Southern Co

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SO : NYSE : Utilities
$47.32 up 0.09 | 0.19%
Today's Range: 47.19 - 47.43
Avg. Daily Volume: 4521700.0
07/20/17 - 4:04 PM ET

Financial Analysis

SOUTHERN CO's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. SOUTHERN CO has very weak liquidity. Currently, the Quick Ratio is 0.29 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, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 15.77% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)5771.03992.0
EBITDA ($mil)2167.01540.0
EBIT ($mil)1451.0999.0
Net Income ($mil)669.0496.0

Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)1094.0754.0
Total Assets ($mil)109760.078735.0
Total Debt ($mil)48873.029678.0
Equity ($mil)25821.022302.0

Profitability Q1 FY17 Q1 FY16
Gross Profit Margin37.5538.58
EBITDA Margin37.5438.57
Operating Margin25.1425.03
Sales Turnover0.20.22
Return on Assets2.423.03
Return on Equity10.1510.51
Debt Q1 FY17 Q1 FY16
Current Ratio0.690.7
Interest Expense416.0246.0
Interest Coverage3.494.06

Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)994.6918.26
Div / share0.560.54
Book value / share25.9624.29
Institutional Own % n/a n/a
Avg Daily Volume4498871.05362685.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 20.60 for the Electric Utilities industry and a discount compared to the S&P 500 average of 24.41. For additional comparison, its price-to-book ratio of 1.82 indicates a discount versus the S&P 500 average of 3.04 and a discount versus the industry average of 1.90. The current price-to-sales ratio is similar to the S&P 500 average, but it is below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SOUTHERN CO proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SO 17.52 Peers 20.60   SO 9.61 Peers 8.45

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 premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
SO 15.20 Peers 17.79   SO 1.07 Peers 1.79

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.


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 1.82 Peers 1.90   SO 4.66 Peers 0.49

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 2.16 Peers 2.31   SO 25.30 Peers 22.57

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 exceeds its peers.



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