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Southern Company (SO) Stock Analysis

This is a peer-relative look at Southern Company (SO): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Utilities peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Southern Company (SO)
Profile ItemSO
NameThe Southern Company
Country/RegionUnited States
GICS SectorUtilities
GICS Industry GroupUtilities
GICS IndustryElectric Utilities
GICS Sub-IndustryElectric Utilities
Market Capitalization108.76 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateDecember 31, 1981
Security TypeCommon Stock

Price Performance

Cumulative Growth

SO
GSPC
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Southern Company (SO) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Southern Company (SO) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Southern Company (SO) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Southern Company (SO) metric values compared with Utilities industry-group medians
MetricCurrent stock: SOIndustry group median
Total Return (1Y)3.33%12.52%
Total Return (3Y, Annualized)13.24%11.61%
Total Return (5Y, Annualized)12.23%7.74%

Risk Profile

Drawdown History

SO
GSPC
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Southern Company (SO) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Southern Company (SO) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Southern Company (SO) metric values compared with Utilities industry-group medians
MetricCurrent stock: SOIndustry group median
Volatility (1Y, Annualized)17.02%21.94%
Beta (5Y)0.340.55
Max Drawdown (5Y)-23.28%-36.10%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. SO is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Southern Company (SO) metric values compared with Utilities industry-group medians
MetricCurrent stock: SOIndustry group median
Sharpe Ratio (1Y)-0.040.38
Sortino Ratio (1Y)-0.060.55

Profitability

ROE (TTM)

Southern Company (SO) posts ROE of 11.48%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

SO

Utilities industry group

11.48%

Group distribution
Max
17.16%
Q3
11.74%
SO
11.48%
Median
9.47%
Q1
7.66%
Min
2.67%
Largest peers
CEG
16.11%
NEE
11.68%
SO
11.48%
AEP
10.13%
DUK
9.66%
NGG
8.41%
D
8.28%
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Where Southern Company (SO) stands on ROE within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Southern Company (SO) keeps 15.44% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

SO

Utilities industry group

15.44%

Group distribution
Max
27.58%
Q3
17.19%
SO
15.44%
Median
12.61%
Q1
9.24%
Min
-1.02%
Largest peers
NEE
32.40%
NGG
18.32%
DUK
15.71%
SO
15.44%
D
13.99%
AEP
13.78%
CEG
12.69%
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Where Southern Company (SO) stands on net margin within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Southern Company (SO) turns 25.46% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

SO

Utilities industry group

25.46%

Group distribution
Max
43.52%
Q3
30.50%
SO
25.46%
Median
23.72%
Q1
17.21%
Min
0.00%
Largest peers
NGG
32.60%
NEE
31.52%
DUK
25.51%
SO
25.46%
AEP
23.25%
CEG
21.86%
D
7.34%
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Where Southern Company (SO) stands on operating margin within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Southern Company (SO) metric values compared with Utilities industry-group medians
MetricCurrent stock: SOIndustry group median
ROE (TTM)11.48%9.47%
ROA (TTM)3.18%2.97%
Net Margin (TTM)15.44%12.61%
Operating Margin (TTM)25.46%23.72%
Gross Margin (TTM)48.29%43.69%

Growth

Revenue Growth

Southern Company (SO) grew revenue 10.59%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Southern Company (SO): Revenue Growth across different time periods, set against Utilities industry-group medians.

EPS Growth

Southern Company (SO) grew earnings per share -1.75%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Southern Company (SO): EPS Growth across different time periods, set against Utilities industry-group medians.

Growth Metrics

Southern Company (SO) metric values compared with Utilities industry-group medians
MetricCurrent stock: SOIndustry group median
Revenue Growth (YoY)10.59%8.45%
Revenue Growth (3Y CAGR)0.31%3.87%
EPS Growth (YoY)-1.75%3.93%
EPS Growth (3Y CAGR)6.34%5.17%

Financial Strength

Current Ratio (MRQ)

Southern Company (SO) has current ratio of 0.79, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

SO

Utilities industry group

0.79

Group distribution
Max
1.74
Q3
1.19
Median
0.93
SO
0.79
Q1
0.66
Min
0.32
Largest peers
CEG
1.36
D
0.81
SO
0.79
NGG
0.76
DUK
0.66
NEE
0.53
AEP
0.50
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Where Southern Company (SO) stands on current ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Southern Company (SO) has debt-to-equity ratio of 1.82, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.

SO

Utilities industry group

1.82

Group distribution
Max
2.60
SO
1.82
Q3
1.79
Median
1.33
Q1
0.85
Min
0.00
Largest peers
SO
1.82
NEE
1.62
DUK
1.61
AEP
1.61
D
1.59
NGG
1.21
CEG
0.66
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Where Southern Company (SO) stands on debt-to-equity ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Southern Company (SO) metric values compared with Utilities industry-group medians
MetricCurrent stock: SOIndustry group median
Current Ratio (MRQ)0.790.93
Debt / Equity (MRQ)1.821.33
Net Debt / EBITDA5.205.33

Dividends

Dividend Yield (TTM)

Southern Company (SO) has dividend yield of 3.12%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

SO

Utilities industry group

3.12%

Group distribution
Max
6.00%
Q3
3.74%
SO
3.12%
Median
2.89%
Q1
1.42%
Min
0.00%
Largest peers
DUK
3.36%
SO
3.12%
NEE
2.71%
AEP
1.47%
CEG
0.60%
NGG
0.60%
D
0.00%
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Where Southern Company (SO) stands on dividend yield within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Southern Company (SO) has payout ratio of 71.81%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

SO

Utilities industry group

71.81%

Group distribution
Max
108.09%
Q3
72.14%
SO
71.81%
Median
58.54%
Q1
37.81%
Min
0.00%
Largest peers
D
92.39%
SO
71.81%
NGG
71.18%
AEP
65.51%
DUK
65.23%
NEE
53.47%
CEG
13.81%
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Where Southern Company (SO) stands on payout ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Southern Company (SO) metric values compared with Utilities industry-group medians
MetricCurrent stock: SOIndustry group median
Dividend Yield (TTM)3.12%2.89%
Dividend Payout Ratio (TTM)71.81%58.54%

Valuation

P/E Ratio (TTM)

Southern Company (SO) trades at P/E ratio of 22.78, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

SO

Utilities industry group

22.78

Group distribution
Max
31.65
Q3
23.25
SO
22.78
Median
21.07
Q1
16.52
Min
6.64
Largest peers
D
23.93
CEG
22.83
SO
22.78
AEP
22.16
NEE
19.53
DUK
19.30
NGG
18.30
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Where Southern Company (SO) stands on P/E ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Southern Company (SO) trades at 3.60 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

SO

Utilities industry group

3.60

Group distribution
Max
6.35
SO
3.60
Q3
3.58
Median
2.63
Q1
1.61
Min
0.00
Largest peers
NEE
6.32
NGG
4.55
SO
3.60
D
3.36
CEG
3.14
AEP
3.05
DUK
2.99
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Where Southern Company (SO) stands on P/S ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Southern Company (SO) trades at 2.87 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

SO

Utilities industry group

2.87

Group distribution
Max
3.28
SO
2.87
Q3
2.31
Median
1.85
Q1
1.40
Min
0.35
Largest peers
NGG
9.14
NEE
3.28
SO
2.87
CEG
2.84
AEP
2.17
D
2.16
DUK
1.82
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Where Southern Company (SO) stands on P/B ratio within its Utilities peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Southern Company (SO) metric values compared with Utilities industry-group medians
MetricCurrent stock: SOIndustry group median
P/E Ratio (TTM)22.7821.07
P/S Ratio (TTM)3.602.63
P/B Ratio (MRQ)2.871.85
Free Cash Flow Yield (TTM)-3.53%-5.94%