SOUTHERN CO's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. SOUTHERN CO has very weak liquidity. Currently, the Quick Ratio is 0.28 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 5.78% 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.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||4183.0||4644.0|
|Net Income ($mil)||525.0||368.0|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||1112.0||590.0|
|Total Assets ($mil)||71610.0||64838.0|
|Total Debt ($mil)||26353.0||23879.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||34.74||33.96|
|Return on Assets||3.05||3.05|
|Return on Equity||9.92||9.47|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||908.26||890.81|
|Div / share||0.53||0.51|
|Book value / share||23.53||22.68|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||5280341.0||5678456.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 16.39 for the Electric Utilities industry and a discount compared to the S&P 500 average of 20.83. Conducting a second comparison, its price-to-book ratio of 1.84 indicates a discount versus the S&P 500 average of 2.88 and a premium versus the industry average of 1.54. The current price-to-sales ratio is above both the S&P 500 average and 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 18.46||Peers 16.39||SO 7.03||Peers 6.72|
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 14.73||Peers 14.81||SO 0.60||Peers 4.90|
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 1.84||Peers 1.54||SO 8.29||Peers 260.96|
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 2.19||Peers 1.74||SO 0.96||Peers 6.27|
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
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV