Southern Co

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SO : NYSE : Utilities
$51.05 | %
Today's Range: 50.88 - 52.26
Avg. Daily Volume: 5,591,700
08/26/16 - 4:03 PM ET

Financial Analysis


SOUTHERN CO's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased. SOUTHERN CO has average liquidity. Currently, the Quick Ratio is 1.34 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 6.95% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)4459.04337.0
EBITDA ($mil)1861.91621.0
EBIT ($mil)1292.91121.0
Net Income ($mil)624.0644.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)9860.0813.0
Total Assets ($mil)90873.074181.0
Total Debt ($mil)39464.027374.0
Equity ($mil)22742.021264.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin41.7637.38
EBITDA Margin41.7537.37
Operating Margin29.025.85
Sales Turnover0.190.24
Return on Assets2.612.97
Return on Equity10.2210.05
Debt Q2 FY16 Q2 FY15
Current Ratio1.780.76
Debt/Capital0.630.56
Interest Expense293.0180.0
Interest Coverage4.416.23


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)941.6908.43
Div / share0.560.54
EPS0.650.69
Book value / share24.1523.41
Institutional Own % n/a n/a
Avg Daily Volume5484348.04914354.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 25.58 for the Electric Utilities industry and a discount compared to the S&P 500 average of 25.30. Conducting a second comparison, its price-to-book ratio of 2.17 indicates a discount versus the S&P 500 average of 2.83 and a premium versus the industry average of 1.89. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SO 20.68 Peers 25.58   SO 7.68 Peers 8.03

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.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SO 17.67 Peers 17.49   SO 1.98 Peers 8.57

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 2.17 Peers 1.89   SO 7.20 Peers -3.94

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.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SO 2.83 Peers 2.31   SO -2.56 Peers -4.68

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 significantly exceeds its peers.

 

 

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