Stock Analysis
The Southern CompanySO
P/E 22.52×· 5Y range 13.74–293.09×· 46th percentile of history
Sector: Utilities · Industry: Electric Services
AnalystsHold32 analystsP/E 22.5× sits at the 46th percentile of its 5.0978781656399725-year history.
Cash covers 4% of debt · Q2 2026.
PMP Verdict
Mixed fundamentals, fairly valued
Strengths
- Growth72
Risks
- Financial Health24
- Quality47
Mixed picture — no clear quality or value edge.
Market context
+2.2% today· Z 1.1σ
What's happening with SO
Profile
financial health, moat, valuation and earnings quality lag behind.
How is each axis scored?
- Valuation44/100 · Weak
- P/E vs own history (46th pct)12/25
- FCF yield (-3.4%)0/25
- P/S (3.4x)20/25
- EV/EBIT (24.4x)12/25
- Growth72/100 · Moderate
- Revenue CAGR (6.3%)12/25
- Net income CAGR (16.1%)20/25
- EPS CAGR 5Y (15.0%)20/25
- Fwd implied growth (26.5%)20/25
- Profitability57/100 · Moderate
- ROIC (5.0%)5/25
- ROE (11.0%)12/25
- Net margin (15.4%)20/25
- Operating margin (24.2%)20/25
- Financial Health24/100 · Weak
- Altman Z (0.80)3/25
- Current ratio (0.79)6/25
- Interest coverage (2.6x)10/25
- Net cash / debt (D/A 46%)5/25
- Quality47/100 · Weak
- Piotroski F (4/9)10/25
- Beneish M (-2.63)25/25
- FCF conversion (-75%)0/25
- Margin stability (σ 11.3%)12/25
- Moat25/100 · Weak
- ROIC >12% years (0/7 yrs)0/25
- Median gross margin (36.1%)13/25
- FCF-positive years (1/9 yrs)0/25
- Worst-year net margin (worst 1.2%)12/25
Risk Flags
- ⚠Altman Z 0.8 — distress-zone balance sheet
- ⚠Negative FCF margin (-0.1%) — burning cash
- ⚠Interest coverage 2.6× — thin debt cushion
About The Southern Company
Southern is one of the largest utilities in the US. Show more
The company serves 9 million customers with vertically integrated electric utilities in three states and natural gas distribution utilities in four states. It owns 46 gigawatts of rate-regulated generating capacity, primarily for serving customers in Georgia, Alabama, and Mississippi. Subsidiary Southern Power owns 13 gigawatts of natural gas generation and renewable energy across the US and sells the electricity primarily under long-term contracts.
Headquarters: ATLANTA, GA · Employees: 29,800 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
44D+P/E (TTM)22.3xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 13.7x–293.1x · 46th pct
P/FCF184.4xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative · CapEx exceeds operating cash flow (133% of OCF) — reported FCF understates normalized earning power in this investment phase
FCF Yield-3.4%D
Grade D: NegativeTTM (OCF − CapEx) / Market Cap — vs own 5Y history: -3.7%–0.9% · 8th pct · CapEx exceeds operating cash flow (133% of OCF) — reported FCF understates normalized earning power in this investment phase
P/S (TTM)3.44xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 2.3x–4.0x · 64th pct
EV/EBIT24.4xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 14.6x–30.7x · 64th pct
EV/Sales6.1xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E17.6xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio2.45xA
Grade A: FairPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio2.77C
Grade C: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield3.01%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio66.6%C
Grade C: HighDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
CapEx exceeds OCF: CapEx exceeds operating cash flow (133% of OCF) — reported FCF understates normalized earning power in this investment phase
Profitability
57CROIC5.0%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE11.0%C
Grade C: AverageReturn on Equity. Neg. equity = heavy buybacks
ROA3.0%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin15.4%A
Grade A: HighNet Income / Revenue
Operating Margin24.2%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin78.1%A
Grade A: PremiumGross Profit / Revenue
FCF Margin-11.6%D
Grade D: LowFCF / Revenue · CapEx exceeds operating cash flow (133% of OCF) — reported FCF understates normalized earning power in this investment phase
True FCF Margin-12.0%D
Grade D: LowTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost · CapEx exceeds operating cash flow (133% of OCF) — reported FCF understates normalized earning power in this investment phase
Growth
72B+Revenue CAGR6.3%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR16.1%A
Grade A: HighCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)15.0%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth26.5%C
Grade C: MedAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+7.9%C
Grade C: DilutiveShare count change over 5Y
SBC / Net Income3.1%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.5%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
24EAltman Z-Score0.80D
Grade D: DistressBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio0.79xD
Grade D: LowCurrent Assets/Liabilities
Quick Ratio0.55xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage2.6xD
Grade D: RiskyEBIT/Interest. >10 Strong
Debt Repayment—
Years to repay net debt via FCF · CapEx exceeds operating cash flow (133% of OCF) — reported FCF understates normalized earning power in this investment phase
Net Debt/EBIT10.1xD
Grade D: HighLeverage. <2x Low, >4x High
Debt/Equity1.82xC
Grade C: MedDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.04xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
47D+Piotroski F-Score4/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.63A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion-74.9%D
Grade D: PoorFCF / Net Income · CapEx exceeds operating cash flow (133% of OCF) — reported FCF understates normalized earning power in this investment phase
Margin Stability11.3%C
Grade C: AverageEBIT margin std deviation. Lower = stable
Capex / Revenue46.9%D
Grade D: HeavyTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.18xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
SMITH WILLIAM G JR Filed | SMITH WILLIAM G JR | Grant / award | +988 | |
Svinicki Kristine L Filed | Svinicki Kristine L | Grant / award | +539 | |
Etheredge James O Filed | Etheredge James O | Grant / award | +539 | |
Akella Janaki Filed | Akella Janaki | Grant / award | +539 | |
Cooper Shantella E. Filed | Cooper Shantella E. | Grant / award | +539 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Turner John M JR Filed | Turner John M JR | Grant / award | +914 | |
Thomas Lizanne Filed | Thomas Lizanne | Grant / award | +539 | |
GRAIN DAVID J Filed | GRAIN DAVID J | Grant / award | +973 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
25EROIC >12% Years0/7 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)36.1%C
Grade C: ModerateMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years1/9 yrsD
Grade D: WeakShare of completed fiscal years with positive free cash flow
Net Margin Floor1.2%C
Grade C: ModerateWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$4.05
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$2.59
Cash & short-term investments per share (Finnhub)
Book Value / Share$34.40
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$77.09B
Total debt obligations (short + long term)
Cash & Equiv.$2.98B
Cash and short-term investments
Net Debt$74.10B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$42.34B
Shareholders' equity (book value)
Asset / Liability1.35xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$103.84B
Current Market Capitalization
Beta0.31B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: The Southern Company (SO)
SO is up 2.24% at the last close. Piotroski F-Score of 4/9 indicates mixed fundamentals for The Southern Company. Altman Z-Score of 0.80 is below the 1.81 distress threshold — an elevated financial-risk flag. Beneish M-Score of -2.63 suggests a low likelihood of earnings manipulation.
- Free-cash-flow margin is negative (-12%) — the business currently burns cash.
- Company has negative FCF, making debt repayment from operations difficult.
- The stock currently yields 3.0% in dividends.
See how SO ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all SO moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 6 | Regular | 85.08 | +1.54% | 2.39 |
| Oct 6 | After-hours | 85.40 | +1.92% | 2.87 |
| Sep 29 | Regular | 83.59 | +1.51% | 2.54 |
| Sep 23 | Regular | 83.37 | -2.09% | -2.91 |
Frequently Asked Questions about SO
What is the current The Southern Company (SO) stock price?
SO is trading at $91.18 at the last market close, up 2.24% on the session. PreMarketPrice tracks SO pre-market, intraday and after-hours prices.
Is SO stock a buy right now?
PreMarketPrice's quantitative model rates The Southern Company's financial health at 24/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is SO stock overvalued?
The Southern Company trades at a trailing P/E of 22.3 and our valuation score rates it 44/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does The Southern Company report earnings?
No confirmed earnings date is currently scheduled for SO. The Earnings section lists recent reports and updates as dates are announced.
What sector does The Southern Company operate in?
The Southern Company operates in the Utilities sector, within the Electric Services industry. The Related Stocks section lists sector peers for comparison.
What does The Southern Company do?
Southern is one of the largest utilities in the US.
About The Southern Company (SO) Stock
The Southern Company (SO) is a US-listed stock operating in the Utilities sector, specifically the Electric Services industry. As of the latest update, The Southern Company is trading at $91.18, up 2.24% on the day with a market capitalization of $103.8 billion. The financial health score for SO is 24/100, which indicates poor financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for SO stock.
SO Stock Analysis & Key Metrics
On PreMarketPrice, you can track The Southern Company (SO) across multiple dimensions:
- Pre-market price & movement: Real-time SO stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for SO with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for The Southern Company across multiple reporting periods.
- Financial health score: A composite score of 24/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for SO.
- Sector peers: Compare SO against 6 other utilities stocks on key financial metrics.
Is SO a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate The Southern Company (SO) as an investment. The financial health score of 24/100 suggests poor financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.The Southern Company (SO) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.