Southern CoFind Ratings Reports
SOUTHERN CO's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. SOUTHERN CO has very weak liquidity. Currently, the Quick Ratio is 0.31 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 5.32% 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||Q2 FY17||Q2 FY16|
|Net Sales ($mil)||5431.0||4459.0|
|Net Income ($mil)||-1370.0||624.0|
|Balance Sheet||Q2 FY17||Q2 FY16|
|Cash & Equiv. ($mil)||1433.0||9860.0|
|Total Assets ($mil)||108684.0||90873.0|
|Total Debt ($mil)||50190.0||39464.0|
|Profitability||Q2 FY17||Q2 FY16|
|Gross Profit Margin||40.14||41.76|
|Return on Assets||0.61||2.61|
|Return on Equity||2.62||10.22|
|Debt||Q2 FY17||Q2 FY16|
|Share Data||Q2 FY17||Q2 FY16|
|Shares outstanding (mil)||999.47||941.6|
|Div / share||0.58||0.56|
|Book value / share||23.96||24.15|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4554650.0||5023275.0|
BUY. SOUTHERN CO's P/E ratio indicates a significant premium compared to an average of 27.92 for the Electric Utilities industry and a significant premium compared to the S&P 500 average of 24.88. Conducting a second comparison, its price-to-book ratio of 2.10 indicates a discount versus the S&P 500 average of 3.10 and a premium versus the industry average of 2.04. The current price-to-sales ratio is similar to the S&P 500 average, but it is below the industry average, indicating a discount. After reviewing these and other key valuation criteria, SOUTHERN CO proves to trade at a premium to investment alternatives within the industry.
|SO 76.36||Peers 27.92||SO 9.27||Peers 8.86|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
SO is trading at a significant 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 16.66||Peers 19.36||SO 4.87||Peers 2.26|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
SO is trading at a discount to its peers.
Premium. 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 premium to its peers.
|SO 2.10||Peers 2.04||SO -73.92||Peers -4.09|
Average. 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.
SO is trading at a valuation on par with 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 2.22||Peers 2.37||SO 30.00||Peers 14.17|
Average. 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 valuation on par with its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
SO has a sales growth rate that significantly exceeds its peers.