Southern Company (SO) Stock Analysis

June 13, 2026

Here is a fundamental analysis of Southern Company (SO), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

GSPC

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.

Performance at a Glance

Southern Company (SO) metric values compared with Utilities industry-group medians
Metric	Current stock: SO	Industry group median
1-Year Return	7.43%	16.99%

Risk

Drawdown

GSPC

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.

Risk at a Glance

Southern Company (SO) metric values compared with Utilities industry-group medians
Metric	Current stock: SO	Industry group median
1-Year Volatility	16.19%	21.63%
Beta	0.34	0.55

Company Profile

Company profile fields for Southern Company (SO)
Profile Item	SO
Name	The Southern Company
Country/Region	United States
GICS Sector	Utilities
GICS Industry Group	Utilities
GICS Industry	Electric Utilities
GICS Sub-Industry	Electric Utilities
Market Capitalization	105.97 billion USD
Currency	USD
Exchange	NYSE
Listing Date	December 31, 1981
Security Type	Common Stock

Valuation

Price-to-Earnings Ratio (TTM)

Southern Company (SO) trades at P/E ratio of 24.04, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

SO

Utilities industry group

24.04

Group distribution

Max: 31.39
SO: 24.04
Q3: 22.99
Median: 19.91
Q1: 16.35
Min: 7.60

Largest peers

SRE: 31.39
SO: 24.04
CEG: 22.03
NEE: 21.82
DUK: 19.23
AEP: 19.12
NGG: 18.68

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.

Price-to-Sales Ratio (TTM)

Southern Company (SO) trades at 3.51 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

SO

Utilities industry group

3.51

Group distribution

Max: 6.44
Q3: 3.60
SO: 3.51
Median: 2.62
Q1: 1.64
Min: 0.00

Largest peers

NEE: 6.44
NGG: 4.60
SRE: 4.45
SO: 3.51
AEP: 3.13
CEG: 3.03
DUK: 2.98

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.

Price-to-Book Ratio (MRQ)

Southern Company (SO) trades at 2.85 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

2.85

Group distribution

Max: 3.79
SO: 2.85
Q3: 2.41
Median: 1.90
Q1: 1.42
Min: 0.34

Largest peers

NGG: 8.19
NEE: 3.25
SO: 2.85
CEG: 2.75
AEP: 2.21
SRE: 1.91
DUK: 1.82

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 at a Glance

Southern Company (SO) metric values compared with Utilities industry-group medians
Metric	Current stock: SO	Industry group median
Price-to-Earnings Ratio (TTM)	24.04	19.91
Price-to-Sales Ratio (TTM)	3.51	2.62
Price-to-Book Ratio (MRQ)	2.85	1.90
Free Cash Flow Yield	-3.73%	-5.99%

Profitability

Return on Equity (TTM)

Southern Company (SO) posts ROE of 10.99%, 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

10.99%

Group distribution

Max: 16.11%
Q3: 11.15%
SO: 10.99%
Median: 9.46%
Q1: 7.50%
Min: 2.67%

Largest peers

CEG: 16.11%
AEP: 12.59%
SO: 10.99%
NEE: 10.33%
DUK: 9.66%
NGG: 8.41%
SRE: 5.69%

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 Profit Margin (TTM)

Southern Company (SO) keeps 14.46% 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

14.46%

Group distribution

Max: 29.37%
Q3: 17.31%
SO: 14.46%
Median: 12.55%
Q1: 9.24%
Min: -0.65%

Largest peers

NEE: 29.37%
NGG: 18.32%
AEP: 16.29%
DUK: 15.71%
SO: 14.46%
SRE: 14.43%
CEG: 12.69%

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 Profit Margin (TTM)

Southern Company (SO) turns 25.82% 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

25.82%

Group distribution

Max: 43.52%
Q3: 30.09%
SO: 25.82%
Median: 23.50%
Q1: 16.61%
Min: 0.00%

Largest peers

NGG: 32.60%
SRE: 30.62%
NEE: 30.18%
SO: 25.82%
DUK: 25.51%
AEP: 23.74%
CEG: 21.86%

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 at a Glance

Southern Company (SO) metric values compared with Utilities industry-group medians
Metric	Current stock: SO	Industry group median
Return on Equity (TTM)	10.99%	9.46%
Return on Assets (TTM)	3.24%	2.96%
Net Profit Margin (TTM)	14.46%	12.55%
Operating Profit Margin (TTM)	25.82%	23.50%
Gross Profit Margin (TTM)	48.00%	43.69%

Financial Strength

Current Ratio (MRQ)

Southern Company (SO) has current ratio of 0.65, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

SO

Utilities industry group

0.65

Group distribution

Max: 1.88
Q3: 1.16
Median: 0.90
Q1: 0.65
SO: 0.65
Min: 0.33

Largest peers

SRE: 1.69
CEG: 1.36
NGG: 0.76
DUK: 0.66
SO: 0.65
NEE: 0.54
AEP: 0.53

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-to-Equity Ratio (MRQ)

Southern Company (SO) has debt-to-equity ratio of 1.90, 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

1.90

Group distribution

Max: 3.02
SO: 1.90
Q3: 1.81
Median: 1.34
Q1: 0.85
Min: 0.00

Largest peers

SO: 1.90
DUK: 1.61
AEP: 1.57
NEE: 1.57
NGG: 1.21
SRE: 0.85
CEG: 0.66

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 at a Glance

Southern Company (SO) metric values compared with Utilities industry-group medians
Metric	Current stock: SO	Industry group median
Current Ratio (MRQ)	0.65	0.90
Debt-to-Equity Ratio (MRQ)	1.90	1.34
Net Debt / EBITDA	5.37	5.41

Dividends

Dividend Yield (TTM)

Southern Company (SO) has dividend yield of 3.23%, 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

3.23%

Group distribution

Max: 6.25%
Q3: 3.95%
SO: 3.23%
Median: 3.10%
Q1: 2.33%
Min: 0.00%

Largest peers

NGG: 3.96%
DUK: 3.41%
SO: 3.23%
AEP: 2.94%
NEE: 2.90%
SRE: 2.85%
CEG: 0.67%

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 75.70%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

SO

Utilities industry group

75.70%

Group distribution

Max: 116.67%
SO: 75.70%
Q3: 73.40%
Median: 58.69%
Q1: 36.87%
Min: 0.00%

Largest peers

SRE: 88.18%
SO: 75.70%
NGG: 71.18%
DUK: 65.23%
NEE: 58.95%
AEP: 55.62%
CEG: 13.81%

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.

Dividends at a Glance

Southern Company (SO) metric values compared with Utilities industry-group medians
Metric	Current stock: SO	Industry group median
Dividend Yield (TTM)	3.23%	3.10%
Dividend Payout Ratio (TTM)	75.70%	58.69%