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Southern Co
SO : NYSE : Utilities
$48.82 up0.60 | 1.24%
Today's Range: 48.04 - 48.85
Avg. Daily Volume: 5,102,700
02/08/16 - 4:03 PM ET

Financial Analysis


SOUTHERN CO's gross profit margin for the fourth quarter of its fiscal year 2015 has significantly increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not.

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Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)3606.04017.0
EBITDA ($mil)1299.01061.0
EBIT ($mil)780.0631.0
Net Income ($mil)283.0300.0


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)0.0710.0
Total Assets ($mil)0.070923.0
Total Debt ($mil)0.025252.0
Equity ($mil)0.021301.0


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin36.0226.41
EBITDA Margin36.0226.41
Operating Margin21.6315.71
Sales Turnover0.00.26
Return on Assets0.02.86
Return on Equity0.09.21
Debt Q4 FY15 Q4 FY14
Current Ratio0.00.71
Debt/Capital0.00.54
Interest Expense228.0212.0
Interest Coverage3.422.98


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)912.0907.78
Div / share0.540.53
EPS0.30.31
Book value / share0.023.47
Institutional Own % n/a n/a
Avg Daily Volume5181527.05268610.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 17.53 for the Electric Utilities industry and a discount compared to the S&P 500 average of 21.13. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, SOUTHERN CO seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SO 18.62 Peers 17.53   SO NA Peers 6.93

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

SO is trading at a valuation on par with its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SO 16.25 Peers 16.06   SO 0.61 Peers 3.67

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SO NA Peers 1.71   SO 19.26 Peers 24.81

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

Ratio not available.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SO is expected to trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SO 2.52 Peers 2.04   SO -5.10 Peers -2.34

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 premium to its industry on this measurement.

 

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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