SO

The Southern Company

Fundamental data last updated:July 6, 2026

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company profile

SECTOR

Utilities

industry

Regulated Electric

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/30/2026

Business Summary

The Southern Company operates as an energy utility, primarily involved in the production, transmission, and distribution of electricity. Its operations are segmented into Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services. The company also undertakes the development, construction, acquisition, ownership, and management of various power generation assets, including renewable energy ventures, and supplies electricity to the wholesale market. Complementing its power business, it distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, while also offering gas marketing services, wholesale gas services, and managing gas pipeline investments. Its extensive portfolio of generating assets includes 30 hydroelectric, 24 fossil fuel, three nuclear, 13 combined cycle/cogeneration, 45 solar, 15 wind, one fuel cell, and four battery storage facilities. In terms of natural gas infrastructure, the company builds, operates, and maintains 76,289 miles of pipelines and 14 storage facilities with a total capacity of 157 billion cubic feet, delivering natural gas to residential, commercial, and industrial clients. The Southern Company serves approximately 8.7 million electric and gas utility customers in total. Furthermore, it provides digital wireless communications and fiber optics services. The company was founded in 1945 and maintains its corporate headquarters in Atlanta, Georgia.

 


VALUATION

P/E

25.24

Market Cap ($M USD)

$110.45B

Forward P/E

15.84

PEG

0.27

PRICE TO SALES

3.66

PRICE TO BOOK

2.97

EV / EBITDA

12.84

5-Year Average P/E

Free Cash Flow Yield

-3.42%

DCF Value

$35.90

Graham Number

$53.71

Price to FCF

-29.24

EV to FCF

-49.11

Earnings Yield

3.96%

FCF Yield

-3.42%

DIVIDEND

Yield

3.04%

Annual Payout

$2.98

Payout Ratio

70.02%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.88

Next Year EPS Growth Estimate

$6.19

Next Year Revenue Growth Estimate

$3.69T

Return on Equity (ROE)

12.28%

FREE CASH FLOW

Operating Margin

24.15%

Debt-to-Equity

1.83

Piotroski F-Score

5

Altman Z-Score

1.03

Return on Invested Capital (ROIC)

5.14%

Current Ratio

0.65

Quick Ratio

0.44

Net Debt to EBITDA

5.20

Interest Coverage

2.16

Gross Profit margin

43.11%

FCF PER SHARE

$-3.36

REVENUE PER SHARE

$26.85

Gainseekers Quantitative Analysis

Summary

The Southern Company appears to be significantly overvalued based on its DCF Value and Graham Number, with recent pricing indicating a premium far above intrinsic value. The Forward P/E of 15.02 suggests some optimism about future earnings, yet the Earnings Yield of 4.18% is modest, hinting at limited upside. The Altman Z-score of 0.99 raises red flags about financial distress, suggesting potential vulnerability. Despite a robust Return on Equity of 12.28%, the market may be overlooking underlying risks.

AI Exposure / Tech Reliance

Operating within the regulated electric industry, The Southern Company is somewhat insulated from rapid AI and tech disruptions. Its focus on essential services provides a buffer against the volatility seen in tech-driven sectors. However, integrating smart grid technologies could enhance operational efficiency and customer engagement.

The Bull Case

For value or GARP investors, The Southern Company's appeal lies in its solid operating margin of 24.15% and a respectable ROIC of 5.14%, indicating effective capital deployment. The Piotroski F-Score of 5 reflects moderate financial health, while the company's pricing power is evident in its gross profit margin of 43.11%. Despite a negative FCF Yield, its dividend yield of 3.19% offers income stability, making it attractive for income-focused investors.

The Bear Case

The stock faces significant structural risks, notably its negative Free Cash Flow Yield and a Price to FCF ratio of -27.42, highlighting cash flow challenges. Trading near its 52-week high, it appears technically overextended, with a Price/Book ratio of 2.81 suggesting a rich valuation. The Current Ratio of 0.65 and Quick Ratio of 0.44 indicate liquidity concerns, while a Net Debt to EBITDA of 5.20 underscores leverage issues.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$102.00

Institutional Ownership %

1-Year Beta

0.33

Insider Buying % (6 Mo)

Distance to 52-Week High

2.92%

Distance to 52-Week Low

14.47%

EARNINGS SURPRISE %

9.09%

50-DAY SMA

$93.78

200-DAY SMA

$92.70

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.