SOMN

The Southern Company

Fundamental data last updated:September 24, 2026

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company profile

SECTOR

Utilities

industry

Regulated Electric

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Established in 1946 and headquartered in Atlanta, Georgia, The Southern Company operates as a diversified energy utility. Its primary activities involve the production, transmission, and distribution of electricity. The company is responsible for developing, constructing, acquiring, owning, and managing a variety of electricity generation assets, including renewable energy projects, and it engages in the wholesale sale of power. Additionally, it serves as a natural gas distributor in Illinois, Georgia, Virginia, and Tennessee, overseeing the operation and maintenance of approximately 78,500 miles of natural gas pipelines and 14 storage facilities, while also offering gas marketing services. Beyond its wholesale and natural gas operations, The Southern Company provides electric services directly to retail customers. Its portfolio further includes distributed energy and resilience solutions, digital wireless communications, and fiber optics services, along with the deployment of microgrids for commercial, industrial, governmental, and utility clientele.

 


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VALUATION

P/E

12.88

Market Cap ($M USD)

$108.21B

Forward P/E

8.09

PEG

0.14

PRICE TO SALES

3.59

PRICE TO BOOK

2.91

EV / EBITDA

12.69

5-Year Average P/E

Free Cash Flow Yield

-3.49%

DCF Value

$36.92

Graham Number

$53.71

Price to FCF

-28.65

EV to FCF

-48.51

Earnings Yield

4.04%

FCF Yield

-3.49%

DIVIDEND

Yield

3.10%

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

$6.18

Next Year Revenue Growth Estimate

$37.87B

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

0.75

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

Analyze SOMN on TradingView

Gainseekers Quantitative Analysis

Summary

The Southern Company appears to be a classic case of market mispricing. With a DCF value significantly higher than its snapshot price, the market seems to undervalue its potential. The Forward P/E of 8.17 suggests a bargain for future earnings, while the earnings yield of 7.68% indicates a solid return relative to its price. However, the Altman Z-score of 0.75 raises red flags about financial distress, hinting at potential risks despite its attractive valuation. Overall, the stock presents a compelling opportunity for those willing to navigate its financial complexities.

AI Exposure / Tech Reliance

In the regulated electric industry, The Southern Company is well-positioned to integrate AI and modern technologies to enhance grid efficiency and customer service. Its sector's inherent stability provides a buffer against rapid tech shifts, allowing for gradual adaptation. However, the pace of innovation in utilities is traditionally slow, which could limit immediate tech-driven gains.

The Bull Case

For value and GARP investors, The Southern Company offers a tantalizing proposition. Its ROIC of 5.15% and operating margin of 24.17% reflect robust capital efficiency and pricing power. Despite a negative FCF yield, the Piotroski F-Score of 5 indicates moderate financial health. These metrics suggest that the company can generate consistent returns, making it an attractive buy for those seeking undervalued opportunities with potential for growth.

The Bear Case

The Southern Company's structural weaknesses are glaring. Its negative FCF yield and high net debt to EBITDA ratio of 5.17 highlight significant cash flow challenges. The Altman Z-score suggests financial distress, and its current ratio of 0.65 indicates liquidity issues. Trading near its 52-week high, the stock may be technically overextended, posing risks for investors wary of its fragile financial footing.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

N/A

Average Analyst Price Target

N/A

Institutional Ownership %

1-Year Beta

0.33

Insider Buying % (6 Mo)

Distance to 52-Week High

7.98%

Distance to 52-Week Low

4.26%

EARNINGS SURPRISE %

9.09%

50-DAY SMA

$50.47

200-DAY SMA

$50.74

⚠️ 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.