Bedrijfsoverzicht
The Southern Company operates primarily through its subsidiaries to engage in the sale of electricity, offering electric services to both retail and wholesale customers while also providing energy-related products and services within natural gas choice markets. This entity functions within the Utilities sector and specifically the Regulated Electric industry, a classification that implies operations subject to government regulation regarding rates and service obligations. The company demonstrates significant scale with a market capitalization of $109.52B and annual revenue reaching $29.55B, supported by a workforce of 29502 employees. These valuation and revenue figures indicate that the Southern Company holds a substantial position as a major player in the regulated utility landscape, commanding a massive market presence that reflects its extensive infrastructure and customer base.
Financiële gezondheid
The company reported a revenue of $29.55B and net income of $4.34B over the trailing twelve months, with an EBITDA figure of $13.93B. The substantial gap between the $29.55B revenue and the $4.34B net income reveals a significant cost structure, where operating expenses, including cost of goods sold and administrative costs, consume a large portion of top-line earnings before reaching the bottom line. Free cash flow stands at $-3,460,124,928, indicating a negative cash generation relative to capital expenditures or working capital changes, which suggests limited financial flexibility for discretionary spending or large-scale internal reinvestment without external funding. The gross margin is 48.5%, showing the efficiency of production costs relative to sales; the operating margin is 12.7%, reflecting operational efficiency after covering operating expenses; and the profit margin is 14.7%, representing the final profitability after all expenses including interest and taxes. On the balance sheet, total cash amounts to $1.64B while total debt reaches $74.07B, accompanied by a debt-to-equity ratio of 190.59, which indicates a highly leveraged balance sheet typical of capital-intensive utility sectors. The current ratio is 0.65, suggesting that current assets are insufficient to cover current liabilities without relying on external financing or asset sales to maintain short-term liquidity. Return on Equity is 11.0% and Return on Assets is 3.3%, metrics that reveal management's effectiveness in generating profits from shareholder equity and utilizing the company's asset base respectively.
Waarderingsbeoordeling
The trailing P/E ratio is 24.78, whereas the forward P/E is 19.76, a difference that implies the market expects earnings to increase in the future to justify the lower forward multiple. The price-to-book ratio is 3.02, indicating that the market values the company at a significant premium over its book value, likely reflecting the intangible value of its regulated monopoly status and stable cash flows. Alternative valuation metrics include a price-to-sales ratio of 3.71 and an EV/EBITDA of 13.21, suggesting how investors value the company relative to its sales and earnings before interest, taxes, depreciation, and amortization. The 52-week high is $100.84 and the 52-week low is $83.09, placing the current trading range within a specific band that reflects recent market volatility and investor sentiment over the past year. The beta value is 0.41, meaning the stock exhibits low price volatility relative to the broader market, making it less sensitive to general market swings compared to the average equity.
Growth & Income
Revenue growth over the year is 10.1%, while earnings growth is -22.1%, indicating that earnings are growing slower than revenue, specifically declining, which implies that costs or one-time charges may have disproportionately impacted profitability despite top-line expansion. As a dividend payer, the company offers a dividend yield of 3.0% with a payout ratio of 75.0%, a level that requires careful monitoring given the negative free cash flow and declining earnings to ensure the payout remains sustainable. Since the earnings growth is negative at -22.1%, the current dividend sustainability relies heavily on the company's cash reserves and access to capital markets rather than organic earnings generation alone. The overall growth and income profile presents a scenario of moderate revenue expansion offset by significant earnings contraction, supported by a substantial dividend yield that appeals to income-focused investors seeking stability despite the leveraged capital structure.