Bedrijfsoverzicht
The Southern Company operates as a major utility provider through its subsidiaries, primarily engaging in the sale of electricity to both retail and wholesale customers while also offering energy-related products and services in natural gas choice markets. This entity functions within the Utilities sector, specifically under the industry classification of Regulated Electric Utilities, which implies operations subject to government regulation regarding rates and service obligations. The company employs a substantial workforce of 29,502 individuals, reflecting its significant operational footprint across the region it serves. Although specific market capitalization data is not currently available in the provided facts, the company's annual revenue of $29.55 billion establishes it as a large-cap entity with a dominant position in the regulated electric utility market.
Financiële gezondheid
The company reported a trailing twelve-month revenue of $29.55 billion, generating net income of $4.34 billion and EBITDA of $13.93 billion. The substantial gap between the $29.55 billion in revenue and the $4.34 billion in net income highlights a cost structure where operating expenses, including cost of goods sold and general administrative costs, consume a significant portion of gross receipts before reaching the bottom line. However, the EBITDA figure of $13.93 billion indicates strong operating cash generation capabilities before interest, taxes, depreciation, and amortization are deducted. Despite the positive operating earnings, the free cash flow stands at -$3.46 billion, suggesting that capital expenditures required to maintain or expand the utility infrastructure exceed the cash generated from operations in this period. The balance sheet reflects a leveraged position with total debt of $74.07 billion against cash holdings of $1.64 billion, resulting in a debt-to-equity ratio of 190.59. This high leverage ratio indicates that the company relies heavily on borrowed capital to fund its asset base, which is typical for capital-intensive utility firms but requires steady cash flows to service. The current ratio of 0.65 suggests that current assets do not fully cover current liabilities, indicating a reliance on long-term financing or operating cash flows to meet short-term obligations. Management effectiveness is further quantified by a return on equity of 11.0% and a return on assets of 3.3%, showing that shareholders receive a decent return on their invested capital while the overall asset base yields a lower return due to the high capital intensity of the business.
Waarderingsbeoordeling
Trailing P/E and forward P/E ratios are not available in the current dataset, preventing a direct comparison of market expectations regarding future earnings growth versus historical performance. The price-to-book ratio stands at 1.62, indicating that the market values the company at 62% above its book value, which may reflect the premium placed on regulated utility assets and their stable cash flow profiles. Alternative valuation metrics such as the price-to-sales ratio are not currently disclosed, but the EV/EBITDA stands at 9.59, providing a multiple based on enterprise value relative to earnings before interest, taxes, depreciation, and amortization. The stock has traded between a 52-week low of $47.87 and a 52-week high of $53.99, establishing a trading range of approximately $6.12. While the exact current price is not explicitly stated in the facts to calculate a precise percentage deviation, the trading range indicates a relatively narrow band of volatility over the past year. The beta value is 0.41, which signifies that the stock price is significantly less volatile than the broader market, moving at roughly 59% of the market's amplitude. This low beta characteristic is consistent with the defensive nature of utility stocks, which tend to offer stability rather than high growth potential in varying market conditions.
Growth & Income
Revenue growth year-over-year has accelerated to 10.1%, driven by factors such as rate adjustments or regulatory approvals, whereas earnings growth year-over-year has contracted to -22.1%. This divergence implies that while top-line sales are expanding, underlying profitability is under pressure, potentially due to rising fuel costs, increased maintenance expenses, or one-time charges impacting the net income calculation. The provided facts do not include specific dividend yield or payout ratio data, as these metrics are listed as N/A, indicating that the company either does not pay a regular dividend or that the specific payout metrics are not currently reported. Consequently, the company appears to reinvest earnings into infrastructure growth and capital projects rather than distributing a consistent portion of profits to shareholders in the form of dividends. The overall growth and income profile presents a scenario of expanding revenue volumes coupled with significant earnings compression and a capital-intensive environment where cash is prioritized for asset maintenance and expansion over dividend distribution.