SO Utilities

The Southern Company

$93.75-0.91%

Price as of close on Nov 3, 2026 · Financials updated Oct 10, 2026

Basics

Sector: Utilities
Industry: Utilities - Regulated Electric
Country: United States
Market cap: 107.8B USD
Enterprise value: 177.5B USD
Full-time employees: 29,502

Overall health

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: less short-term liquidity (current ratio 0.79 vs a peer median of 1.03)less liquidity (current ratio 0.79 vs peers 1.03)
Drawback: more debt relative to equity (1.79× vs a peer median of 1.19×)more debt vs equity (1.79× vs peers 1.19×)
About average: profitability, growth and risk (debt, liquidity and share-price swings)profitability, growth and risk

Ranks #193 of 348 utilities companies (bottom 45%)

See how it ranks against its peers

Worth knowing

Profitable, but burning cash. Reports a profit, but free cash flow is negative.
Southern reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.
Paying shareholders without free cash flow. Paid out $9.0B over the 3 fiscal years to 2025 with -$3.6B of free cash flow.
Southern returned $9.0B in buybacks and dividends over three fiscal years while its free cash flow totalled -$3.6B. The money came from its cash pile or from borrowing.
Investment surge. Capital spending 43% of revenue, up from 27% in 2022.
Southern is spending 43% of revenue on facilities and equipment, up from 27% in 2022. That weighs on free cash flow today; whether it pays off depends on the returns those investments earn.
Profits growing faster than sales. Since 2022: revenue +0.9%, operating profit +36%.
Since 2022, Southern's revenue grew 0.9% while operating profit grew 36%: each extra dollar of sales is adding more profit.

StockQuotient Score

47/ 100▲ 1 since Oct 27 close

Oct 5 48 → Nov 4 47 (-1)

Valuation

Is the price right?

37/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield4.3%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score -0.17Sector median: 0.0485 · MAD: 0.0319

EBITDA yield7.6%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score -0.41Sector median: 0.0859 · MAD: 0.0250

Free cash flow yield-3.0%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingNegative (a loss or cash outflow), so it counts as zero whatever the share price20% base weight · Z-score 0.00Sector median: 0.0000 · MAD: 0.0000

Other data (not scored)

Book yield39.3%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.6310 · MAD: 0.2684

Growth

Is it growing?

55/100

Moderate▲ 1 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major change

Why it changed since the Oct 27, 2026 close: Score 54 → 55

Peer companies moved+1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Helped by:

▲ Revenue growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth4.0%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.13Sector median: 0.0172 · MAD: 0.1791

3-year revenue growth3.0%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 0.19Sector median: 0.0196 · MAD: 0.0523

Revenue growth6.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.54Sector median: 0.0254 · MAD: 0.0681

Profitability

Does it earn well?

55/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Helped by:

▲ Operating margin

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin24.2%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.64Sector median: 0.1864 · MAD: 0.0865

Return on assets2.9%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.18Sector median: 0.0266 · MAD: 0.0124

Return on invested capital5.0%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.09Sector median: 0.0524 · MAD: 0.0237

Other data (not scored)

Gross margin48.3%

Yahoo Finance fallback · SEC figure unavailable or out of date · trailing 12 monthsReported valueInformational · 0% composite weightSector median: 0.3581 · MAD: 0.1545

Return on equity11.0%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0807 · MAD: 0.0381

Risk

Debt, liquidity, price swings

Moderate

Moderate relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why it changed since the Oct 27, 2026 close: Safety percentile 39 → 40

Peer companies moved+1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Mixed versus peers:

▲ Beta
▼ Debt / equity
▼ Current ratio

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.30

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score 0.91Sector median: 0.4590 · MAD: 0.1730

Current ratio0.79×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.68Sector median: 1.0330 · MAD: 0.3620

Debt / equity1.79×

SEC filings · latest balance sheetReported value33% base weight · Z-score -1.13Sector median: 1.1925 · MAD: 0.5265

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Southern

Is Southern getting weaker?: Its latest SEC filing (Jul 30, 2026) showed no major changes. Its overall score is 47/100, up 1 since Oct 28, 2026.
How is Southern valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 37/100 against 360 utilities peers. EBITDA yield 7.6% vs a peer median of 8.6% (weaker than 63% of peers).EBITDA yield 7.6% vs peers 8.6% (weaker than 63% of peers).
Is Southern growing?: At about the same pace as its peers. Growth scores 55/100 against 360 utilities peers. Revenue growth 6.3% vs a peer median of 2.5% (stronger than 64% of peers).Revenue growth 6.3% vs peers 2.5% (stronger than 64% of peers).
How profitable is Southern?: About as profitable as its peers. Profitability scores 55/100 against 360 utilities peers. Operating margin 24.2% vs a peer median of 18.6% (stronger than 70% of peers).Operating margin 24.2% vs peers 18.6% (stronger than 70% of peers).
How risky is Southern?: Moderate risk relative to 360 utilities peers, judged on debt, liquidity and share-price swings. Beta 0.30 vs a peer median of 0.46 (stronger than 73% of peers).Beta 0.30 vs peers 0.46 (stronger than 73% of peers). Debt / equity 1.79× vs a peer median of 1.19× (weaker than 77% of peers).Debt / equity 1.79× vs peers 1.19× (weaker than 77% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Jul 30, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	30.2B USD	30.2B USD	+0.0%
Net income (12 months)	4.4B USD	4.7B USD	+6.8%
Operating margin	24.2%	24.2%	+0.0 pts
Free cash flow (12 months)	−3.5B USD	−3.3B USD	−5.7%
Debt	74.5B USD	75.6B USD	+1.4%
Cash	981.0M USD	3.0B USD	+204.2%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Utilities - Regulated Electric · 29 companies

Valuations in Utilities - Regulated Electric are above their usual range since 2016.

67% of months since 2016 were valued lower than now.
24% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +18% and earnings +20% (medians): prices and earnings moved broadly together.
Median price-to-sales is +1% vs the whole market, against a usual +1%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Operating margin	15.8%	18.3%	23.1%	26.4%	24.7%	▼ 1.8 pts
Net margin	9.8%	11.7%	15.7%	16.4%	14.7%	▼ 1.8 pts
Return on assets (ROA)	1.8%	2.5%	2.9%	3.0%	2.8%	▼ 0.2 pts
Return on equity (ROE)	8.3%	11.3%	12.6%	13.3%	12.1%	▼ 1.2 pts
Free cash flow margin	-6.0%	-5.5%	-6.1%	3.1%	-9.9%	▼ 13 pts
Current ratio	0.82×	0.66×	0.77×	0.67×	0.65×	▼ 3.3%
Debt to equity	1.93×	1.89×	1.97×	1.95×	2.02×	▲ 3.3%

SO price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

Drawback: less short-term liquidity (current ratio 0.79 vs a peer median of 1.03)less liquidity (current ratio 0.79 vs peers 1.03)

Drawback: more debt relative to equity (1.79× vs a peer median of 1.19×)more debt vs equity (1.79× vs peers 1.19×)

About average: profitability, growth and risk (debt, liquidity and share-price swings)profitability, growth and risk

Ranks #193 of 348 utilities companies (bottom 45%)

See how it ranks against its peers

Worth knowing

Profitable, but burning cash. Reports a profit, but free cash flow is negative.

Southern reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.

Paying shareholders without free cash flow. Paid out $9.0B over the 3 fiscal years to 2025 with -$3.6B of free cash flow.

Southern returned $9.0B in buybacks and dividends over three fiscal years while its free cash flow totalled -$3.6B. The money came from its cash pile or from borrowing.

Investment surge. Capital spending 43% of revenue, up from 27% in 2022.

Southern is spending 43% of revenue on facilities and equipment, up from 27% in 2022. That weighs on free cash flow today; whether it pays off depends on the returns those investments earn.

Profits growing faster than sales. Since 2022: revenue +0.9%, operating profit +36%.

Since 2022, Southern's revenue grew 0.9% while operating profit grew 36%: each extra dollar of sales is adding more profit.

Questions investors ask about Southern

Is Southern getting weaker?

Its latest SEC filing (Jul 30, 2026) showed no major changes. Its overall score is 47/100, up 1 since Oct 28, 2026.

How is Southern valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 37/100 against 360 utilities peers. EBITDA yield 7.6% vs a peer median of 8.6% (weaker than 63% of peers).EBITDA yield 7.6% vs peers 8.6% (weaker than 63% of peers).

Is Southern growing?

At about the same pace as its peers. Growth scores 55/100 against 360 utilities peers. Revenue growth 6.3% vs a peer median of 2.5% (stronger than 64% of peers).Revenue growth 6.3% vs peers 2.5% (stronger than 64% of peers).

How profitable is Southern?

About as profitable as its peers. Profitability scores 55/100 against 360 utilities peers. Operating margin 24.2% vs a peer median of 18.6% (stronger than 70% of peers).Operating margin 24.2% vs peers 18.6% (stronger than 70% of peers).

How risky is Southern?

Moderate risk relative to 360 utilities peers, judged on debt, liquidity and share-price swings. Beta 0.30 vs a peer median of 0.46 (stronger than 73% of peers).Beta 0.30 vs peers 0.46 (stronger than 73% of peers). Debt / equity 1.79× vs a peer median of 1.19× (weaker than 77% of peers).Debt / equity 1.79× vs peers 1.19× (weaker than 77% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

30.2B USD

30.2B USD

+0.0%

Net income (12 months)

4.4B USD

4.7B USD

+6.8%

Operating margin

24.2%

24.2%

+0.0 pts

Free cash flow (12 months)

−3.5B USD

−3.3B USD

−5.7%

Debt

74.5B USD

75.6B USD

+1.4%

Cash

981.0M USD

3.0B USD

+204.2%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Operating margin

15.8%

18.3%

23.1%

26.4%

24.7%

▼ 1.8 pts

Net margin

9.8%

11.7%

15.7%

16.4%

14.7%

▼ 1.8 pts

Return on assets (ROA)

1.8%

2.5%

2.9%

3.0%

2.8%

▼ 0.2 pts

Return on equity (ROE)

8.3%

11.3%

12.6%

13.3%

12.1%

▼ 1.2 pts

Free cash flow margin

-6.0%

-5.5%

-6.1%

3.1%

-9.9%

▼ 13 pts

Current ratio

0.82×

0.66×

0.77×

0.67×

0.65×

▼ 3.3%

Debt to equity

1.93×

1.89×

1.97×

1.95×

2.02×

▲ 3.3%