Southern Company (SO) Stock Analysis

October 26, 2026

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 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	106.86 billion USD
Currency	USD
Exchange	NYSE
Listing Date	December 31, 1981
Security Type	Common Stock

Price 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.

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
Metric	Current stock: SO	Industry group median
Total Return (1Y)	-0.20%	1.95%
Total Return (3Y, Annualized)	16.33%	16.37%
Total Return (5Y, Annualized)	12.12%	7.53%

Risk Profile

Drawdown History

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.

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
Metric	Current stock: SO	Industry group median
Volatility (1Y, Annualized)	17.92%	21.53%
Beta (5Y)	0.31	0.54
Max Drawdown (5Y)	-23.28%	-36.85%

Risk-Adjusted Performance

Risk-Return Positioning

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
Metric	Current stock: SO	Industry group median
Sharpe Ratio (1Y)	-0.26	-0.07
Sortino Ratio (1Y)	-0.38	-0.11

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: 11.89%
SO: 11.48%
Median: 9.47%
Q1: 7.62%
Min: 2.49%

Largest peers

CEG: 15.06%
NEE: 14.06%
SO: 11.48%
AEP: 10.13%
DUK: 9.86%
NGG: 8.41%
D: 8.28%

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: 26.86%
Q3: 16.49%
SO: 15.44%
Median: 12.58%
Q1: 8.58%
Min: -1.02%

Largest peers

NEE: 40.37%
NGG: 18.32%
DUK: 16.00%
SO: 15.44%
D: 13.99%
AEP: 13.78%
CEG: 11.08%

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 29.61% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

SO

Utilities industry group

29.61%

Group distribution

Max: 46.87%
SO: 29.61%
Q3: 27.04%
Median: 21.61%
Q1: 13.62%
Min: -4.80%

Largest peers

NEE: 33.00%
NGG: 32.60%
SO: 29.61%
D: 29.22%
DUK: 27.50%
AEP: 23.25%
CEG: 8.66%

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
Metric	Current stock: SO	Industry group median
ROE (TTM)	11.48%	9.47%
ROA (TTM)	3.27%	3.00%
Net Margin (TTM)	15.44%	12.58%
Operating Margin (TTM)	29.61%	21.61%
Gross Margin (TTM)	48.29%	43.98%

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.

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.

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
Metric	Current stock: SO	Industry group median
Revenue Growth (YoY)	10.59%	8.57%
Revenue Growth (3Y CAGR)	0.31%	3.85%
EPS Growth (YoY)	-1.75%	3.93%
EPS Growth (3Y CAGR)	6.34%	5.04%

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: 1.71
Q3: 1.14
Median: 0.86
SO: 0.79
Q1: 0.61
Min: 0.32

Largest peers

CEG: 1.46
D: 0.81
SO: 0.79
NGG: 0.76
DUK: 0.66
NEE: 0.53
AEP: 0.50

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: 2.63
SO: 1.82
Q3: 1.78
Median: 1.35
Q1: 0.84
Min: 0.00

Largest peers

SO: 1.82
DUK: 1.62
AEP: 1.61
D: 1.60
NEE: 1.53
NGG: 1.21
CEG: 0.76

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
Metric	Current stock: SO	Industry group median
Current Ratio (MRQ)	0.79	0.86
Debt / Equity (MRQ)	1.82	1.35
Net Debt / EBITDA	5.20	5.33

Dividends

Dividend Yield (TTM)

Southern Company (SO) has dividend yield of 3.18%, 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

3.18%

Group distribution

Max: 5.98%
Q3: 3.83%
SO: 3.18%
Median: 2.97%
Q1: 2.06%
Min: 0.00%

Largest peers

D: 4.08%
DUK: 3.40%
SO: 3.18%
NEE: 2.97%
AEP: 2.89%
CEG: 0.64%
NGG: 0.59%

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%, 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

71.81%

Group distribution

Max: 108.33%
SO: 71.81%
Q3: 70.27%
Median: 57.65%
Q1: 31.45%
Min: 0.00%

Largest peers

D: 92.39%
NGG: 71.97%
SO: 71.81%
AEP: 65.51%
DUK: 64.16%
NEE: 43.89%
CEG: 15.92%

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
Metric	Current stock: SO	Industry group median
Dividend Yield (TTM)	3.18%	2.97%
Dividend Payout Ratio (TTM)	71.81%	57.65%

Valuation

P/E Ratio (TTM)

Southern Company (SO) trades at P/E ratio of 22.38, 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

22.38

Group distribution

Max: 35.50
Q3: 23.33
SO: 22.38
Median: 20.75
Q1: 15.19
Min: 4.49

Largest peers

CEG: 24.78
D: 22.56
AEP: 22.48
SO: 22.38
DUK: 18.82
NGG: 18.65
NEE: 14.79

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 3.54 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

3.54

Group distribution

Max: 6.19
Q3: 3.56
SO: 3.54
Median: 2.80
Q1: 1.57
Min: 0.00

Largest peers

NEE: 5.97
NGG: 4.65
SO: 3.54
D: 3.16
AEP: 3.10
DUK: 2.97
CEG: 2.87

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 2.70 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

2.70

Group distribution

Max: 3.02
SO: 2.70
Q3: 2.19
Median: 1.82
Q1: 1.40
Min: 0.28

Largest peers

NGG: 9.28
CEG: 2.82
NEE: 2.80
SO: 2.70
AEP: 2.20
D: 2.05
DUK: 1.81

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
Metric	Current stock: SO	Industry group median
P/E Ratio (TTM)	22.38	20.75
P/S Ratio (TTM)	3.54	2.80
P/B Ratio (MRQ)	2.70	1.82
Free Cash Flow Yield (TTM)	-3.66%	-6.35%