SOUTHERN CO's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SOUTHERN CO has very weak liquidity. Currently, the Quick Ratio is 0.30 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 5.01% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||5401.0||5339.0|
|Net Income ($mil)||969.0||735.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||1109.0||1414.0|
|Total Assets ($mil)||75215.0||67654.0|
|Total Debt ($mil)||27129.0||24683.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||43.29||41.39|
|Return on Assets||3.24||3.19|
|Return on Equity||10.79||9.97|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||908.94||899.81|
|Div / share||0.54||0.53|
|Book value / share||24.25||23.32|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||5138279.0||5072108.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 15.72 for the Electric Utilities industry and a discount compared to the S&P 500 average of 21.93. Conducting a second comparison, its price-to-book ratio of 1.86 indicates a discount versus the S&P 500 average of 2.77 and a premium versus the industry average of 1.60. The price-to-sales ratio is above the S&P 500 average and well above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, SOUTHERN CO proves to trade at a premium to investment alternatives within the industry.
|SO 17.31||Peers 15.72||SO 6.65||Peers 6.58|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
SO is trading at a premium to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
SO is trading at a valuation on par to its peers.
|SO 15.32||Peers 15.01||SO 0.55||Peers 3.47|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
SO is trading at a valuation on par with its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
SO trades at a significant discount to its peers.
|SO 1.86||Peers 1.60||SO 11.53||Peers 34.01|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
SO is trading at a premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, SO is expected to significantly trail its peers on the basis of its earnings growth rate.
|SO 2.29||Peers 1.79||SO -2.39||Peers 1.82|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
SO is trading at a significant premium to its industry.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
SO significantly trails its peers on the basis of sales growth
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