Southern Co

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SO : NYSE : Utilities
$50.43 up 0.06 | 0.12%
Today's Range: 50.16 - 50.62
Avg. Daily Volume: 4763000.0
03/24/17 - 3:59 PM ET

Financial Analysis

SOUTHERN CO's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased 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 0.35 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 20.95% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)5181.03568.0
EBITDA ($mil)1496.51299.0
EBIT ($mil)799.5780.0
Net Income ($mil)208.0283.0

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1975.01404.0
Total Assets ($mil)109697.078318.0
Total Debt ($mil)47457.028738.0
Equity ($mil)26730.022100.0

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin28.8836.41
EBITDA Margin28.8836.4
Operating Margin15.4321.86
Sales Turnover0.180.22
Return on Assets2.273.09
Return on Equity9.1510.71
Debt Q4 FY16 Q4 FY15
Current Ratio0.750.71
Interest Expense404.0228.0
Interest Coverage1.983.42

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)990.39911.72
Div / share0.560.54
Book value / share26.9924.24
Institutional Own % n/a n/a
Avg Daily Volume4519996.05606985.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 21.90 for the Electric Utilities industry and a discount compared to the S&P 500 average of 26.73. Conducting a second comparison, its price-to-book ratio of 1.86 indicates a discount versus the S&P 500 average of 2.98 and a premium versus the industry average of 1.85. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SO 19.61 Peers 21.90   SO 10.16 Peers 7.91

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SO is trading at a discount to its peers.


Premium. 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 significant premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
SO 16.04 Peers 17.56   SO 1.19 Peers 2.02

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SO 1.86 Peers 1.85   SO -1.54 Peers -24.26

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.


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

SO is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SO 2.50 Peers 2.25   SO 13.76 Peers 11.72

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.


Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SO has a sales growth rate that exceeds its peers.



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