# The Southern Company (SO) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Utilities / Electric Utilities. Price $88.11, market value $101.4 billion.

## Valuation
- **P/E (trailing): 21.2×** (5-yr avg 20.9×, 3-yr avg 19.8×). The Southern Company trades at 21.2× trailing earnings, close to its own five-year average of 20.9×. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 17.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 3.4×**. Each dollar of revenue is priced at 3.4×.
- **Price / book: 2.6×**. The shares trade at 2.6× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 7.2×**. Enterprise value is 7.2× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -3.4%** (5-yr avg -1.8%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 4.7%**. The inverse of the P/E: 4.7% of the price is earned each year.

## Profitability
- **Operating margin: 24.2%**. 24.2% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 14.7%**. 14.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 12.1%**. 12.1% on shareholders' equity is solid.
- **Return on invested capital: 16.4%**. Return on all capital, debt included, is 16.4%: comfortably above what that capital costs.
- **Return on assets: 3.0%**. Each dollar of assets produces 3.0% of profit.

## Growth
- **Revenue growth (1 yr): 10.6%** (3-yr 0.3%/yr, 5-yr 7.7%/yr). Revenue grew 10.6% over the last year, against 7.7% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -1.8%** (3-yr 6.3%/yr, 5-yr 6.0%/yr). Earnings per share fell 1.8%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.02**. Debt is 0.02 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. The Southern Company holds more cash than debt.
- **Altman Z-score: 1.19**. A Z-score of 1.19 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.45%** ($2.98 per share, trailing). The Southern Company yields 3.45%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 69%**. 69% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 3.0%/yr** (1-yr 2.8%). The dividend has grown 3.0% a year over five years.

## Analyst view
- **Analyst consensus: hold** (19 analysts). 19 analysts cover The Southern Company; the consensus is hold, with an average price target of $99.97 (+13% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -1.7%** (YTD 2.7%, 3-mo -4.8%). The shares are down 1.7% over twelve months including dividends.
- **From 52-week high: -12.6%** (5.1% above the low). Trading 13% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 33**. An RSI of 33 is neutral.
- **Beta (1 yr): -0.23** (volatility 17%). Beta of -0.23 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SO · Page: https://foliofundamentals.com/stocks/so

Not investment advice.