Southern Company (The)

Valuation Analysis

About the Company

The Southern Company, through its subsidiaries, engages in the sale of electricity. The company offers electric service to retail customers and wholesale customers; and energy-related products and services to natural gas choice markets. It also develops, constructs, acquires, owns, operates, and manages power generation assets, as well as battery energy storage projects; sells electricity at market-based rates in the wholesale market; and deploys microgrids for commercial, industrial, governmental, and utility customers. In addition, the company is involved in the distribution of natural gas in Illinois, Georgia, Virginia, and Tennessee; distributes energy and resilience solutions; and invests in telecommunications. The Southern Company was incorporated in 1945 and is headquartered in Atla

Southern Company (The) Stock at a Glance

Southern Company (The) (SO) is currently trading at $94.00 with a market capitalization of $106B. The trailing P/E ratio stands at 24.04x, with a forward P/E of 19.12x. The 52-week range spans from $83.80 to $100.84; the current price is 6.8% below the yearly high. Year-over-year revenue growth stands at +8.0%. The net profit margin stands at 14.46%.

💰 Dividend

Southern Company (The) pays an annual dividend of $3.04 per share, representing a yield of 3.23%. The payout ratio stands at 75.7%.

📊 Analyst Rating

19 analysts rate Southern Company (The) (SO) on consensus: Hold. The average price target is $101.34, implying +7.81% from the current price. Analyst price targets range from $81.00 to $114.00.

Southern Company (The): The Investment Case in Detail

Southern Company (The) (SO) operates in the Utilities — specifically Utilities - Regulated Electric — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

The combination of a 48% gross margin and 25.82% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

What to Watch Next

• The forward P/E of 19.12x is meaningfully below the trailing 24.04x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, higher leverage relative to equity.

Trading Data

💵 Dividend Info

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