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
Debt/Capital0.640.57
Interest Expense404.0228.0
Interest Coverage1.983.42


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)990.39911.72
Div / share0.560.54
EPS0.20.3
Book value / share26.9924.24
Institutional Own % n/a n/a
Avg Daily Volume4519996.05606985.0

Valuation


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.


Price/Earnings
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
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.

 
Price/Book
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.

 
Price/Sales
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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