Southern (NYSE: SO) shares currently have a dividend yield of 4.30%. The Southern Company, together with its subsidiaries, operates as a public electric utility company. The company has a P/E ratio of 17.15. Currently there is 1 analyst that rates Southern a buy, 2 analysts rate it a sell, and 11 rate it a hold. The average volume for Southern has been 4,420,000 shares per day over the past 30 days. Southern has a market cap of $39.8 billion and is part of the utilities industry. Shares are up 6.1% year to date as of the close of trading on Thursday. TheStreet Ratings rates Southern as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from the ratings report include:
- SOUTHERN CO has improved earnings per share by 43.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SOUTHERN CO increased its bottom line by earning $2.67 versus $2.55 in the prior year. This year, the market expects an improvement in earnings ($2.75 versus $2.67).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electric Utilities industry. The net income increased by 44.0% when compared to the same quarter one year prior, rising from $277.00 million to $399.00 million.
- SO's revenue growth trails the industry average of 14.9%. Since the same quarter one year prior, revenues slightly increased by 0.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electric Utilities industry and the overall market on the basis of return on equity, SOUTHERN CO has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- In its most recent trading session, SO has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- You can view the full Southern Ratings Report.
- Our dividend calendar.
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