SO The Southern Company - Fundamental Analysis
NEUTRAL
Sign in to save
Save this symbol to a watchlist or track a position.
SO Stock | Fundamental Analysis & Investment Insights
NYSE
Utilities
Utilities - Regulated Electric
Current Price
Live
$88.9
Analyst Target
$95.92
+7.9%
Upside
52W High
$100.84
52W Low
$82.05
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$97.89B
P/E
22.11
ROE
11.4%
Profit margin
15.4%
Debt/Equity
1.93
Dividend yield
3.33%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
75%
Analysis Accuracy
The Southern Company (SO) exhibits a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability, and lacks an Altman Z-Score to confirm safety from distress. While profitability metrics are strong, with high operating and gross margins, the company faces concerns around liquidity (Current Ratio: 0.76) and elevated leverage (Debt/Equity: 1.93). Growth is solid, supported by double-digit earnings expansion and consistent earnings beats, but the stock trades above its Graham defensive value of $53.62 at $88.90, with a premium P/E of 22.11 versus sector average of 20.87. Analysts see limited upside, with a hold rating and target price of $95.92, while insider selling signals caution.
Key Strengths
Consistent earnings growth with YoY EPS increase of 11.9% and strong Q/Q growth of 73.9%
High profitability: Operating Margin of 36.56% and Gross Margin of 49.02% exceed sector averages
Solid dividend yield of 3.33%, above the sector median and attractive for income investors
Track record of beating earnings estimates: 3 out of last 4 quarters, with an average surprise of 4.57%
Revenue growth of 7.50% YoY aligns with sector trends despite regulatory environment
Key Risks
Weak financial health: Piotroski F-Score of 4/9 suggests operational and leverage concerns
Poor liquidity position: Current Ratio of 0.76 and Quick Ratio of 0.43 indicate potential short-term solvency risk
High leverage: Debt/Equity ratio of 1.93 exceeds sector average of 1.55, increasing financial risk
Elevated valuation: P/E of 22.11 is above peers like DUK (18.39) and AEP (17.12), limiting margin of safety
Insider selling activity: Two recent officer sales totaling $0.81M signal lack of confidence
AI Fair Value Estimate
Based on comprehensive analysis
$90.0
+1.2% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
60
Moderate
55
70
65
48
60
AI Verdict
Neutral with upside potential if leverage and liquidity improve
Key drivers: Strong earnings growth and margin performance, Premium valuation limiting near-term upside, Dividend appeal offset by high payout ratio, Weak short-term financial health metrics, Analyst hold consensus with modest target upside
Confidence
78%
Value
55/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 19.43 is lower than current P/E, suggesting some earnings growth baked in
Watchpoints
- Current P/E of 22.11 is above sector average of 20.87
- Price ($88.90) significantly above Graham Number ($53.62)
- No PEG ratio available, but high P/E relative to growth raises concerns
Future
70/100
Ref Growth rates
Positives
- Revenue growth of 7.50% and earnings growth of 10.80% YoY
- Q/Q earnings growth of 11.50% indicates momentum
- Consistent earnings beat trend with positive surprises
Watchpoints
No urgent risks highlighted.
Past
65/100
Ref Historical trends
Positives
- 5-Year price return of +75.9% shows long-term capital appreciation
- History of beating earnings estimates in 20 of last 25 quarters
Watchpoints
- 6-month price decline of -4.0% underperforms sector peers
Health
48/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- ROE of 11.43% exceeds sector average of 9.78%
- Profit margin of 15.42% is healthy
Watchpoints
- Piotroski F-Score of 4/9 indicates weak financial health
- Current Ratio (0.76) and Quick Ratio (0.43) below 1.0 signal liquidity risk
- Debt/Equity of 1.93 above sector average of 1.55
Dividend
60/100
Ref Yield, Payout
Positives
- Dividend yield of 3.33% is attractive in current rate environment
- Dividend rate of $2.96 has been maintained
Watchpoints
- Payout ratio of 72.64% is high, leaving little room for cushion
- Dividend Strength score of 50/100 indicates moderate reliability
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$88.9
Analyst Target
$95.92
Upside/Downside
+7.9%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for SO and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
SO
The Southern Company
Primary
|
+75.9% | +41.5% | +9.5% | -4.0% | +2.1% | +2.2% |
|
DUK
Duke Energy Corporation
Peer
|
+60.5% | +28.8% | +13.3% | +2.4% | +1.5% | +2.1% |
|
AEP
American Electric Power Company, Inc.
Peer
|
+94.8% | +65.7% | +32.5% | +24.0% | +9.3% | +1.3% |
|
SRE
Sempra
Peer
|
+78.7% | +26.0% | +13.8% | +20.0% | +6.7% | +4.2% |
|
D
Dominion Energy, Inc.
Peer
|
+7.3% | +13.6% | +16.3% | +7.6% | +1.7% | +5.4% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
22.11
Forward P/E
19.43
PEG Ratio
N/A
P/B Ratio
2.8
P/S Ratio
3.39
EV/Revenue
5.93
EV/EBITDA
12.42
Market Cap
$97.89B
Profitability
Profit margins and return metrics
Profit Margin
15.42%
Operating Margin
36.56%
Gross Margin
49.02%
ROE
11.43%
ROA
3.46%
Growth
Revenue and earnings growth rates
Revenue Growth
+7.5%
Earnings Growth
+10.8%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+11.5%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.93
High debt
Current Ratio
0.76
Weak
Quick Ratio
0.43
Poor
Cash/Share
$3.03
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-19
$N/A
2025-10-30
$1.6
+6.0% surprise
2025-07-31
$0.92
+4.7% surprise
2025-05-01
$1.23
+3.0% surprise
Utilities Sector Comparison
Comparing SO against 21 companies in the Utilities sector
(0 bullish, 18 neutral, 3 bearish)
P/E Ratio
22.11
This Stock
vs
24.3
Sector Avg
-9.0%
(Discount)
Return on Equity (ROE)
11.43%
This Stock
vs
-7.2%
Sector Avg
-258.8%
(Below Avg)
Profit Margin
15.42%
This Stock
vs
10.62%
Sector Avg
+45.3%
(Superior)
Debt to Equity
1.93
This Stock
vs
1.76
Sector Avg
+9.4%
(Higher)
Revenue Growth
7.5%
This Stock
vs
6.94%
Sector Avg
+8.1%
(Growing)
Current Ratio
0.76
This Stock
vs
0.88
Sector Avg
-13.9%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
SO
The Southern Company
|
NEUTRAL | $97.89B | 22.11 | 11.4% | 15.4% | $88.9 | |
|
DUK
Duke Energy Corporation
|
NEUTRAL | $92.71B | 18.77 | 9.9% | 16.0% | $119.22 | |
|
AEP
American Electric Power...
|
NEUTRAL | $72.26B | 20.09 | 12.5% | 16.4% | $133.61 | |
|
SRE
Sempra
|
NEUTRAL | $60.41B | 28.48 | 6.8% | 15.8% | $92.55 | |
|
D
Dominion Energy, Inc.
|
NEUTRAL | $52.2B | 19.98 | 9.2% | 16.8% | $61.13 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-03 | KERR JAMES Y. II | Officer | Gift | 18,100 | - |
| 2025-11-06 | CONNALLY STANLEY W JR | Chief Operating Officer | Gift | 2,413 | - |
| 2025-09-30 | ANDERSON BRYAN D | Officer | Sale | 6,206 | $582,309 |
| 2025-08-11 | SPAINHOUR STERLING A. JR. | Officer | Sale | 2,380 | $226,148 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
20 analysts
Barclays
2026-01-15
Equal-Weight
Equal-Weight
UBS
2025-12-17
Neutral
Neutral
Jefferies
2025-12-15
Neutral
Neutral
JP Morgan
2025-12-15
Neutral
Neutral
RBC Capital
2025-12-12
Sector Perform
Sector Perform
Keybanc
2025-12-12
Underweight
Underweight
Mizuho
2025-12-11
Neutral
Neutral
Barclays
2025-11-20
Equal-Weight
Equal-Weight
Jefferies
2025-11-05
Buy
Neutral
Wells Fargo
2025-10-28
Equal-Weight
Past News Coverage
Recent headlines mentioning SO from our newsroom.
Newest → oldest
No matching news yet.