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SO

S&P 500
Neutral · 48/100

Southern Company

Utilities
Electric Utilities

$93.43

0.4%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 5.0% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$104.94B

P/E

24x

Forward P/E (est.)

25.62x

ROE

12.3%

Revenue Growth

8.7%

EPS Growth

-6.3%

Profit Margin

15.1%

FCF Yield

7.4%

Debt / Equity

2.02x

ROIC

16.0%

Interest Coverage

Current Ratio

0.65x

Dividend Yield

3.2%

Implied Growth (rev. DCF)

Rating Score

48/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what SO's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. SO trades near $93.43, around its 50-day average ($93.73) and 200-day average ($92.51). Price tangled in its moving averages means there is no clear trend — the stock is ranging.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 50 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. SO's is $1.95 (~2.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month SO found buyers near $89.02 (support) and sellers near $95.29 (resistance); its 52-week range is $83.80–$100.84. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.2× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Southern Company (SO) is a large-cap company in the Electric Utilities industry, part of the Utilities sector of the S&P 500, with a market value around $104.94B.

In its latest reported year it generated about $29.55B in revenue and $4.34B in net profit.

Our model rates SO Neutral (48/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

6.3%

Revenue moved from $23.11B in 2021 to $29.55B in 2025, a 6.3% compound annual growth rate. The most recent year grew a steady 8.7% year over year. Slower, mature growth is common for established businesses.

Profitability
Research

Gross Margin

40.0%

Operating Margin

24.7%

Net Margin

14.7%

ROE

12.3%

Southern Company keeps about 15.1% of each sales dollar as net profit, with a 40.0% gross margin and 24.7% operating margin. Return on equity is 12.3% and return on invested capital about 16.0%. Margins this wide usually signal pricing power or a cost advantage.

Debt Analysis
Research

Total Debt

Net Debt

Net Debt / EBITDA

Debt / Equity

2.02x

Leverage: debt-to-equity is 2.0x, with a current ratio of 0.7x. That is elevated leverage, which raises risk if earnings or rates move against it.

Cash Flow Analysis
Research

Operating CF

$9.80B

Free Cash Flow

-$2.94B

FCF Margin

-9.9%

In the latest year Southern Company produced about $9.80B of operating cash flow but negative free cash flow as it invested heavily. That is a free-cash-flow yield of about 7.4% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research

P/E

24x

P/S

3.75x

P/B

2.63x

EV / EBITDA

7.91x

SO trades at 24.0x trailing earnings (about 25.6x on estimated forward earnings), 3.8x sales, and 2.6x book value. That is a fairly typical valuation for a profitable company.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
24.0xFair
Forward P/E
25.6xExpensive
P/S ratio
3.8xExpensive
Revenue growth
8.7%Strong
EPS growth
-6.3%Weak
Gross margin
40.0%Average
Net margin
15.1%Strong
ROE
12.3%Average

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How SO stacks up against its Utilities peers — valuation, profitability, and growth versus the sector median.

In the Utilities sector (31 S&P 500 companies), SO ranks #23 of 31 by our overall rating. It trades at roughly in line versus the sector on earnings (24x P/E vs. 21.8x median) with a higher return on equity (12.3% vs. 10.4%) and slower revenue growth (8.7% vs. 9.0%).

P/E vs sector

24x

median 21.8x

ROE vs sector

12.3%

median 10.4%

Growth vs sector

8.7%

median 9.0%

Sector rank

#23

of 31 by rating

CompanyP/ERev Gr.Rating
SOThis stock24x8.7%Neutral· 48
CEG25.6x23.4%Favorable· 66
DUK18.9x7.2%Neutral· 53
AEP19x11.4%Favorable· 64
VST23x15.7%Neutral· 55
ETR28.3x11.5%Neutral· 43
EXC16.7x4.6%Neutral· 47
PEG17.6x19.0%Favorable· 69
Utilities median21.8x9.0%54/100

Valuation vs. quality map

sector medianCEGDUKAEPVSTETREXCPEGSOP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Utilities companies by sub-industry and size. Sector median is across all 31 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$84.71$145.21

vs. $93.43 today · expected CAGR -2%9%

Metric20262027202820292030
Revenue$32.21B$35.11B$38.27B$41.72B$45.47B
Net income$4.83B$5.27B$5.74B$6.26B$6.82B
EPS$4.29$4.67$5.09$5.55$6.05
Share price (low)$60.01$65.41$71.30$77.71$84.71
Share price (high)$102.87$112.13$122.22$133.22$145.21
CAGR (low–high)-36% / 10%-16% / 10%-9% / 9%-5% / 9%-2% / 9%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for SO:

  • High net margins (15.1%) point to pricing power or efficiency.
  • Healthy free-cash-flow yield (~7.4%) funds buybacks and dividends.
  • Pays a 3.2% dividend on top of any price gains.
Bear Case

The case against SO:

  • Elevated leverage (debt/equity 2.0x) adds financial risk.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Balance-sheet risk — debt/equity of 2.0x magnifies the impact of higher rates or weaker earnings.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Southern Company is a large-cap utilities business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 24.0x earnings, which our model scores Neutral (48/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.