taxrate = 18.95% (400.0m / 2.11b)
NOPAT = 6.80b (EBIT 8.38b * (1 - 18.95%))
Current Ratio = 0.75 (Total Current Assets 12.63b / Total Current Liabilities 16.73b)
Debt / Equity = 2.11 (Debt 73.75b / totalStockholderEquity, last quarter 35.00b)
Debt / EBITDA = 5.02 (Net Debt 70.40b / EBITDA 14.02b)
Debt / FCF = -35.24 (negative FCF - burning cash) (Net Debt 70.40b / FCF TTM -2.00b)
Total Stockholder Equity = 34.02b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.00% (Net Income 4.46b / Total Assets 153.25b)
RoE = 13.11% (Net Income TTM 4.46b / Total Stockholder Equity 34.02b)
RoCE = 8.50% (EBIT 8.38b / Capital Employed (Equity 34.02b + L.T.Debt 64.62b))
RoIC = 6.61% (NOPAT 6.80b / Invested Capital 102.79b)
WACC = 3.75% (E(97.11b)/V(170.85b) * Re(5.97%) + D(73.75b)/V(170.85b) * Rd(1.02%) * (1-Tc(0.19)))
Discount Rate = 5.97% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: 33.33 | Cagr: 0.52%
Fair Price DCF = unknown (Cash Flow -2.00b)
EPS Correlation: -9.23 | EPS CAGR: -46.85% | SUE: -4.0 | # QB: 0
Revenue Correlation: 26.49 | Revenue CAGR: 8.47% | SUE: -0.11 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.27 | Chg30d=-0.002 | Revisions Net=+1 | Analysts=10
EPS next Year (2026-12-31): EPS=4.56 | Chg30d=-0.019 | Revisions Net=-6 | Growth EPS=+6.3% | Growth Revenue=+5.3%